Operating cash flow turned positive at $51.1M in 2026Q2, driving FCF to $37.5M (16.7% margin), but working capital swings and SBC of $20M+ per quarter warrant monitoring for cash flow sustainability.
iRhythm Technologies, Inc. (IRTC) cash flow statement — 13-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 86M | 80.86M | 3.39M | -50.1M | -23.01M | -37.75M | -13.76M | -21.86M | -29.07M | -14.91M | -16.65M | -18M | -15.63M | -11.85M |
| Operating CF Margin % | - | 10.82% | 0.57% | -10.17% | -5.6% | -11.69% | -5.19% | -10.19% | -19.74% | -15.04% | -25.99% | -49.82% | -71.85% | -77.1% |
| Operating CF Growth % | -67.44% | 2285.34% | 106.77% | -117.72% | 39.05% | -174.39% | 37.07% | 24.79% | -94.94% | 10.45% | 7.52% | -15.22% | -31.88% | - |
| Net Income | -13.95M | -44.55M | -113.29M | -123.41M | -116.16M | -101.36M | -43.83M | -54.57M | -48.28M | -29.42M | -20.9M | -22.8M | -15.83M | -13.59M |
| Depreciation & Amortization | 21.38M | 26.48M | 25.78M | 22.14M | 19.61M | 16.59M | 6.9M | 3.44M | 2.27M | 1.6M | 568K | 492K | 242K | 150K |
| Stock-Based Compensation | 83.64M | 88.28M | 75.98M | 77.2M | 57.74M | 54.53M | 41.52M | 26.24M | 16.33M | 10.12M | 1.87M | 1.41M | 828K | 772K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 31.86M | 23.76M | 17.41M | 9.06M | 4.69M | 10K | 408K | 0 |
| Other Non-Cash Items | 106.99M | 102.35M | 102.51M | 76M | 81.3M | 38.72M | 6.03M | 8.99M | -2.93M | 1.81M | 3.85M | 227K | 402K | 1.53M |
| Working Capital Changes | -112.06M | -91.7M | -99.12M | -102.05M | -65.51M | -46.23M | -56.23M | -29.73M | -13.87M | -8.08M | -6.73M | 2.65M | -1.67M | -712K |
| Change in Receivables | -104.5M | -95.43M | -91.92M | -81.19M | -61.84M | -53.57M | -37.96M | -28.73M | -22.89M | -12.95M | -8.52M | -626K | -2.56M | -1.1M |
| Change in Inventory | -5.16M | -8.51M | -224K | 979K | -5.11M | -4.96M | -1.39M | -1.97M | -380K | -293K | -245K | -327K | -71K | 249K |
| Change in Payables | 42.26M | 28.04M | -7.41M | -1.97M | -2.99M | 6.13M | -3.88M | 5.6M | -192K | 634K | 305K | 132K | 703K | 0 |
| Cash from Investing | -156.43M | -277.06M | -122.98M | -1.21M | -52.43M | 105.26M | -132.39M | -89.27M | 34.12M | -34.59M | -68.17M | -1.79M | -539K | -452K |
| Capital Expenditures | -47.02M | -46.34M | -33.94M | -40.42M | -29.83M | -28.07M | -13.55M | -20.46M | -5.18M | -3.56M | -2.76M | -1.79M | -539K | -452K |
| CapEx % of Revenue | 5.7% | 6.2% | 5.73% | 8.2% | 7.26% | 8.69% | 5.11% | 9.53% | 3.52% | 3.59% | 4.31% | 4.94% | 2.48% | 2.94% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 118.84M | 68.82M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.5M | 0 | -89.04M | 0 | 0 | 0 | -118.84M | -68.82M | 39.32M | 91K | -65.4M | 0 | 0 | 0 |
| Cash from Financing | 8.01M | 12.61M | 511.38M | 8.82M | 26.72M | -28.58M | 214.32M | 111.58M | 6.3M | 6.53M | 111.25M | 36.38M | 17.68M | 14.53M |
| Debt Issued (Net) | -3K | 0 | 619.84M | 0 | 13.53M | -11.67M | -1.94M | 0 | 3.5M | 0 | 0 | 24.11M | 405K | 2.15M |
| Equity Issued (Net) | 8.02M | 12.61M | -25M | 0 | 0 | 8.94M | 206.03M | 107.37M | 0 | 6.39M | 114.44M | 0 | 17.23M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -25M | 0 | 0 | 0 | 0 | 0 | -3.88M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 0 | 0 | -83.46M | 8.82M | 13.18M | -25.85M | 10.23M | 4.21M | 2.8M | 142K | -3.18M | 12.27M | 50K | 12.39M |
| Net Change in Cash | -62.43M | -183.59M | 391.78M | -42.66M | -48.73M | 38.93M | 68.17M | 439K | 11.35M | -42.97M | 26.43M | 16.59M | 1.52M | 2.23M |
| Free Cash Flow | 38.98M | 34.52M | -30.55M | -90.53M | -52.84M | -65.82M | -27.31M | -42.32M | -34.25M | -18.47M | -19.41M | -19.79M | -16.16M | -12.3M |
| FCF Margin % | 4.72% | 4.62% | -5.16% | -18.37% | -12.86% | -20.39% | -10.3% | -19.72% | -23.25% | -18.64% | -30.3% | -54.76% | -74.33% | -80.04% |
| FCF Growth % | 39.8% | 212.99% | 66.25% | -71.31% | 19.72% | -141.01% | 35.47% | -23.57% | -85.39% | 4.85% | 1.91% | -22.44% | -31.41% | - |
| FCF per Share | 1.18 | 1.08 | -0.98 | -2.97 | -1.77 | -2.24 | -0.98 | -1.67 | -1.43 | -0.82 | -3.67 | -1.34 | -1.09 | -9.67 |
| FCF Conversion (FCF/Net Income) | -2.79x | -1.82x | -0.03x | 0.41x | 0.20x | 0.37x | 0.31x | 0.40x | 0.58x | 0.50x | 0.80x | 0.79x | 0.99x | 0.87x |
| Interest Paid | 4.96M | 9.92M | 6.39M | 2.96M | 3.32M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 289K | 869K | 923K | 1.13M | 287K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying IRTC stock.
iRhythm Technologies, Inc. (IRTC) generated $80.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
iRhythm Technologies, Inc. (IRTC) generated $34.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
iRhythm Technologies, Inc. (IRTC) spent $46.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Reimbursement and regulatory overhang
Metrics are mathematically derived from official filings.
Cash Conversion Diverges from Losses
Despite cumulative net losses of $171M over ten quarters, operating cash flow turned positive in most periods, with 2026Q2 OCF of $51.1M versus a net loss of $381K, per reported financials.
The persistent gap between net income and operating cash flow, where OCF/NI ratios swing from -134 to +4.7, indicates that non-cash charges like stock-based compensation and working capital swings dominate reported earnings. This suggests that the company's cash generation is more robust than its GAAP profitability implies, but the volatility in working capital, particularly the $73.7M positive swing in 2024Q3 and -$67.4M in 2026Q1, warrants close monitoring for sustainability.
FCF Turns Positive on Volume Growth
Free cash flow improved from -$61.8M in 2024Q1 to $37.5M in 2026Q2, with FCF margin expanding to 16.7%, as reported in quarterly statements, signaling a potential inflection.
The trajectory shows a clear upward trend in FCF, driven by revenue growth and operating leverage, with FCF margins turning positive in most recent quarters. However, the 2026Q1 dip to -$33.1M highlights quarter-to-quarter volatility, likely due to working capital timing. Investors should assess whether this positive FCF trend can be sustained as the company scales internationally and invests in next-gen products.
Capital Intensity Remains Moderate
CapEx averaged $10.1M per quarter, representing 5.6% of revenue, with no significant growth in capital intensity despite revenue expansion, based on reported figures.
The stable CapEx-to-revenue ratio suggests that IRTC's asset-light model, relying on outsourced manufacturing and software-like analytics, does not require heavy capital investment to scale. This supports the view that growth is primarily driven by working capital and operating expenses, not fixed assets. However, the modest CapEx may also indicate underinvestment in capacity if demand accelerates beyond expectations.
Working Capital Swings Drive Cash Flow
Working capital changes were the primary driver of OCF volatility, with swings from -$67.4M in 2026Q1 to +$73.7M in 2024Q3, as per cash flow statements.
The large fluctuations in working capital, particularly in unbilled receivables and payables, suggest that revenue recognition timing and billing cycles significantly impact cash flow. The negative working capital changes in most quarters indicate that the company is investing in receivables as it grows, which may pressure cash flow if collection cycles lengthen. Monitoring DSO and unbilled receivables is critical to assess the quality of earnings.
No Capital Returns, Focus on Growth
IRTC paid no dividends and made no buybacks in the last ten quarters, with only a $25M buyback in 2024Q1, indicating all cash is reinvested into operations, per SEC filings.
The absence of capital returns underscores a growth-focused strategy, with cash flows directed toward scaling the sales force and R&D. The single buyback in 2024Q1 may have been opportunistic, but the overall pattern suggests management prioritizes internal investment over shareholder distributions. This is consistent with a company still striving for sustained profitability.
Cumulative Losses vs. Cash Generation
Over ten quarters, cumulative net losses totaled -$171M, yet cumulative operating cash flow was positive at $109M, a divergence of $280M, based on reported data.
This significant gap highlights the impact of non-cash charges, primarily stock-based compensation, which averaged over $20M per quarter. The positive cumulative OCF suggests that the underlying business is generating cash despite GAAP losses, but the reliance on SBC to bridge the gap raises questions about earnings quality. Investors should adjust for SBC to assess the true cash burn and sustainability of operations.
What the Cash Flow Statement Obscures
Stock-based compensation averaged over $20M per quarter, exceeding net losses in most periods, implying reported losses understate cash consumption, as per SEC filings.
The cash flow statement shows positive OCF, but this is heavily influenced by large SBC add-backs, which are non-cash but dilute shareholders. Additionally, the company's revenue recognition policy, which delays recognition until the report is delivered, may create timing differences that obscure the true cash cycle. Investors should also consider that the lack of disclosed EPS and guidance may indicate uncertainty in near-term cash generation, warranting caution in relying on recent positive FCF trends.