RHYTHM PHARMACEUTICALS INC (NASDAQ:RYTM) reported its third-quarter 2025 financial results, delivering a mixed performance against analyst expectations. The company's revenue narrowly missed consensus estimates while its earnings loss widened beyond projections, creating a complex backdrop for investors.
Earnings and Revenue Performance
Rhythm Pharmaceuticals posted third-quarter 2025 revenue of $51.3 million, falling slightly short of the $51.7 million analysts had anticipated. The company's net loss per share came in at $0.82, which was deeper than the estimated loss of $0.74 per share.
Key financial metrics from the quarter include:
- Product Revenue: $51.3 million, representing 54% year-over-year growth from $33.3 million in Q3 2024
- Research & Development Expenses: $46.0 million, up from $37.9 million in the prior year period
- Selling, General & Administrative Expenses: $52.4 million, increased from $35.4 million year-over-year
- Cash Position: $416.1 million in cash and short-term investments as of September 30, 2025
The revenue growth was primarily driven by increased sales of IMCIVREE for Bardet-Biedl syndrome treatment, though international sales decreased by 21% sequentially due to pricing adjustments in France and variable ordering patterns.
Market Reaction and Price Movement
Following the earnings release, Rhythm Pharmaceuticals shares showed modest positive momentum in pre-market trading with an increase of approximately 1.8%. This upward movement suggests investors may be focusing on the company's long-term growth prospects rather than the quarterly earnings miss. The stock has demonstrated strong performance over the past month, gaining roughly 16%, indicating sustained investor confidence in the company's strategic direction.
Business Highlights and Pipeline Progress
Beyond the financial results, Rhythm achieved several significant regulatory and clinical milestones during the quarter. The Food and Drug Administration accepted the company's supplemental new drug application for setmelanotide in acquired hypothalamic obesity and granted it Priority Review, with a PDUFA goal date set for December 20, 2025. This represents a near-term potential catalyst for the company.
Additional business developments include:
- Four abstracts accepted for presentation at ObesityWeek 2025, highlighting clinical data across multiple indications
- Publication of study results showing setmelanotide treatment associated with improvement in metabolic dysfunction-associated steatotic liver disease and kidney function in Bardet-Biedl syndrome patients
- European Medicines Agency validation of the Type II variation submission for setmelanotide in acquired hypothalamic obesity
Forward Outlook and Analyst Expectations
While Rhythm did not provide specific revenue guidance for the upcoming quarters, the company did update its expense projections, anticipating non-GAAP operating expenses between $295 million and $315 million for full-year 2025. Management expressed confidence that current cash reserves are sufficient to fund operations for at least the next 24 months.
Looking ahead, analysts project fourth-quarter 2025 revenue of approximately $55.7 million with an estimated loss per share of $0.74. For the full year 2025, sales estimates stand at $190.7 million. The company's near-term milestones include preliminary results from the setmelanotide Phase 2 trial in Prader-Willi syndrome expected in the fourth quarter of 2025 and multiple data readouts scheduled for the first quarter of 2026.
For detailed earnings analysis and future estimates, view the complete earnings and estimates page for RYTM.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.
