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Irhythm Technologies
(NASDAQ:IRTC)
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Rating:52Neutral
Price Target:
$111.00
▼(-9.82% Downside)
Action:Reiterated
Date:09/23/26
The score is held back primarily by mixed financial quality (still negative GAAP profitability and high leverage) and weak technicals (below major moving averages with negative momentum). These are partially offset by a constructive earnings call with raised guidance, strong Q2 profitability/FCF, and continued high gross margins, while valuation remains unattractive due to the negative P/E and no dividend yield provided.
Positive Factors
Strong Revenue Growth
Sustained high-teens revenue growth indicates expanding utilization of iRhythm’s monitoring platform and stronger commercial execution. The raised annual outlook provides evidence that momentum is broad enough to support continued investment, scale benefits, and improved earnings power over the next several quarters.
Negative Factors
Elevated Leverage
The debt-heavy capital structure reduces financial flexibility and leaves less capacity to absorb weaker operating results or fund strategic initiatives internally. Elevated leverage also increases the importance of sustained cash generation, because any deterioration in performance could constrain investment and capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained high-teens revenue growth indicates expanding utilization of iRhythm’s monitoring platform and stronger commercial execution. The raised annual outlook provides evidence that momentum is broad enough to support continued investment, scale benefits, and improved earnings power over the next several quarters.
Read all positive factors
Irhythm Technologies Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each part of iRhythm’s business generates — for example Zio monitoring services, devices or software, and different geographic or payer groups. Reveals which lines are driving growth, how reliant the company is on its core monitoring service, and where reimbursement, competition, or regulatory shifts could pose risks to future sales.
Shows how much revenue each part of iRhythm’s business generates — for example Zio monitoring services, devices or software, and different geographic or payer groups. Reveals which lines are driving growth, how reliant the company is on its core monitoring service, and where reimbursement, competition, or regulatory shifts could pose risks to future sales.
Data provided by:
The Fly
The FlyIrhythm Technologies (IRTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.66B
Dividend YieldN/A
Average Volume (3M)500.35K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth25.58%
EPS Growth85.38%
CountryUS
Employees2,400
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.43
Shares Outstanding32,963,000
10 Day Avg. Volume531,844
30 Day Avg. Volume500,346
Financial Highlights & Ratios
PEG Ratio2.07
Price to Book (P/B)37.18
Price to Sales (P/S)7.60
P/FCF Ratio164.50
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$176.30Price Target Upside43.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)-0.19
Revenue Forecast (FY)$886.87M
Irhythm Technologies Business Overview & Revenue Model
Company Description
iRhythm Technologies, Inc. is a digital healthcare enterprise dedicated to offering portable electrocardiogram (ECG) monitoring solutions to individuals in the United States who face the risk of cardiac arrhythmias. Its primary offering, the Zio s...
How the Company Makes Money
iRhythm primarily makes money by providing long-term ambulatory ECG monitoring solutions that combine a single-use wearable patch (e.g., Zio XT) or a wearable device for continuous monitoring (e.g., Zio AT) with a proprietary data platform that an...
Irhythm Technologies Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: high‑teens to low‑20% organic revenue growth, record profitability and free cash flow, raised guidance, constructive reimbursement news, and a strategic acquisition (VitalConnect) that expands modality, market opportunity and multivital capabilities. Notable risks discussed include an outstanding FDA warning letter, a recent cybersecurity incident, a $50 million litigation settlement, integration and regulatory review risks related to the VitalConnect acquisition, and the pending clearance of the company’s Zio MCT product. On balance, positive execution, margin expansion, and clear strategic rationale for the acquisition outweigh the manageable regulatory and integration headwinds.Positive Updates
Strong Revenue Growth
Second quarter revenue of $224.2 million, up 20.1% year‑over‑year; the company reported its seventh consecutive quarter of revenue growth above 20%.
Negative Updates
Outstanding FDA Warning Letter
Company remains subject to an FDA warning letter; while remediation activities and a third‑party audit are completed and submitted, timing for agency action and closure remains uncertain and continues to represent regulatory risk.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Second quarter revenue of $224.2 million, up 20.1% year‑over‑year; the company reported its seventh consecutive quarter of revenue growth above 20%.
Read all positive updates
Company Guidance
Management raised full‑year 2026 revenue guidance to $880–$890 million (up 18–19% year‑over‑year) and expects Q3 revenue of $221–$223 million; they raised full‑year adjusted EBITDA margin guidance to 13–14% (Q3 guide 12–13%) and reiterated a combined‑company adjusted EBITDA margin target of 15% for 2027. They expect gross margin to remain above 70% (Q2 gross margin was 72.8%, +160 bps YoY) and noted Q2 results of $224.2 million revenue (+20.1% YoY), $43.3 million adjusted EBITDA (19.3% of revenue), adjusted net income of $19.3 million ($0.58/diluted share), GAAP net loss of $0.4 million ($0.01), record Q2 free cash flow of $37.5 million, and $591.3 million in cash and marketable securities. The announced VitalConnect deal (about a $65 million revenue run‑rate) is excluded from 2026 guidance but is expected to contribute positively beginning in 2027, and management highlighted that a next‑generation FDA‑cleared algorithm (launch H1 2027) could cut technician review time by up to 50% and deliver roughly $100 million of cumulative cost savings over five years.Irhythm Technologies Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
32
Negative
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 825.34M | 747.14M | 591.84M | 492.68M | 410.92M | 322.82M |
| Gross Profit | 589.74M | 527.25M | 407.53M | 331.81M | 281.63M | 213.57M |
| EBITDA | 20.10M | -3.96M | -74.13M | -96.86M | -92.14M | -83.23M |
| Net Income | -13.95M | -44.55M | -113.29M | -123.41M | -116.16M | -101.36M |
Balance Sheet | ||||||
| Total Assets | 1.09B | 1.02B | 931.45M | 433.14M | 448.22M | 462.97M |
| Cash, Cash Equivalents and Short-Term Investments | 591.27M | 583.76M | 535.55M | 133.76M | 213.14M | 239.13M |
| Total Debt | 727.35M | 731.18M | 736.91M | 129.82M | 131.04M | 117.71M |
| Total Liabilities | 906.92M | 867.30M | 840.54M | 223.05M | 208.41M | 183.45M |
| Stockholders Equity | 185.98M | 152.75M | 90.91M | 210.10M | 239.81M | 279.51M |
Cash Flow | ||||||
| Free Cash Flow | 38.98M | 34.52M | -45.55M | -90.53M | -52.84M | -65.82M |
| Operating Cash Flow | 86.00M | 80.86M | 3.39M | -50.10M | -23.01M | -37.75M |
| Investing Cash Flow | -156.43M | -277.06M | -122.98M | -1.21M | -52.43M | 105.26M |
| Financing Cash Flow | 8.01M | 12.61M | 511.38M | 8.82M | 26.72M | -28.58M |
Irhythm Technologies Technical Analysis
Negative
123.09
Price Trends
118.35
Negative
116.10
Negative
128.89
Negative
Market Momentum
-2.00
Negative
42.41
Neutral
55.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRTC, the sentiment is Negative. The current price of 123.09 is above the 20-day moving average (MA) of 113.87, above the 50-day MA of 118.35, and below the 200-day MA of 128.89, indicating a bearish trend. The MACD of -2.00 indicates Negative momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 55.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRTC.
Irhythm Technologies Risk Analysis
Irhythm Technologies disclosed 60 risk factors in its most recent earnings report. Irhythm Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Irhythm Technologies Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $110.57B | 21.12 | 10.60% | 3.31% | 9.77% | 12.28% | |
73 Outperform | $167.31B | 31.35 | 10.52% | 2.54% | 8.06% | -61.33% | |
69 Neutral | $62.65B | 17.18 | 14.90% | ― | 13.53% | 46.29% | |
60 Neutral | $28.90B | 18.47 | 15.16% | 0.22% | 6.52% | -11.06% | |
58 Neutral | $23.20B | 18.18 | 10.05% | 4.14% | ― | ― | |
52 Neutral | $3.66B | -256.67 | -8.97% | ― | 25.58% | 85.38% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
IRTC
Irhythm Technologies
110.37
-65.24
-37.15%
ABT
Abbott Laboratories
97.50
-34.05
-25.88%
BSX
Boston Scientific
42.60
-54.72
-56.23%
PHG
Koninklijke Philips
23.92
-3.19
-11.76%
MDT
Medtronic
86.38
-8.19
-8.66%
GEHC
GE Healthcare Technologies Inc
64.29
-12.12
-15.87%
Irhythm Technologies Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Irhythm Technologies Clears Antitrust Hurdle for Vital Connect Acquisition
Positive
Sep 22, 2026
On August 5, 2026, iRhythm Holdings, Inc. and its wholly owned subsidiary iRhythm Technologies, Inc. entered into an Agreement and Plan of Merger to acquire Vital Connect, Inc. through a newly formed merger subsidiary, with Vital Connect to surviv...
Executive/Board Changes
iRhythm Technologies Announces Audit Committee Leadership Transition
Neutral
Aug 13, 2026
On August 11, 2026, iRhythm Holdings, Inc. announced that director Brian Yoor resigned from the company’s Board of Directors and as chair and member of its Audit Committee, effective August 12, 2026, citing personal reasons and no disagreeme...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Irhythm Technologies Announces Acquisition of Vital Connect
Positive
Aug 6, 2026
On August 5, 2026, iRhythm entered into a definitive agreement to acquire Vital Connect through a merger in which Vital Connect will become a direct wholly owned subsidiary of iRhythm Technologies and an indirect wholly owned subsidiary of iRhythm...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsM&A Transactions
Irhythm Technologies Boosts Outlook, Expands Cardiac Monitoring Platform
Positive
Aug 6, 2026
On July 31, 2026, iRhythm Technologies, a subsidiary of iRhythm Holdings, reached a settlement with Baxter-related entities to resolve mutual patent litigation over cardiac monitoring sensor technology, agreeing to pay $50 million and granting eac...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.