Revenue growth remains strong at 25.7% year-over-year, though operating margins remain pressured at -8.1% as of 2026Q1 due to elevated SG&A and R&D costs.
| 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 |
|---|
| Sales/Revenue | 787.85M | 747.14M | 591.84M | 492.68M | 410.92M | 322.82M | 265.17M | 214.55M | 147.28M | 99.13M | 64.07M | 36.14M | 21.75M | 15.37M |
| Revenue Growth % | 27.36% | 26.24% | 20.13% | 19.9% | 27.29% | 21.74% | 23.59% | 45.68% | 48.57% | 54.72% | 77.29% | 66.17% | 41.52% | - |
| Cost of Goods Sold | 228.46M | 219.89M | 184.31M | 160.88M | 129.29M | 109.26M | 70.28M | 52.48M | 38.8M | 28.2M | 20.88M | 14.7M | 10.59M | 8.85M |
| COGS % of Revenue | - | 29.43% | 31.14% | 32.65% | 31.46% | 33.84% | 26.5% | 24.46% | 26.34% | 28.45% | 32.59% | 40.68% | 48.7% | 57.56% |
| Gross Profit | 559.39M | 527.25M | 407.53M | 331.81M | 281.63M | 213.57M | 194.89M | 162.07M | 108.48M | 70.93M | 43.19M | 21.44M | 11.16M | 6.52M |
| Gross Margin % | 71% | 70.57% | 68.86% | 67.35% | 68.54% | 66.16% | 73.5% | 75.54% | 73.66% | 71.55% | 67.41% | 59.32% | 51.3% | 42.44% |
| Gross Profit Growth % | - | 29.38% | 22.82% | 17.82% | 31.87% | 9.58% | 20.25% | 49.4% | 52.95% | 64.22% | 101.44% | 92.15% | 71.08% | - |
| Operating Expenses | 585.04M | 564.06M | 523.04M | 456.97M | 395.42M | 313.51M | 238.56M | 216.82M | 154.17M | 98.52M | 58.77M | 43.07M | 25.92M | 18.43M |
| OpEx % of Revenue | - | 75.5% | 88.37% | 92.75% | 96.23% | 97.11% | 89.97% | 101.06% | 104.68% | 99.38% | 91.73% | 119.18% | 119.19% | 119.91% |
| Selling, General & Admin | 500.59M | 479.45M | 418.56M | 385.64M | 322.2M | 274.84M | 197.23M | 179.52M | 133.31M | 85.25M | 51.62M | 36.72M | 20.23M | 14.04M |
| SG&A % of Revenue | - | 64.17% | 70.72% | 78.27% | 78.41% | 85.14% | 74.38% | 83.67% | 90.52% | 86% | 80.57% | 101.61% | 92.99% | 91.33% |
| Research & Development | 84.45M | 84.61M | 103.83M | 60.24M | 46.61M | 38.67M | 41.33M | 37.3M | 20.86M | 13.27M | 7.15M | 6.35M | 5.7M | 3.66M |
| R&D % of Revenue | - | 11.32% | 17.54% | 12.23% | 11.34% | 11.98% | 15.59% | 17.38% | 14.16% | 13.38% | 11.16% | 17.57% | 26.2% | 23.84% |
| Other Operating Expenses | 0 | 0 | 641K | 11.08M | 26.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -25.95M | -36.81M | -115.5M | -125.16M | -113.78M | -99.94M | -43.67M | -54.76M | -45.69M | -27.59M | -15.58M | -21.63M | -14.77M | -11.18M |
| Operating Margin % | -3.29% | -4.93% | -19.52% | -25.4% | -27.69% | -30.96% | -16.47% | -25.52% | -31.02% | -27.83% | -24.32% | -59.85% | -67.89% | -72.74% |
| Operating Income Growth % | - | 68.13% | 7.71% | -10% | -13.85% | -128.84% | 20.24% | -19.84% | -65.6% | -77.07% | 27.96% | -46.5% | -32.09% | - |
| EBITDA | -6.08M | -10.33M | -89.73M | -103.02M | -94.17M | -83.35M | -30.74M | -51.31M | -43.42M | -25.99M | -15.01M | -21.14M | -14.52M | -11.03M |
| EBITDA Margin % | -0.77% | -1.38% | -15.16% | -20.91% | -22.92% | -25.82% | -11.59% | -23.91% | -29.48% | -26.22% | -23.43% | -58.49% | -66.78% | -71.76% |
| EBITDA Growth % | 92.74% | 88.49% | 12.9% | -9.39% | -12.99% | -171.12% | 40.08% | -18.17% | -67.05% | -73.13% | 28.97% | -45.56% | -31.69% | - |
| D&A (Non-Cash Add-back) | 19.88M | 26.48M | 25.78M | 22.14M | 19.61M | 16.59M | 12.93M | 3.44M | 2.27M | 1.6M | 568K | 492K | 242K | 150K |
| EBIT | -9.77M | -36.81M | -99.9M | -119.01M | -111.75M | -99.83M | -42.08M | -52.86M | -47.22M | -26.35M | -17.66M | -21.74M | -15.06M | -11.18M |
| Net Interest Income | 6.72M | 8.37M | 9.12M | 2.5M | -1.79M | -1.05M | -1.52M | -1.64M | -3.12M | -3.39M | -3.25M | -1.06M | -774K | 0 |
| Interest Income | 21.48M | 21.52M | 21.94M | 6.16M | 2.35M | 118K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.68M |
| Interest Expense | 6.59M | 13.15M | 12.82M | 3.65M | 4.14M | 1.17M | 1.52M | 1.64M | 3.12M | 3.39M | 3.25M | 1.06M | 774K | 0 |
| Other Income/Expense | -1.04M | -6.79M | 2.78M | 2.5M | -2.1M | -1.05M | 72K | 252K | -4.64M | -2.15M | -5.32M | -1.17M | -1.07M | -2.41M |
| Pretax Income | -27M | -43.6M | -112.72M | -122.66M | -115.89M | -100.99M | -43.6M | -54.5M | -50.33M | -29.74M | -20.9M | -22.8M | -15.83M | -13.59M |
| Pretax Margin % | -3.43% | -5.84% | -19.05% | -24.9% | -28.2% | -31.28% | -16.44% | -25.4% | -34.18% | -30% | -32.62% | -63.09% | -72.79% | -88.42% |
| Income Tax | 788K | 953K | 565K | 750K | 269K | 367K | 229K | 65K | 44K | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -2.92% | -2.19% | -0.5% | -0.61% | -0.23% | -0.36% | -0.53% | -0.12% | -0.09% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -27.78M | -44.55M | -113.29M | -123.41M | -116.16M | -101.36M | -43.83M | -54.57M | -50.38M | -29.74M | -20.9M | -22.8M | -15.83M | -13.59M |
| Net Margin % | -3.53% | -5.96% | -19.14% | -25.05% | -28.27% | -31.4% | -16.53% | -25.43% | -34.21% | -30% | -32.62% | -63.09% | -72.79% | -88.42% |
| Net Income Growth % | 71.74% | 60.67% | 8.2% | -6.24% | -14.6% | -131.26% | 19.68% | -8.32% | -69.39% | -42.28% | 8.32% | -44.01% | -16.51% | - |
| Net Income (Continuing) | -27.78M | -44.55M | -113.29M | -123.41M | -116.16M | -101.36M | -43.83M | -54.57M | -50.38M | -29.74M | -20.9M | -22.8M | -15.83M | -13.59M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.85 | -1.39 | -3.63 | -4.04 | -3.88 | -3.46 | -1.58 | -2.16 | -2.02 | -1.30 | -3.95 | -1.54 | -1.07 | -10.69 |
| EPS Growth % | 72.63% | 61.71% | 10.15% | -4.12% | -12.14% | -118.99% | 26.85% | -6.93% | -55.38% | 67.09% | -156.49% | -43.93% | 89.99% | - |
| EPS (Basic) | - | -1.39 | -3.63 | -4.04 | -3.88 | -3.46 | -1.58 | -2.16 | -2.02 | -1.30 | -3.95 | -1.54 | -1.07 | -10.69 |
| Diluted Shares Outstanding | 32.51M | 32M | 31.2M | 30.53M | 29.92M | 29.33M | 27.75M | 25.27M | 23.89M | 22.63M | 5.29M | 14.77M | 14.77M | 1.27M |
| Basic Shares Outstanding | 32.51M | 32M | 31.2M | 30.53M | 29.92M | 29.33M | 27.75M | 25.27M | 23.89M | 22.63M | 5.29M | 14.77M | 14.77M | 1.27M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
CMS reimbursement rate sensitivity
According to the latest quarterly financial disclosures, IRTC achieved a 25.7% year-over-year revenue growth in 2026Q1, demonstrating that the company's Zio service model continues to capture significant market share despite the inherent seasonal fluctuations typically observed in the first quarter of each fiscal year.
The consistent double-digit growth trajectory suggests that physician adoption of the Zio platform remains robust, likely driven by the integration of AI-based diagnostics into standard clinical workflows. Investors should monitor whether this momentum can be sustained as the company expands into international markets, which may present different reimbursement dynamics than the US-centric model.
Based on reported income statements, IRTC has maintained gross margins consistently near the 70% threshold, with the 2026Q1 figure of 70.9% indicating that the company's proprietary AI-driven diagnostic platform provides a scalable cost advantage that effectively offsets the variable expenses associated with clinical technician labor.
This high gross margin profile appears to reflect the software-like scalability of the company's backend analytical engine. However, the reliance on clinical labor for report verification suggests that margins may remain sensitive to wage inflation or potential bottlenecks in the diagnostic turnaround process.
As reported in recent financial filings, IRTC's operating income remains volatile, with a 2026Q1 operating margin of -8.1%, suggesting that while revenue is scaling, the company has yet to achieve the necessary operating leverage to consistently cover its substantial SG&A and R&D expenditure requirements.
The persistent gap between gross profit and operating income implies that heavy investment in sales force expansion and regulatory compliance continues to weigh on the bottom line. Analysts should evaluate whether the recent narrowing of operating losses represents a durable trend toward profitability or merely a temporary reduction in discretionary spending.
Analysis of the company's income statement reveals that stock-based compensation remains a significant non-cash expense, with $21.5 million recorded in 2026Q1, which complicates the assessment of underlying operational profitability and suggests that GAAP net income figures may not fully reflect the company's true cash-generating capacity.
The recurring nature of these equity-based awards warrants careful scrutiny, as they represent a meaningful dilution risk and a significant component of the reported operating losses. Investors should focus on adjusted EBITDA metrics to better understand the core operational performance independent of these non-cash accounting charges.
Based on the 2025Q4 performance, where the company achieved a positive operating margin of 4.2% and net income of $5.6 million, it appears that IRTC reached a critical operational inflection point where economies of scale began to meaningfully offset the high fixed costs of its diagnostic infrastructure.
This period serves as a vital benchmark for evaluating the company's long-term path to profitability, demonstrating that the business model can generate positive earnings when volume thresholds are met. Future performance will likely be measured against this quarter to determine if the company can maintain this positive trajectory.
Quick answers to the most common questions about buying IRTC stock.
For fiscal year 2025, iRhythm Technologies, Inc. (IRTC) reported total revenue of $747.1M. This represents a 4761.6% increase compared to $15.4M in 2013.
iRhythm Technologies, Inc. (IRTC) reported a net loss of $44.6M for the fiscal year ending 2025.
iRhythm Technologies, Inc. (IRTC) reported an operating income of $-36.8M, resulting in an operating profit margin of -4.9%. This margin reflects the operational efficiency of the business before interest and taxes.
iRhythm Technologies, Inc. (IRTC) generated $527.3M in gross profit for the year, representing a gross profit margin of 70.6%. This demonstrates the company's core pricing power and production efficiency.