iRhythm Technologies (NASDAQ:IRTC) Issues Quarterly Earnings Results, Beats Expectations By $0.80 EPS

Key Points

• iRhythm reported quarterly EPS of $0.82, beating the $0.02 consensus estimate by $0.80. Revenue rose 14.9% year over year to $221.6 million, slightly below expectations.
• The company raised 2026 revenue guidance to $890 million–$895 million and expects about $1 billion in organic revenue in 2027, with an adjusted EBITDA margin of at least 15%.
• Management delayed its planned Zio MCT FDA submission to 2027 while prioritizing VitalConnect integration, and expects Zio AT volume to remain flat near term.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.80, FiscalAI reports. iRhythm Technologies had a positive return on equity of 10.11% and a negative net margin of 1.69%. The business had revenue of $221.59 million during the quarter, compared to the consensus estimate of $222.23 million. During the same period in the previous year, the company posted ($0.06) EPS. The firm's quarterly revenue was up 14.9% on a year-over-year basis.

Here are the key takeaways from iRhythm Technologies' conference call:

• Q3 revenue rose 14.9% to $221.6 million, led by Zio Monitor, which outperformed expectations on broad-based demand and growth in primary care and innovative channels. Zio AT revenue was roughly flat, partially offsetting that strength.
• The company reported 74.2% gross margin and 23.1% adjusted EBITDA margin, reflecting operating leverage; gross margin included about $3 million in one-time tariff refunds. GAAP results included a $50 million IP-litigation settlement charge, while free cash flow was negative $11.5 million after the settlement payment and would have been positive $38.5 million excluding it.
• iRhythm delayed its planned Zio MCT FDA submission from later this year to 2027, prioritizing integration of VitalConnect. Zio AT purchasing delays are expected to persist near term; management forecasts flat AT volume in Q4 and is assuming AT remains flat in 2027.
• iRhythm raised 2026 revenue guidance to $890 million–$895 million and adjusted EBITDA margin guidance to 15.5%–16%. For 2027, it expects about $1 billion in organic revenue, mid-teens Zio Monitor growth, VitalConnect growth slightly above the organic business, and an adjusted EBITDA margin of at least 15%—while noting that VitalConnect integration and scaling remain priorities.

iRhythm Technologies Price Performance

Shares of NASDAQ:IRTC traded down $2.97 during trading on Thursday, reaching $131.03. 796,200 shares of the company traded hands, compared to its average volume of 545,483. The company's 50 day moving average is $115.47 and its two-hundred day moving average is $122.07. The firm has a market capitalization of $4.32 billion, a PE ratio of 291.30 and a beta of 1.39. The company has a quick ratio of 3.74, a current ratio of 3.86 and a debt-to-equity ratio of 3.50. iRhythm Technologies has a 52 week low of $100.70 and a 52 week high of $192.47.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on IRTC shares. Wells Fargo & Company dropped their target price on iRhythm Technologies from $168.00 to $150.00 and set an "overweight" rating for the company in a report on Tuesday, October 6th. Wall Street Zen downgraded shares of iRhythm Technologies from a "buy" rating to a "hold" rating in a research note on Saturday, October 10th. Truist Financial raised their price target on shares of iRhythm Technologies from $160.00 to $168.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Weiss Ratings upgraded shares of iRhythm Technologies from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, October 27th. Finally, Needham & Company LLC increased their target price on shares of iRhythm Technologies from $192.00 to $194.00 and gave the stock a "buy" rating in a research report on Monday, October 5th. Two analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $174.50.

About iRhythm Technologies

iRhythm Technologies, Inc is a digital health company focused on the diagnosis and management of cardiac arrhythmias. The company provides ambulatory cardiac monitoring services that enable physicians to evaluate patients for conditions such as atrial fibrillation and other irregular heart rhythms.

Its principal offering is the Zio platform, which combines wearable electrocardiogram (ECG) monitoring devices with cloud-based data analysis and physician reports. Products in the platform include the Zio XT, an extended-wear monitor, and the Zio AT, which provides near-real-time monitoring capabilities.

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