Irhythm Technologies Stock Earnings Reports

iRhythm reported a strong Q1 2026: revenue of $199.4M (25.7% YoY growth), adjusted EBITDA of $14.1M (7.1% of revenue) and meaningful margin expansion (880 bps year-over-year improvement in adjusted EBITDA margin). Volume was the primary revenue driver, with new-store growth accounting for ~64% of the year-over-year volume increase; home enrollment remained ~23% of volume. Gross margin improved to 70.9% driven by manufacturing automation and clinical workflow efficiencies. The company raised full-year 2026 revenue guidance to $875M–$885M (17%–18% YoY) and raised adjusted EBITDA margin guidance to 12%–13%. Cash balance remained strong at $549.6M. Strategic highlights: continued uptake of Zio Monitor and Zio AT across cardiology, primary care, innovative channels and international markets (notably a record quarter in the U.K.); focus on moving upstream into primary care to expand market opportunity; progress on adjacent market pilots (sleep); regulatory remediation work completed and ongoing engagement with FDA and other agencies; reaffirmed first-half-2027 timeline for next-generation MCT launch. Key technology/clinical points: proprietary dataset (>3 billion hours of curated ECG), deployment of predictive AI pilots (early accuracy >85%), and submission of a next-generation AI algorithm (expected approval later this year) that management expects to reduce technician review time materially and drive future margin expansion. Risks and unresolved items include the outstanding FDA warning-letter remediation timeline, the DOJ CID (focused on historical AT activity), and uncertain final language/timing on MAC LCDs for ambulatory cardiac monitoring.