IRTC · iRhythm Technologies, Inc.

iRhythm Technologies delivered a robust Q1 2026 with revenue of $199.4 million, reflecting 25.7% year-over-year growth primarily from sustained volume demand across its customer base, core cardiology business strength, and contributions from newer growth channels including Zio AT, innovative partnerships, and international markets. Gross profit rose 29.4% to $141.4 million, with gross margin expanding 210 basis points to 70.9%, driven by operational efficiencies and scale benefits from higher Zio services volumes. Operating expenses increased to $157.5 million from volume-related costs, litigation expenses, and growth investments, yet the company achieved significant operating leverage, reducing net loss to $13.9 million ($0.43 per diluted share) from $30.7 million ($0.97 per share) in Q1 2025. Adjusted EBITDA turned positive at $14.1 million (7.1% margin), a $16.7 million improvement, underscoring profitability momentum. CEO Quentin Blackford highlighted durable platform demand, channel diversification, and AI-enabled expansion into earlier detection to lower cardiac care costs. The company raised FY2026 guidance to $875-885 million in revenue and 12.0-13.0% adjusted EBITDA margin, signaling confidence in continued volume-led growth, margin expansion, and disciplined innovation investments. Balance sheet remains solid with $549.6 million in unrestricted cash, cash equivalents, and marketable securities as of March 31, 2026, supporting strategic initiatives amid ongoing patent litigation costs.