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Irhythm Technologies (IRTC)
NASDAQ:IRTC
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Irhythm Technologies
(NASDAQ:IRTC)
Rating:64Neutral
Price Target:―
Positive Factors
App Adoption
Downloads of the MyZio app totalled 171,169, showing a significant increase of 74% year-over-year, indicating strong user engagement and potential for growth.
Operational Execution
Execution has continued to improve, as shown by recent performance surpassing buyside expectations.
Revenue Growth
There could be upside risk to the Street's $174 million revenue estimate, making it an attractive asset for investors.
Negative Factors
Market Competition
Despite broad initiatives, the presence of competitive market forces could pose challenges to maintaining growth momentum.
Reimbursement Challenges
Reimbursement for the commercial launch in Japan was lower than expected, aligning with traditional holter rates, which could impact profitability.
Irhythm Technologies (IRTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.62B
Dividend YieldN/A
Average Volume (3M)514.93K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth20.54%
EPS Growth25.73%
CountryUS
Employees2,000
SectorHealthcare
Sector Strength53
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.97
Shares Outstanding31,925,266
10 Day Avg. Volume434,490
30 Day Avg. Volume514,928
Financial Highlights & Ratios
PEG Ratio-1.99
Price to Book (P/B)11.69
Price to Sales (P/S)0.00
P/FCF Ratio-53.03
Enterprise Value/Market Cap0.40
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit4.26
Enterprise Value/Ebitda-5.13
Forecast
1Y Price Target
$147.88Price Target Upside1.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Irhythm Technologies Business Overview & Revenue Model
Company DescriptioniRhythm 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 MoneyiRhythm 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 Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 34.02%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with significant revenue growth and successful international expansion, notably with Zio AT's success. However, challenges with reimbursement in Japan, ongoing FDA remediation, and tariff concerns pose notable risks.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
iRhythm achieved robust top line results of $158.7 million, representing over 20% growth compared to the first quarter of 2024.
Record New Account Onboarding
The company observed significant volume demand throughout Q1 2025, continuing from record new account onboarding in 2024.
10 Million Cumulative Patient Reports
iRhythm has surpassed 10 million cumulative patient reports since its inception, marking a significant milestone in its history.
Strong Performance in Zio AT
Zio AT demand continued strongly, contributing significantly to revenue, with Zio AT's revenue growth rate significantly outpacing the overall corporate average.
Successful International Expansion
iRhythm's international business saw progress, including a commercial launch in Japan and record volume in the UK, despite ongoing reimbursement challenges.
Negative Updates
Challenges with Japan Reimbursement
The Japanese Ministry of Health set the reimbursement for Zio at the established Holter monitoring rate, which was not ideal and requires further evidence for future reimbursement improvements.
Continued FDA Remediation Efforts
Regulatory and quality matters remain a high priority, with significant resources allocated to address FDA warning letters and observations.
Tariff and Supply Chain Concerns
Potential tariffs on global imports pose challenges, with the company needing to implement strategies to mitigate supply chain concerns and cost implications.
Ongoing Legal and Remediation Costs
Incremental legal and consulting fees related to FDA remediation efforts and DOJ subpoena activities are expected to cost approximately $15 million for the full year.
Company Guidance
During the iRhythm Technologies, Inc. first quarter 2025 earnings call, guidance was provided indicating a strong start to the year with revenue reaching $158.7 million, reflecting over 20% growth compared to the first quarter of 2024. The company updated its full-year 2025 revenue guidance to $690 million to $700 million and adjusted EBITDA margin expectations to between 7.5% and 8.5%. This guidance reflects increased demand, particularly from the Zio AT product line, which now represents 14% of revenue, and a growing contribution from innovative channel partners in undiagnosed arrhythmia monitoring. The company remains focused on expanding its presence in primary care channels, which now account for nearly one-third of monitoring volumes, and progressing international opportunities, including recent launches in Japan. iRhythm also highlighted improvements in adjusted EBITDA margin, which improved by 750 basis points to negative 1.7% of revenue, driven by operational efficiencies and volume leverage.Irhythm Technologies Financial Statement Overview
Summary
Irhythm Technologies shows strong revenue growth and improving cash flow, with operating cash flow rising significantly. However, high leverage, negative profit margins, and persistent operational losses are concerning, posing risks to financial stability.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.55
Neutral
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.45
Neutral
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.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 618.59M | 591.84M | 492.68M | 410.92M | 322.82M | 265.17M | Gross Profit |
| 429.23M | 407.53M | 331.81M | 281.63M | 213.57M | 194.89M | EBIT |
| -109.92M | -115.50M | -125.16M | -87.18M | -99.94M | -43.67M | EBITDA |
| -70.28M | -74.13M | -96.86M | -92.14M | -83.23M | -29.15M | Net Income Common Stockholders |
| -98.32M | -113.29M | -123.41M | -116.16M | -101.36M | -43.83M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 520.59M | 535.55M | 133.76M | 213.14M | 239.13M | 335.22M | Total Assets |
| 926.10M | 931.45M | 433.14M | 448.22M | 462.97M | 511.74M | Total Debt |
| 735.50M | 736.91M | 129.82M | 131.04M | 117.71M | 122.47M | Net Debt |
| 360.22M | 317.31M | 93.65M | 52.21M | -9.85M | 33.84M | Total Liabilities |
| 839.43M | 840.54M | 223.05M | 208.41M | 183.45M | 170.13M | Stockholders Equity |
| 86.67M | 90.91M | 210.10M | 239.81M | 279.51M | 341.61M |
| Cash Flow | Free Cash Flow | ||||
| 13.94M | -30.55M | -90.53M | -52.84M | -65.82M | -27.31M | Operating Cash Flow |
| 47.53M | 3.39M | -50.10M | -23.01M | -37.75M | -13.76M | Investing Cash Flow |
| -201.12M | -122.98M | -1.21M | -52.43M | 105.26M | -132.39M | Financing Cash Flow |
| 8.47M | 511.38M | 8.82M | 26.72M | -28.58M | 214.32M |
Irhythm Technologies Technical Analysis
Positive
145.53
Price Trends
128.54
Positive
117.97
Positive
99.16
Positive
Market Momentum
4.06
Positive
63.05
Neutral
43.31
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 145.53 is above the 20-day moving average (MA) of 144.24, above the 50-day MA of 128.54, and above the 200-day MA of 99.16, indicating a bullish trend. The MACD of 4.06 indicates Positive momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 43.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.13B | 56.49 | 4.98% | ― | 7.41% | -22.10% | |
67 Neutral | $3.83B | 58.64 | 10.86% | ― | 27.11% | ― | |
66 Neutral | $2.48B | 30.62 | -19.69% | ― | 7.97% | -592.40% | |
64 Neutral | $4.62B | ― | -111.13% | ― | 20.54% | 25.73% | |
58 Neutral | $3.34B | ― | -27.62% | ― | 59.36% | 19.87% | |
55 Neutral | $5.72B | ― | -20.36% | ― | 23.92% | 19.82% | |
54 Neutral | $5.34B | 3.36 | -45.10% | 3.39% | 16.81% | -0.03% |
* Healthcare Sector Average
Performance Comparison
IRTC
Irhythm Technologies
145.53
40.16
38.11%
ITGR
Integer Holdings
119.06
3.31
2.86%
GKOS
Glaukos
99.81
-11.85
-10.61%
LIVN
LivaNova
45.17
-10.46
-18.80%
INSP
Inspire Medical Systems
129.70
-38.01
-22.66%
PRCT
PROCEPT BioRobotics
59.66
-0.48
-0.80%
Irhythm Technologies Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
iRhythm Technologies Holds 2025 Annual Stockholders Meeting
Neutral
May 30, 2025
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.
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.