RYTHM, Inc. Reports 2,370% Revenue Growth and $19.9 Million Net Income in Latest Quarter

RYTHM, Inc. (formerly Agrify Corporation) reported significant financial performance improvements in its latest quarterly filing for the period ending March 31, 2026. The company generated total revenue of $13.3 million, a substantial increase from $538,000 in the same period last year, marking a 2,370% rise. This growth was primarily driven by the introduction of licensing revenue, which accounted for $10 million, alongside a 515% increase in non-licensing revenue to $3.3 million. The gross profit for the quarter reached $10.4 million, representing 78% of total revenue, compared to just $90,000, or 17%, in the prior year.

In terms of profitability, RYTHM reported a net income of $19.9 million for the quarter, a significant turnaround from a net loss of $1.6 million in the same period of 2025. This positive outcome was largely attributed to a non-cash income tax benefit of $25.6 million resulting from the release of a valuation allowance against deferred tax assets. The company’s operating loss from continuing operations was $4 million, slightly higher than the $3.7 million loss reported in the previous year.

Strategically, RYTHM has made notable changes, including the amendment of its licensing agreements with Green Thumb Industries, transitioning from sales-based royalties to fixed annual fees of $70 million, effective April 1, 2026. This shift is expected to stabilize revenue streams and reduce uncertainty regarding future taxable income. The company also continues to expand its product offerings, particularly in the hemp-derived THC beverage market, with brands like Señorita and RYTHM gaining traction in various U.S. states and Canada.

Operationally, RYTHM's total assets increased to $127.5 million as of March 31, 2026, up from $106.7 million at the end of 2025. The company’s cash and cash equivalents stood at $33.3 million, providing a solid liquidity position. However, total liabilities also rose to $90.9 million, primarily due to increased related party debt, which reached $72 million. The company’s employee headcount remains stable, with no significant changes reported. Looking ahead, RYTHM aims to leverage its licensing agreements and product portfolio to sustain growth, while managing its debt obligations and operational costs effectively.