Rhythm Pharmaceuticals Inc (NASDAQ:RYTM) Reports Mixed Q2 2025 Earnings: Revenue Beat Overshadowed by Wider Losses

Rhythm Pharmaceuticals Inc (NASDAQ:RYTM) reported its second-quarter 2025 financial results, delivering mixed performance relative to analyst expectations. The company's revenue exceeded estimates, but its earnings per share (EPS) fell short, contributing to a pre-market decline of approximately 5.65%.

Key Financial Highlights

• Revenue: Reported at $48.5 million, surpassing the consensus estimate of $44.5 million, reflecting strong global sales of its flagship drug, IMCIVREE® (setmelanotide).
• Earnings Per Share (EPS): Posted a loss of $0.75 per share, worse than the estimated $0.69 loss.
• Pre-Market Reaction: The stock dropped nearly 5.7%, suggesting investor disappointment with the wider-than-expected loss despite the revenue beat.

Business Updates

The company reaffirmed its regulatory progress, stating that U.S. and EU submissions for setmelanotide in acquired hypothalamic obesity remain on track for completion in Q3 2025. This could represent a significant expansion of the drug’s market potential if approved.

Market Performance Context

• Short-Term: The stock has seen moderate gains over the past month (+35.9%) but has been relatively flat over the past two weeks (+1.8%) and last week (+5.3%).
• Longer-Term Outlook: Analysts project full-year 2025 sales at $179.4 million, with Q3 revenue estimates set at $48.0 million—slightly below Q2’s actuals. The full-year EPS estimate stands at -$2.83, indicating continued losses.

Conclusion

While Rhythm Pharmaceuticals demonstrated solid revenue growth, the widening losses appear to have unsettled investors, leading to a negative pre-market reaction. The company’s regulatory progress remains a key factor for future valuation, particularly as it seeks to expand setmelanotide’s indications.

For more detailed earnings estimates and historical performance, visit Rhythm Pharmaceuticals' earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.