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1. Company Snapshot

1.a. Company Description

iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States.It offers Zio service, an ambulatory cardiac monitoring solution that combines a wire-free, patch-based, and wearable biosensor with a cloud-based data analytic platform to help physicians to monitor patients and diagnose arrhythmias.The company's Zio XT and AT monitors, a single-use, wire-free, and wearable patch-based biosensors, records patient's heartbeats and ECG data.


It has a development collaboration agreement with Verily Life Sciences LLC to develop various next-generation atrial fibrillation screening, detection, or monitoring products.The company was incorporated in 2006 and is headquartered in San Francisco, California.

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1.b. Last Insights on IRTC

iRhythm Technologies' recent performance was driven by its upbeat Q3 2025 results, with a narrower-than-expected loss of $0.06 per share. The company's revenue beat estimates, and its management team raised the outlook for 2025. A large-scale study published in Heart Rhythm and new data presented at AHA Scientific Sessions 2025 reinforced the clinical value of Zio LTCM. Additionally, several institutional investors, including AlphaQuest LLC, grew their positions in the company. (Source: Globe Newswire, October 30, 2025)

1.c. Company Highlights

2. iRhythm's Strong Q3 2025 Earnings: Accelerating Momentum in Cardiac Care

iRhythm's Q3 2025 financial performance was robust, with revenue reaching $192.9 million, a 31% year-over-year increase. The adjusted EBITDA margin stood at 11.2%, and the company reported a loss per share of -$0.06, significantly better than the estimated -$0.36. The strong revenue growth was driven by record performance in both Zio Monitor and Zio AT, as well as continued success in expanding monitoring upstream through primary care. As Quentin Blackford, iRhythm's President and CEO, noted, "clinical evidence remains at the core of their differentiation," with recent published data validating their approach to proactive monitoring strategies.

Publication Date: Nov -02

📋 Highlights
  • Revenue Growth:: Q3 revenue hit $192.9M, up 31% YoY, driven by Zio Monitor/AT and EHR integrations.
  • EHR Integration Success:: 76 of top 100 customers now EHR-integrated, with integrated accounts showing 25% higher utilization in six months.
  • Clinical Cost Avoidance:: Early arrhythmia detection avoids $10M+ downstream costs per 1,000 high-comorbidity patients.
  • Financial Strength:: Adjusted EBITDA margin at 11.2%; raised 2025 revenue guidance to $735M–$740M (24–25% YoY growth).
  • Innovation Pipeline:: Sleep apnea AI diagnostics in development, leveraging $565.2M cash reserves for strategic investments.

Revenue Growth and Guidance

The company's revenue guidance for full year 2025 was raised to $735 million to $740 million, representing 24% to 25% year-over-year growth. This upward revision reflects the company's strong momentum, with analysts estimating next year's revenue growth at 16.9%. The company's ability to scale and absorb new customers, as well as the quality and size of new accounts, has driven this growth.

Valuation Metrics

To understand what's priced into iRhythm's stock, we can look at various valuation metrics. The current P/S Ratio stands at 8.59, indicating that the stock may be trading at a premium. Additionally, the EV/EBITDA ratio is -250.32, and the P/E Ratio is -117.08, reflecting the company's current loss-making position. The company's strong cash position, with $565.2 million in unrestricted cash and short-term investments, provides a foundation for future growth and strategic investments.

Operational Highlights

iRhythm made significant progress in expanding its EHR integrations, with 76 of its top 100 customers now integrated. The company is also advancing its AI prediagnostic and diagnostic pathways for sleep apnea, a chronic condition associated with an increased risk of arrhythmia and cardiovascular disease. The development of sleep diagnostics is expected to leverage the same form factor as Zio MCT, identifying and diagnosing sleep disease.

Future Growth Prospects

Quentin Blackford guided the company's growth expectation for 2026, suggesting a range of 16% to 18%, with upside potential from external factors like FDA approval for Zio MCT and the adaptation of innovative channels. The company's strong momentum, expanding adoption, and innovative solutions position it for continued growth in the cardiac care market.

3. NewsRoom

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iRhythm Technologies, Inc. (IRTC) Presents at Citi Annual Global Healthcare Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Kuehn Law Encourages Investors of iRhythm Technologies, Inc. to Contact Law Firm

Dec -03

Source: globenewswire.com

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HALPER SADEH LLC ENCOURAGES IRHYTHM TECHNOLOGIES, INC. SHAREHOLDERS TO CONTACT THE FIRM TO DISCUSS THEIR RIGHTS

Nov -30

Source: prnewswire.com

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Kuehn Law Encourages Investors of iRhythm Technologies, Inc. to Contact Law Firm

Nov -17

Source: prnewswire.com

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Kuehn Law Encourages Investors of iRhythm Technologies, Inc. to Contact Law Firm

Nov -12

Source: newsfilecorp.com

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Rosen Law Firm Announces Investigation of Breaches of Fiduciary Duties by the Directors and Officers of iRhythm Technologies, Inc. – IRTC

Nov -11

Source: businesswire.com

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iRhythm Technologies Announces Publication of Large-Scale Study in Heart Rhythm and New Data Presented at AHA Scientific Sessions 2025

Nov -11

Source: globenewswire.com

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iRhythm: The Heart Monitor Maker Whose Stock Keeps Beating

Nov -05

Source: barrons.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.97%)

6. Segments

Contracted Third-party Payors

Expected Growth: 14.0%

iRhythm Technologies, Inc.'s 14.0% growth in Contracted Third-party Payors is driven by increasing adoption of Zio XT, a wearable cardiac monitoring device, among healthcare providers and patients. Expanding payer coverage, growing demand for remote patient monitoring, and strategic partnerships with leading health systems also contribute to this growth.

Centers for Medicare & Medicaid

Expected Growth: 15.0%

iRhythm Technologies, Inc.'s 15.0% growth from Centers for Medicare & Medicaid is driven by increasing adoption of Zio XT, a wearable cardiac monitoring device, and expanding reimbursement coverage. Additionally, growing demand for remote patient monitoring and telehealth services, as well as increasing prevalence of atrial fibrillation, contribute to the segment's growth.

Healthcare Institutions

Expected Growth: 13.0%

iRhythm Technologies, Inc.'s 13.0% growth in Healthcare Institutions is driven by increasing adoption of AI-powered cardiac diagnosis, rising demand for remote patient monitoring, and growing need for accurate arrhythmia detection. Additionally, expansion into new markets, strategic partnerships, and investments in digital health technologies are contributing to the company's growth momentum.

Non-contracted Third-party Payors

Expected Growth: 12.0%

The 12.0% growth in Non-contracted Third-party Payors from iRhythm Technologies, Inc. is driven by increasing adoption of Zio XT, expansion into new markets, and growing demand for remote cardiac monitoring solutions. Additionally, favorable reimbursement trends and strategic partnerships contribute to this growth.

7. Detailed Products

Zio XT

A single-use, patch-type wearable cardiac monitor that records and stores ECG data for up to 14 days.

Zio AT

A single-use, patch-type wearable cardiac monitor that records and stores ECG data for up to 2 weeks.

Zio Rhythm Management

A comprehensive rhythm management solution that includes the Zio XT or Zio AT patch, data analysis, and reporting.

Zio Analytics Platform

A cloud-based platform that provides data analysis, reporting, and insights for cardiac rhythm data.

8. iRhythm Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

iRhythm Technologies, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the healthcare industry.

Bargaining Power Of Customers

iRhythm Technologies, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are critical to patient care, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

iRhythm Technologies, Inc. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate contracts mitigate this risk.

Threat Of New Entrants

The medical device industry has high barriers to entry, including regulatory hurdles and significant research and development investments. This makes it difficult for new entrants to compete with iRhythm Technologies, Inc.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players competing for market share. iRhythm Technologies, Inc. faces intense competition from companies like Medtronic and Abbott Laboratories.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.26%
Debt Cost 3.95%
Equity Weight 80.74%
Equity Cost 10.52%
WACC 9.25%
Leverage 23.85%

11. Quality Control: iRhythm Technologies, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 8.0

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

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iRhythm Technologies

A-Score: 4.6/10

Value: 4.2

Growth: 6.1

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

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Value: 6.4

Growth: 2.3

Quality: 5.9

Yield: 0.0

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Value: 3.6

Growth: 5.3

Quality: 7.5

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Momentum: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

180.03$

Current Price

180.03$

Potential

-0.00%

Expected Cash-Flows