iRhythm Technologies (NASDAQ:IRTC) Issues Earnings Results, Beats Estimates By $0.31 EPS

iRhythm Technologies (NASDAQ:IRTC) issued its earnings results on Thursday. The company reported ($0.35) EPS for the quarter, topping analysts’ consensus estimates of ($0.66) by $0.31, FiscalAI reports. iRhythm Technologies had a negative net margin of 5.96% and a negative return on equity of 28.15%. The company had revenue of $199.39 million for the quarter, compared to analysts’ expectations of $194.08 million. During the same quarter last year, the company earned ($0.97) EPS. The firm’s revenue was up 25.6% compared to the same quarter last year.

Here are the key takeaways from iRhythm Technologies’ conference call:

• Strong Q1 financials — revenue of $199.4M (+25.7% YoY), adjusted EBITDA margin 7.1% (up 880 bps), raised 2026 revenue guide to $875–$885M and adjusted EBITDA margin to 12–13%, with ~$549.6M in cash and marketable securities.
• Broad commercial momentum across Zio Monitor and Zio AT, with expansion upstream into primary care (now a meaningful share of volume), 53% of volume via EHR integrations, and new-store growth accounting for ~64% of year‑over‑year volume gains.
• Product and AI roadmap progressing — next‑generation AI 510(k) submitted and expected approval later this year, Zio MCT release reaffirmed for H1 2027, and the AI is expected to cut technician review time by ~50% and drive material margin/efficiency gains across the platform.
• Regulatory and legal uncertainty remains — an FDA warning letter is still open despite remediation and a third‑party review with no material findings, the DOJ CID (focused on historical Zio AT periods) remains active, and the final CMS/MAC LCD outcome is uncertain.
• International and adjacent market expansion is early — U.K. posted the company’s best quarter, Japan received a modest supplemental reimbursement (not yet meaningful), and sleep pilots are encouraging but unlikely to move the needle materially before 2027.

iRhythm Technologies Trading Up 7.0%

Shares of IRTC traded up $8.41 during trading hours on Thursday, reaching $129.16. 1,089,413 shares of the company traded hands, compared to its average volume of 351,924. The company’s fifty day moving average price is $122.93 and its two-hundred day moving average price is $154.60. The company has a market capitalization of $4.24 billion, a price-to-earnings ratio of -92.26 and a beta of 1.18. The company has a quick ratio of 4.48, a current ratio of 4.63 and a debt-to-equity ratio of 4.25. iRhythm Technologies has a 12 month low of $105.62 and a 12 month high of $212.00.

Insider Activity

In other news, EVP Mervin Smith sold 1,352 shares of iRhythm Technologies stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $128.44, for a total transaction of $173,650.88. Following the sale, the executive vice president owned 25,612 shares of the company’s stock, valued at approximately $3,289,605.28. The trade was a 5.01% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Sumi Shrishrimal sold 2,830 shares of iRhythm Technologies stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $128.44, for a total transaction of $363,485.20. Following the sale, the executive vice president directly owned 41,870 shares in the company, valued at $5,377,782.80. The trade was a 6.33% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 94,509 shares of company stock worth $12,734,195. 1.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On iRhythm Technologies

A number of large investors have recently modified their holdings of IRTC. RTW Investments LP bought a new stake in shares of iRhythm Technologies during the 4th quarter valued at about $209,732,000. Millennium Management LLC boosted its stake in shares of iRhythm Technologies by 197.4% during the 4th quarter. Millennium Management LLC now owns 826,376 shares of the company’s stock valued at $146,632,000 after purchasing an additional 548,519 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in shares of iRhythm Technologies by 6,415.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 541,039 shares of the company’s stock valued at $93,053,000 after purchasing an additional 532,735 shares in the last quarter. Polar Capital Holdings Plc boosted its stake in shares of iRhythm Technologies by 24,782.1% during the 3rd quarter. Polar Capital Holdings Plc now owns 335,908 shares of the company’s stock valued at $57,773,000 after purchasing an additional 334,558 shares in the last quarter. Finally, Holocene Advisors LP boosted its stake in shares of iRhythm Technologies by 2,023.1% during the 2nd quarter. Holocene Advisors LP now owns 313,094 shares of the company’s stock valued at $48,204,000 after purchasing an additional 298,347 shares in the last quarter.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. JPMorgan Chase & Co. decreased their price objective on shares of iRhythm Technologies from $240.00 to $215.00 and set an “overweight” rating on the stock in a research report on Friday, February 20th. Evercore upgraded shares of iRhythm Technologies from an “in-line” rating to an “outperform” rating and boosted their price objective for the company from $194.00 to $210.00 in a research report on Monday, January 5th. Wall Street Zen cut shares of iRhythm Technologies from a “buy” rating to a “hold” rating in a research report on Saturday, April 25th. Weiss Ratings restated a “sell (d-)” rating on shares of iRhythm Technologies in a research report on Tuesday, April 21st. Finally, The Goldman Sachs Group decreased their price objective on shares of iRhythm Technologies from $184.00 to $147.00 and set a “neutral” rating on the stock in a research report on Thursday, April 9th. Two investment analysts have rated the stock with a Strong Buy rating, eleven 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, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $202.92.

About iRhythm Technologies

iRhythm Technologies, Inc is a medical technology company that develops and commercializes wearable cardiac monitoring devices and associated data analytics services. Founded in 2006 and headquartered in San Francisco, California, the company’s flagship product is the Zio® patch, a discreet, single-use, continuous ECG recorder designed to monitor heart rhythms for up to 14 days. iRhythm’s digital diagnostics platform combines biosensor technology with proprietary algorithms to detect arrhythmias and streamline data interpretation for physicians.

The Zio service is prescribed by cardiologists and other healthcare providers to aid in the diagnosis of atrial fibrillation, bradycardia, tachycardia and other rhythm disorders.