iRhythm Technologies (IRTC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $199.4 million, up 26% year-over-year, driven by strong volume growth, diversified channels, and robust commercial adoption.

• Net loss narrowed to $13.9 million from $30.7 million in Q1 2025, reflecting improved gross profit and operating leverage.

• Gross margin improved to 71.1%, up from 69% year-over-year, reflecting operational efficiencies and higher average selling prices.

• Strategic focus on expanding long-term continuous monitoring, workflow integration, and AI-driven innovation to improve diagnostic yield and efficiency.

• Continued progress in international markets, notably the UK and Japan, and early traction in adjacent markets like sleep diagnostics.

Financial highlights

• Q1 2026 revenue: $199.4 million, up 25.7%–26% year-over-year, with gross profit of $141.4 million and gross margin of 70.9%–71.1%.

• Adjusted EBITDA margin improved to 7.1% in Q1 2026, up 880 basis points year-over-year.

• Adjusted net loss was $11.3 million ($0.35 per share), a significant improvement from $30.3 million ($0.95 per share) in Q1 2025.

• Free cash flow for Q1 2026 was negative $33.1 million, reflecting normal seasonality.

• Ended the quarter with $549.6 million in cash equivalents and marketable securities.

Outlook and guidance

• Raised full-year 2026 revenue guidance to $875–$885 million, representing 17–18% year-over-year growth.

• Adjusted EBITDA margin guidance increased to 12–13% for FY 2026.

• Q2 2026 revenue expected between $218–$220 million, reflecting typical seasonality.

• Guidance reflects expectations for continued volume-led growth, margin expansion, and disciplined investment.

• Free cash flow for 2026 anticipated to grow versus 2025, weighted to the second half due to seasonality.