Core Insights - iRhythm Technologies published a study in Heart Rhythm, analyzing data from over 1.1 million patients using its Zio long-term continuous monitoring (LTCM) service, highlighting the importance of long-term monitoring for arrhythmia detection [1][3][4] Group 1: Study Findings - The study revealed that short-term monitoring (24-48 hours) often fails to detect actionable arrhythmias, even in patients reporting daily symptoms, with 64% of daily-symptom patients having undetected arrhythmias within the first 48 hours [3][4] - Less than 20% of patients documented symptoms coinciding with arrhythmic episodes, indicating a low symptom-rhythm correlation [4] - The mean time to first detected arrhythmia exceeded 48 hours for all arrhythmia types, regardless of symptom frequency, emphasizing the clinical value of Zio LTCM for up to 14 days [4][5] Group 2: Real-World Evidence and Compliance - Data presented at the AHA Scientific Sessions 2025 confirmed high compliance and data quality for at-home self-application of Zio LTCM devices, with median wear time exceeding 13.8 days and analyzable ECG time over 98% [6][8] - The MyZio mobile app usage was significantly higher among home-enrolled patients (52% vs. 17%), leading to better compliance and fewer early terminations [8] Group 3: CKM Syndrome Insights - New analyses presented at AHA 2025 revealed that arrhythmias can emerge earlier across the cardio-kidney-metabolic (CKM) syndrome continuum, with 58% of CKD patients experiencing arrhythmias before CKD diagnosis [10][11] - The incidence of arrhythmias increased with CKM stages, highlighting the need for early rhythm assessment in at-risk populations [10][11] Group 4: Company Commitment and Innovations - iRhythm aims to reach the estimated 27 million people in the U.S. at risk for undiagnosed arrhythmias through scalable, clinically validated solutions [13] - The collaboration with Lucem Health focuses on combining ECG monitoring with AI-powered risk stratification to enhance early detection of arrhythmia risk [14] - iRhythm's comprehensive clinical evidence program includes over 125 original research manuscripts and insights from more than 2 billion hours of curated heartbeat data, reinforcing its commitment to improving patient outcomes [15]

Core Viewpoint - iRhythm Technologies stock has doubled this year, indicating strong market performance and investor confidence in the company's growth potential [1] Company Summary - iRhythm Technologies has experienced a significant increase in stock value, reflecting positive market sentiment and potential for future growth [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - iRhythm Technologies Inc. reported a third-quarter loss of 6 cents per share, significantly better than the analysts' expectation of a 31-cent loss [1] - The company achieved sales of $192.88 million, representing a 30.7% year-over-year increase, surpassing the consensus estimate of $184.74 million [1] Financial Performance - The third quarter of 2025 saw record quarterly revenue driven by strong performance in the core long-term continuous monitoring business, sustained demand for Zio AT, and contributions from international markets [2] - Gross profit reached $137.1 million, up 35.1%, with a gross margin of 71.1%, reflecting a 230-basis point improvement [2] Demand and Operational Efficiency - The increase in gross profit was primarily due to higher demand for Zio services, leading to greater volume [3] - The improvement in gross margin was attributed to volume leverage and operational efficiencies, although partially offset by higher blended costs per unit from a greater Zio AT product mix [3] Guidance and Future Outlook - iRhythm raised its fiscal 2025 sales guidance from a range of $720 million-$730 million to $735 million-$740 million, compared to the consensus of $726.42 million [4] - The adjusted EBITDA margin for the full year 2025 is expected to be approximately 8.25% to 8.75% of revenues [4] Analyst Sentiment - William Blair noted that the company is demonstrating strong growth and has a durable growth outlook, with positive expectations for future integrations and product launches [5] - BTIG and Needham analysts maintained a Buy rating on iRhythm, with price forecasts raised to $215 and $244, respectively [6] - Following these developments, IRTC stock increased by 3.19% to $190 [6]

Core Insights - iRhythm Technologies reported a quarterly loss of $0.06 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.36, marking an earnings surprise of +83.33% [1] - The company achieved revenues of $192.88 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 4.97% and showing a year-over-year increase from $147.54 million [2] - iRhythm Technologies shares have increased by approximately 105.5% year-to-date, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $196.15 million, and for the current fiscal year, it is -$1.71 on revenues of $725.26 million [7] - The estimate revisions trend for iRhythm Technologies was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical Info Systems industry, to which iRhythm Technologies belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - For Q3 2025, revenue was $192.9 million, reflecting a year-over-year growth of 31% [5][19] - Adjusted EBITDA margin was 11.2%, compared to a negative 13.5% in Q3 2024 [22][24] - Adjusted net loss decreased to $2 million, or $0.06 per share, from an adjusted net loss of $39.2 million, or $1.26 per share in Q3 2024 [22][24] - Gross margin improved to 71.1%, an increase of 230 basis points year-over-year [20][24] Business Line Data and Key Metrics Changes - Record performance was noted in both Zio Monitor and Zio AT, contributing to overall revenue growth [5][13] - New store growth accounted for approximately 60% of year-over-year volume growth, with home enrollment for Zio services steady at around 23% [19][20] - The Zio AT business saw year-over-year unit growth more than double the corporate average [13] Market Data and Key Metrics Changes - The U.S. market continues to show strong adoption in both hospital and ambulatory settings, with 76 of the top 100 customers now EHR integrated [6][7] - In Japan, 13 systems are live, with positive feedback from physicians regarding Zio's capabilities [16] - The UK private market is experiencing strong growth, supported by clinical evidence and key opinion leader engagement [17] Company Strategy and Development Direction - The company is focusing on expanding into primary care and innovative health channels, leveraging EHR integrations to enhance clinician efficiency [6][8] - A partnership with Lusum Health aims to enhance clinical AI capabilities for identifying undiagnosed patients at risk of cardiac arrhythmias [12] - The company is transitioning from a device-enabled service to a comprehensive digital health platform powered by data and AI [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate positive free cash flow for the first time in its history, expecting to be free cash flow positive for the full year 2025 [24][25] - The outlook for full-year 2025 revenue has been raised to $735 to $740 million, indicating continued strong volume growth [23][24] - Management highlighted the importance of proactive monitoring and AI-driven risk stratification in reducing healthcare costs and improving patient outcomes [10][11] Other Important Information - The company is advancing development in sleep diagnostics, recognizing the overlap between cardiac arrhythmias and sleep apnea [15][49] - The FDA has requested to pause remediation efforts until after the government shutdown, which management views as a positive sign [38][40] Q&A Session Summary Question: What is driving the new account openings and volume growth? - Management noted that the ability to scale and absorb entire networks of new customers from day one has been a significant factor in growth [28] Question: What is driving the outperformance expected in Q4? - The outperformance is primarily attributed to the core monitor business, with healthy contributions from AT and innovative channels [31] Question: How should growth cadence for MCT be considered? - Management indicated that while they are optimistic about the AT business, they are cautious about forecasting MCT contributions until FDA approval is secured [33] Question: What is the sales cycle for innovative channel partners? - The sales cycle varies significantly by customer, with some partners scaling quickly while others take longer [36] Question: Any updates on FDA remediation efforts? - There has been limited communication from the FDA, but management is optimistic about resuming discussions post-shutdown [38][40] Question: What is the incremental patient pool in the innovative channel? - The focus is on monitoring asymptomatic, undiagnosed populations, with a significant opportunity identified among patients with comorbid conditions [41][43]

Financial Performance - Revenue increased by $45.3 million, or 31%, to $192.9 million for the three months ended September 30, 2025, compared to $147.5 million for the same period in 2024[172]. - Adjusted EBITDA for the three months ended September 30, 2025, was $21.6 million, compared to a net loss of $5.2 million[150]. - The net loss for the nine months ended September 30, 2025, was $50.1 million, which included $2.3 million of acquired in-process research and development expense[150]. - Net loss decreased by $40.9 million, or 89%, to $5.2 million for the three months ended September 30, 2025, compared to a net loss of $46.2 million for the same period in 2024[172]. - Interest income decreased by $0.5 million to $5.9 million for the three months ended September 30, 2025, compared to $6.5 million for the same period in 2024[178]. - Other income, net decreased by $0.6 million to $0.6 million for the three months ended September 30, 2025, compared to $1.2 million for the same period in 2024[180]. - Income tax provision decreased by $0.2 million, or 87%, during the three months ended September 30, 2025, compared to $0.2 million for the same period in 2024[182]. - Acquired in-process research and development expenses decreased by $31.8 million, or 99%, to $0.3 million for the three months ended September 30, 2025, compared to $32.1 million for the same period in 2024[175]. Revenue Sources - For the three months ended September 30, 2025, revenue from contracted third-party payors was 51%, while revenue from healthcare institutions was 17%[146]. Cost and Expenses - Cost of revenue rose by $9.7 million, or 21%, to $55.8 million for the three months ended September 30, 2025, compared to $46.1 million for the same period in 2024[173]. - Gross profit increased by $35.6 million, or 35%, to $137.1 million for the three months ended September 30, 2025, compared to $101.5 million for the same period in 2024[172]. - Research and development expenses grew by $5.3 million, or 34%, to $21.0 million for the three months ended September 30, 2025, compared to $15.7 million for the same period in 2024[174]. - Selling, general and administrative expenses increased by $20.8 million, or 20%, to $124.2 million for the three months ended September 30, 2025, compared to $103.4 million for the same period in 2024[176]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $54.7 million, a significant increase of $70.5 million compared to cash used in operating activities of $15.8 million during the same period in 2024[190]. - Cash used in investing activities increased to $228.3 million for the nine months ended September 30, 2025, compared to $0.8 million in the same period in 2024, primarily due to a net increase in marketable securities purchases of $287.6 million[191]. - Cash provided by financing activities decreased to $9.6 million for the nine months ended September 30, 2025, down from $508.4 million in the same period in 2024, largely due to the absence of proceeds from the issuance of 2029 Notes[192]. Assets and Liabilities - As of September 30, 2025, the company had cash and cash equivalents of $255.6 million, marketable securities of $309.6 million, and accounts receivable of $76.2 million[184]. - As of September 30, 2025, the estimated fair value of the company's 2029 Notes was $895.6 million, with an outstanding principal amount of $661.3 million[208]. - The company had approximately $77.1 million of open purchase order commitments as of September 30, 2025, the majority of which are due within one year[200]. Research and Development - The company expects an increase in research and development costs as it hires additional personnel for new product development and enhancements[160]. - The company recorded an impairment charge of $2.5 million related to capitalized internal-use software in development for the Zio Watch in the second quarter of 2025[186]. Market and Economic Factors - Macroeconomic factors such as inflation and supply chain disruptions are impacting hospitals' financial conditions, potentially affecting the company's revenue[152]. - The gross margin improved from 2023 to 2024, with ongoing efforts to enhance annual gross margins despite macroeconomic challenges[159]. - The company anticipates increased costs of revenue due to rising material and labor costs, partially offset by volume purchase discounts and process improvements[159]. Strategic Initiatives - The company provided iRhythm Services to over 8 million patients and collected over 2 billion hours of curated heartbeat data since receiving FDA clearance[143]. - The company has adapted its services to increase home enrollment, allowing patients to use the Zio patch without visiting healthcare facilities[153]. - The company entered into a Technology License Agreement with BioIS, paying an upfront fee of $15.0 million and purchasing $40.0 million in convertible promissory notes[188]. - The company intends to use the remainder of the net proceeds from the 2029 Notes offering for general corporate purposes[194]. - The 2029 Capped Calls are expected to reduce potential dilution to common stock upon conversion of the 2029 Notes[209]. Interest Rate Sensitivity - A hypothetical 10% change in interest rates would have impacted interest income by $0.6 million for the three months ended September 30, 2025[207]. Foreign Currency Risk - As of September 30, 2025, there had not been a material change in foreign currency risk information disclosed in the Annual Report for the fiscal year ended December 31, 2024[210].

Financial Performance - iRhythm's revenue for Q3 2025 reached $192.9 million, a 30.7% increase compared to $147.5 million in Q3 2024[3, 5] - Gross profit for Q3 2025 was $137.1 million, up 35.1% from $101.5 million in Q3 2024, with a gross margin of 71.1%, a 230-basis point increase[6] - Net loss for Q3 2025 was $5.2 million, or a diluted loss of $0.16 per share, compared to a net loss of $46.2 million, or a diluted loss of $1.48 per share, in Q3 2024[8] - Adjusted EBITDA for Q3 2025 was $21.559 million, compared to $(19.886) million for Q3 2024[25] - Unrestricted cash, cash equivalents, and marketable securities totaled $565.2 million as of September 30, 2025[3, 9] Future Outlook - iRhythm projects full-year 2025 revenue between $735 million and $740 million[11] - The company anticipates an adjusted EBITDA margin for full-year 2025 ranging from approximately 8.25% to 8.75% of revenues[3, 11]

Financial Performance - Revenue for Q3 2025 was $192.9 million, a 30.7% increase from $147.5 million in Q3 2024[5] - Gross profit for Q3 2025 was $137.1 million, up 35.1% from $101.5 million in Q3 2024, with a gross margin of 71.1%, a 230-basis point improvement[6] - Operating expenses for Q3 2025 were $145.6 million, down from $151.8 million in Q3 2024, with adjusted operating expenses at $141.4 million compared to $143.8 million in the prior year[7] - Net loss for Q3 2025 was $5.2 million, or a diluted loss of $0.16 per share, significantly improved from a net loss of $46.2 million, or a diluted loss of $1.48 per share, in Q3 2024[9] - Revenue for the three months ended September 30, 2025, was $192.884 million, a 30.6% increase from $147.538 million in the same period of 2024[21] - Gross profit for the three months ended September 30, 2025, was $137.122 million, compared to $101.476 million in 2024, reflecting a gross margin improvement[21] - Operating expenses for the three months ended September 30, 2025, totaled $145.551 million, a decrease of 4.8% from $151.779 million in 2024[25] - The net loss for the three months ended September 30, 2025, was $5.212 million, significantly improved from a net loss of $46.182 million in the same period of 2024[21] - Adjusted net loss for the three months ended September 30, 2025, was $1.976 million, compared to an adjusted net loss of $39.240 million in 2024[23] Cash and Guidance - Unrestricted cash, cash equivalents, and marketable securities totaled $565.2 million as of September 30, 2025[10] - Full year 2025 revenue guidance is projected between $735 million to $740 million, with an adjusted EBITDA margin expected to range from approximately 8.25% to 8.75%[11] - The company achieved record free cash flow generation during Q3 2025 and anticipates being free cash flow positive for the first time in its history[4] Innovation and Market Growth - Continued growth in demand for Zio services and market penetration of Zio AT contributed to the revenue increase[5] - iRhythm is advancing its innovation pipeline, including the submission of the next-generation Zio MCT solution to the FDA[4] - Upcoming data presentations at the American Heart Association (AHA) Scientific Sessions from November 7–10, 2025, will further support the clinical value proposition of Zio services[8] - Research and development expenses for the three months ended September 30, 2025, were $21.033 million, up from $15.694 million in 2024, indicating increased investment in innovation[21] - The company incurred $0.3 million in acquired in-process research and development expense for the three months ended September 30, 2025[26] Adjusted Metrics - Adjusted EBITDA for the three months ended September 30, 2025, was $21.559 million, compared to a loss of $19.886 million in 2024[23] - Total operating expenses for the nine months ended September 30, 2025, were $438.888 million, an increase from $403.885 million in 2024[25]

Core Insights - iRhythm Technologies reported a strong performance in Q3 2025, with revenue increasing by 30.7% year-over-year, reflecting the scalability of its platform and growing adoption of its technology across the healthcare ecosystem [3][4]. Financial Performance - Revenue for Q3 2025 was $192.9 million, up from $147.5 million in Q3 2024, driven by increased demand for Zio services [4]. - Gross profit for Q3 2025 was $137.1 million, a 35.1% increase from $101.5 million in Q3 2024, with a gross margin of 71.1%, improving by 230 basis points year-over-year [5]. - Operating expenses for Q3 2025 were $145.6 million, down from $151.8 million in Q3 2024, with adjusted operating expenses at $141.4 million compared to $143.8 million in the prior year [6]. - The net loss for Q3 2025 was $5.2 million, or a diluted loss of $0.16 per share, significantly improved from a net loss of $46.2 million, or a diluted loss of $1.48 per share, in Q3 2024 [7][8]. Cash Flow and Guidance - iRhythm achieved record free cash flow generation in Q3 2025 and anticipates being free cash flow positive for the entire year for the first time in its history [3]. - The company projects full-year 2025 revenue between $735 million to $740 million, with an expected adjusted EBITDA margin of approximately 8.25% to 8.75% [9]. Market Position and Innovations - The company continues to expand into primary care and population health programs, with progress in EHR integration and new clinical evidence supporting its leadership in proactive cardiac monitoring [3]. - iRhythm is advancing its innovation pipeline, including the submission of its next-generation Zio MCT solution to the FDA and early work in sleep diagnostics [3]. Research and Clinical Evidence - Recent publications, including the AVALON real-world evidence and AMALFI randomized clinical trial, reinforce the clinical value proposition of iRhythm's Zio long-term continuous monitoring service [7].