iRhythm Q3 revenue slightly misses estimates; net loss widens YoY

iRhythm Holdings

Yesterday 22:05

Overview
Digital cardiac monitoring firm's Q3 revenue rose 15% yr/yr, slightly missing analyst expectations
Q3 Net loss widened to $29.9 mln, compared to $5.1 mln last year 
Company completed VitalConnect acquisition, expanding cardiac monitoring portfolio

Outlook
iRhythm sees 2026 revenue between $890 mln and $895 mln
Company expects 2026 adjusted EBITDA margin of 15.5% to 16.0%
Company expects continued volume-led growth and operating leverage in 2026

Result Drivers
ZIO MONITOR VOLUME - Co said strong demand and higher volumes for Zio Monitor drove revenue growth across care settings and channels
MARGIN EXPANSION - Gross margin improved due to operational efficiencies, favorable product mix, and a one-time tariff refund
COST CONTROL - Adjusted operating expenses fell as co managed costs while funding growth initiatives

Company press release: ID:nGNX3H4cMc

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$221.60 mln
$222.45 mln (15 Analysts)
Q3 Adjusted Net Income
 
$27.80 mln
 
Q3 Net Loss
 
$29.90 mln
 
Q3 Gross Margin
 
74.20%
 
Q3 Gross Profit
 
$164.50 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 16 "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 $174.00, about 29.9% above its November 4 closing price of $134.00
The stock recently traded at 125 times the next 12-month earnings vs. a P/E of 173 three months ago

Reuters Recommended Reads
Nov 4 - Edwards Lifesciences Q3 sales beat on TMTT portfolio adoption
Nov 4 - LivaNova Q3 revenue beats estimates on cardiopulmonary segment strength 
Nov 3 - AtriCure Q3 revenue beats expectations on strong sales of pain management and appendage devices

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