RYTHM, Inc.

RYTHM, Inc. reported second-quarter 2026 earnings of 9 cents per share, reversing a loss of $3.74 per share a year earlier. Revenue surged to $23 million from $2 million, while net income reached $1.2 million compared with a net loss of $7.4 million. Adjusted EBITDA was $6.4 million versus an adjusted EBITDA loss of $5.5 million. THC beverage depletions hit a record of approximately 25,000 cases in June across 18 states, up from roughly 7,000 cases a year ago. Chairman and Interim CEO Ben Kovler noted that revenues grew 73% sequentially, exceeding prior guidance of 65% growth, driven by momentum in THC beverages and the first full quarter under an amended licensing agreement with Green Thumb Industries.

Green Thumb Industries, a profitable U.S. multistate cannabis operator, may be undervalued with the potential for its stock to double. The Chicago-based company has reported GAAP profitability since 2020 and recently renegotiated its licensing deal with 50%-owned Rythm, switching to a flat fee that increases operating leverage and could drive significant earnings growth. Additional catalysts include a conditional license to operate in Texas' upcoming medical cannabis market and an aggressive share buyback program recently expanded by $100 million, representing about 6% of its total share count. Despite trading at 38.8 times forward earnings, analysts may be underestimating the company's profitability prospects, making it a strong choice for investors bullish on U.S. cannabis legalization.