iRhythm Technologies reported third‑quarter 2025 earnings, posting revenue of $192.9 million, a 30.7% increase year‑over‑year. The company recorded a net loss of $5.2 million, or $0.16 per share diluted, and an adjusted net loss of $2.0 million, or $0.06 per share diluted. Gross profit rose to $137.1 million, giving a gross margin of 71.1%, up 2.3 percentage points from the same period last year. Operating expenses were $145.6 million, slightly lower than the prior year, a decline largely attributable to the absence of a $32.1 million in‑process research and development expense that was recorded in Q3 2024.
Revenue growth was driven by strong demand for the company’s Zio AT and Zio LTCM services, which together accounted for roughly 60% of total revenue. International markets contributed an additional 15% growth, while contracted third‑party payors represented 51% of revenue, Centers for Medicare and Medicaid 25%, and healthcare institutions 17%.
iRhythm generated record free cash flow during the quarter and reported unrestricted cash and cash equivalents of $565.2 million at quarter end. The company expects to be free‑cash‑flow positive for the full year 2025 for the first time in its history.
The company reiterated its full‑year 2025 guidance, projecting revenue of $735 million to $740 million and an adjusted EBITDA margin of 8.25% to 8.75%, an increase from the previous guidance of $720 million to $730 million and 8.0% to 8.5%. Management highlighted continued momentum in its core long‑term continuous monitoring business, sustained demand for Zio AT, progress within value‑based care accounts, and contributions from international markets.
iRhythm’s results reinforce its trajectory toward free‑cash‑flow positivity in 2026 and underscore the scalability of its platform. The company is advancing its innovation pipeline, including the submission of its next‑generation Zio MCT solution to the FDA, and remains competitive in an expanding ambulatory cardiac monitoring market.
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