Irhythm Technologies (IRTC) AI Stock Analysis

• Market Cap: $5.09B
• Dividend Yield: N/A
• Average Volume (3M): 492.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 22.37%
• EPS Growth: 31.14%
• Country: US
• Employees: 2,000
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Devices
• EPS (TTM): -0.44
• Shares Outstanding: 32,127,760
• 10 Day Avg. Volume: 464,431
• 30 Day Avg. Volume: 491,998
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 7.78
• Enterprise Value/Gross Profit: 11.15
• Enterprise Value/Ebitda: -78.15
• 1Y Price Target: $183.45
• Price Target Upside: 8.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 66 Neutral
• Price Target: $178.00 ▲(5.25% Upside)

Irhythm Technologies' overall stock score is driven by strong earnings call sentiment and positive technical indicators, suggesting growth potential. However, financial performance challenges and valuation concerns moderate the score.

Positive Factors

Financial Performance

Sales came in $12 million ahead of the Street and management raised guidance by about $30 million due to the stronger-than-expected first half of the year.

Market Expansion

IRhythm is driving market expansion with primary care physicians and asymptomatic patients, which is expected to significantly increase the total addressable market.

Product Innovation

The upcoming launch of Zio MCT, a next-gen product in the mobile cardiac telemetry market, is expected to provide significant advantages over the existing Zio AT.

Negative Factors

Regulatory Challenges

Risk factors include potential delays in Zio MCT, market expansion, and issues with FDA or DOJ resolutions, which could impact the growth trajectory.

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 exhibits strong revenue growth and effective cost management at the production level, with gross profit margin above 69%. However, negative net profit and EBIT margins indicate struggles with profitability. A high debt-to-equity ratio of 7.09 and low equity ratio present financial risks, though cash flow has improved to a positive position.

Income Statement

Irhythm Technologies shows a strong revenue growth with a TTM (Trailing-Twelve-Months) increase of approximately 11% from the previous year. However, the company struggles with profitability, evidenced by its negative net profit margin and EBIT margin, both of which are in the negative territory. The gross profit margin remains healthy above 69%, indicating effective cost management at the production level, but significant operating expenses are impacting overall profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 7.09, indicating high leverage which could pose financial risk. Stockholders' equity is a small fraction of total assets, leading to a low equity ratio of approximately 10.8%. Return on equity is negative due to ongoing losses, highlighting challenges in generating returns for shareholders. Despite these concerns, the company maintains sufficient cash reserves relative to its liabilities.

Cash Flow

Irhythm Technologies has improved its free cash flow position, turning positive in the latest TTM period from a negative position in the previous year. The operating cash flow to net income ratio is positive, suggesting that the company generates adequate cash from its core operations despite reporting net losses. However, the reliance on financing activities to support cash flow needs is notable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	657.23M	591.84M	492.68M	410.92M	322.82M	265.17M
Gross Profit	458.62M	407.53M	331.81M	281.63M	213.57M	194.89M
EBITDA	-65.45M	-74.13M	-96.86M	-92.14M	-83.23M	-29.15M
Net Income	-92.43M	-113.29M	-123.41M	-116.16M	-101.36M	-43.83M
Balance Sheet
Total Assets	964.03M	931.45M	433.14M	448.22M	462.97M	511.74M
Cash, Cash Equivalents and Short-Term Investments	545.54M	535.55M	133.76M	213.14M	239.13M	335.22M
Total Debt	734.74M	736.91M	129.82M	131.04M	117.71M	122.47M
Total Liabilities	860.37M	840.54M	223.05M	208.41M	183.45M	170.13M
Stockholders Equity	103.66M	90.91M	210.10M	239.81M	279.51M	341.61M
Cash Flow
Free Cash Flow	27.88M	-30.55M	-90.53M	-52.84M	-65.82M	-27.31M
Operating Cash Flow	63.35M	3.39M	-50.10M	-23.01M	-37.75M	-13.76M
Investing Cash Flow	-316.55M	-122.98M	-1.21M	-52.43M	105.26M	-132.39M
Financing Cash Flow	11.78M	511.38M	8.82M	26.72M	-28.58M	214.32M

Irhythm Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 169.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 169.12 is above the 20-day moving average (MA) of 157.39, above the 50-day MA of 147.92, and above the 200-day MA of 116.96, indicating a bullish trend. The MACD of 5.93 indicates Negative momentum. The RSI at 66.93 is Neutral, neither overbought nor oversold. The STOCH value of 81.30 is Negative, 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
IRTC	66 Neutral	$5.09B	―	-91.13%	―	22.37%	31.14%
ITGR	65 Neutral	$3.74B	48.83	5.15%	―	7.21%	-23.29%
LIVN	61 Neutral	$2.89B	30.62	-17.87%	―	8.57%	-1154.64%
INSP	58 Neutral	$2.71B	55.61	8.07%	―	22.05%	785.52%
PRCT	53 Neutral	$2.19B	―	-26.40%	―	55.71%	24.37%
Sector *	51 Neutral	$7.82B	-0.16	-39.78%	2.19%	21.38%	-1.56%
GKOS	50 Neutral	$5.22B	―	-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.

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.