U.S. stocks edge higher; solid earnings season continues
SAN FRANCISCO - iRhythm Technologies, Inc. (NASDAQ:IRTC), a digital health company specializing in cardiac care solutions, reported better-than-expected first quarter results and raised its full-year guidance, sending its shares up 3% in after-hours trading.
The company posted Q1 revenue of $158.7 million, surpassing analyst estimates of $153.49 million and marking a 20.3% increase YoY. Adjusted earnings per share came in at -$0.95, slightly ahead of the -$0.96 consensus estimate. iRhythm attributed the strong performance to increased demand for its Zio services, particularly from innovative value-based care accounts and Zio AT in the United States.
For the full year 2025, iRhythm raised its revenue guidance to a range of $690 million to $700 million, up from the previous analyst consensus of $681.7 million. The company also projects an adjusted EBITDA margin between 7.5% and 8.5% of revenues for the year.
"The first quarter of 2025 demonstrated continued commercial momentum, with revenue growth exceeding 20% year-over-year, driven by upstream expansion in the patient care pathway and strength in our Zio AT business," said Quentin Blackford, President and CEO of iRhythm.
The company’s gross margin improved to 68.8%, a 250-basis point increase compared to the same quarter last year, primarily due to volume leverage and operational efficiencies. iRhythm ended the quarter with $520.6 million in unrestricted cash, cash equivalents, and marketable securities.
iRhythm also highlighted its recent commercial launch in Japan, expanding its global presence to six markets outside the U.S. The company reached a milestone of 10 million patient reports since its inception, underscoring its growing impact in cardiac arrhythmia diagnosis.
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