Palantir shares slip by 7% despite posting record revenue in third quarter
Investing.com -- iRhythm Technologies, Inc. (NASDAQ:IRTC) reported third-quarter earnings that significantly exceeded analyst expectations, driving shares up 11.3% in after-hours trading on Thursday.
The digital healthcare company posted adjusted earnings per share of $0.06, dramatically outperforming the analyst estimate of -$0.32. Revenue reached $192.9 million, surpassing the consensus estimate of $184.76 million and representing a 30.7% increase YoY from $147.5 million in the same quarter last year.
The strong performance prompted iRhythm to raise its full-year 2025 guidance, now expecting revenue between $735 million and $740 million, above the analyst consensus of $726.4 million. The company also projects adjusted EBITDA margin to range from 8.25% to 8.75% of revenues.
"iRhythm delivered another quarter of strong performance, reflecting the scalability of our platform and the growing adoption of our differentiated technology across the healthcare ecosystem," said Quentin Blackford, President and CEO of iRhythm.
Gross margin improved to 71.1%, a 230-basis point increase compared to the third quarter of 2024. The company attributed its growth to continued momentum in its core long-term continuous monitoring business, sustained demand for Zio AT, progress within innovative value-based care accounts, and contribution from international markets.
iRhythm reported unrestricted cash, cash equivalents, and marketable securities of $565.2 million as of September 30, 2025. The company achieved record free cash flow generation during the quarter and anticipates being free cash flow positive on an annual basis for the first time in company history.
The cardiac monitoring specialist continues to strengthen its clinical evidence base with recent publications of real-world studies supporting the clinical superiority of its Zio long-term continuous monitoring service.
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