Irhythm Technologies (IRTC) AI Stock Analysis

• Market Cap: $5.50B
• Dividend Yield: N/A
• Average Volume (3M): 432.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: 25.45%
• EPS Growth: 66.62%
• Country: US
• Employees: 2,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.16
• Shares Outstanding: 32,219,143
• 10 Day Avg. Volume: 525,357
• 30 Day Avg. Volume: 432,758
• PEG Ratio: 2.45
• Price to Book (P/B): 30.94
• Price to Sales (P/S): 4.75
• P/FCF Ratio: -92.07
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 8.11
• Enterprise Value/Gross Profit: 11.53
• Enterprise Value/Ebitda: -375.00
• 1Y Price Target: $219.62
• Price Target Upside: 31.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): -1.54
• Revenue Forecast (FY): $737.31M

• Rating: 40 Underperform
• Price Target: $160.00 ▼(-4.48% Downside)

Irhythm Technologies faces significant challenges with profitability and high leverage, reflected in a low valuation score. Technical indicators suggest bearish momentum, further impacting the stock's attractiveness. While the earnings call showed positive growth and strategic initiatives, regulatory challenges remain a concern.

Positive Factors

Revenue Growth

The strong revenue growth of 31% YoY indicates robust demand for iRhythm's products and services, enhancing its market position and supporting long-term business expansion.

EHR Integration

EHR integration with major customers boosts operational efficiency and customer retention, driving sustained growth in monitoring volumes and revenue.

Positive Free Cash Flow

Achieving positive free cash flow signifies improved financial health, providing the company with greater flexibility to invest in growth initiatives and reduce debt.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting long-term stability.

Negative Profitability

Ongoing profitability challenges could hinder the company's ability to reinvest in its business and achieve sustainable growth over time.

Regulatory Challenges

Regulatory challenges can delay product approvals and market entry, impacting the company's ability to capitalize on new opportunities and maintain competitive advantage.

Irhythm Technologies Business Overview & Revenue Model

Company Description

iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. It offers Zio service, an ambulatory cardiac monitoring solution that combines a wire-free, patch-based, and wearable biosensor with a cloud-based data analytic platform to help physicians to monitor patients and diagnose arrhythmias. The company's Zio XT and AT monitors, a single-use, wire-free, and wearable patch-based biosensors, records patient's heartbeats and ECG data. It has a development collaboration agreement with Verily Life Sciences LLC to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.

How the Company Makes Money

iRhythm Technologies generates revenue primarily through its subscription-based Zio service, which includes the sale of its Zio XT and Zio AT monitoring devices, along with the associated data analysis and reporting services. The company charges healthcare providers for the use of its monitoring devices and the interpretation of the collected data, creating a recurring revenue model. Key revenue streams include direct sales to hospitals and clinics, as well as partnerships with healthcare systems and insurers that facilitate access to its technology. Additionally, iRhythm benefits from collaborations with various healthcare organizations to enhance its product offerings and expand its market presence, further contributing to its earnings.

Irhythm Technologies Financial Statement Overview

Summary

Irhythm Technologies shows moderate revenue growth and a strong gross profit margin, but struggles with profitability and high leverage. The balance sheet's high debt levels and negative return on equity are concerning, while cash flow improvements offer some optimism.

Income Statement

Irhythm Technologies shows a moderate revenue growth rate of 6.9% in the TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively strong at 70.35%, but the persistent net losses highlight ongoing challenges in achieving operational efficiency.

Balance Sheet

The company's balance sheet reveals high leverage with a debt-to-equity ratio of 6.01, which poses a significant risk. The return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is low, indicating a heavy reliance on debt financing, which could impact financial stability.

Cash Flow

Cash flow analysis shows improvement with a 16.28% growth in free cash flow, suggesting better cash management. However, the operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is positive, reflecting some ability to generate cash relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	702.57M	591.84M	492.68M	410.92M	322.82M	265.17M
Gross Profit	494.26M	407.53M	331.81M	281.63M	213.57M	194.89M
EBITDA	-15.20M	-74.13M	-96.86M	-92.14M	-83.23M	-29.15M
Net Income	-51.46M	-113.29M	-123.41M	-116.16M	-101.36M	-43.83M
Balance Sheet
Total Assets	995.21M	931.45M	433.14M	448.22M	462.97M	511.74M
Cash, Cash Equivalents and Short-Term Investments	565.21M	535.55M	133.76M	213.14M	239.13M	335.22M
Total Debt	733.01M	736.91M	129.82M	131.04M	117.71M	122.47M
Total Liabilities	873.32M	840.54M	223.05M	208.41M	183.45M	170.13M
Stockholders Equity	121.89M	90.91M	210.10M	239.81M	279.51M	341.61M
Cash Flow
Free Cash Flow	32.42M	-30.55M	-90.53M	-52.84M	-65.82M	-27.31M
Operating Cash Flow	73.88M	3.39M	-50.10M	-23.01M	-37.75M	-13.76M
Investing Cash Flow	-350.42M	-122.98M	-1.21M	-52.43M	105.26M	-132.39M
Financing Cash Flow	12.63M	511.38M	8.82M	26.72M	-28.58M	214.32M

Irhythm Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 167.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRTC, the sentiment is Neutral. The current price of 167.51 is below the 20-day moving average (MA) of 178.86, below the 50-day MA of 177.51, and above the 200-day MA of 142.68, indicating a neutral trend. The MACD of -1.75 indicates Positive momentum. The RSI at 37.17 is Neutral, neither overbought nor oversold. The STOCH value of 26.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IRTC.

Irhythm Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSP	71 Outperform	$2.51B	58.21	6.54%	―	16.81%	34.90%
BVS	66 Neutral	$608.31M	65.45	4.97%	―	1.58%	―
ITGR	61 Neutral	$2.43B	28.09	5.18%	―	7.81%	-26.32%
AXGN	61 Neutral	$1.09B	―	-1.90%	―	18.72%	85.77%
LIVN	58 Neutral	$3.02B	―	-17.63%	―	8.97%	-1024.86%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IRTC	40 Underperform	$5.50B	―	-53.15%	―	25.45%	66.62%

Irhythm Technologies Corporate Events

iRhythm Technologies Highlights Revenue Growth and Expansion

On November 12, 2025, iRhythm Technologies issued an investor presentation highlighting a 26% year-to-date revenue increase compared to 2024, driven by significant commercial adoption and market expansion. The company is advancing its international reach and product offerings, including a new 510(k) submission for the Zio MCT with extended wear and AI capabilities. Despite facing challenges such as an FDA warning letter and a DOJ investigation, iRhythm is on track to achieve free cash flow positivity for the first time in its history, indicating strong operational and financial progress.

The most recent analyst rating on (IRTC) stock is a Buy with a $215.00 price target. To see the full list of analyst forecasts on Irhythm Technologies stock, see the IRTC Stock Forecast page.

iRhythm Technologies Reports Strong Q3 2025 Earnings

The recent earnings call for iRhythm Technologies showcased a generally positive sentiment, highlighting the company’s strong financial performance and strategic growth. The call emphasized a significant increase in revenue, successful product expansion, and positive cash flow. However, it also acknowledged challenges related to regulatory interactions due to external factors.

iRhythm Technologies Reports Strong Q3 2025 Growth

iRhythm Technologies, Inc. is a digital healthcare company specializing in wearable biosensors and data analytics to provide actionable insights for cardiac care. In its third-quarter 2025 financial results, iRhythm reported a significant revenue increase of 30.7% year-over-year, reaching $192.9 million, driven by strong demand for its Zio services and expansion into international markets. The company also achieved a gross margin of 71.1%, reflecting operational efficiencies and increased service volumes.

iRhythm Enhances Executive Severance Policy Amid Growth

On October 29, 2025, iRhythm Technologies’ Board of Directors approved an amended Executive Change in Control and Severance Policy to enhance severance benefits for executives in certain termination scenarios, aligning with market practices and retaining talent. Additionally, iRhythm reported a strong financial performance for Q3 2025, with a 30.7% revenue increase driven by demand for its Zio services and operational efficiencies, positioning the company for continued growth and leadership in cardiac monitoring.

The most recent analyst rating on (IRTC) stock is a Hold with a $187.00 price target. To see the full list of analyst forecasts on Irhythm Technologies stock, see the IRTC Stock Forecast page.

iRhythm Technologies’ PANDA Study: Expanding Pediatric Use of Zio® Monitor

iRhythm Technologies is conducting the Pediatric Adhesion and New Dermal Approach Study (PANDA) to evaluate the feasibility of using the Zio® monitor in children. The study aims to determine if the device can be worn for up to 14 days while maintaining good skin adherence and clear signal quality. This research is significant as it could expand the use of the Zio® monitor to pediatric patients, potentially improving diagnostic capabilities for conditions like arrhythmia in children.