Irhythm Technologies (IRTC)
NASDAQ:IRTC
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Irhythm Technologies
(NASDAQ:IRTC)
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Rating:49Neutral
Price Target:
$111.00
▼(-11.43% Downside)
Action:Reiterated
Date:05/28/26
The score is held back primarily by high leverage and continued net losses despite improving cash generation, and by weak technical trend signals with the stock trading below major moving averages. Partially offsetting these risks are strong revenue growth, stable high gross margins, and an earnings call that included raised revenue and profitability guidance.
Positive Factors
Revenue growth & raised guidance
Sustained high-teens to mid-20s revenue growth and an upward guide signal durable demand for Zio services and expanding clinical adoption. Recurring study-volume driven revenue and strong new-account penetration support scalable top-line growth and create runway for further operating leverage.
Negative Factors
Elevated leverage
A debt-heavy capital structure increases financial sensitivity to execution slippage and raises refinancing risk if growth or cash flow weakens. High leverage constrains strategic flexibility and amplifies downside from reimbursement or regulatory setbacks given limited equity cushion.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & raised guidance
Sustained high-teens to mid-20s revenue growth and an upward guide signal durable demand for Zio services and expanding clinical adoption. Recurring study-volume driven revenue and strong new-account penetration support scalable top-line growth and create runway for further operating leverage.
Read all positive factors
Irhythm Technologies (IRTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.74B
Dividend YieldN/A
Average Volume (3M)531.80K
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth27.36%
EPS Growth72.52%
CountryUS
Employees2,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.86
Shares Outstanding32,862,408
10 Day Avg. Volume542,148
30 Day Avg. Volume531,803
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/Revenue5.37
Enterprise Value/Gross Profit7.57
Enterprise Value/Ebitda881.52
Forecast
1Y Price Target
$177.36Price Target Upside41.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)-0.29
Revenue Forecast (FY)$881.05M
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call was constructive and predominantly positive: the company delivered strong top-line growth (≈26% YoY), meaningful margin expansion (880 bps adjusted EBITDA improvement and +210 bps gross margin), raised full‑year revenue and EBITDA guidance, and showed progress on product, AI, clinical evidence, and international commercialization. Offsetting items include continued GAAP/adjusted net losses (though improved), seasonally negative Q1 free cash flow, elevated operating and litigation-related costs, and outstanding regulatory and legal uncertainties (FDA warning letter, DOJ CID) plus potential coverage ambiguity from proposed LCD language. On balance, the operational and commercial positives materially outweigh the remaining execution and regulatory risks.Positive Updates
Strong Revenue Growth and Upward Guidance
Revenue of $199.4 million in Q1 2026, up 25.7% year over year; company raised full-year 2026 revenue guidance to $875M–$885M, implying 17%–18% YoY growth. Q2 2026 revenue guide of $218M–$220M.
Negative Updates
GAAP and Adjusted Net Losses Persist
GAAP net loss of $13.9 million (loss per diluted share $0.43) in Q1 2026, improved from a GAAP net loss of $30.7 million in Q1 2025. Adjusted net loss of $11.3 million (loss per diluted share $0.35) versus an adjusted net loss of $30.3 million a year ago — improvement notable but still a net loss.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth and Upward Guidance
Revenue of $199.4 million in Q1 2026, up 25.7% year over year; company raised full-year 2026 revenue guidance to $875M–$885M, implying 17%–18% YoY growth. Q2 2026 revenue guide of $218M–$220M.
Read all positive updates
Company Guidance
iRhythm raised full‑year 2026 revenue guidance to $875–$885 million (up ~17%–18% year‑over‑year), reflecting a roughly $5 million raise versus prior guide after a strong Q1, and expects Q2 revenue of $218–$220 million; full‑year pricing is expected to be flat to 2025. Management raised full‑year adjusted EBITDA margin to 12%–13% (Q2 guide 11.5%–12.5%) driven by continued gross‑margin improvement (Q1 gross margin was 70.9%, +210 bps YoY) and operational efficiencies, noting Q1 adjusted EBITDA of $14.1 million (7.1% of revenue, +880 bps YoY). Q1 revenue was $199.4 million (+25.7% YoY), adjusted operating expenses were $153.5 million (+9.3% YoY), GAAP net loss was $13.9 million (‑$0.43/share), adjusted net loss was $11.3 million (‑$0.35/share), free cash flow was negative $33 million (seasonal), and cash and marketable securities totaled $549.6 million; the company expects full‑year free cash flow to improve versus 2025 and be more heavily weighted to the back half of the year.Irhythm Technologies Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
33
Negative
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 787.85M | 747.14M | 591.84M | 492.68M | 410.92M | 322.82M |
| Gross Profit | 559.39M | 527.25M | 407.53M | 331.81M | 281.63M | 213.57M |
| EBITDA | 4.80M | -10.33M | -74.13M | -96.86M | -92.14M | -83.23M |
| Net Income | -27.78M | -44.55M | -113.29M | -123.41M | -116.16M | -101.36M |
Balance Sheet | ||||||
| Total Assets | 1.01B | 1.02B | 931.45M | 433.14M | 448.22M | 462.97M |
| Cash, Cash Equivalents and Short-Term Investments | 549.62M | 583.76M | 535.55M | 133.76M | 213.14M | 239.13M |
| Total Debt | 729.29M | 731.18M | 736.91M | 129.82M | 131.04M | 117.71M |
| Total Liabilities | 845.15M | 867.30M | 840.54M | 223.05M | 208.41M | 183.45M |
| Stockholders Equity | 161.21M | 152.75M | 90.91M | 210.10M | 239.81M | 279.51M |
Cash Flow | ||||||
| Free Cash Flow | 18.75M | 34.52M | -30.55M | -90.53M | -52.84M | -65.82M |
| Operating Cash Flow | 62.58M | 80.86M | 3.39M | -50.10M | -23.01M | -37.75M |
| Investing Cash Flow | -208.70M | -277.06M | -122.98M | -1.21M | -52.43M | 105.26M |
| Financing Cash Flow | 11.03M | 12.61M | 511.38M | 8.82M | 26.72M | -28.58M |
Irhythm Technologies Technical Analysis
Negative
125.32
Price Trends
118.97
Negative
133.25
Negative
154.48
Negative
Market Momentum
-1.93
Positive
44.88
Neutral
33.63
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 125.32 is above the 20-day moving average (MA) of 116.54, above the 50-day MA of 118.97, and below the 200-day MA of 154.48, indicating a bearish trend. The MACD of -1.93 indicates Positive momentum. The RSI at 44.88 is Neutral, neither overbought nor oversold. The STOCH value of 33.63 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 60 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.05B | 37.68 | 9.13% | ― | 12.40% | ― | |
69 Neutral | $710.88M | 20.11 | 16.27% | ― | 1.52% | ― | |
61 Neutral | $3.03B | 21.61 | 8.23% | ― | 5.48% | 77.43% | |
61 Neutral | $1.19B | 9.05 | 17.98% | ― | 8.94% | 102.92% | |
58 Neutral | $2.10B | -64.76 | -20.74% | ― | 22.41% | -292.36% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $3.74B | ― | -20.60% | ― | 27.36% | 72.52% |
* Healthcare Sector Average
IRTC
Irhythm Technologies
113.90
-26.75
-19.02%
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INSP
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8.51
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32.14%
Irhythm Technologies Corporate Events
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
iRhythm Technologies Shareholders Approve Governance and Incentive Plan
Positive
May 28, 2026
At its annual meeting on May 27, 2026, iRhythm Technologies, Inc. reported that holders of approximately 89.69% of its common stock were represented, establishing a quorum for conducting business. Stockholders elected nine directors, including C. ...
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.