iRhythm Holdings, Inc

irhythmtech.com

What Do They Do?

Provides wearable heart-monitoring patches and analysis services that help physicians diagnose heart rhythm disorders.

How Do They Make Money?

Commercial and government payors, including CMS, and healthcare institutions pay for ambulatory heart-monitoring services. Most services are billable when the report is issued to the prescribing physician; for some direct-paying customers, payment may arrive at patient registration or device shipment, before the report is delivered.

revenue

Segment	Share	How money arrives
Contracted third-party payors Sold outright	53% FY2022: 55%	Sold outright
Centers for Medicare and Medicaid Sold outright	24% FY2022: 25%	Sold outright
Healthcare institutions Sold outright	17% FY2022: 15%	Sold outright
Non-contracted third-party payors Sold outright	6.7% FY2022: 5.9%	Sold outright

Who Are Their Customers?

Physician practices, healthcare systems, hospitals, and other healthcare institutions use the monitoring services. iRhythm markets directly to healthcare professionals and systems in the United States; distributors handle customer orders in parts of Europe and Japan.

Do Revenues Turn Into Profits?

Not on paper. It lost $44.6M in FY2025, but brought in more cash than it spent: $34.5M of free cash flow.

Operating income, FY2025

−8% of revenue

▼ −50% (Loss) vs FY2024 (−$115.5M, −20%)

Net income, FY2025

−6% of revenue

▼ −61% (Loss) vs FY2024 (−$113.3M, −19%)

Free cash flow, FY2025

5% of revenue

▲ Now profitable vs FY2024 (−$30.6M, −5%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +20%; vs $186.7M in Q2 FY2025
Net income: ▼ −97% (Loss); vs −$14.2M in Q2 FY2025

Contracted third-party payors share of revenue vs 52.3% in Q2 FY2025

Aug 6, 2026 Agrees to acquire Vital Connect The proposed acquisition is expected to close by the end of 2026, subject to required approvals and other closing conditions.
Aug 6, 2026 Raises 2026 revenue and adjusted EBITDA margin guidance The company increased its 2026 revenue guidance to $880 million to $890 million and adjusted EBITDA margin guidance to 13.0% to 14.0%.
Apr 1, 2026 Replaces its independent auditor The Audit Committee dismissed PwC and approved KPMG as the auditor for fiscal 2026.

Growing. Revenue grew 2.3x in 4 years, from $322.8M in FY2021 to $747.1M in FY2025, about 23% a year.

Revenue over time

Contracted third-party payors Centers for Medicare and Medicaid Healthcare institutions Non-contracted third-party payors

$1B$500M$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with BioTelemetry, Preventice Solutions, Bardy Diagnostics, GE Healthcare, Philips Healthcare, Spacelabs Healthcare, Welch Allyn, Mortara Instrument, Apple, and Fitbit

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