iRhythm Holdings, Inc. (IRTC) Reports $5.6M Net Income, 70.9% Gross Margin in Q4 2025

Core Insights - iRhythm Holdings, Inc. (NASDAQ:IRTC) is recognized as one of the fastest growing mid-cap stocks, with significant revenue growth and positive profitability metrics reported for Q4 2025 [1][2]. Financial Performance - For Q4 2025, iRhythm reported revenue of $208.9 million, marking a 27.1% increase year-over-year. The company achieved a net income of $5.6 million and a gross margin of 70.9%, indicating its first quarter of positive GAAP profitability [3][8]. - The total revenue for the full year 2025 reached $747.1 million, reflecting a 26.2% annual growth. The gross margin slightly decreased to 70.6%, while the net loss improved to $44.6 million compared to the previous year. Notably, the company generated positive free cash flow of $34.5 million for the first time in a full year [4]. Business Model and Strategy - iRhythm is a digital healthcare company specializing in cardiac monitoring solutions, utilizing its flagship Zio platform, which incorporates wearable biosensors and AI-driven analytics to enhance the diagnosis of heart conditions [5]. - The company attributes its success to innovative care channels, expansion into international markets, and sustained demand within its core U.S. business, with a focus on growth, margin expansion, and prudent investment as it approaches 2026 [4].