Forensic Analysis · General / Diversified · as of Nov 9, 2026
Rythm, Inc. (RYM)
A forensic read on Rythm, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-12.0
Distress distance
Clean
Earnings quality
3
Forensic signals
-161.8%
ROE
95916.7%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Rythm, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -12.0, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-151.0%
FY2025
Return on invested capital.Return on invested capital is -151.0% in the latest fiscal year, against -236.4% in FY2023, having run between -263.0% and -151.0% across FY2023–FY2025 with no direction held. After-tax operating profit was ($10M) in FY2023 and ($26M) in FY2025, with operating income at -86.0% of revenue in FY2023, -28183.3% in FY2024 and -187.1% in FY2025. The capital base behind it grew +289% across FY2023–FY2025, from $4M to $17M, and the return did not fall doing it, so the dollars added over that window earned at least the -236.4% the older base was already earning. FY2023's operating profit carried a $70M asset write-down that alone took about 1268.6 points off that year's return, so more than the whole 85.4-point rise across FY2023–FY2025 is that charge leaving the base year rather than the capital earning more. A non-cash write-down lowers the reported return in the year it lands.
+347.9%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +1906% over the last 2 years to FY2025 (+347.9%/yr). The count is growing — 0.1M shares in FY2023, 2.0M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~347.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~95%.
12% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 12% of revenue in FY2025 — about $1.08 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 347.9% a year across FY2023–FY2025, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$17.3M
Revenue Growth YoY+95916.7%
Revenue CAGR (2yr)+6.8%
Net Margin-192.4%
Return on Equity-161.8%
Debt / Equity0.66x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Rythm, Inc.'s actual 10-K/10-Q/8-K filings?