RYTHM, Inc. (formerly Agrify Corporation) reported a significant increase in revenue for the fiscal year ending December 31, 2025, totaling $17.3 million, compared to just $18,000 in the previous year. This substantial growth was primarily driven by the company's strategic acquisitions of MC Brands and VCP IP Holdings, which contributed to a new revenue stream from licensing agreements. The company’s non-licensing revenue also saw a notable increase, reaching $9.5 million, up from $18, reflecting the transition from its previous cultivation and extraction operations, which are now classified as discontinued.
The company's financial performance showed a gross profit of $10.2 million, representing a gross margin of 59%, a significant turnaround from a gross loss of $71,000 in 2024. However, total operating expenses surged to $42.5 million, up from $5 million in the prior year, largely due to increased selling, general, and administrative expenses, which rose to $34.1 million from $7.2 million. This increase was attributed to heightened marketing efforts and consulting costs associated with the growth of its hemp-derived THC product lines.
In terms of operational metrics, RYTHM's employee count remains low, with the company primarily relying on shared services agreements with Green Thumb Industries for operational support. As of March 3, 2026, RYTHM had only one direct employee and approximately 50 dedicated consultants. The company has also expanded its product offerings, including the Señorita brand of hemp-derived THC beverages, which are now available in 15 U.S. states and Canada, contributing to its market presence.
Looking ahead, RYTHM faces challenges related to its substantial debt, totaling $80 million in convertible notes, which are due by February 2027. The company has indicated that it may need to raise additional capital to support its growth and operational needs. Furthermore, the regulatory landscape poses risks, particularly with the recent amendments to the 2018 Farm Bill that could restrict the commercialization of hemp-derived THC products. Despite these challenges, RYTHM remains optimistic about its growth trajectory, bolstered by its licensing agreements and product diversification strategies.
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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