iRhythm Technologies (IRTC) came out with a quarterly loss of $0.32 per share versus the Zacks Consensus Estimate of a loss of $0.53. This compares to a loss of $0.61 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +39.62%. A quarter ago, it was expected that this company would post a loss of $0.89 per share when it actually produced a loss of $0.95, delivering a surprise of -6.74%. Over the last four quarters, the company ha ...

Financial Data and Key Metrics Changes - iRhythm reported Q2 2025 revenue of $186.7 million, reflecting a year-over-year growth of over 26% [7][21] - Adjusted EBITDA margin improved by 500 basis points to 8.4% compared to the previous year [19][24] - Adjusted net loss decreased to $10.2 million, or $0.32 per share, from an adjusted net loss of $18.8 million, or $0.61 per share in the prior year [23][24] Business Line Data and Key Metrics Changes - The core long-term continuous monitoring business saw significant growth, with record new account openings and strong performance from the Zio AT product line [7][10] - New store growth accounted for approximately 68% of year-over-year volume growth, with home enrollment for Zio Services in the U.S. at about 23% of volume [22] Market Data and Key Metrics Changes - International markets showed strong demand, particularly in the UK and Japan, with a broad commercial launch in Japan contributing positively [7][17] - The company has 12 partners under contract covering approximately 2 million potential patients, with a robust pipeline of 40 active discussions for future partnerships [11] Company Strategy and Development Direction - iRhythm's strategic focus is on moving prescribing to primary care physicians, which has increased capacity for specialists and enabled proactive monitoring [7][8] - The company is investing in partnerships and technology, including a recent collaboration with Lusim Health to enhance early detection of arrhythmias using AI [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing strong performance across core business and innovative channels [32] - The company anticipates continued momentum in the second half of 2025, despite a slight expected decline in Q3 revenue due to seasonality [25][71] Other Important Information - iRhythm is raising its full-year 2025 revenue guidance to $720 million to $730 million, reflecting first-half outperformance [25] - The company expects to remain slightly free cash flow negative for 2025 but anticipates becoming free cash flow positive in 2026 [28] Q&A Session Summary Question: Guidance and Drivers of Growth - Management acknowledged strong momentum across the business, with the core business being the primary driver of outperformance in Q2 [40][41] Question: Volume Contribution from Innovative Channel Partners - Management indicated that innovative channel partners contributed positively, with a significant increase in prescribing physicians [46] Question: Integration with Epic Accounts - Management reported a 20% increase in prescribing patterns post-integration with Epic accounts, indicating strong potential for future growth [53][54] Question: Impact of Innovative Partnerships - Key partnerships with Signify and CenterWell were highlighted as significant contributors to growth, with expectations for repeat monitoring opportunities [63][65] Question: Seasonality Impact on Q3 Revenue - Management explained that Q3 revenue is expected to decline slightly due to seasonality, but overall momentum remains strong [72][74] Question: Market Growth and Share Gains - Management noted that growth is driven by a combination of market expansion, share gains, and increased prescribing in primary care settings [81][84]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the period ended June 30, 2025, show revenue growth and an improved net loss compared to the prior year. Total assets increased to **$964.0 million**, driven by a significant rise in marketable securities, while total liabilities grew to **$860.4 million**, primarily due to long-term convertible notes. Cash flow from operations turned positive, reflecting improved operational performance and working capital management [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $309,105 | $419,597 | | Marketable securities | $236,435 | $115,956 | | Total current assets | $663,917 | $645,819 | | Total assets | $964,030 | $931,449 | | **Liabilities & Equity** | | | | Total current liabilities | $132,211 | $110,920 | | Long-term senior convertible notes | $648,007 | $646,443 | | Total liabilities | $860,370 | $840,541 | | Total stockholders' equity | $103,660 | $90,908 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue, net | $186,687 | $148,047 | $345,364 | $279,976 | | Gross profit | $132,857 | $103,471 | $242,073 | $190,987 | | Loss from operations | $(18,708) | $(22,981) | $(51,264) | $(61,119) | | Net loss | $(14,218) | $(20,107) | $(44,918) | $(65,774) | | Net loss per share | $(0.44) | $(0.65) | $(1.41) | $(2.12) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $19,768 | $(40,189) | | Net cash (used in) provided by investing activities | $(139,054) | $54,510 | | Net cash provided by financing activities | $8,823 | $508,429 | | **Net (decrease) increase in cash** | **$(110,492)** | **$522,737** | - The significant increase in cash from financing activities in 2024 was primarily due to the issuance of the 2029 Notes, which generated proceeds of **$661.3 million**[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company's principal business is providing ambulatory cardiac monitoring services using its proprietary Zio System, which combines a wearable biosensor with cloud-based data analytics[31](index=31&type=chunk)[32](index=32&type=chunk) Revenue by Payor Type (Six Months Ended June 30) | Payor Type | 2025 Revenue (in thousands) | % of Revenue | 2024 Revenue (in thousands) | % of Revenue | | :--- | :--- | :--- | :--- | :--- | | Contracted third-party payors | $181,522 | 52% | $151,027 | 54% | | Centers for Medicare and Medicaid | $82,593 | 24% | $68,041 | 24% | | Healthcare institutions | $58,503 | 17% | $41,808 | 15% | | Non-contracted third-party payors | $22,746 | 7% | $19,100 | 7% | | **Total** | **$345,364** | **100%** | **$279,976** | **100%** | - The company is involved in multiple legal proceedings, including a securities class action lawsuit, DOJ subpoenas related to FDA communications, and patent infringement lawsuits filed by Welch Allyn and Bardy Diagnostics[95](index=95&type=chunk)[98](index=98&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - In March 2024, the company issued **$661.3 million** of 1.50% Senior Convertible Notes due 2029. Net proceeds were used for debt repayment, capped call transactions, and share repurchases[111](index=111&type=chunk)[112](index=112&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **26% year-over-year revenue growth** in Q2 2025 to increased service volume, particularly from the Zio AT product. The company's net loss narrowed due to higher gross profit, which outpaced the growth in operating expenses. Operating expenses rose from increased headcount, legal fees, and a **$2.5 million impairment charge** related to the Zio Watch project. The company reported **positive Adjusted EBITDA of $15.7 million** for the quarter. Liquidity remains strong with over **$545 million in cash and marketable securities**, deemed sufficient for at least the next 12 months, following significant financing activities in early 2024 [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Comparison of Results for the Three Months Ended June 30 (in thousands) | Line Item | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue, net | $186,687 | $148,047 | $38,640 | 26% | | Gross profit | $132,857 | $103,471 | $29,386 | 28% | | Total operating expenses | $151,565 | $126,452 | $25,113 | 20% | | Loss from operations | $(18,708) | $(22,981) | $4,273 | (19)% | | Net loss | $(14,218) | $(20,107) | $5,889 | (29)% | - Revenue growth for Q2 and H1 2025 was primarily driven by an increase in the volume of iRhythm Services, with significant growth in Zio AT as a proportion of total revenue[170](index=170&type=chunk) - Selling, general and administrative expenses increased by **18% in Q2 2025**, mainly due to higher headcount-related costs, legal and professional fees (including **$3.0 million in IP litigation costs**), and provisions for credit losses[174](index=174&type=chunk) - A **$2.5 million impairment charge** was recorded in Q2 2025 related to capitalized internal-use software for the Zio Watch project, which the company does not intend to commercially launch[175](index=175&type=chunk) [Key Business Metric](index=33&type=section&id=Key%20Business%20Metric) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(14,218) | $(20,107) | $(44,918) | $(65,774) | | Adjustments | $29,914 | $25,098 | $57,979 | $58,644 | | **Adjusted EBITDA** | **$15,696** | **$4,991** | **$13,061** | **$(7,130)** | - The company uses Adjusted EBITDA as a key non-GAAP measure to assess financial performance. Adjustments include stock-based compensation, impairment charges, business transformation costs, and certain litigation expenses[144](index=144&type=chunk)[146](index=146&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had **$309.1 million** in cash and cash equivalents and **$236.4 million** in marketable securities. Management believes current liquidity is sufficient to meet requirements for at least the next 12 months[182](index=182&type=chunk)[183](index=183&type=chunk) - Net cash provided by operating activities was **$19.8 million** for the first six months of 2025, a **$60.0 million improvement** from the same period in 2024, driven by lower net loss and improved working capital management[188](index=188&type=chunk) - In Q1 2024, the company raised approximately **$643.8 million** in net proceeds from its 2029 Notes offering, which was used to repay existing debt (Braidwell and SVB loans), purchase capped calls, and repurchase **$25.0 million** of its common stock[191](index=191&type=chunk)[192](index=192&type=chunk)[196](index=196&type=chunk)[200](index=200&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to interest rate risk on its cash, cash equivalents, and marketable securities, and to a lesser extent, foreign currency exchange risk. A hypothetical **10% change in interest rates** would impact interest income by approximately **$0.5 million** for the second quarter of 2025. The company's **$661.3 million in convertible notes** carry a fixed interest rate, mitigating direct economic interest rate exposure on the debt itself, though its fair value is subject to market interest rate changes - The company's primary market risk is interest rate sensitivity on its **$545.5 million** of cash, cash equivalents, and marketable securities as of June 30, 2025[205](index=205&type=chunk)[206](index=206&type=chunk) - A hypothetical **10% change in interest rates** would have resulted in a **$0.5 million impact** on interest income for the three months ended June 30, 2025[207](index=207&type=chunk) - The outstanding **$661.3 million** of 2029 Notes have a fixed interest rate, so the company does not have economic interest rate exposure on this debt, although its fair market value is sensitive to interest rate changes[208](index=208&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2025, and concluded that they were effective at a reasonable assurance level. There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[212](index=212&type=chunk) - No changes in internal control over financial reporting occurred during the three months ended June 30, 2025, that materially affected or are likely to materially affect internal controls[213](index=213&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several significant legal matters. These include a putative securities class action lawsuit alleging violations of the Exchange Act, related stockholder derivative actions, and an ongoing response to subpoenas from the U.S. Department of Justice regarding communications with the FDA. Additionally, the company is defending against two separate patent infringement lawsuits filed by Welch Allyn, Inc. and Bardy Diagnostics, Inc., both subsidiaries of Baxter International. The company believes these lawsuits are without merit and intends to defend itself vigorously - A putative class action lawsuit filed in February 2024 alleges violations of the Exchange Act. A motion to dismiss was partially granted in June 2025, and the case is now in discovery[218](index=218&type=chunk) - The company received subpoenas from the U.S. Attorney's Office and the DOJ's Consumer Protection Branch regarding its products, services, and communications with the FDA, and is cooperating fully[221](index=221&type=chunk) - The company is defending against patent infringement lawsuits from Welch Allyn, Inc. and Bardy Diagnostics, Inc. (subsidiaries of Baxter International) related to its Zio devices and has asserted counterclaims in the BardyDx case[224](index=224&type=chunk)[225](index=225&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) The company faces numerous risks, with significant emphasis on reimbursement, regulatory compliance, and legal challenges. Key risks include potential reductions in Medicare reimbursement rates, which constitute **24% of revenue**, and the complex, highly regulated billing process. The company is subject to extensive FDA oversight, as evidenced by a recent warning letter and Form 483 observations, which could lead to enforcement actions. Competition in the remote cardiac monitoring market is intense, and the company's reliance on its sole iRhythm Services offering creates concentration risk. Other major risks include ongoing legal proceedings, cybersecurity threats to patient data, and the complexities of international expansion - **Reimbursement Risk:** The company's revenue is highly dependent on Medicare (**24% of total revenue**) and commercial payors. Changes in coding, coverage, or pricing, particularly by CMS, could significantly harm the business[230](index=230&type=chunk)[231](index=231&type=chunk)[234](index=234&type=chunk) - **Regulatory and Compliance Risk:** The company is subject to extensive FDA regulations for its medical devices and has recently received a warning letter and Form 483 observations, indicating heightened scrutiny that could lead to recalls or other enforcement actions[263](index=263&type=chunk)[264](index=264&type=chunk)[273](index=273&type=chunk) - **Legal and Investigation Risk:** The company is subject to ongoing legal proceedings, including a securities class action lawsuit, and government investigations by the DOJ, which could result in substantial costs, penalties, and diversion of management's attention[344](index=344&type=chunk)[346](index=346&type=chunk) - **Cybersecurity Risk:** The company handles sensitive patient health information, making it a target for cyber-attacks. A breach could lead to significant liability under HIPAA, remediation costs, and reputational damage[366](index=366&type=chunk)[367](index=367&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=85&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the reporting period, the company did not have any unregistered sales of equity securities, nor were there any updates on the use of proceeds from registered offerings. There were also no issuer purchases of equity securities - There were no unregistered sales of equity securities or issuer purchases of equity securities during the period[407](index=407&type=chunk)[408](index=408&type=chunk) [Other Information](index=86&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2025, several Section 16 officers and directors, including the CEO Quentin Blackford and directors Abhijit Talwalkar and Mark Rubash, adopted Rule 10b5-1 trading arrangements. These plans were established in accordance with the company's insider trading policy, which includes a 90-day cooling-off period Adoption of Rule 10b5-1 Trading Arrangements | Name | Title | Action Date | Aggregate Shares to be Sold | Expiration Date | | :--- | :--- | :--- | :--- | :--- | | Abhijit Talwalkar | Director | May 12, 2025 | 24,230 | May 12, 2027 | | Mark Rubash | Director | May 5, 2025 | 15,000 | May 5, 2026 | | Quentin Blackford | President and CEO | May 5, 2025 | 30,000 | May 5, 2026 | | Sumi Shrishrimal | EVP, Chief Risk Officer | May 23, 2025 | 653 | May 23, 2026 | | Marc Rosenbaum | SVP, Chief Accounting Officer | May 12, 2025 | 506 | May 12, 2026 |

Financial Performance & Guidance - Second quarter 2025 revenue reached $186.7 million, a 26.1% increase compared to the second quarter of 2024[8] - The company updated its 2025 annual net revenue guidance to $720 - $730 million[45] - The adjusted EBITDA margin is expected to be 8.0% - 8.5% of revenue for 2025[45] Market Opportunity & Penetration - The potential market includes over 27 million patients in the United States who could benefit from ambulatory cardiac monitoring[11] - The company has achieved over 30% penetration in the core U S ambulatory cardiac monitoring market as of December 31, 2024[13] - The international market represents a $1+ billion total addressable market (TAM) with 5+ million tests in prioritized countries across EMEA and Asia Pacific[36] Expansion & Growth Strategies - The company is targeting over 5 million ambulatory cardiac monitoring (ACM) tests in prioritized countries across EMEA and Asia Pacific[17] - There are over 27 million potential patients presenting in primary care who may be symptomatic or at-risk for arrhythmias[17,24] - The company is addressing population health management through targeted monitoring for undiagnosed arrhythmias, leveraging AI[25,26] Technology & Innovation - The company has curated over 2.5 billion hours of ECG data since its inception through 2024[15] - The company's AI capabilities are used for prediction of atrial fibrillation and heart failure[39,40]

Core Insights - iRhythm Technologies has formed a strategic partnership with Lucem Health to enhance early detection of undiagnosed arrhythmias in high-risk patient populations [1][2][3] - The collaboration aims to shift from reactive to proactive healthcare, utilizing AI to identify arrhythmia risks before symptoms manifest [2][3] - The partnership targets over 27 million individuals in the U.S. who could benefit from proactive cardiac monitoring [2][8] Company Overview - iRhythm Technologies is a digital health leader focused on solutions that detect, predict, and prevent disease, utilizing wearable biosensors and cloud-based analytics [18] - Lucem Health specializes in AI-driven early disease detection, aiming to improve clinical outcomes and resource allocation in healthcare [19] Partnership Details - The collaboration will leverage Lucem Health's AI platform and iRhythm's diagnostic services to enable earlier identification of arrhythmia risks [2][3] - The first commercial offering will focus on patients with conditions like Type 2 diabetes, chronic kidney disease, chronic obstructive pulmonary disease, and coronary artery disease [4][6] Clinical Impact - Early pilot testing indicates improved targeting of patient populations at risk for arrhythmias, facilitating earlier clinical engagement [7] - The predictive AI solution is expected to enhance arrhythmia detection among an estimated 27 million undiagnosed patients in the U.S., potentially reducing healthcare resource utilization and costs [8][15] Economic Considerations - Cardiac arrhythmias affect approximately 1 in 20 U.S. adults, and untreated cases can lead to severe health complications, emphasizing the need for early detection [9][11] - Research shows that patients with arrhythmias incur significantly higher healthcare costs, reinforcing the economic case for earlier detection and intervention [13][14]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) iRhythm Technologies reported a record second quarter for 2025, with revenue growth exceeding 26% to $186.7 million, driven by its diversified growth strategy. Key operational achievements include a strategic AI partnership with Lucem Health to enhance early arrhythmia detection and the presentation of positive clinical study results at ADA 2025, reinforcing the value of early cardiac monitoring in at-risk populations | Metric | Q2 2025 | Change vs Q2 2024 | | :--- | :--- | :--- | | Revenue | $186.7 million | +26.1% | | Gross Margin | 71.2% | +130 bps | - The company's growth momentum is attributed to three main areas: accelerating its core monitoring business, increasing the adoption of Zio AT, and expanding with value-based care partners[4](index=4&type=chunk) - A strategic partnership was executed with Lucem Health to use AI for earlier identification of undiagnosed arrhythmias in patients with comorbid conditions[9](index=9&type=chunk) - Results from two large-scale studies presented at ADA 2025 highlighted the opportunity for early cardiac detection in at-risk cardiometabolic populations, showing arrhythmias often precede major adverse cardiovascular events (MACE)[9](index=9&type=chunk) [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) In Q2 2025, revenue grew 26.1% year-over-year to $186.7 million, fueled by strong demand for Zio services. Gross margin improved to 71.2% from 69.9% due to volume leverage and operational efficiencies. Despite a rise in operating expenses to $151.6 million to support growth, the company successfully narrowed its GAAP net loss to $14.2 million from $20.1 million in the prior-year period, demonstrating improved operating leverage | Financial Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | $186.7M | $148.0M | +26.1% | | Gross Profit | $132.9M | $103.5M | +28.4% | | Gross Margin | 71.2% | 69.9% | +1.3 ppt | | Operating Expenses | $151.6M | $126.5M | +19.8% | | Net Loss | ($14.2M) | ($20.1M) | +29.4% (Improvement) | | Diluted Loss Per Share | ($0.44) | ($0.65) | +32.3% (Improvement) | - The increase in gross margin was primarily driven by volume leverage and operational efficiencies, which was partially offset by a higher product mix of Zio AT[6](index=6&type=chunk) - Adjusted operating expenses increased to **$145.2 million**, mainly due to funding for development activities and costs associated with serving a growing global patient volume[7](index=7&type=chunk) [Financial Position](index=2&type=section&id=Financial%20Position) As of June 30, 2025, iRhythm maintained a strong liquidity position with $545.5 million in unrestricted cash, cash equivalents, and marketable securities. The company's total assets grew to $964.0 million from $931.4 million at the end of 2024, while total liabilities also increased slightly - The company held **$545.5 million** in unrestricted cash, cash equivalents, and marketable securities as of June 30, 2025[10](index=10&type=chunk) | Balance Sheet Item (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $663,917 | $645,819 | | Total assets | $964,030 | $931,449 | | Total current liabilities | $132,211 | $110,920 | | Total liabilities | $860,370 | $840,541 | | Total stockholders' equity | $103,660 | $90,908 | [2025 Annual Guidance](index=2&type=section&id=2025%20Annual%20Guidance) Following strong first-half performance, iRhythm has increased its full-year 2025 guidance. The company now projects revenue to be in the range of $720 million to $730 million and expects the adjusted EBITDA margin to be between 8.0% and 8.5% of revenues | 2025 Full Year Guidance | Projected Range | | :--- | :--- | | Revenue | $720 million to $730 million | | Adjusted EBITDA Margin | 8.0% to 8.5% of revenues | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets of $964.0 million, an increase from $931.4 million at year-end 2024. This was driven by increases in marketable securities and property and equipment. Total liabilities rose to $860.4 million, primarily due to higher accrued liabilities, while stockholders' equity improved to $103.7 million | Selected Balance Sheet Items (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $309,105 | $419,597 | | Marketable securities | $236,435 | $115,956 | | Total assets | $964,030 | $931,449 | | Long-term senior convertible notes | $648,007 | $646,443 | | Total liabilities | $860,370 | $840,541 | | Total stockholders' equity | $103,660 | $90,908 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, iRhythm reported revenue of $186.7 million and a net loss of $14.2 million, or ($0.44) per share. This represents a significant improvement from the same period in 2024, which saw revenue of $148.0 million and a net loss of $20.1 million, or ($0.65) per share. For the six-month period, revenue grew to $345.4 million and net loss narrowed to $44.9 million Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Revenue, net | $186,687 | $148,047 | | Gross profit | $132,857 | $103,471 | | Loss from operations | ($18,708) | ($22,981) | | Net loss | ($14,218) | ($20,107) | | Net loss per share | ($0.44) | ($0.65) | Six Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Revenue, net | $345,364 | $279,976 | | Gross profit | $242,073 | $190,987 | | Loss from operations | ($51,264) | ($61,119) | | Net loss | ($44,918) | ($65,774) | | Net loss per share | ($1.41) | ($2.12) | [Reconciliation of GAAP to Non-GAAP Financial Information](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Information) The company provides non-GAAP financial measures, including adjusted EBITDA, adjusted net loss, and adjusted operating expenses, to offer a clearer view of its core operational performance. These measures exclude items such as stock-based compensation, impairment charges, business transformation costs, and certain litigation expenses. For Q2 2025, these adjustments reveal a significant improvement in underlying profitability compared to the prior year - Non-GAAP measures are used for internal decision-making and period-to-period comparisons, excluding items like stock-based compensation, impairment charges, business transformation costs, and certain litigation expenses[15](index=15&type=chunk)[16](index=16&type=chunk) [Adjusted EBITDA and Net Loss Reconciliation](index=7&type=section&id=Adjusted%20EBITDA%20and%20Net%20Loss%20Reconciliation) For Q2 2025, iRhythm's adjusted EBITDA was $15.7 million, a substantial turnaround from $5.0 million in Q2 2024. The improvement was driven by higher revenue and operating leverage. Adjusted net loss also narrowed significantly to $10.2 million, or ($0.32) per share, compared to an adjusted net loss of $18.8 million, or ($0.61) per share, in the prior-year quarter. Key adjustments included stock-based compensation ($22.8 million) and intellectual property litigation costs ($3.0 million) Q2 Non-GAAP Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Loss (GAAP) | ($14,218) | ($20,107) | | Stock-based compensation | $22,827 | $21,821 | | Adjusted EBITDA | $15,696 | $4,991 | | Adjusted Net Loss | ($10,224) | ($18,811) | | Adjusted Net Loss per Share | ($0.32) | ($0.61) | [Adjusted Operating Expenses Reconciliation](index=8&type=section&id=Adjusted%20Operating%20Expenses%20Reconciliation) Adjusted operating expenses for Q2 2025 were $145.2 million, compared to $125.2 million in Q2 2024. The non-GAAP figure is derived by excluding $2.5 million in impairment charges, $0.9 million in business transformation costs, and $3.0 million in intellectual property litigation costs from the GAAP operating expenses of $151.6 million Operating Expenses Reconciliation (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating Expenses (GAAP) | $151,565 | $126,452 | | Less: Impairment charges | ($2,479) | — | | Less: Business transformation costs | ($925) | ($1,296) | | Less: IP litigation costs | ($2,956) | — | | Adjusted Operating Expenses | $145,205 | $125,156 |

SAN FRANCISCO, July 31, 2025 (GLOBE NEWSWIRE) -- iRhythm Technologies, Inc. (NASDAQ: IRTC), a leading digital health care company focused on creating trusted solutions that detect, predict, and prevent disease, today reported financial results for the three months ended June 30, 2025. Second Quarter 2025 Financial Highlights Recent Operational Highlights "The second quarter of 2025 was another record quarter for iRhythm, with growth of more than 26%, showcasing the strength of our diversified growth strateg ...

Core Viewpoint - iRhythm Technologies (IRTC) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on July 31, with a consensus estimate of a quarterly loss of $0.53 per share, reflecting a year-over-year change of +13.1% [3]. - Revenues are projected to be $173.71 million, which is an increase of 17.3% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial estimates during this period [4]. - For iRhythm Technologies, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.00%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with a positive Earnings ESP indicating a higher likelihood of an earnings beat [8][10]. - However, the current combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict an earnings beat for iRhythm Technologies [12]. Historical Performance - In the last reported quarter, iRhythm Technologies was expected to post a loss of $0.89 per share but actually reported a loss of -$0.95, resulting in a surprise of -6.74% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Conclusion - While the potential for an earnings beat exists, iRhythm Technologies does not currently appear to be a compelling candidate for such an outcome, and investors should consider additional factors before making investment decisions [17].

Core Viewpoint - iRhythm Technologies, Inc. will release its financial results for Q2 2025 on July 31, 2025, followed by a conference call to discuss the results [1] Company Overview - iRhythm Technologies is a leading digital health care company focused on creating solutions that detect, predict, and prevent disease [3] - The company utilizes wearable biosensors and cloud-based data analytics combined with proprietary algorithms to transform data from millions of heartbeats into clinically actionable information [3] - iRhythm aims to enhance patient care by providing better data, insights, and health outcomes [3] Conference Call Details - The conference call will begin at 1:30 p.m. PT / 4:30 p.m. ET on the same day as the financial results release [1] - Interested parties can access a live and archived webcast of the conference call on the company's investor website [2]

Core Viewpoint - Kahn Swick & Foti, LLC is investigating iRhythm Technologies, Inc. following a Warning Letter from the FDA regarding non-conformities in medical device regulations and subsequent legal actions against the company and its executives [1][2][3]. Group 1: FDA Warning and Compliance Issues - On May 30, 2023, iRhythm Technologies received a Warning Letter from the FDA concerning non-conformities related to the Zio AT System, specifically addressing deficiencies in medical device reporting and quality system requirements [2]. - The FDA's concerns included undisclosed risks to patients, such as limitations in the transmission of arrhythmia or heart irregularity events [2]. Group 2: Legal Actions and Investigations - Following the FDA's Warning Letter, iRhythm and certain executives were sued in a securities class action lawsuit for failing to disclose material information, violating federal securities laws [3]. - The court has denied the company's motion to dismiss the case, allowing the lawsuit to proceed, while KSF's investigation focuses on potential breaches of fiduciary duties by iRhythm's officers and directors [3].