iRhythm Technologies, Inc. (IRTC) AI Stock Analysis

iRhythm Technologies, Inc. is a digital healthcare company specializing in ambulatory electrocardiogram (ECG) monitoring solutions for patients at risk of arrhythmias across the United States. Its core offering is the Zio service, an ambulatory cardiac monitoring solution integrating a wire-free, patch-based wearable biosensor with a cloud-based data analytics platform. The flagship Zio XT and AT monitors record heartbeats and ECG data to provide insights into cardiac activity for healthcare providers. Founded in 2006 and based in San Francisco, California, the company also collaborates with Verily Life Sciences LLC under a development agreement to advance atrial fibrillation screening and monitoring products.

iRhythm grew annual revenue from $322.8M in FY2021 to $410.9M in FY2022, $492.7M in FY2023, $591.8M in FY2024, and $747.1M in FY2025, representing a 26.2% increase in the latest fiscal year. Gross margin expanded from 66.2% in FY2021 to 70.6% in FY2025. Operating margin improved from -31.0% in FY2021 to -4.9% in FY2025. Net income was -$101.4M in FY2021, -$116.2M in FY2022, -$123.4M in FY2023, -$113.3M in FY2024, and -$44.6M in FY2025. For the trailing twelve months ended June 30, 2026, revenue reached $825.3M, quarterly revenue growth was 20.1% year-over-year, and operating margin reached 7.9%.

As of June 30, 2026, iRhythm held $591.3M in cash and short-term investments alongside total debt of $727.3M, resulting in net debt of $136.1M. The company reported total assets of $1.09B and shareholders' equity of $186.0M, with a current ratio of 3.87 and a debt-to-equity ratio of 3.91. For FY2025, operating cash flow turned positive at $80.9M and free cash flow was $34.5M after capital expenditures of $46.3M. Over five years, the company's share count increased by 11.7%.

At a last close of $108.66 on October 16, 2026, iRhythm had a market cap of $3.58B and an enterprise value of $3.86B. The stock traded at a forward P/E of 90.9x and EV/EBITDA of 144.0x, compared to the median of its US-listed Healthcare peers of 17.3x and 12.0x, respectively. Its price-to-sales multiple was 4.3x versus a peer median of 4.1x. Over the past year, the stock fell 40.0%, lagging the S&P 500 (SPY) return of 16.8%, while its 5-year return of 50.3% trailed the index return of 83.0%.

Wall Street coverage consists of 13 Strong Buy and 2 Buy ratings, with zero Hold, Sell, or Strong Sell recommendations. The mean price target is $171.33, implying 57.7% upside compared to the last close of $108.66. For the fiscal year ending December 31, 2026, analysts estimate revenue of $891.7M and EPS of $0.55, reflecting 153.7% EPS growth. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of iRhythm Technologies, Inc. (IRTC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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