On Monday, iRhythm Technologies Inc. (NASDAQ:IRTC) reported preliminary fourth quarter operational highlights.
The digital health company anticipates full-year 2025 revenue to exceed the high end of the previously stated guidance range of $740 million provided in October 2025, driven by record revenue unit volume during the fourth quarter of 2025.
The analysts estimated a consensus of $737.95 million.
For fiscal year 2026, iRhythm expects revenue of approximately $870 million to $880 million, up approximately 17% to 18% year-over-year growth versus the consensus of $862.68 million.
For 2026, the company expects an adjusted EBITDA margin of approximately 11.5% to 12.5%.
"As we enter 2026, we're well-positioned to accelerate our leadership with multiple growth catalysts ahead, including deepening penetration in primary care and population health through AI-powered risk stratification partnerships, momentum within mobile cardiac telemetry, expansion into adjacent markets such as obstructive sleep apnea, and continued international execution," said Quentin Blackford, iRhythm's President and CEO in a press release on Monday.
Analyst Take
After the update, iRhythm stock has fallen around 20% and William Blair attributes the weakness to the delay of the launch of Zio MCT into 2027, and the formal 2026 guidance that did not meet expectations of the Street.
Analyst Brandon Vazquez on Wednesday wrote, "Bottom line, we believe the stock weakness is overblown, and investors should take advantage of this opportunity to buy shares. Given the stock weakness, we are adding shares to the William Blair Analyst Conviction List, given the favorable setup for growth and rapid reset in valuation in the past three days."
With shares trading at 7 times 2026 sales, William Blair maintains the Outperform rating.
Management had already hinted at a delay for Zio MCT on the third-quarter call, but this week's conference made the message explicit. As a result, we believe buy-side models should remove any material MCT contribution in 2026.
Based on our discussions with management, William Blair does not see any FDA questions that iRhythm cannot address within a reasonable timeframe. The company's expectation for a 2027 launch also provides flexibility should the agency request additional changes.
While this eliminates a near-term upside catalyst, it does not alter William Blair's fundamental thesis.
Analyst Vazquez continues to view iRhythm as well-positioned to meet its broader 2026 expectations.
IRTC Price Action: iRhythm Holdings shares were up 1.23% at $155.44 at the time of publication on Wednesday, according to Benzinga Pro data.
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