Shares of Rhythm Pharmaceuticals Inc. (RYTM) plummeted 9.92% in pre-market trading on Tuesday following the release of its third-quarter 2025 financial results. The biopharmaceutical company, known for its IMCIVREE drug, reported a wider-than-expected loss despite a significant increase in revenue.

Rhythm Pharmaceuticals posted a net loss of $52.904 million, or $0.82 per share, for the third quarter, missing the analyst consensus estimate of a $0.73 loss per share. This represents a 12.33% increase in losses compared to the same period last year. However, the company's quarterly revenue showed strong growth, reaching $51.298 million, a 54.28% increase from the previous year and slightly above the analyst expectations of $50.705 million.

The company's flagship product, IMCIVREE, continues to drive sales growth, particularly in the U.S. market for Bardet-Biedl syndrome (BBS). However, international sales faced some headwinds due to ordering variability and a one-time pricing adjustment in France. Despite the revenue beat, investors seem to be focusing on the wider-than-anticipated loss, which could explain the sharp stock decline. Additionally, Rhythm Pharmaceuticals updated its 2025 Non-GAAP Operating Expenses guidance to $295-$315 million, which may have contributed to the negative market reaction.