Nasdaq-listed RYTHM reports $1.2 million net income on $23 million revenue, up 73% quarter-over-quarter, amid regulatory uncertainty.
RYTHM, a Nasdaq-listed cannabis holding company, rose 23% Tuesday after reporting $1.2 million in net income on $23 million in revenue for Q2, a 73% increase from the prior quarter. The stock has climbed 56% over the last six months as consumer demand for THC products grows despite federal restrictions.
The company’s gains come as daily cannabis use in the U.S. surpasses daily alcohol consumption, according to federal survey data. However, a looming November ban on hemp-derived THC canned drinks could disrupt the market. Lawmakers remain divided on cannabis regulation, with the DEA recently weighing a potential reclassification of recreational cannabis from Schedule I to Schedule III.
Shares surged on the earnings beat and speculation that federal restrictions may face delays or revisions, though regulatory risks persist.