iRhythm Technologies (IRTC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $158.7 million, up 20.3% year-over-year, driven by strong demand for Zio AT, Zio Monitor, and expansion in value-based care and international markets.

• Surpassed 10 million cumulative patient reports, reflecting significant market penetration and ongoing expansion into primary care and innovative channels.

• Gross margin improved to 68.8%, aided by operational efficiencies and product mix.

• Net loss narrowed to $30.7 million ($0.97/share GAAP, $0.95/share adjusted), improved from $45.7 million ($1.47/share GAAP, $1.23/share adjusted) in Q1 2024.

• Early success with Epic Aura integration and AI-driven workflow enhancements, increasing prescribing rates and clinical value.

Financial highlights

• Q1 2025 revenue: $158.7 million, up 20.3% year-over-year.

• Gross margin: 68.8%, up from 66.3%–66.4% in Q1 2024.

• Adjusted operating expenses: $140.4 million, up 11.8% year-over-year.

• Adjusted EBITDA: -$2.6 million (-1.7% margin), a 750 basis point improvement year-over-year.

• Cash, cash equivalents, and marketable securities totaled $520.6 million as of March 31, 2025.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $690–$700 million, though one source notes a revision to $675–$685 million.

• Adjusted EBITDA margin guidance for 2025 is 7.5%–8.5%, with one source noting 7.0%–8.0%.

• Q2 2025 revenue expected to represent ~25% of full-year revenue; adjusted EBITDA margin for Q2 guided to 6%–7%.

• Gross margin expected to remain flat for 2025, with operational efficiencies offset by tariff impacts.

• Company believes current liquidity is sufficient for at least the next 12 months.