iRhythm Holdings, Inc. reported fourth‑quarter and full‑year 2025 financial results that marked a milestone for the company, as it posted its first positive GAAP net income in a quarter. Revenue rose 27.1% to $208.9 million, while diluted earnings per share climbed to $0.17 from a $0.04 loss in Q4 2024. The company’s full‑year revenue increased 26.2% to $747.1 million, and diluted loss narrowed to $1.39 per share from a $3.63 loss in 2024.
Gross margin expanded to 70.9% in Q4 and 70.6% for the year, up from 70.4% and 70.2% respectively in 2024. Gross profit grew to $148.3 million in Q4 from $115.1 million in Q4 2024, and to $528.5 million for the year from $407.5 million in 2024. Adjusted EBITDA improved to $19.3 million in Q4, compared with a $19.3 million loss in Q4 2024, and to $19.3 million for the year versus a $(7.7) million loss in 2024.
The upside was driven by volume leverage and pricing power. Demand for the company’s Zio long‑term cardiac monitoring (LTCM) platform grew across cardiology, primary care, and innovative channel partnerships, while the company maintained pricing discipline that allowed it to capture higher margins. Cost efficiencies from streamlined operations and scale contributed to the first positive GAAP net income.
Management raised 2026 revenue guidance to $870 million–$880 million and adjusted EBITDA margin to 11.5%–12.5%, a lift that signals confidence in continued volume‑led growth and operating leverage. The guidance reflects expectations of sustained demand for Zio services and disciplined cost management.
President and CEO Quentin Blackford said the company had “delivered continued strong financial performance in the fourth quarter and full year 2025, reflecting durable demand for iRhythm’s ambulatory cardiac monitoring services and disciplined execution across the organization.” He added that the quarter “capped a transformational year for iRhythm.”
Analysts responded positively to the results, noting the revenue beat, the milestone of first positive GAAP net income, and the upward revision of guidance. The market reaction was driven by the company’s demonstrated ability to scale demand, improve margins, and maintain disciplined cost control.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.