Recent Updates — RYM

RYTHM, Inc. reported third-quarter 2026 financial results showing revenue from continuing operations increased 4% sequentially to $23.9 million, driven by a 15% rise in hemp-derived product sales to $6.4 million. The company generated $6.3 million in cash flow from operations and ended the quarter with $48.2 million in cash. Adjusted EBITDA was $5.9 million, down from $6.4 million in the prior quarter, while operating income stood at $1.0 million. THC beverage depletions grew approximately 15% sequentially to an annualized run rate of 320,000 cases across roughly 8,000 retail doors. The company is not providing a fourth-quarter outlook due to impending federal regulatory changes affecting hemp-derived THC products effective December 11, 2026. RYTHM operates in the cannabis and hemp industry, manufacturing and distributing branded THC beverages and edibles.

RYTHM, Inc.'s subsidiary VCP IP Holdings and GTI Core, an indirect wholly owned subsidiary of Green Thumb Industries, entered into an amendment to their existing Trademark and Recipe License Agreement dated August 27, 2025. The Amendment adds the Company’s Señorita brand to the intellectual property licensed to GTI Core in anticipation of upcoming changes to federal law governing hemp-derived THC products. Under the terms, if legally permitted consistent with Nasdaq listing standards, RYTHM will have exclusive rights to commercialize the Señorita brand outside state-regulated dispensary channels, while GTI Core’s rights remain limited to those channels. As consideration for these additional license rights, the base licensing fees under the agreement increased by $250,000 per year. Green Thumb is an indirect owner of approximately 32% of RYTHM's outstanding common stock and holds the right to acquire additional shares that could increase its beneficial ownership to approximately 90%. RYTHM, Inc. operates in the cannabis technology sector, providing software solutions for the regulated cannabis industry.

RYTHM, Inc. entered into an amendment agreement with RSLGH LLC and Vision Management Services LLC, subsidiaries of Green Thumb Industries, to remove beneficial ownership limitations on outstanding secured convertible notes ($72 million principal) and pre-funded warrants (9.73 million shares). Consequently, RSLGH’s beneficial ownership increased from 49.99% to approximately 89.9%, triggering a change in control under Item 5.01. The total consideration for these securities was $109.5 million, funded by Green Thumb's working capital and accrued interest/fees. Shareholders approved the issuance at a special meeting on August 10, 2026. The amendment becomes effective October 10, 2026. RYTHM, Inc. operates in the cannabis industry, providing technology solutions for cultivation and retail operations.

RYTHM, Inc. reported second quarter 2026 financial results for the period ended June 30, 2026. Revenue from continuing operations reached $23.0 million, a 73% increase from the prior quarter's $13.3 million. The company posted net income of $1.2 million and adjusted EBITDA of $6.4 million, compared to approximately breakeven in the previous quarter. Cash balances increased to $41.9 million, supported by $8.7 million in operating cash flow. THC beverage depletions hit a record 25,000 cases in June. The company is not providing third-quarter guidance due to regulatory uncertainty surrounding federal hemp-derived THC laws effective November 12, 2026. RYTHM, Inc. operates in the cannabis and hemp industry, manufacturing and distributing branded THC beverages and edibles.

On June 16, 2026, stockholders approved an amendment to the 2022 Omnibus Equity Incentive Plan to increase the number of Common Stock shares available for issuance by 115,000 shares. At the 2026 Annual Meeting, stockholders also elected eight directors for one-year terms and ratified the appointment of GuzmanGray as the independent registered public accounting firm for the fiscal year ending December 31, 2026. RYTHM, Inc. operates in the technology sector providing software and services for the music and entertainment industry.