iRhythm Technologies Inc. (NASDAQ:IRTC) reported a third-quarter loss of 6 cents per share on Thursday, better than analysts’ expectation of a 31-cent loss.
The company reported sales of $192.88 million, a 30.7% year-over-year increase, beating the consensus of $184.74 million.
Third quarter 2025 record quarterly revenue driven by continued momentum in core long-term continuous monitoring business, sustained demand for Zio AT, progress within value-based care accounts, and contribution from international markets.
Gross profit was $137.1 million, up 35.1%, while gross margin was 71.1%, a 230-basis point improvement.
The increase in gross profit was primarily driven by higher demand for Zio services, resulting in greater volume. The increase in gross margin was mainly due to volume leverage and operational efficiencies, partially offset by higher blended cost per unit from a higher Zio AT product mix.
Also Read: Investor Short Report Flags Steep Downside Risk For iRhythm Technologies
Guidance:
iRhythm raised its fiscal 2025 sales guidance from $720 million-$730 million to $735 million-$740 million compared to the consensus of $726.42 million.
Adjusted EBITDA margin for the full year 2025 is expected to range from approximately 8.25% to 8.75% of revenues.
Analyst Uptake
William Blair writes, “The company continues to demonstrate that it is firing on all cylinders—and, most importantly, that growth is durable.”
“With more Epic Aura account integration to come alongside a healthy pipeline of innovative channel partners and the next-gen Zio MCT set to launch in 2026, we continue to like the setup heading into 2026,” analyst Brandon Vazquez added.
William Blair reiterates an Outperform rating.
BTIG analyst maintains an iRhythm Buy rating and raises the price forecast from $195 to $215.
Needham maintains a Buy rating on iRhythm Technologies and raises its price forecast from $193 to $244.
Price Action: IRTC stock is up 3.19% at $190 at the last check on Friday.
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