Persistent cash burn remains a critical concern, with negative free cash flow margins often exceeding -45% of revenue and an OCF/NI ratio hovering near 0.50, suggesting that non-cash expenses like stock-based compensation mask the true operational deficit.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | -75.32M | -115.67M | -113.88M | -136.16M | -173.43M | -146M | -121.98M | -122.75M | -62.06M | -29.46M | -23.22M | -6.98M | -7.51M | -19.16M | -17.83M |
| Operating CF Margin % | - | -60.96% | -87.51% | -175.85% | -733.68% | -4629.14% | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | 79.52% | -1.58% | 16.36% | 21.49% | -18.78% | -19.69% | 0.63% | -97.81% | -110.64% | -26.88% | -232.79% | 7.07% | 60.81% | -7.44% | - |
| Net Income | -203.78M | -196.54M | -260.6M | -184.68M | -181.12M | -69.61M | -134M | -140.73M | -74.06M | -33.71M | -25.87M | -11.07M | -6.49M | -21.43M | -18.13M |
| Depreciation & Amortization | 955K | 1.34M | 1.56M | 1.76M | 1.67M | 1.16M | 690K | 834K | 442K | 223K | 144K | 0 | 0 | 20K | 17K |
| Stock-Based Compensation | 34.69M | 66.82M | 39.68M | 32.55M | 19.83M | 20.8M | 17.45M | 11.88M | 6.39M | 2.28M | 1.17M | 298K | 66K | 127K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -100M | 0 | 0 | 0 | 1.86M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 29.13M | 13.68M | 94.9M | 9.4M | 5.91M | -250K | -234K | 203K | 4.51M | -76K | 11K | 1.42M | -280K | 255K | 82K |
| Working Capital Changes | 6.94M | -968K | 10.57M | 4.81M | -19.72M | 1.9M | -5.89M | 5.07M | 667K | -39K | 1.33M | 2.38M | -801K | 2M | 201K |
| Change in Receivables | -8.26M | -7.57M | -3.65M | -8.64M | -5.2M | -1.25M | 0 | 0 | 0 | 0 | 0 | -60K | 0 | 0 | 0 |
| Change in Inventory | -6.9M | -7.47M | -10.12M | -5.71M | -2.81M | -11K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 25.52M | 21.89M | 21.92M | 14.77M | 1.54M | 18.31M | -6.45M | 10.51M | 6.95M | 1.95M | 467K | 3.84M | 0 | -780K | 1.58M |
| Cash from Investing | -161.97M | -137.15M | -48.17M | -5.67M | 28.03M | -62.16M | 158.53M | -27.97M | -87.15M | -110.04M | -5.11M | -17K | 0 | -5.13M | -5.27M |
| Capital Expenditures | -953K | -953K | 0 | -47K | -4.28M | -5.43M | -214K | -3.38M | -722K | -133K | -1.06M | -17K | 0 | 0 | 0 |
| CapEx % of Revenue | 0.44% | 0.5% | - | 0.06% | 18.11% | 172.29% | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 4M | 100M | 0 | 24.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -40M | -40M | -40.5M | -5.67M | -4M | 7M | 0 | -24.59M | -86.43M | -109.91M | -4.05M | 0 | 0 | 0 | 0 |
| Cash from Financing | 185.46M | 217.96M | 191.24M | 74.37M | 213.83M | 166.48M | 2.01M | 163.47M | 164.69M | 167.2M | 0 | 41.71M | 7.42M | 19.88M | 22.44M |
| Debt Issued (Net) | -5.4M | 0 | -12.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 191.11M | 237.88M | 195.24M | 48.88M | 131.11M | 161.73M | 0 | 161.35M | 162.88M | 166.5M | 0 | 39.62M | 0 | 19.88M | 22.44M |
| Dividends Paid | 0 | 0 | -3.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -244K | -19.92M | 12.87M | 25.49M | 82.72M | 4.75M | 2.01M | 2.12M | 1.81M | 700K | 0 | 2.09M | 7.42M | 0 | 0 |
| Net Change in Cash | -43.75M | -34.78M | 29.19M | -67.6M | 68.43M | -41.68M | 38.56M | 12.75M | 15.48M | 27.7M | -28.33M | 34.72M | -89K | -4.4M | -660K |
| Free Cash Flow | -76.28M | -116.63M | -113.88M | -136.2M | -177.71M | -151.44M | -122.19M | -126.14M | -62.78M | -29.59M | -24.28M | -6.99M | -7.51M | -19.16M | -17.83M |
| FCF Margin % | -35.12% | -61.46% | -87.51% | -175.91% | -751.79% | -4801.43% | - | - | - | - | - | - | - | - | - |
| FCF Growth % | 32.79% | -2.41% | 16.39% | 23.36% | -17.35% | -23.93% | 3.12% | -100.92% | -112.14% | -21.9% | -247.1% | 6.85% | 60.81% | -7.44% | - |
| FCF per Share | -1.12 | -1.79 | -1.87 | -2.36 | -3.41 | -3.05 | -2.77 | -3.46 | -2.02 | -1.11 | -1.45 | -0.69 | -0.74 | -0.38 | -0.35 |
| FCF Conversion (FCF/Net Income) | 0.37x | 0.59x | 0.44x | 0.74x | 0.96x | 2.10x | 0.93x | 0.91x | 0.84x | 0.87x | 0.90x | 0.63x | 1.16x | 0.89x | 0.98x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent operating cash burn
As reported in recent financial filings, the company consistently records net losses significantly larger than its operating cash outflows, with an OCF/NI ratio that frequently hovers near 0.50, suggesting that non-cash expenses like stock-based compensation are masking the true magnitude of the underlying operational cash burn.
The persistent divergence between net income and operating cash flow indicates that accounting losses are being partially mitigated by non-cash charges, yet the cash reality remains deeply negative. Investors should monitor whether this gap narrows as the company scales, or if it merely reflects an increasing reliance on equity-based incentives to preserve liquidity.
Based on the provided quarterly data, Rhythm Pharmaceuticals continues to experience a negative free cash flow trajectory, with margins consistently deep in the negative territory, often exceeding -45% of revenue, which underscores the company's ongoing struggle to achieve self-sustaining cash generation despite its high-growth commercial launch phase.
The lack of positive free cash flow suggests that the current revenue growth is not yet sufficient to cover the heavy infrastructure and R&D costs required for rare disease commercialization. This trajectory warrants caution, as the company remains entirely dependent on external capital to fund its ongoing operations.
According to the cash flow statements, working capital changes have been highly inconsistent, swinging from a $10.2 million inflow in 2024Q4 to a $7.9 million outflow in 2025Q1, indicating that the company's cash conversion cycle remains sensitive to the timing of collections and inventory management.
This volatility suggests that the company has not yet established a predictable rhythm in its cash conversion cycle, which is common for early-stage commercial biotech firms. Such fluctuations may complicate short-term liquidity planning and suggest that management is still optimizing its accounts receivable and payable processes.
As indicated by the financial data, stock-based compensation has been a significant non-cash add-back, reaching as high as $18.8 million in 2025Q3, which effectively obscures the true economic cost of the company's talent acquisition and retention strategy in a competitive biotech labor market.
While stock-based compensation does not impact immediate cash balances, it represents a real economic cost to shareholders through dilution. Analysts should interpret the operating cash flow figures with the understanding that the company's actual cash burn is effectively higher when accounting for the dilution required to fund these non-cash expenses.
Quick answers to the most common questions about buying RYTM stock.
Rhythm Pharmaceuticals, Inc. (RYTM) generated $-115.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Rhythm Pharmaceuticals, Inc. (RYTM) reported negative free cash flow of $116.6M in 2025, indicating capital requirements exceeded cash from operations.
Rhythm Pharmaceuticals, Inc. (RYTM) spent $1.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.