THC products maker RYTHM sees Q2 revenue up 65% sequentially

RYTHM

05/05/2026 21:16

Corrects KD table to say Q1 EPS was $1.33 not $1.53 and Q1 Adjusted EBITDA was -$21,000 not -$486,000

Overview

U.S. THC products maker's Q1 revenue rose 24% sequentially to $13.3 mln

Net income reached $19.9 mln, driven by a $25.6 mln non-cash tax benefit

Company expects Q2 revenue of about $22 mln, up 65% sequentially

Outlook

RYTHM expects second-quarter 2026 revenue of about $22 mln, up 65% sequentially

Company says consumer demand for THC beverages remains strong despite potential federal hemp ban

RYTHM's amended licensing agreements set fixed annual fees of $70 mln, with inflation-linked increases

Result Drivers

THC BEVERAGE DEMAND - Co said strong consumer demand for THC beverages supported revenue growth

BRAND LEADERSHIP - Co cited leading positions in branded flower and pre-rolls as supporting Q1 performance

LICENSING AGREEMENT - Co said amended licensing deal with Green Thumb Industries provides predictable annual revenue

Company press release: ID:nGNX32X0Vk

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$13.29 mln
Q1 EPS
$1.33
Q1 Net Income
$19.92 mln
Q1 Adjusted EBITDA
-$21,000
Q1 Operating Expenses
$14.43 mln


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)