iRhythm Technologies Announces Second Quarter 2025 Financial Results

Rhea-AI Summary

iRhythm Technologies (NASDAQ: IRTC) reported strong Q2 2025 financial results, with revenue reaching $186.7 million, up 26.1% year-over-year. The company achieved a gross margin of 71.2%, representing a 130-basis point improvement from Q2 2024.

Key operational highlights include record quarterly revenue driven by core long-term monitoring business growth, Zio AT demand, and progress in value-based care. The company formed a strategic partnership with Lucem Health for AI-driven arrhythmia detection and presented significant findings at ADA 2025 regarding cardiac arrhythmias in cardiometabolic populations.

Despite revenue growth, IRTC reported a net loss of $14.2 million ($0.44 per share), improved from a $20.1 million loss year-over-year. The company raised its 2025 guidance, projecting full-year revenue of $720-730 million with adjusted EBITDA margin of 8.0-8.5%.

[ "Revenue grew 26.1% year-over-year to $186.7 million", "Gross margin improved 130 basis points to 71.2%", "Strong cash position with $545.5 million in unrestricted cash and equivalents", "Net loss improved from $20.1M to $14.2M year-over-year", "Increased full-year 2025 revenue and adjusted EBITDA guidance", "Strategic AI partnership with Lucem Health for enhanced arrhythmia detection" ]

Positive

• None.

Negative

• Operating expenses increased 19.8% to $151.6 million
• Continued net loss of $14.2 million in Q2 2025
• Higher blended cost per unit due to Zio AT product mix

Insights

Financial Analyst

iRhythm delivered strong Q2 results with 26.1% revenue growth, improved margins, and raised 2025 guidance, demonstrating continued execution.

iRhythm Technologies delivered record quarterly revenue of $186.7 million in Q2 2025, representing impressive 26.1% year-over-year growth. This performance was driven by multiple growth vectors: continued momentum in their core long-term monitoring business, sustained demand for their Zio AT product, progress with value-based care accounts, and international expansion.

The company's gross margin improved to 71.2%, up 130 basis points compared to Q2 2024, demonstrating operating leverage despite a higher mix of Zio AT products, which typically carry higher costs. This margin expansion reflects volume leverage and operational efficiencies in their business model.

While iRhythm still reported a net loss of $14.2 million ($0.44 per share), this represents a substantial improvement from the $20.1 million loss ($0.65 per share) in the same quarter last year. On an adjusted basis, the net loss narrowed to $10.2 million ($0.32 per share) from $18.8 million ($0.61 per share) year-over-year.

The company's balance sheet remains strong with $545.5 million in unrestricted cash, cash equivalents, and marketable securities, providing ample runway for continued investment in growth initiatives. This financial flexibility is particularly important as they pursue strategic partnerships, such as the recently announced collaboration with Lucem Health focused on AI-driven early arrhythmia detection.

Management's increased 2025 guidance—now projecting full-year revenue between $720 million and $730 million with adjusted EBITDA margins of 8.0% to 8.5%—signals confidence in their growth trajectory and ability to drive further operational improvements. The guidance raise is particularly notable given the current macroeconomic environment and suggests strong underlying business momentum.

Two large-scale real-world studies presented at the American Diabetes Association's Scientific Sessions provide clinical validation of their approach, demonstrating that cardiac arrhythmias often precede major cardiovascular events. This scientific evidence strengthens iRhythm's value proposition in preventative cardiology and supports their expansion into monitoring higher-risk patient populations.

SAN FRANCISCO, July 31, 2025 (GLOBE NEWSWIRE) -- iRhythm Technologies, Inc. (NASDAQ: IRTC), a leading digital health care company focused on creating trusted solutions that detect, predict, and prevent disease, today reported financial results for the three months ended June 30, 2025.

Second Quarter 2025 Financial Highlights

• Revenue of $186.7 million, a 26.1% increase compared to second quarter 2024
• Gross margin of 71.2%, a 130-basis point increase compared to second quarter 2024
• Unrestricted cash, cash equivalents, and marketable securities of $545.5 million as of June 30, 2025
• Increased fiscal year 2025 guidance for revenue and adjusted EBITDA
  
  

Recent Operational Highlights

• Second quarter 2025 record quarterly revenue driven by continued momentum in our core long-term continuous monitoring business, sustained demand for Zio AT, progress within innovative value-based care accounts, and contribution from international markets
• Executed strategic partnership with Lucem Health, a leader in AI-driven early disease detection, to accelerate early identification of undiagnosed arrhythmias in patient populations with comorbid conditions, a bold step toward predictive, preventive, and precise care that is powered by AI, informed by data, and designed for scale¹
• Results from two large-scale real-world studies presented at the American Diabetes Association’s 85th Scientific Sessions (ADA 2025) demonstrated that cardiac arrhythmias present frequent, early, and often preceding major cardiovascular events (MACE), highlighting a critical opportunity to enhance early detection strategies in at-risk cardiometabolic populations
  
  

"The second quarter of 2025 was another record quarter for iRhythm, with growth of more than 26%, showcasing the strength of our diversified growth strategy," said Quentin Blackford, President and Chief Executive Officer of iRhythm. "Our continued momentum spans three key areas: accelerating growth in our core monitoring business, continued penetration of Zio AT across major health systems, and successful expansion with innovative value-based care partners. With strong execution, combined with our transformative AI partnership with Lucem Health and the growing abundance of compelling clinical evidence, we’re uniquely positioned to revolutionize early cardiac detection and create substantial value for patients, providers, and shareholders while addressing the growing need for preventative care."

Second Quarter Financial Results
Revenue for the second quarter of 2025 was $186.7 million, up 26.1% from $148.0 million during the same period in 2024. The increase was driven by growth in demand for Zio services within core existing accounts, from continued market penetration of Zio AT, and at new innovative channel partners.

Gross profit for the second quarter of 2025 was $132.9 million, up 28.4% from $103.5 million during the same period in 2024, while gross margin was 71.2%, up from 69.9% during the same period in 2024. The increase in gross profit was primarily due to increased volume of Zio services provided due to higher demand. The increase in gross margin was primarily due to volume leverage as well as operational efficiencies, partially offset by an increased blended cost per unit from a higher Zio AT product mix.

Operating expenses for the second quarter of 2025 were $151.6 million, compared to $126.5 million for the same period in 2024. Adjusted operating expenses for the second quarter of 2025 were $145.2 million, compared to $125.2 million during the same period in 2024. The increase in adjusted operating expenses was primarily driven by funding of new and sustaining development activities as well as incremental costs to serve a growing volume of patients globally.

Net loss for the second quarter of 2025 was $14.2 million, or a diluted loss of $0.44 per share, compared with net loss of $20.1 million, or a diluted loss of $0.65 per share, for the same period in 2024. Adjusted net loss for the second quarter of 2025 was $10.2 million, or a diluted loss of $0.32 per share, compared with an adjusted net loss of $18.8 million, or a diluted loss of $0.61 per share, for the same period in 2024. The decrease in net loss was primarily driven by our revenue growth and operating leverage achieved through implementation of efficiency initiatives.

Unrestricted cash, cash equivalents, and marketable securities were $545.5 million as of June 30, 2025.

2025 Annual Guidance
iRhythm projects revenue for the full year 2025 between $720 million to $730 million. Adjusted EBITDA margin for the full year 2025 is expected to range from approximately 8.0% to 8.5% of revenues.

Webcast and Conference Call Information
iRhythm’s management team will host a conference call today beginning at 1:30 p.m. PT/4:30 p.m. ET. Interested parties may access a live and archived webcast of the presentation on the “Events & Presentations” section of the company’s investor website at investors.irhythmtech.com.

About iRhythm Technologies, Inc.
iRhythm is a leading digital health care company that creates trusted solutions that detect, predict, and prevent disease. Combining wearable biosensors and cloud-based data analytics with powerful proprietary algorithms, iRhythm distills data from millions of heartbeats into clinically actionable information. Through a relentless focus on patient care, iRhythm’s vision is to deliver better data, better insights, and better health for all.

Reclassifications
Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications have no impact on previously reported results of operations or financial position.

Use of Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP) in this press release, including adjusted EBITDA, adjusted net loss, adjusted net loss per share and adjusted operating expenses. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. See the schedules attached to this press release for additional information and reconciliations of such non-GAAP financial measures. We have not reconciled our adjusted operating expenses and adjusted EBITDA margin estimates for full year 2025 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, a reconciliation of adjusted operating expenses and adjusted EBITDA estimates is not available without unreasonable effort.

Adjusted EBITDA excludes non-cash operating charges for stock-based compensation expense, changes in fair value of strategic investments, impairment and restructuring charges, business transformation costs, certain intellectual property litigation expenses and settlements, and loss on extinguishment of debt. Business transformation costs include costs associated with professional services, employee termination and relocation, third-party merger and acquisition, integration, and other costs to augment and restructure the organization, inclusive of both outsourced and offshore resources.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future actions or operating or financial performance. In particular, these statements include statements regarding financial guidance, market opportunity, ability to penetrate the market, international market expansion, anticipated productivity and quality improvements, and expectations for growth. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in our filings made with the Securities and Exchange Commission, including those on the Form 10-Q expected to be filed on or about July 31, 2025. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements.

Investor Contact
Stephanie Zhadkevich
investors@irhythmtech.com

Media Contact
Kassandra Perry
irhythm@highwirepr.com

1. The predictive-AI solution does not represent the functionality of any Zio branded medical device.
   
   

IRHYTHM TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets (In thousands, except par value) (unaudited)
	June 30, 2025				December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	309,105			$	419,597
Marketable securities		236,435				115,956
Accounts receivable, net		82,153				79,941
Inventory		18,399				14,039
Prepaid expenses and other current assets		17,825				16,286
Total current assets		663,917				645,819
Property and equipment, net		139,703				125,092
Operating lease right-of-use assets		44,749				47,564
Restricted cash		8,358				8,358
Goodwill		862				862
Long-term strategic investments		64,897				61,902
Other assets		41,544				41,852
Total assets	$	964,030			$	931,449
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	12,775			$	7,221
Accrued liabilities		99,577				84,900
Deferred revenue		3,499				2,932
Operating lease liabilities, current portion		16,360				15,867
Total current liabilities		132,211				110,920
Long-term senior convertible notes		648,007				646,443
Other noncurrent liabilities		9,775				8,579
Operating lease liabilities, noncurrent portion		70,377				74,599
Total liabilities		860,370				840,541
Stockholders’ equity:
Preferred stock, $0.001 par value – 5,000 shares authorized; none issued and outstanding at June 30, 2025 and December 31, 2024		—				—
Common stock, $0.001 par value – 100,000 shares authorized; 32,334 shares issued and 32,105 shares outstanding at June 30, 2025, respectively; and 31,621 shares issued and 31,392 shares outstanding at December 31, 2024, respectively		32				31
Additional paid-in capital		932,467				874,607
Accumulated other comprehensive (loss) income		(26	)			165
Accumulated deficit		(803,813	)			(758,895	)
Treasury stock, at cost; 229 shares at June 30, 2025 and December 31, 2024		(25,000	)			(25,000	)
Total stockholders’ equity		103,660				90,908
Total liabilities and stockholders’ equity	$	964,030			$	931,449

IRHYTHM TECHNOLOGIES, INC. Condensed Consolidated Statements of Operations (In thousands, except per share data) (unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
			2025				2024				2025				2024
Revenue, net		$	186,687			$	148,047			$	345,364			$	279,976
Cost of revenue			53,830				44,576				103,291				88,989
Gross profit			132,857				103,471				242,073				190,987
Operating expenses:
Research and development			21,012				19,690				42,531				36,684
Acquired in-process research and development			1,698				—				1,994				—
Selling, general and administrative			126,376				106,762				246,333				215,422
Impairment charges			2,479				—				2,479				—
Total operating expenses			151,565				126,452				293,337				252,106
Loss from operations			(18,708	)			(22,981	)			(51,264	)			(61,119	)
Interest and other income (expense), net:
Interest income			5,321				6,685				10,240				9,742
Interest expense			(3,278	)			(3,312	)			(6,551	)			(6,172	)
Loss on extinguishment of debt			—				—				—				(7,589	)
Other income (expense), net			2,264				(305	)			3,139				(410	)
Total interest and other income (expense), net			4,307				3,068				6,828				(4,429	)
Loss before income taxes			(14,401	)			(19,913	)			(44,436	)			(65,548	)
Income tax (benefit) provision			(183	)			194				482				226
Net loss		$	(14,218	)		$	(20,107	)		$	(44,918	)		$	(65,774	)
Net loss per common share, basic and diluted		$	(0.44	)		$	(0.65	)		$	(1.41	)		$	(2.12	)
Weighted-average shares, basic and diluted			31,990				31,145				31,791				31,089

IRHYTHM TECHNOLOGIES, INC. Reconciliation of GAAP to Non-GAAP Financial Information (in thousands, except per share data) (unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
			2025				2024				2025				2024
Adjusted EBITDA reconciliation*
Net loss, as reported1		$	(14,218	)		$	(20,107	)		$	(44,918	)		$	(65,774	)
Interest expense			3,278				3,312				6,551				6,172
Interest income			(5,321	)			(6,685	)			(10,240	)			(9,742	)
Changes in fair value of strategic investments			(2,152	)			—				(2,995	)			—
Income tax (benefit) provision			(183	)			194				482				226
Depreciation and amortization			5,105				5,160				10,315				10,291
Stock-based compensation			22,827				21,821				46,171				42,812
Impairment charges			2,479				—				2,479				—
Business transformation costs			925				1,296				1,428				1,296
Intellectual property litigation costs2			2,956				—				3,788				—
Loss on extinguishment of debt			—				—				—				7,589
Adjusted EBITDA		$	15,696			$	4,991			$	13,061			$	(7,130	)
Adjusted net loss reconciliation*
Net loss, as reported1		$	(14,218	)		$	(20,107	)		$	(44,918	)		$	(65,774	)
Impairment charges			2,479				—				2,479				—
Business transformation costs			925				1,296				1,428				1,296
Intellectual property litigation costs2			2,956				—				3,788				—
Changes in fair value of strategic investments			(2,152	)			—				(2,995	)			—
Loss on extinguishment of debt			—				—				—				7,589
Tax effect of adjustments3			(214	)			—				(305	)			—
Adjusted net loss		$	(10,224	)		$	(18,811	)		$	(40,523	)		$	(56,889	)
Adjusted net loss per share reconciliation*
Net loss per share, as reported1		$	(0.44	)		$	(0.65	)		$	(1.41	)		$	(2.12	)
Impairment charges per share			0.08				—				0.08				—
Business transformation costs per share			0.03				0.04				0.04				0.04
Intellectual property litigation costs per share2			0.09				—				0.12				—
Changes in fair value of strategic investments per share			(0.07	)			—				(0.09	)			—
Loss on extinguishment of debt per share			—				—				—				0.24
Tax effect of adjustments per share3			(0.01	)			—				(0.01	)			—
Adjusted net loss per share		$	(0.32	)		$	(0.61	)		$	(1.27	)		$	(1.84	)
Weighted-average shares, basic and diluted			31,990				31,145				31,791				31,089

		Three Months Ended June 30,								Six Months Ended June 30,
			2025				2024				2025				2024
Adjusted operating expenses reconciliation*
Operating expenses, as reported		$	151,565			$	126,452			$	293,337			$	252,106
Impairment charges			(2,479	)			—				(2,479	)			—
Business transformation costs			(925	)			(1,296	)			(1,428	)			(1,296	)
Intellectual property litigation costs2			(2,956	)			—				(3,788	)			—
Adjusted operating expenses		$	145,205			$	125,156			$	285,642			$	250,810

_{*Certain numbers expressed may not sum due to rounding.
¹ Net loss for the three and six months ended June 30, 2025 includes $1.7 million and $2.0 million of acquired in-process research and development expense, respectively.
² Excludes third-party attorneys' fees and expenses associated with patent litigation brought against the Company by Welch Allyn, Inc. and Bardy Diagnostics, Inc., subsidiaries of Baxter International, Inc.
³ Income tax impact of Non-GAAP adjustments listed.}

FAQ

What were iRhythm's (IRTC) Q2 2025 revenue and growth rate?

iRhythm reported Q2 2025 revenue of $186.7 million, representing a 26.1% increase compared to Q2 2024.

What is iRhythm's (IRTC) full-year 2025 revenue guidance?

iRhythm projects full-year 2025 revenue between $720 million to $730 million, with an adjusted EBITDA margin range of 8.0% to 8.5%.

How much cash does iRhythm (IRTC) have as of Q2 2025?

iRhythm had $545.5 million in unrestricted cash, cash equivalents, and marketable securities as of June 30, 2025.

What was iRhythm's (IRTC) gross margin in Q2 2025?

iRhythm achieved a gross margin of 71.2% in Q2 2025, a 130-basis point increase compared to Q2 2024.

What strategic partnership did iRhythm (IRTC) announce in Q2 2025?

iRhythm announced a strategic partnership with Lucem Health to accelerate early identification of undiagnosed arrhythmias using AI-driven detection in patients with comorbid conditions.

What was iRhythm's (IRTC) net loss per share in Q2 2025?

iRhythm reported a net loss of $0.44 per share in Q2 2025, improved from a loss of $0.65 per share in Q2 2024.