iRhythm Technologies (NASDAQ:IRTC) Posts Earnings Results, Beats Expectations By $0.80 EPS

iRhythm Technologies (NASDAQ:IRTC) issued its quarterly earnings results on Thursday. The company reported $0.82 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.80, FiscalAI reports. The company had revenue of $221.59 million during the quarter, compared to the consensus estimate of $222.23 million. iRhythm Technologies had a negative net margin of 1.69% and a positive return on equity of 10.11%. The firm’s quarterly revenue was up 14.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.06) EPS.

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 Price Performance

Shares of IRTC stock traded down $2.97 on Thursday, reaching $131.03. The company had a trading volume of 796,200 shares, compared to its average volume of 545,483. The business’s 50-day moving average is $115.47 and its 200 day moving average is $122.07. iRhythm Technologies has a one year low of $100.70 and a one year high of $192.47. The company has a quick ratio of 3.74, a current ratio of 3.86 and a debt-to-equity ratio of 3.50. The stock has a market capitalization of $4.32 billion, a PE ratio of 291.30 and a beta of 1.39.

Analyst Ratings Changes

IRTC has been the topic of a number of recent analyst reports. Piper Sandler assumed coverage on shares of iRhythm Technologies in a research note on Friday, October 16th. They issued an “overweight” rating and a $160.00 price objective on the stock. Needham & Company LLC upped their target price on iRhythm Technologies from $192.00 to $194.00 and gave the stock a “buy” rating in a research note on Monday, October 5th. Wall Street Zen downgraded iRhythm Technologies from a “buy” rating to a “hold” rating in a report on Saturday, October 10th. Truist Financial lifted their price target on iRhythm Technologies from $160.00 to $168.00 and gave the company a “buy” rating in a research note on Monday, August 10th. Finally, Wells Fargo & Company decreased their price target on iRhythm Technologies from $168.00 to $150.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 6th. Two equities research 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 given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $174.50.

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.