iRhythm Well-Positioned For 2026 After Upbeat Results And Raised Outlook

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]