RYM · RYTHM, Inc.

Operating income widened to a loss of $4.0 million from $3.7 million (down 9.0%), as operating margin stood at -30.4%. This reflects continued investments in growth, including SG&A expenses covering professional fees, legal, accounting services, and amortization costs, which scaled with the business expansion. Despite the operating shortfall, net income flipped to a $19.9 million profit from a $1.6 million loss (1325.2% growth), with diluted EPS at $1.33 versus -$0.83. The swing stemmed from releasing the valuation allowance following the March 31, 2026 amendment to the GTI Core license agreement, which shifted licensing fees to a fixed annual structure and reduced uncertainty around future taxable income.