Cardiac monitoring firm iRhythm Q3 revenue beats estimates driven by demand for its Zio services

iRhythm Holdings

30/10/2025 20:21

Overview

iRhythm Q3 2025 revenue grows 30.7% yr/yr, beating analyst expectations, per LSEG data

Gross margin improved to 71.1%, up 230 basis points from Q3 2024

Adjusted net loss for Q3 2025 reduced significantly from prior year

Outlook

iRhythm projects full-year 2025 revenue between $735 mln and $740 mln

Adjusted EBITDA margin for 2025 expected to be 8.25% to 8.75%

Company anticipates being free cash flow positive for 2025

Result Drivers

ZIO SERVICES DEMAND - Revenue growth driven by increased demand for Zio services in core accounts and new channel partnerships

GROSS MARGIN IMPROVEMENT - Gross margin improvement attributed to volume leverage and operational efficiencies

INTERNATIONAL EXPANSION - Contribution from international markets supported revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$192.90 mln
$184.74 mln (15 Analysts)
Q3 Adjusted Net Income
-$2 mln
Q3 Net Income
-$5.20 mln
Q3 Gross Margin
71.10%
Q3 Gross Profit
$137.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

Wall Street's median 12-month price target for iRhythm Technologies Inc is $193.00, about 4% above its October 29 closing price of $185.29

Press Release: ID:nGNX6HVNrg

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)