iRhythm(US:IRTC)2025-10-30 20:09Financial 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]