iRhythm Technologies (IRTC) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 revenue of $192.9 million, up 31% year-over-year, driven by record Zio Monitor and Zio AT performance, primary care expansion, and EHR integrations.

• Net loss narrowed significantly to $5.2 million from $46.2 million in Q3 2024; adjusted net loss was $2.0 million versus $39.2 million.

• Adjusted EBITDA was $21.6 million, a substantial improvement from a loss of $19.9 million in the prior year quarter.

• International growth continued, with 13 systems live in Japan and strong momentum in the U.K. and four E.U. countries, alongside early commercialization in Switzerland, Austria, Netherlands, and Spain.

• Positive free cash flow generated earlier than anticipated, with expectations to be free cash flow positive for the full year for the first time.

Financial highlights

• Q3 2025 revenue reached $192.9 million, a 30.7% year-over-year increase, with gross profit of $137.1 million and gross margin of 71.1%, up 230 basis points.

• Adjusted EBITDA margin was 11.2%, compared to negative 13.5% in Q3 2024.

• Adjusted net loss was $2.0 million ($0.06 per share), a significant improvement from $39.2 million ($1.26 per share) in Q3 2024.

• Free cash flow for the quarter was $20 million, with unrestricted cash, cash equivalents, and marketable securities totaling $565.2 million at quarter end.

• Operating expenses were $145.6 million, down from $151.8 million year-over-year.

Outlook and guidance

• Full-year 2025 revenue projected between $735 million and $740 million, representing 24–25% year-over-year growth.

• Adjusted EBITDA margin for 2025 expected to be 8.25% to 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 slightly free cash flow positive for full year 2025.

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