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iRhythm Technologies (IRTC) investor relations material

iRhythm Technologies Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary30 Oct, 2025

Executive summary

  • Achieved record Q3 2025 revenue of $192.9 million, up 31% year-over-year, driven by strong demand for Zio Monitor and Zio AT, primary care expansion, and new market penetration.

  • Gross margin improved to 71.1%, a 230-basis point increase from Q3 2024, reflecting operational efficiencies and favorable product mix.

  • Net loss narrowed significantly to $5.2 million ($0.16 per share), with adjusted net loss at $2.0 million ($0.06 per share), both improved from prior year.

  • Record free cash flow generated in the quarter, with expectations to be free cash flow positive for the full year for the first time.

  • Operational scalability, EHR integration, and international expansion (notably in Japan, U.K., and E.U.) fueled momentum.

Financial highlights

  • Q3 2025 revenue reached $192.9 million, up from $147.5 million in Q3 2024, a 30.7% year-over-year increase.

  • Gross profit was $137.1 million, up 35.1% year-over-year, with gross margin at 71.1%.

  • Adjusted EBITDA was $21.6 million, a substantial improvement from a loss of $19.9 million in Q3 2024.

  • Operating expenses were $145.6 million (GAAP), $141.4 million (adjusted), both down from prior year.

  • Unrestricted cash, cash equivalents, and marketable securities totaled $565.2 million at quarter end.

Outlook and guidance

  • Full-year 2025 revenue guidance raised to $735–$740 million, representing 24–25% year-over-year growth.

  • Adjusted EBITDA margin for 2025 expected at 8.25–8.75% of revenues.

  • Full-year gross margin expected to slightly exceed 2024, despite a 50 basis point negative impact from tariffs.

  • Expect to be free cash flow positive for the full year 2025.

  • 2026 guidance will be prudent, with upside potential from MCT approval and innovative channels.

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Frequently asked questions

iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. Its primary product includes Zio XT service, which offers a wire-free patch that is worn for up to 14 continuous days; and Zio AT service that provides ambulatory monitoring over one to thirty days through a wire-connected patch worn by the patient. The company was incorporated in 2006 and is headquartered in San Francisco, California.

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