RYTHM reported third quarter 2026 revenue of $23.9 million, a 4% sequential increase, alongside a net loss of $0.5 million. The company generated $6.3 million in operating cash flow while expanding its retail footprint to approximately 8,000 doors across 18 states. Despite the sequential momentum, the company faces material regulatory uncertainty due to pending federal law changes affecting hemp-derived products scheduled for December 2026.
Key Highlights
- Hemp-derived product revenue reached $6.4 million, representing 15% sequential growth and serving as a primary driver of top-line gains.
- THC beverage depletions climbed 15% quarter-over-quarter to an annualized run rate of 320,000 cases.
- Pending federal and state regulatory changes effective December 11, 2026, could prohibit the sale of the company's current hemp-derived formulations in their existing form.
- Green Thumb Industries will consolidate the company's results beginning October 10, 2026, following the removal of beneficial ownership limitations.