10-K · February 19, 2026
iRhythm positions itself as the market leader in long-term continuous ambulatory cardiac monitoring (LTCM) with a dominant Zio platform and a large addressable market; the 2025 results show volume-driven revenue growth,…
Earnings analysis · 10-Q
IRTC earnings analysis
Filed April 30, 2026 · Our reading of the company's report
The latest report
iRhythm Holdings reported robust Q1 2026 results, with revenue reaching $199.4 million, exceeding estimates by 2.8%. Additionally, the company significantly improved its diluted EPS to a loss of $0.35 from an expected…
Read full summary
iRhythm Holdings reported robust Q1 2026 results, with revenue reaching $199.4 million, exceeding estimates by 2.8%. Additionally, the company significantly improved its diluted EPS to a loss of $0.35 from an expected loss of $0.62, marking an impressive 55% reduction in net loss year-on-year, driven by increased volume in iRhythm Services despite ongoing cost pressures.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.35
- Segment
- iRhythm Services
- Segment
- Home Enrollment Services
What stood out
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Strong Revenue Growth
Revenue for Q1 2026 was $199.4 million, a 26% increase from $158.7 million in Q1 2025.
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Improved EPS Performance
Diluted EPS loss was $0.35, better than the expected loss of $0.62, and a significant reduction from a loss of $0.97 in Q1 2025.
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Successful Cost Management
Cost of revenue increased at a lower rate (17%) than revenue growth (26%), leading to an improvement in gross profit.
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Increased Revenue Guidance
Management raised full-year revenue guidance to $875 million - $885 million, reflecting confidence in ongoing demand.
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Positive Cash Flow from Investing
Cash provided by investing activities was $30.2 million, a notable improvement from cash used of $38.1 million in Q1 2025.
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Ongoing Market Expansion
The company reported increased utilization of its home enrollment service in response to the demand for remote cardiac monitoring.
What to watch
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Litigation Costs
Increased legal expenses related to ongoing litigation, including $3.7 million incurred in Q1 2026 for intellectual property disputes.
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Rising Operational Costs
The cost of revenue increased by $8.6 million, or 17%, impacting margins despite revenue growth.
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Regulatory Compliance Risks
Ongoing scrutiny from FDA regarding compliance with medical device regulations, following the warning letter issued in May 2023.
Management's outlook
Management anticipates continued growth due to increasing demand for remote cardiac monitoring services.
Earlier filings 4
10-Q · August 1, 2024
iRhythm reported Q2 revenue of $148,047,000 (up from $131,929,000 in Q1 2024 and $124,130,000 in Q2 2023) and GAAP net loss per share of $(0.65). Gross margin was 69.9% while loss from operations was $(22,981,000); cash…
10-Q · May 2, 2024
Revenue grew to $131.929M in Q1 2024 (+$20.493M, +18.4% vs Q1 2023) with gross margin roughly stable at ~66.3%. Operating loss improved slightly to $(38.138)M, but net loss widened to $(45.667)M due largely to financing…
10-K · February 23, 2023
iRhythm positions itself as a scale-focused digital healthcare company that commercializes the Zio ambulatory cardiac monitoring platform; the company reports it has provided Zio Services to over five million patients…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.