iRhythm raised its 2026 revenue guidance to $880 million-$890 million.
The company expects a 2026 adjusted EBITDA margin of 13.0%-14.0%.
iRhythm anticipates continued volume-led growth and margin expansion in 2026.
Margins and cost controls improved
Gross margin improvement was attributed to operational efficiencies, product mix, and scale benefits from higher volumes.
Adjusted operating expenses were flat year over year, reflecting a disciplined approach to investment while funding key growth initiatives.
Quarterly metrics and analyst coverage
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$224.20 mln
$219.32 mln (15 Analysts)
Q2 Adjusted Net Income
$19.30 mln
Q2 Net Loss
$400,000
Q2 Gross Margin
72.80%
Q2 Gross Profit
$163.20 mln
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 15 "strong buy" or "buy", no "hold" and no "sell" or "strong sell".
The average consensus recommendation for the advanced medical equipment & technology peer group is "buy."
Wall Street's median 12-month price target for iRhythm Holdings, Inc is $180.00, about 44.6% above its August 5 closing price of $124.50.
The stock recently traded at 190 times the next 12-month earnings vs. a P/E of 1,692 three months ago.
Q2 results beat estimates on sustained volume demand
iRhythm's second-quarter revenue rose 20% year over year, beating analyst expectations.
Adjusted net income turned positive from a loss a year ago.
The company said revenue growth was driven primarily by sustained volume demand across the customer base and strength in its core business and new channels.
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