Digital healthcare firm iRhythm beats Q1 revenue expectations

Overview

• Digital cardiac monitoring firm's Q1 revenue rose 25.7% yr/yr, beating analyst expectations

• Adjusted net loss narrowed yr/yr, driven by revenue growth and operating leverage

Outlook

• iRhythm sees 2026 revenue between $875 mln and $885 mln

• Company expects 2026 adjusted EBITDA margin of 12% to 13%

Result Drivers

• VOLUME-LED GROWTH - Revenue increase was primarily driven by sustained volume demand across the customer base, reflecting strength in core business and newer growth channels

• OPERATIONAL EFFICIENCIES - Gross margin expansion was mainly due to operational efficiencies and scale benefits from higher volumes

• CHANNEL DIVERSIFICATION - Company saw meaningful contributions from Zio monitor, Zio AT, innovative partnerships, and international markets

Company press release: ID:nGNX80DBk7

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for iRhythm Holdings, Inc is $200.00, about 65.6% above its April 29 closing price of $120.75

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