Irhythm Technologies (IRTC)
NASDAQ:IRTC
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Irhythm Technologies
(NASDAQ:IRTC)
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Rating:51Neutral
Price Target:
$115.00
▼(-3.11% Downside)
Action:ReiteratedDate:03/13/26
The score is held back primarily by balance-sheet leverage and continued full-year net losses, despite improving operating trajectory and a strong 2025 cash-flow inflection. Technicals are bearish with the stock well below key moving averages and negative MACD. Offsetting these, the latest earnings call was constructive with guidance for continued growth and margin/free-cash-flow expansion, but execution and regulatory risks (including the delayed next-gen MCT) remain.
Positive Factors
Market leadership in long‑term monitoring
A dominant ~72% share in long‑term continuous monitoring, backed by clinical credibility and >135 scientific publications, creates a durable moat. High clinician adoption and entrenched workflows make volume and referral patterns sticky, supporting recurring study throughput and pricing leverage.
Negative Factors
High financial leverage
Very high leverage sharply reduces financial flexibility and increases refinancing and interest-rate risk. Even with improving cash flow, elevated debt relative to equity limits strategic optionality, raises the cost of adverse shocks, and could force dilution or curb investments if revenue or margin trends falter.
Read all positive and negative factors
Positive Factors
Negative Factors
Market leadership in long‑term monitoring
A dominant ~72% share in long‑term continuous monitoring, backed by clinical credibility and >135 scientific publications, creates a durable moat. High clinician adoption and entrenched workflows make volume and referral patterns sticky, supporting recurring study throughput and pricing leverage.
Read all positive factors
Irhythm Technologies (IRTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.84B
Dividend YieldN/A
Average Volume (3M)661.96K
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth25.45%
EPS Growth66.62%
CountryUS
Employees2,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.17
Shares Outstanding32,316,760
10 Day Avg. Volume575,743
30 Day Avg. Volume661,956
Financial Highlights & Ratios
PEG Ratio2.07
Price to Book (P/B)37.18
Price to Sales (P/S)7.60
P/FCF Ratio164.50
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue5.80
Enterprise Value/Gross Profit8.21
Enterprise Value/Ebitda-550.37
Forecast
1Y Price Target
$210.45Price Target Upside77.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)-0.32
Revenue Forecast (FY)$876.06M
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 t...
How the Company Makes Money
iRhythm primarily makes money by providing end-to-end remote cardiac monitoring services to healthcare providers, which include (1) supplying its Zio wearable ECG monitors (e.g., patch-based devices worn for multiple days) and (2) performing data ...
Irhythm Technologies Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized strong, volume‑led revenue growth (Q4 +27.1%; FY +26.2%), meaningful margin expansion and several historic profitability and free‑cash‑flow milestones, alongside clear execution on EHR integrations, primary care adoption and AI pilots. Offsetting risks include a delay to next‑gen MCT driven by FDA and gateway changes, ongoing operating expense investments and regulatory/reimbursement uncertainties. Innovative and international channels are early stage and were conservatively treated in guidance. On balance, the company demonstrated durable core growth, expanding profitability and substantial financial flexibility while acknowledging a few timing and execution risks.Positive Updates
Strong Revenue Growth
Q4 2025 revenue of $208.9M, up 27.1% year-over-year; FY2025 revenue of $747.1M, up 26.2% YoY. Fifth consecutive quarter with revenue growth above 20%.
Negative Updates
Next‑Gen MCT Timing and FDA Questions
Next‑generation MCT release pushed into first half of 2027 due to FDA questions and required move to a new mobile gateway (cybersecurity and submission updates). This delay creates timing risk for anticipated MCT revenue contributions.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Q4 2025 revenue of $208.9M, up 27.1% year-over-year; FY2025 revenue of $747.1M, up 26.2% YoY. Fifth consecutive quarter with revenue growth above 20%.
Read all positive updates
Company Guidance
iRhythm guided full-year 2026 revenue of $870–$880 million, implying 16–18% y/y growth versus 2025 revenue of $747.1 million (2025 growth 26.2%), with first‑quarter 2026 revenue of $193–$195 million; pricing is expected to be roughly flat to 2025 while gross margin should improve ~80–100 basis points versus 2025 (FY 2025 gross margin 70.6%, Q4 70.9%). 2026 adjusted EBITDA margin is expected to expand to 11.5–12.5% (Q1 ~3–4%), up from full‑year 2025 adjusted EBITDA of $68.9 million (9.2%) and Q4 adjusted EBITDA of $34.3 million (16.4%), and free cash flow is expected to grow versus 2025’s $34.5 million (Q4 FCF $14.5 million) with FCF skewed to the second half; year‑end 2025 cash, cash equivalents and marketable securities totaled $583.8 million. The company also said international should grow slightly ahead of company averages, Zio AT and innovative channels are expected to outpace core growth (though AT in 2026 is forecasted to grow ahead of the company but below the ~2x pace seen in 2025), and management remains focused on operational leverage as it pursues a $1 billion revenue target in 2027.Irhythm Technologies Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
23
Negative
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 747.14M | 591.84M | 492.68M | 410.92M | 322.82M |
| Gross Profit | 527.25M | 407.53M | 331.81M | 281.63M | 213.57M |
| EBITDA | -3.96M | -74.13M | -96.86M | -92.14M | -83.23M |
| Net Income | -44.55M | -113.29M | -123.41M | -116.16M | -101.36M |
Balance Sheet | |||||
| Total Assets | 1.02B | 931.45M | 433.14M | 448.22M | 462.97M |
| Cash, Cash Equivalents and Short-Term Investments | 583.76M | 535.55M | 133.76M | 213.14M | 239.13M |
| Total Debt | 731.18M | 736.91M | 129.82M | 131.04M | 117.71M |
| Total Liabilities | 867.30M | 840.54M | 223.05M | 208.41M | 183.45M |
| Stockholders Equity | 152.75M | 90.91M | 210.10M | 239.81M | 279.51M |
Cash Flow | |||||
| Free Cash Flow | 34.52M | -30.55M | -90.53M | -52.84M | -65.82M |
| Operating Cash Flow | 80.86M | 3.39M | -50.10M | -23.01M | -37.75M |
| Investing Cash Flow | -277.06M | -122.98M | -1.21M | -52.43M | 105.26M |
| Financing Cash Flow | 12.61M | 511.38M | 8.82M | 26.72M | -28.58M |
Irhythm Technologies Technical Analysis
Negative
118.69
Price Trends
142.14
Negative
159.89
Negative
160.50
Negative
Market Momentum
-7.84
Negative
35.98
Neutral
54.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRTC, the sentiment is Negative. The current price of 118.69 is below the 20-day moving average (MA) of 122.69, below the 50-day MA of 142.14, and below the 200-day MA of 160.50, indicating a bearish trend. The MACD of -7.84 indicates Negative momentum. The RSI at 35.98 is Neutral, neither overbought nor oversold. The STOCH value of 54.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRTC.
Irhythm Technologies Risk Analysis
Irhythm Technologies disclosed 59 risk factors in its most recent earnings report. Irhythm Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Irhythm Technologies Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.46B | -13.83 | -21.49% | ― | 8.97% | -1024.86% | |
66 Neutral | $2.97B | 26.50 | 6.05% | ― | 7.81% | -26.32% | |
66 Neutral | $1.49B | 18.63 | 21.07% | ― | 16.81% | 34.90% | |
65 Neutral | $748.39M | 21.81 | 4.97% | ― | 1.58% | ― | |
56 Neutral | $1.65B | -95.98 | -13.44% | ― | 18.72% | 85.77% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $3.84B | -127.47 | -38.33% | ― | 25.45% | 66.62% |
* Healthcare Sector Average
IRTC
Irhythm Technologies
118.69
13.73
13.08%
ITGR
Integer Holdings
86.19
-31.88
-27.00%
AXGN
AxoGen
32.61
13.81
73.46%
LIVN
LivaNova
62.40
22.50
56.39%
INSP
Inspire Medical Systems
52.07
-111.12
-68.09%
BVS
Bioventus
9.15
0.03
0.33%
Irhythm Technologies Corporate Events
Business Operations and StrategyExecutive/Board Changes
Irhythm Technologies appoints Jason Patten to board
Positive
Mar 12, 2026
iRhythm Holdings, Inc., a digital health specialist listed on Nasdaq under the ticker IRTC, appointed Jason Patten to its Board of Directors effective March 12, 2026. The company leverages wearable biosensors, cloud analytics, and proprietary algo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.