RYTHM, Inc. (formerly Agrify Corporation) reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2025. The company generated total revenue of $4.0 million for the three months ended September 30, 2025, a notable increase from zero revenue in the same period last year. For the nine months ending September 30, 2025, total revenue reached $6.6 million, compared to no revenue during the same period in 2024. The revenue growth is attributed to the acquisition of the Señorita brand of hemp-derived THC beverages in December 2024 and the acquisition of MC Brands in May 2025.
Despite the revenue increase, RYTHM reported a net loss of $10.7 million for the third quarter of 2025, compared to a net loss of $18.7 million in the same quarter of 2024. The loss from continuing operations was $10.6 million, which included $1.1 million in interest expenses primarily related to convertible notes. The company’s selling, general, and administrative expenses surged to $10.3 million for the quarter, up from $1.2 million in the prior year, largely due to increased marketing and operational costs associated with its expanding product lines.
Operationally, RYTHM has made strategic moves to enhance its market presence. The company has focused on expanding its portfolio of hemp-derived products, which now includes several licensed brands. The Señorita brand, known for its THC-infused beverages, is available in eleven U.S. states and Canada, with plans for further geographic expansion. The company also reported a significant increase in its inventory, which rose to $4.6 million from $500,000 at the end of 2024, reflecting its commitment to meet growing consumer demand.
In terms of financial health, RYTHM's total assets increased to $115.2 million as of September 30, 2025, up from $54.0 million at the end of 2024. This growth was primarily driven by the acquisition of intangible assets related to its new product lines. However, the company also reported total liabilities of $103.4 million, significantly higher than the $25.9 million reported at the end of 2024, largely due to the issuance of convertible notes and related party debts. The company’s stockholders' equity decreased to $11.7 million from $28.1 million, reflecting ongoing operational losses.
Looking ahead, RYTHM aims to leverage its recent acquisitions to drive revenue growth and improve profitability. The company is focused on expanding its distribution channels and enhancing its product offerings in the hemp-derived market. However, it acknowledges the challenges posed by market conditions and the need for effective management of its operational costs to achieve sustainable growth.
About Agrify Corp
Agrify Corporation develops hemp-derived THC beverages under its Señorita brand, offering low-sugar, natural ingredient alternatives to alcoholic drinks in U.S. and Canadian markets. It also provides extraction equipment and solutions for licensed cannabis and hemp processors. Agrify’s business model combines branded consumer products with proprietary extraction technologies, targeting licensed cultivators, processors, and adult consumers seeking innovative cannabis and hemp-derived alternatives.
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