iRhythm Technologies (IRTC) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $221.6M, up 14.9% YoY; Zio Monitor demand exceeded expectations, while Zio AT revenue was flat YoY.

• Gross margin reached 74.2% and adjusted EBITDA margin 23.1%; results included tariff refunds and litigation-related costs.

• VitalConnect acquisition closed Oct. 5, broadening monitoring capabilities across ambulatory and other care settings.

Financial highlights

• Q3 revenue was $221.6M versus $192.9M in Q3 2025; gross profit was $164.5M, up 20.0% YoY.

• Adjusted EBITDA was $51.184M versus $21.559M; adjusted EBITDA margin was 23.1%, up 1,190 bps YoY.

• GAAP net loss was $29.851M, or $0.90 per diluted share; adjusted net income was $27.815M, or $0.82 per share.

• Adjusted operating expenses were $138.6M, down 2% YoY; reported operating expenses were $197.0M and included $49.8M of litigation settlements.

• Q3 free cash flow was -$11.545M; excluding the $50.0M Baxter settlement payment, it was +$38.5M.

Outlook and guidance

• FY2026 revenue guidance increased to $890M–$895M, from prior guidance of $880M–$890M; adjusted EBITDA margin guidance rose to 15.5%–16.0%.

• Guidance includes ~$16M of VitalConnect revenue from the Oct. 5 close through year-end.

• Q4 Zio AT volume is expected flat YoY and revenue down ~10%; Zio Monitor growth is expected in the mid-teens.

• Organic revenue is expected to track toward ~$1B in 2027; VitalConnect is expected to grow slightly above organic growth, with an adjusted EBITDA margin target of at least 15%.

• Positive Q4 free cash flow and FY2026 YoY free cash flow growth are expected excluding specified one-time items.