iRhythm Technologies (NASDAQ:IRTC) Announces Quarterly Earnings Results

Key Points

• Beat expectations and raised guidance — iRhythm reported Q1 EPS of ($0.35) and revenue of $199.4M (+~25.7% YoY), beating estimates, improved adjusted EBITDA margin to 7.1%, and raised its 2026 revenue guide to $875–$885M with target adjusted EBITDA margin of 12–13% while holding ~$549.6M in cash and marketable securities.
• AI and product roadmap could drive efficiency — the company has submitted a next‑generation AI 510(k) expected to be approved later this year and reaffirmed Zio MCT for H1 2027, with the AI expected to cut technician review time by ~50% and boost margins.
• Regulatory and legal risks remain — an FDA warning letter is still open despite remediation, the DOJ civil investigative demand regarding historical Zio AT periods remains active, and the final CMS/MAC LCD outcome is uncertain.

iRhythm Technologies (NASDAQ:IRTC - Get Free Report) announced its quarterly earnings results on Thursday. The company reported ($0.35) EPS for the quarter, beating the consensus estimate of ($0.66) by $0.31, FiscalAI reports. iRhythm Technologies had a negative net margin of 5.96% and a negative return on equity of 28.15%. The firm had revenue of $199.39 million during the quarter, compared to the consensus estimate of $194.08 million. During the same period last year, the firm earned ($0.97) EPS. The business's quarterly revenue was up 25.6% compared to the same quarter last year.

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

• Strong Q1 financials — revenue of $199.4M (+25.7% YoY), adjusted EBITDA margin 7.1% (up 880 bps), raised 2026 revenue guide to $875–$885M and adjusted EBITDA margin to 12–13%, with ~$549.6M in cash and marketable securities.
• Broad commercial momentum across Zio Monitor and Zio AT, with expansion upstream into primary care (now a meaningful share of volume), 53% of volume via EHR integrations, and new-store growth accounting for ~64% of year‑over‑year volume gains.
• Product and AI roadmap progressing — next‑generation AI 510(k) submitted and expected approval later this year, Zio MCT release reaffirmed for H1 2027, and the AI is expected to cut technician review time by ~50% and drive material margin/efficiency gains across the platform.
• Regulatory and legal uncertainty remains — an FDA warning letter is still open despite remediation and a third‑party review with no material findings, the DOJ CID (focused on historical Zio AT periods) remains active, and the final CMS/MAC LCD outcome is uncertain.
• International and adjacent market expansion is early — U.K. posted the company's best quarter, Japan received a modest supplemental reimbursement (not yet meaningful), and sleep pilots are encouraging but unlikely to move the needle materially before 2027.

iRhythm Technologies Price Performance

Shares of iRhythm Technologies stock traded up $8.41 on Thursday, hitting $129.16. 1,089,413 shares of the company traded hands, compared to its average volume of 351,924. The firm's 50-day simple moving average is $122.93 and its 200 day simple moving average is $154.60. The company has a current ratio of 4.63, a quick ratio of 4.48 and a debt-to-equity ratio of 4.25. The company has a market cap of $4.24 billion, a P/E ratio of -92.26 and a beta of 1.18. iRhythm Technologies has a 12-month low of $105.62 and a 12-month high of $212.00.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Robert W. Baird cut their price target on shares of iRhythm Technologies from $220.00 to $200.00 and set an "outperform" rating for the company in a report on Friday, February 20th. Morgan Stanley restated an "overweight" rating on shares of iRhythm Technologies in a research report on Monday, January 12th. Canaccord Genuity Group lowered their price objective on shares of iRhythm Technologies from $212.00 to $198.00 and set a "buy" rating on the stock in a research report on Friday, February 20th. Needham & Company LLC restated a "buy" rating and set a $244.00 price objective on shares of iRhythm Technologies in a research report on Monday, January 12th. Finally, Freedom Capital upgraded shares of iRhythm Technologies to a "strong-buy" rating in a research report on Thursday, January 15th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, iRhythm Technologies currently has an average rating of "Moderate Buy" and an average price target of $202.92.

Insider Activity

In related news, insider Patrick Michael Murphy sold 4,357 shares of iRhythm Technologies stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $128.44, for a total value of $559,613.08. Following the transaction, the insider owned 63,203 shares in the company, valued at $8,117,793.32. This trade represents a 6.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Mervin Smith sold 1,352 shares of iRhythm Technologies stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $128.44, for a total transaction of $173,650.88. Following the completion of the transaction, the executive vice president owned 25,612 shares in the company, valued at approximately $3,289,605.28. The trade was a 5.01% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 94,509 shares of company stock worth $12,734,195. Corporate insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On iRhythm Technologies

A number of large investors have recently added to or reduced their stakes in the business. RTW Investments LP purchased a new position in iRhythm Technologies in the 4th quarter worth $209,732,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in iRhythm Technologies by 45.6% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 829,862 shares of the company's stock worth $147,251,000 after purchasing an additional 259,800 shares during the period. Millennium Management LLC raised its position in iRhythm Technologies by 197.4% in the 4th quarter. Millennium Management LLC now owns 826,376 shares of the company's stock worth $146,632,000 after purchasing an additional 548,519 shares during the period. Fuller & Thaler Asset Management Inc. raised its position in iRhythm Technologies by 7.4% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 639,423 shares of the company's stock worth $113,459,000 after purchasing an additional 44,175 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its position in iRhythm Technologies by 6,415.4% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 541,039 shares of the company's stock worth $93,053,000 after purchasing an additional 532,735 shares during the period.

iRhythm Technologies Company Profile

iRhythm Technologies, Inc is a medical technology company that develops and commercializes wearable cardiac monitoring devices and associated data analytics services. Founded in 2006 and headquartered in San Francisco, California, the company's flagship product is the Zio® patch, a discreet, single-use, continuous ECG recorder designed to monitor heart rhythms for up to 14 days. iRhythm's digital diagnostics platform combines biosensor technology with proprietary algorithms to detect arrhythmias and streamline data interpretation for physicians.

The Zio service is prescribed by cardiologists and other healthcare providers to aid in the diagnosis of atrial fibrillation, bradycardia, tachycardia and other rhythm disorders.

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