iRhythm Technologies (NASDAQ:IRTC – Get Free Report) released its quarterly earnings data 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 negative net margin of 1.69% and a positive return on equity of 10.11%. The company had revenue of $221.59 million during the quarter, compared to the consensus estimate of $222.23 million. During the same quarter in the prior year, the firm posted ($0.06) earnings per share. iRhythm Technologies’s revenue for the quarter 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 Stock Performance
Shares of IRTC stock traded down $2.97 during midday trading on Thursday, hitting $131.03. The company had a trading volume of 796,200 shares, compared to its average volume of 545,483. The stock has a market cap of $4.32 billion, a price-to-earnings ratio of -304.72 and a beta of 1.39. The company has a debt-to-equity ratio of 3.50, a current ratio of 3.86 and a quick ratio of 3.74. The company’s 50 day simple moving average is $115.47 and its 200 day simple moving average is $122.07. iRhythm Technologies has a 52-week low of $100.70 and a 52-week high of $192.47.
Analyst Ratings Changes
IRTC has been the topic of a number of research reports. Weiss Ratings upgraded iRhythm Technologies from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, October 27th. Wall Street Zen cut iRhythm Technologies from a “buy” rating to a “hold” rating in a research note on Saturday, October 10th. Needham & Company LLC boosted their price objective on iRhythm Technologies from $192.00 to $194.00 and gave the company a “buy” rating in a research note on Monday, October 5th. Truist Financial increased their price objective on iRhythm Technologies from $160.00 to $168.00 and gave the company a “buy” rating in a report on Monday, August 10th. Finally, Piper Sandler initiated coverage on shares of iRhythm Technologies in a research report on Friday, October 16th. They set an “overweight” rating and a $160.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $174.50.
Get Our Latest Research Report on IRTC
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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