Irhythm Technologies (IRTC) AI Stock Analysis

• Market Cap: $5.92B
• Dividend Yield: N/A
• Average Volume (3M): 351.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: 22.37%
• EPS Growth: 31.14%
• Country: US
• Employees: 2,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.16
• Shares Outstanding: 32,127,760
• 10 Day Avg. Volume: 360,428
• 30 Day Avg. Volume: 351,167
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $219.62
• Price Target Upside: 17.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 56 Neutral
• Price Target: $193.00 ▲(3.04% Upside)

Irhythm Technologies' overall stock score is driven by strong earnings call performance and positive technical indicators. However, significant financial performance challenges, particularly high leverage and negative profitability, weigh heavily on the score. The valuation is also a concern due to the negative P/E ratio.

Positive Factors

Revenue Growth

The strong revenue growth of 31% YoY indicates robust demand for iRhythm's products and services, enhancing its market position and supporting long-term business expansion.

EHR Integration

EHR integration with major customers boosts operational efficiency and customer retention, driving sustained growth in monitoring volumes and revenue.

Positive Free Cash Flow

Achieving positive free cash flow signifies improved financial health, providing the company with greater flexibility to invest in growth initiatives and reduce debt.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting long-term stability.

Negative Profitability

Ongoing profitability challenges could hinder the company's ability to reinvest in its business and achieve sustainable growth over time.

Regulatory Challenges

Regulatory challenges can delay product approvals and market entry, impacting the company's ability to capitalize on new opportunities and maintain competitive advantage.

Irhythm Technologies Business Overview & Revenue Model

Company Description

iRhythm Technologies (IRTC) is a digital healthcare company that specializes in the development of innovative solutions for cardiac monitoring and arrhythmia detection. Operating primarily in the healthcare sector, iRhythm focuses on transforming the way cardiac arrhythmias are diagnosed and managed through its proprietary Zio service, which combines a wearable ECG monitoring device with advanced data analytics and interpretation capabilities. The company's core products include the Zio XT and Zio AT devices, designed to provide continuous cardiac monitoring for patients, enabling clinicians to obtain critical insights into heart health.

How the Company Makes Money

iRhythm Technologies generates revenue primarily through its subscription-based Zio service, which includes the sale of its Zio XT and Zio AT monitoring devices, along with the associated data analysis and reporting services. The company charges healthcare providers for the use of its monitoring devices and the interpretation of the collected data, creating a recurring revenue model. Key revenue streams include direct sales to hospitals and clinics, as well as partnerships with healthcare systems and insurers that facilitate access to its technology. Additionally, iRhythm benefits from collaborations with various healthcare organizations to enhance its product offerings and expand its market presence, further contributing to its earnings.

Irhythm Technologies Financial Statement Overview

Summary

Irhythm Technologies shows strong revenue growth and effective cost management at the production level. However, profitability challenges persist due to high operating expenses and significant leverage, as indicated by a high debt-to-equity ratio. Positive cash flow movements are promising, but reliance on debt financing remains a risk.

Income Statement

Irhythm Technologies shows a strong revenue growth with a TTM (Trailing-Twelve-Months) increase of approximately 11% from the previous year. However, the company struggles with profitability, evidenced by its negative net profit margin and EBIT margin, both of which are in the negative territory. The gross profit margin remains healthy above 69%, indicating effective cost management at the production level, but significant operating expenses are impacting overall profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 7.09, indicating high leverage which could pose financial risk. Stockholders' equity is a small fraction of total assets, leading to a low equity ratio of approximately 10.8%. Return on equity is negative due to ongoing losses, highlighting challenges in generating returns for shareholders. Despite these concerns, the company maintains sufficient cash reserves relative to its liabilities.

Cash Flow

Irhythm Technologies has improved its free cash flow position, turning positive in the latest TTM period from a negative position in the previous year. The operating cash flow to net income ratio is positive, suggesting that the company generates adequate cash from its core operations despite reporting net losses. However, the reliance on financing activities to support cash flow needs is notable.

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	-26.00M	-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: Positive
• Last Price: 187.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 187.3 is above the 20-day moving average (MA) of 180.00, above the 50-day MA of 177.00, and above the 200-day MA of 139.03, indicating a bullish trend. The MACD of 2.86 indicates Negative momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 53.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRTC.

Irhythm Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITGR	―	$2.26B	27.03	5.18%	―	7.81%	-26.32%
INSP	―	$2.16B	42.33	8.07%	―	22.05%	785.52%
AXGN	―	$1.02B	―	-1.90%	―	18.72%	85.77%
IRTC	―	$5.92B	―	-91.13%	―	22.37%	31.14%
LIVN	―	$2.88B	―	-17.87%	―	8.57%	-1154.64%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BVS	―	$559.74M	―	-0.10%	―	5.08%	99.38%

Irhythm Technologies Corporate Events

iRhythm Technologies Reports Strong Q3 2025 Earnings

The recent earnings call for iRhythm Technologies showcased a generally positive sentiment, highlighting the company’s strong financial performance and strategic growth. The call emphasized a significant increase in revenue, successful product expansion, and positive cash flow. However, it also acknowledged challenges related to regulatory interactions due to external factors.

iRhythm Technologies Reports Strong Q3 2025 Growth

iRhythm Technologies, Inc. is a digital healthcare company specializing in wearable biosensors and data analytics to provide actionable insights for cardiac care. In its third-quarter 2025 financial results, iRhythm reported a significant revenue increase of 30.7% year-over-year, reaching $192.9 million, driven by strong demand for its Zio services and expansion into international markets. The company also achieved a gross margin of 71.1%, reflecting operational efficiencies and increased service volumes.

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.

The most recent analyst rating on (IRTC) stock is a Hold with a $187.00 price target. To see the full list of analyst forecasts on Irhythm Technologies stock, see the IRTC Stock Forecast page.

iRhythm Technologies’ PANDA Study: Expanding Pediatric Use of Zio® Monitor

iRhythm Technologies is conducting the Pediatric Adhesion and New Dermal Approach Study (PANDA) to evaluate the feasibility of using the Zio® monitor in children. The study aims to determine if the device can be worn for up to 14 days while maintaining good skin adherence and clear signal quality. This research is significant as it could expand the use of the Zio® monitor to pediatric patients, potentially improving diagnostic capabilities for conditions like arrhythmia in children.

iRhythm Technologies Reports Strong Q2 2025 Earnings

The recent earnings call for iRhythm Technologies was marked by an overwhelmingly positive sentiment, highlighting the company’s robust revenue growth, record-breaking new account openings, and successful international expansion. Despite facing some challenges, such as ongoing FDA remediation costs and a slightly negative free cash flow, the company conveyed a strong sense of optimism for its future trajectory.

iRhythm Technologies Reports Strong Q2 2025 Growth

iRhythm Technologies, Inc. is a digital healthcare company that specializes in developing solutions for detecting, predicting, and preventing diseases, primarily focusing on cardiac monitoring through wearable biosensors and data analytics.