RYTHM, Inc. – A Strategic Pivot Toward the THC Beverage Frontier

A New Identity, a New Mission

On November 7, 2025, RYTHM, Inc. (Nasdaq: RYM), formerly Agrify Corporation, unveiled its third‑quarter 2025 financial results and an aggressive repositioning strategy. Chairman and interim CEO Ben Kovler framed the announcement as “a new day, a new name and a new strategic direction.” The company is now positioning itself as “America’s THC Company,” leveraging a portfolio that blends licensing and direct revenue streams to capture the surging demand for THC‑infused beverages among adult consumers, particularly younger generations.

Portfolio Expansion and Retail Milestones

The quarter saw the launch of RYTHM Beverages, an extension of the company’s product line into the rapidly expanding THC‑beverage market. Complementing this, the award‑winning THC margarita brand Señorita achieved a retail milestone by debuting in select Minnesota Target stores during October, marking the retailer’s first foray into THC beverage sales. This retail partnership signals a tangible shift from a purely B2B focus—typified by Agrify’s earlier indoor grow solutions—to a consumer‑direct model that capitalizes on mainstream distribution channels.

Financial Performance: A Mixed Picture

RYTHM’s third‑quarter financials reflect the challenges of a company in transition. While the company’s stock closed at $38.78 on November 5, 2025, its market capitalization remains modest at $83.93 million, a fraction of the industry’s larger peers. The price‑to‑earnings ratio stands at –1.84, underscoring that earnings have yet to materialize at a level commensurate with the company’s valuation. Over the past year, the stock has experienced a staggering swing from a 52‑week low of $4.292 to a 52‑week high of $84.44, a volatility that signals investor uncertainty amid the company’s strategic pivot.

Strategic Implications

  • Brand Acquisition as Growth Lever – By acquiring iconic THC brands such as RYTHM, Dogwalkers, Incredibles, and Beboe, the company has built a diversified portfolio that can drive both licensing revenue and direct sales. This strategy aligns with market data that suggests a “long tailwind” for THC beverages as adult consumers seek alternatives to alcohol.

  • Retail Partnerships as Market Validation – The Señorita launch in Target stores validates the company’s consumer‑direct approach. Retail penetration is a critical milestone; without it, even the most compelling product line remains confined to niche markets.

  • Capital Allocation Challenges – With a price‑to‑earnings ratio well below zero, RYTHM’s financials indicate that the company is still investing heavily in growth. The lack of significant GAAP net income suggests that profitability will remain a distant horizon unless the company can scale its direct‑to‑consumer operations efficiently.

Bottom Line

RYTHM, Inc. is undertaking a bold transformation from a biotechnology‑centric entity to a THC beverage powerhouse. Its strategic acquisitions, retail expansions, and re‑branding efforts position it to capture a lucrative segment of the adult‑use cannabis market. However, the company’s financial metrics—particularly the negative P/E and modest market cap—highlight the high risk associated with this transition. Investors must weigh the potential upside of early entry into the THC beverage space against the substantial operational and capital expenditure hurdles that remain.