iRhythm (IRTC) investor relations material

Business performance and growth drivers

• Core business outperformed expectations, driven by onboarding larger accounts and converting entire networks at once.

• Clinical data from CAMELOT and AVALON studies demonstrated faster diagnosis, higher yield, and lower costs, boosting adoption.

• Primary care channel now accounts for over one-third of prescriptions and is the fastest-growing segment.

• Innovative channel partners, started from scratch a year ago, now represent a growing share of total volumes.

• Zio AT exceeded expectations, and Zio MCT was recently submitted to the FDA, with a launch planned for the back half of next year.

Market expansion and future opportunities

• Market opportunity is redefined beyond the traditional 6.5 million tests to potentially 27 million undiagnosed arrhythmia patients.

• AI-driven algorithms are being piloted to identify undiagnosed patients in EMRs, showing up to 92% diagnostic yield.

• Direct-to-consumer and telehealth models are expected to play a significant role in future patient acquisition.

• 12 partners under contract cover 2 million lives, with 40 more in the pipeline, potentially expanding reach to 7 million patients.

• Investments in manufacturing automation are increasing capacity to meet anticipated demand.

Financial outlook and operational strategy

• Maintained 20% CAGR target despite headwinds, with potential to exceed if challenges are avoided.

• MCT market share targeted to grow from 12% to potentially 25-35% after launch, leveraging existing account relationships.

• Path to 15% adjusted EBITDA at $1 billion revenue by 2027, with further potential to reach 25% by reducing G&A expenses.

• Pricing power expected to improve as cost savings for payers are demonstrated through data.

• Most margin leverage will come from G&A, with some gross margin improvement possible.