iRhythm Q2 revenue beats estimates on sustained volume demand, lifts FY guidance

iRhythm Holdings

06/08/2026 21:38

Overview
Digital health care firm's Q2 revenue rose 20% yr/yr, beating analyst expectations
Adjusted net income turned positive from a loss a year ago
Company to acquire Vital Connect for $287.5 mln to expand cardiac monitoring platform

Outlook
iRhythm raised 2026 revenue guidance to $880 mln-$890 mln
Company expects 2026 adjusted EBITDA margin of 13.0%-14.0%
Company anticipates continued volume-led growth and margin expansion in 2026

Result Drivers
VOLUME-LED GROWTH - Revenue increase was driven primarily by sustained volume demand across the customer base and strength in core business and new channels
OPERATIONAL EFFICIENCIES - Gross margin improvement was attributed to operational efficiencies, product mix, and scale benefits from higher volumes
DISCIPLINED COST MANAGEMENT - Adjusted operating expenses were flat year-over-year, reflecting a disciplined approach to investment while funding key growth initiatives

Company press release: ID:nGNX3H9xqQ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$224.20 mln
$219.32 mln (15 Analysts)
Q2 Adjusted Net Income
 
$19.30 mln
 
Q2 Net Loss
 
$400,000
 
Q2 Gross Margin
 
72.80%
 
Q2 Gross Profit
 
$163.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 15 "strong buy" or "buy", no "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 Holdings, Inc is $180.00, about 44.6% above its August 5 closing price of $124.50
The stock recently traded at 190 times the next 12-month earnings vs. a P/E of 1,692 three months ago

Reuters Recommended Reads
Aug 6 - Becton Dickinson raises lower end of annual profit forecast on drug delivery devices strength
Aug 5 - UK's LivaNova Q2 revenue beats estimates; lifts 2026 outlook
Aug 5 - Grail Q2 revenue rises 26%, net loss narrows 3%

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(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.)