RYTHM, Inc. Reports 1,027% Revenue Increase and Return to Profitability in Latest Quarter

RYTHM, Inc. (formerly Agrify Corporation) reported significant financial improvements in its latest quarterly results, showcasing a substantial increase in revenue and a return to profitability. For the three months ended June 30, 2026, the company generated total revenue of $23.0 million, a 1,027% increase from $2.0 million in the same period last year. The six-month revenue figures also reflected a similar trend, rising to $36.3 million from $2.6 million in the prior year, driven primarily by the introduction of new licensing agreements and increased sales of hemp-derived THC products.

The company's gross profit for the second quarter reached $18.5 million, representing 80.5% of total revenue, compared to just $682,000, or 33.4% of revenue, in the prior year. This increase in gross profit was attributed to the successful launch of licensing revenue arrangements and a rise in non-licensing revenue, which saw a 208% increase to $5.5 million for the quarter. The company’s operating income from continuing operations was $1.9 million, a notable turnaround from an operating loss of $6.8 million in the same quarter of 2025.

In terms of operational developments, RYTHM has made strategic moves to enhance its market position. The company has focused on expanding its portfolio of hemp-derived products, including the Señorita brand of THC beverages, which are now available in eighteen U.S. states and Canada. Additionally, RYTHM has entered into a partnership with the United Center in Chicago, becoming the venue's official THC sponsor. The company also amended its licensing agreements with Green Thumb Industries, transitioning from sales-based royalties to fixed annual fees, which are expected to provide more predictable revenue streams.

The company’s balance sheet reflects a strong liquidity position, with cash and cash equivalents totaling $41.9 million as of June 30, 2026, up from $32.2 million at the end of 2025. However, RYTHM also carries significant liabilities, including $72 million in related party debt. The company reported a net income of $1.2 million for the second quarter, compared to a net loss of $7.4 million in the same period last year, largely due to a non-cash income tax benefit resulting from the release of a valuation allowance against deferred tax assets.

Looking ahead, RYTHM's management expressed optimism about the company's growth trajectory, citing the expanding market for hemp-derived products and the potential for increased revenue from its licensing agreements. However, the company also acknowledged the regulatory challenges that could impact its operations, particularly concerning the upcoming federal legislation that may restrict the commercialization of certain hemp-derived THC products. The company remains focused on navigating these challenges while leveraging its strategic partnerships and product offerings to drive future growth.