Irhythm Technologies (IRTC) AI Stock Analysis

• Market Cap: $4.38B
• Dividend Yield: N/A
• Average Volume (3M): 397.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 20.54%
• EPS Growth: 25.73%
• Country: US
• Employees: 2,000
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 31,925,266
• 10 Day Avg. Volume: 333,472
• 30 Day Avg. Volume: 397,916
• PEG Ratio: -3.18
• Price to Book (P/B): 49.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 310.85
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 10.94
• Enterprise Value/Ebitda: -13.17
• 1Y Price Target: $150.63
• Price Target Upside: 7.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 56 Neutral
• Price Target: $141.00 ▲(0.66%Upside)

iRhythm's strong revenue growth and improving cash flow are significant positives, but these are balanced by high leverage and persistent losses. The technical indicators suggest neutral momentum, while valuation metrics reflect profitability challenges. The earnings call provides a positive outlook with notable international growth, yet is tempered by regulatory and reimbursement risks.

Positive Factors

Market Share

IRhythm Technologies has gained market share in the Zio AT segment and continues to retain significant business from past competitor disruptions.

Product Transition

The company has fully transitioned from Zio XT to Zio Monitor, resulting in market share gains in the long-term continuous monitoring segment.

Revenue Growth

The proposed payment rate for Zio AT mobile cardiac telemetry in San Francisco was set at $1,083, a +2.7% increase, which is a positive surprise after previous cuts.

Negative Factors

Market Dynamics

The market is expected to grow 6.5% y/y due to an aging population and rising prevalence of arrhythmias, which could increase competition.

Regulatory Uncertainty

These are proposed rates that are still subject to change with the final rule, expected in November.

Revenue Risk

There could be upside risk to the Street's $174mn revenue estimate in Q2.

Irhythm Technologies Business Overview & Revenue Model

Company Description

iRhythm Technologies, Inc. is a leading digital healthcare company that focuses on the development and commercialization of innovative solutions for the detection and management of cardiac arrhythmias. The company operates primarily in the digital health and medical device sectors, offering its core product, the Zio service, which is a comprehensive platform that includes a wearable biosensor patch and a cloud-based data analytics service. This platform is designed to provide continuous, long-term monitoring of cardiac rhythms, helping healthcare providers to diagnose and manage heart conditions more effectively.

How the Company Makes Money

iRhythm Technologies generates revenue primarily through the provision of its Zio service. The company's revenue model is based on a fee-for-service structure, where healthcare providers and institutions pay for each use of the Zio service. This includes fees for the Zio Patch, which patients wear to monitor their heart rhythms, and the subsequent analysis of the data collected, which is processed and interpreted using iRhythm's cloud-based platform. The company may also have partnerships with healthcare systems and insurance providers to facilitate the adoption and reimbursement of its services, although specific partnership details are not disclosed.

Irhythm Technologies Financial Statement Overview

Summary

Irhythm Technologies shows strong revenue growth and improving cash flow, but high leverage and persistent operational losses present significant risks. The company's financial stability is challenged by high debt levels and negative shareholder returns.

Income Statement

Irhythm Technologies has shown consistent revenue growth over the years, with a TTM revenue of $618.6 million versus $410.9 million in 2022, marking a strong growth trajectory. However, the company has been operating at a loss, with a negative Net Profit Margin and EBIT Margin. The Gross Profit Margin remains robust at approximately 69.4% for TTM, indicating efficient cost management despite the operational losses.

Balance Sheet

The company's balance sheet reveals a high Debt-to-Equity ratio of approximately 8.49 in TTM, indicating significant leverage which could pose risks. The equity ratio is low at 9.4%, suggesting limited buffer from equity to absorb potential financial shocks. Return on Equity remains negative due to consistent net losses, signaling challenges in generating shareholder value.

Cash Flow

The cash flow analysis shows a positive trend with the Operating Cash Flow improving to $47.5 million in TTM compared to $3.4 million in 2024. Free Cash Flow has turned positive, indicating better cash generation capabilities. However, the Free Cash Flow to Net Income Ratio shows challenges in translating earnings into cash flow due to persistent net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	591.84M	492.68M	410.92M	322.82M	265.17M
Gross Profit	407.53M	331.81M	281.63M	213.57M	194.89M
EBITDA	-74.13M	-96.86M	-92.14M	-83.23M	-29.15M
Net Income	-113.29M	-123.41M	-116.16M	-101.36M	-43.83M
Balance Sheet
Total Assets	931.45M	433.14M	448.22M	462.97M	511.74M
Cash, Cash Equivalents and Short-Term Investments	535.55M	133.76M	213.14M	239.13M	335.22M
Total Debt	736.91M	129.82M	131.04M	117.71M	122.47M
Total Liabilities	840.54M	223.05M	208.41M	183.45M	170.13M
Stockholders Equity	90.91M	210.10M	239.81M	279.51M	341.61M
Cash Flow
Free Cash Flow	-30.55M	-90.53M	-52.84M	-65.82M	-27.31M
Operating Cash Flow	3.39M	-50.10M	-23.01M	-37.75M	-13.76M
Investing Cash Flow	-122.98M	-1.21M	-52.43M	105.26M	-132.39M
Financing Cash Flow	511.38M	8.82M	26.72M	-28.58M	214.32M

Irhythm Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 140.08
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRTC, the sentiment is Positive. The current price of 140.08 is above the 20-day moving average (MA) of 136.42, below the 50-day MA of 142.11, and above the 200-day MA of 109.10, indicating a neutral trend. The MACD of -1.49 indicates Negative momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 72.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRTC.

Irhythm Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSP	67 Neutral	$3.82B	60.47	10.86%	―	27.11%	―
ITGR	65 Neutral	$3.83B	48.03	5.15%	―	7.21%	-23.29%
LIVN	58 Neutral	$2.40B	30.62	-19.69%	―	7.97%	-592.40%
IRTC	56 Neutral	$4.38B	―	-111.13%	―	20.54%	25.73%
PRCT	54 Neutral	$2.98B	―	-27.62%	―	59.36%	19.87%
Sector *	52 Neutral	$7.47B	0.53	-62.70%	2.38%	14.92%	0.82%
GKOS	51 Neutral	$5.36B	―	-12.98%	―	26.70%	48.19%

Irhythm Technologies Corporate Events

iRhythm Technologies Announces Board Member Changes

On July 7, 2025, iRhythm Technologies announced the retirement of long-serving board members Mark Rubash and Ralph Snyderman, M.D., and the appointment of Karen McGinnis and Kevin O’Boyle to the board of directors. Rubash and Snyderman played key roles in the company’s growth and digital health innovation, while McGinnis and O’Boyle bring extensive financial and strategic expertise to support iRhythm’s next phase of growth.

The most recent analyst rating on (IRTC) stock is a Hold with a $78.00 price target. To see the full list of analyst forecasts on Irhythm Technologies stock, see the IRTC Stock Forecast page.

iRhythm Technologies Holds 2025 Annual Stockholders Meeting

On May 28, 2025, iRhythm Technologies, Inc. conducted its 2025 Annual Meeting of Stockholders, with a significant 94.1% of the company’s common stock represented. During the meeting, several key decisions were made, including the election of directors to serve until the 2026 Annual Meeting, the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and an advisory vote approving the compensation of the company’s named executive officers. These decisions are expected to impact the company’s governance and operational strategies moving forward.

The most recent analyst rating on (IRTC) stock is a Hold with a $78.00 price target. To see the full list of analyst forecasts on Irhythm Technologies stock, see the IRTC Stock Forecast page.