iRhythm Holdings, Inc. (IRTC)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$825.3M

Revenue growth

25.6%

Net income, last twelve months

-$13.9M

Earnings per share

-$0.43

Gross margin

71.5%

Operating margin

-3.0%

Net margin

-1.7%

Free cash flow

$39.0M

Return on equity

-7.5%

Market value

$4.1B

Cash

$246.7M

Debt

$651.1M

Debt to equity

3.50

Shares outstanding

32.9M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter of fiscal 2026 results, filed 6 August 2026.

• Revenue grew 20.1% on volume. Revenue was $224.2 million, up 20.1%. Management attributed growth primarily to sustained volume demand across the customer base and contributions from newer growth channels.
• Gross profit rose on Zio volume. Gross profit was $163.2 million, up 22.8%, which management attributed primarily to increased volume of Zio services.
• Six-month revenue higher year over year. Six-month revenue was $423.6 million against $345.4 million a year earlier.
• Full-year guidance raised. Management raised fiscal 2026 revenue and adjusted EBITDA margin guidance from the prior quarter's ranges.
• GAAP net loss near breakeven. GAAP net loss was $0.4 million, or $0.01 per diluted share, against $14.2 million, or $0.44, in second quarter 2025.
• Adjusted net income turned positive. Adjusted net income was $19.3 million, or $0.58 per diluted share, against an adjusted net loss of $10.2 million a year earlier. Management cited revenue growth and operating leverage.
• Gross margin up 160 basis points. Gross margin was 72.8%, up 160 basis points, which management attributed to operational efficiencies, product mix and scale from higher volumes.
• Adjusted EBITDA margin reached 19.3%. Adjusted EBITDA was $43.3 million, a 19.3% margin, improved $27.6 million and 1,090 basis points from second quarter 2025.
• GAAP operating expenses rose. GAAP operating expenses were $165.7 million against $151.6 million, with SG&A of $131.7 million against $126.4 million.
• Adjusted operating expenses held flat. Adjusted operating expenses were $145.0 million against $145.2 million; management called this disciplined investment that funded key growth initiatives.
• Securities settlement charge excluded. A $13.95 million charge for a securities class action settlement, net of expected insurance recoveries, is excluded from adjusted measures.
• Research and development spending declined. Research and development expense was $19.8 million against $21.0 million a year earlier.
• Third-generation algorithm cleared by FDA. FDA clearance was achieved for the third-generation algorithm, which management expects to reduce clinician review time over time and lower costs over five years.
• Predictive analytics program expanded. Predictive Arrhythmia Solutions expanded with Desert Oasis Health Care, an affiliate of Heritage Provider Network, using AI-driven predictive analytics.

Revenue by segment

As the company reports it in the segment note of its annual report.

By product, FY2025

Company events

The newest 8-K filings of 120 held.

Every filing

The newest filings with the SEC of 256 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Trades by members of the House

From each member's periodic transaction report.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

347 funds held it at 30 Jun 2026: 155 added and 89 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Stryker Corp. (SYK): revenue $25.8B, market value $116.7B
• 3M Co. (MMM): revenue $25.2B, market value $89.3B
• Boston Scientific Corp. (BSX): revenue $21.0B, market value $61.4B
• Becton Dickinson & Co. (BDX): revenue $20.8B, market value $53.2B
• Resmed Inc. (RMD): revenue $5.7B, market value $36.1B
• Dexcom Inc. (DXCM): revenue $5.0B, market value $29.7B
• West Pharmaceutical Services Inc. (WST): revenue $3.3B, market value $28.4B
• Medline Inc. (MDLN): revenue –, market value $27.9B
• Solventum Corp. (SOLV): revenue $8.3B, market value $13.9B
• Baxter International Inc. (BAX): revenue $11.5B, market value $13.2B

What the company does

iRhythm Holdings designs, develops and commercialises device-based ambulatory cardiac monitoring services that physicians use to diagnose arrhythmias. Each iRhythm ACM System combines a wire-free, patch-based, 14-day wearable biosensor that continuously records ECG data with cloud-based data analytic software. The company first received FDA clearance for its technology in 2009. Since then it has provided its services via more than twelve million patient reports and has collected almost three billion hours of curated heartbeat data. It had approximately 2,400 regular full-time employees as of 31 December 2025, and its common stock trades on The Nasdaq Global Select Market under the symbol "IRTC".

What it sells

The company offers three systems: the Zio monitor System, the Zio XT System and the Zio AT System. The Zio monitor records the heart's electrical signal continuously for up to 14 days. The Zio XT is the previous generation, and the filing says the Zio monitor is 72% smaller, 62% lighter and 23% thinner. The Zio AT adds a wireless gateway, slightly larger than a smart phone, that sends data to the cloud over an LTE cellular connection. It supports the company's mobile cardiac telemetry service. One patch typically collects approximately 1.5 million heartbeats during a single wear period. The patches are not sold outside the company's own services.

How a test works

Patients can press a trigger button to mark symptoms and can log activities in a diary or in the myZio app. After the Zio monitor is returned to the company's independent diagnostic testing facility (IDTF), the ECG data is uploaded to a secure cloud. Deep learning algorithms generate preliminary findings. Qualified technicians then validate each report and send it to the prescribing physician. Physicians can open reports in the ZioSuite web portal, through Electronic Health Record connections or in the ZioSuite mobile apps. Technicians also notify physicians of certain potentially clinically actionable arrhythmias, following the physician's notification criteria. The company's facilities in Illinois, California and Texas are enrolled in Medicare as IDTFs.

Who pays for it

- Contracted third-party payors: 52%. - Centers for Medicare and Medicaid: 24%. - Healthcare institutions, typically hospitals or private physician practices: 17%. - Non-contracted third-party payors: 7%.

About 83% of revenue comes through third-party payors. Services are generally billable when the Zio report is issued to the physician. The company relies on third-party billing partners to submit claims and collect payment.

Who buys it and where

In the United States the company sells directly, using sales representatives, field billing specialists and customer experience representatives. It markets to general cardiologists, electrophysiologists, primary care physicians, neurologists and other specialists. It also targets integrated delivery networks and risk-bearing entities. The company says it has approximately 40% penetration of the core ambulatory cardiac monitoring market in the United States. It also says it delivered more than 70% of long-term continuous monitoring services there as of 2025.

Outside the United States, the company set up a small direct sales and clinical base in Bagshot, Surrey, in January 2021. That base serves the UK, largely through orders from NHS Trusts and Hospitals. A small sales force covers Switzerland, Austria and the Netherlands. A vendor in the Netherlands distributes in European countries other than Spain, and a separate distributor covers Spain. In Japan a third-party distributor sells the Zio monitor, which the Ministry of Health, Labor and Welfare approved in September 2024.

Where it makes things

The company manufactures its systems in a leased facility in Cypress, California. The facility is approximately 69,000 square feet, of which 34,000 square feet is used for manufacturing. Outside suppliers provide components and sub-assemblies. Certain materials come from single sources, including application-specific integrated circuits used in the transmitters, seals used for the applicators and certain polymers used in the sensors. The facilities are ISO certified (EN ISO 13485:2016). The devices are Class II devices that need FDA 510(k) clearance. They are also CE-marked under the EU MDR and carry a UKCA mark for Zio XT and ZEUS. The company submitted a 510(k) application for its next-generation mobile cardiac telemetry device in the third quarter of 2025.

How it competes

The filing names BioTelemetry (acquired by Royal Philips), Preventice Solutions (acquired by Boston Scientific) and Bardy Diagnostics as competitors that offer remote monitoring and act as diagnostic service providers. It also names makers of traditional 24-to-48-hour Holter monitors, including GE Healthcare, Philips Healthcare, Spacelabs Healthcare, Welch Allyn and Mortara. The company says many competitors have greater financial, manufacturing, marketing and technical resources than it does. The factors it lists as most important include patient comfort, the clinical validation of its algorithms, report quality, workflow, contracted payor rates and published clinical evidence.

The company points to two studies, CAMELOT with 287,789 Medicare beneficiaries and AVALON with 428,707 commercially insured patients. It reports that long-term continuous monitoring with Zio had the highest diagnostic yield among the modalities compared. It owned or held an exclusive licence to 59 issued United States patents as of 31 December 2025 and had 65 pending applications globally. It is party to patent litigation brought by Welch Allyn and Bardy Diagnostics.

*From iRhythm's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1388658/000138865826000011/irtc-20251231.htm)*

From the company's 10-K.