Irhythm Technologies (IRTC) AI Stock Analysis

• Market Cap: $5.58B
• Dividend Yield: N/A
• Average Volume (3M): 503.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• 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: 323,763
• 30 Day Avg. Volume: 503,304
• 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: 1.02
• Enterprise Value/Revenue: 8.11
• Enterprise Value/Gross Profit: 11.53
• Enterprise Value/Ebitda: -375.00
• 1Y Price Target: $220.38
• Price Target Upside: 26.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): -1.5
• Revenue Forecast (FY): $738.08M

• Rating: 51 Neutral
• Price Target: $174.00 ▲(0.21% Upside)

Irhythm Technologies' overall stock score is driven by its strong revenue growth and strategic initiatives, as highlighted in the earnings call and corporate events. However, significant challenges with profitability, high leverage, and regulatory risks weigh heavily on the score. The technical analysis provides mixed signals, and the valuation remains unattractive due to negative earnings.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for iRhythm's products and services, enhancing its market position and financial stability.

Product Expansion

Product expansion with advanced features can drive future growth and competitive advantage, positioning iRhythm as a leader in cardiac monitoring.

Cash Flow Improvement

Positive free cash flow enhances financial flexibility, allowing for reinvestment in growth initiatives and reducing reliance on external financing.

Negative Factors

High Leverage

High leverage increases financial risk and may limit the company's ability to invest in growth or weather economic downturns.

Regulatory Challenges

Regulatory challenges can delay product approvals and market entry, affecting revenue growth and increasing compliance costs.

Profitability Issues

Ongoing profitability issues can hinder long-term sustainability and limit the company's ability to invest in strategic initiatives.

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 the sale of its Zio service, which includes both device rentals and associated diagnostic services. The company charges healthcare providers for the use of its monitoring devices and the analysis of the collected data. Key revenue streams include reimbursements from insurance companies and government programs for the services rendered. Additionally, iRhythm has established strategic partnerships with healthcare organizations and technology providers to expand its market reach and enhance its service offerings, contributing to its overall 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: 173.63
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 173.63 is below the 20-day moving average (MA) of 177.36, below the 50-day MA of 178.22, and above the 200-day MA of 147.72, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 11.03 is Positive, 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	72 Outperform	$4.18B	96.39	6.54%	―	16.81%	34.90%
AXGN	69 Neutral	$1.54B	―	-1.90%	―	18.72%	85.77%
ITGR	65 Neutral	$2.45B	28.94	5.18%	―	7.81%	-26.32%
BVS	64 Neutral	$586.79M	64.02	4.97%	―	1.58%	―
LIVN	63 Neutral	$3.46B	―	-17.63%	―	8.97%	-1024.86%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IRTC	51 Neutral	$5.58B	―	-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.

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.