MeritValue

RYTHM, Inc.

RYMdata completeness 88%6 fiscal years on file
The thesis, from the filings

RYTHM, Inc. earns about -131% on invested capital, but has diluted owners by 1989% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$59.9M1$58.3M2$15.1M3$18,0004$17.3M4
Net income−$32.5M5−$188.2M6−$18.6M7−$41.7M8−$33.3M8
Operating cash flow−$30.1M9−$72M10−$31M11−$11.6M12−$23.5M12
Capital expenditure$2.22M13$8.13M14$59,00015$4,00016—
Free cash flow (derived)−$32.4M9−$80.2M10−$31M11−$11.6M12—
Total debt$2.21M17$62.3M18$54.1M18$11M19$89.2M19
Cash & equivalents$12M20$10.5M21$434,00022$31.2M22$32.2M23
Diluted shares95,455208,57399,3911.0M2.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$65.3
your share of equity
Profit it earned you last year
−$166.79
Free cash flow it threw off
—
Debt you’d be carrying
$447.56

10 shares is a claim on $65.3 of net worth that earned you −$166.79 last year, against $447.56 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-131% avg · 5y
FY21 -19%FY22 -343%FY23 -32%FY24 -229%FY25 -35%

It earned an average -131% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+1989% shares · 5y

Share count is up 1989% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 3931% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001213900-23-090353 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001213900-24-033048 (Revenues)
  3. 10-K/A · period ending 2023-12-31 · accession 0001013762-25-003503 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001213900-26-023069 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001213900-23-090353 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001213900-24-033048 (NetIncomeLoss)
  7. 10-K/A · period ending 2023-12-31 · accession 0001013762-25-003503 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001213900-26-023069 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001213900-23-090353 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001213900-24-033048 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K/A · period ending 2023-12-31 · accession 0001013762-25-003503 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001213900-26-023069 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001213900-23-090353 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001213900-24-033048 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K/A · period ending 2023-12-31 · accession 0001013762-25-003503 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001213900-26-023069 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001213900-23-090353 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2022-12-31 · accession 0001213900-24-033048 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2024-12-31 · accession 0001213900-26-023069 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2021-12-31 · accession 0001213900-23-090353 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2022-12-31 · accession 0001213900-24-033048 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K/A · period ending 2023-12-31 · accession 0001013762-25-003503 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2025-12-31 · accession 0001213900-26-023069 (CashAndCashEquivalentsAtCarryingValue)