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Sep 30
iRhythm Q3 2025 Earnings Report
iRhythm reported strong financial results for the third quarter of 2025, with significant revenue growth and improved gross margin.
Key Takeaways
iRhythm Technologies delivered a strong third quarter in 2025, achieving record quarterly revenue of $192.9 million, a 30.7% increase year-over-year. The company also significantly reduced its net loss and adjusted net loss compared to the previous year, demonstrating improved operational efficiency and profitability. Gross margin expanded to 71.1%, and the company reported record free cash flow generation.
Revenue for Q3 2025 reached $192.9 million, marking a 30.7% increase compared to Q3 2024.
Gross margin improved by 230 basis points to 71.1% in Q3 2025, driven by increased volume and operational efficiencies.
Net loss significantly decreased to $5.2 million, or $0.16 per diluted share, from $46.2 million in Q3 2024.
Adjusted net loss was $2.0 million, or $0.06 per diluted share, a substantial improvement from $39.2 million in Q3 2024.
iRhythm
iRhythm
iRhythm Revenue by Segment
Revenue by Segment
Zio Services Revenue
CapyFin.com Forward Guidance
iRhythm has increased its fiscal year 2025 guidance for revenue and adjusted EBITDA margin, anticipating continued strong performance and achieving free cash flow positive on an annual basis for the first time.
Positive Outlook
- Increased fiscal year 2025 revenue guidance to between $735 million and $740 million.
- Adjusted EBITDA margin for full year 2025 expected to range from approximately 8.25% to 8.75% of revenues.
- Anticipates being free cash flow positive on an annual basis for the first time in company history.
- Continued momentum in core long-term continuous monitoring business and sustained demand for Zio AT.
- Progress within innovative value-based care accounts and contribution from international markets.
- Advancing innovation pipeline, including submission of next-generation Zio MCT solution to the FDA and early work in sleep diagnostics.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- Potential for increased blended cost per unit from a higher Zio AT product mix, as noted in Q3 results.
- Uncertainty in predicting certain items that impact adjusted operating expenses and adjusted EBITDA margin estimates for full year 2025.
- Risks and uncertainties described in SEC filings, including those on Form 10-Q, could cause actual outcomes to differ materially.
- The company disclaims any obligation to update forward-looking statements, indicating potential for changes in outlook.