iRhythm Holdings Inc. Common Stock (IRTC)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking for durable earning power, a solid balance sheet, and a price that leaves a margin of safety. iRhythm sells ambulatory cardiac monitoring, principally Zio, and the top line is moving: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $224.2M with a net loss of $381,000 and diluted EPS of -$0.01. That follows fiscal Q1 2026, the quarter ended 2026-03-31, with revenue of $199.4M and a net loss of $13.9M, and fiscal Q2 2025, the quarter ended 2025-06-30, with revenue of $186.7M and a net loss of $14.2M. For fiscal year 2025, the period ended 2025-12-31, revenue was $747.1M and net loss was $44.6M, or -$1.39 per diluted share, versus fiscal year 2024, the period ended 2024-12-31, with revenue of $591.8M and a net loss of $113.3M, or -$3.63 per share. The direction is favorable, but the company has still not earned a full-year profit, and the computed Lynch category is none because it lost money in each of the last four years. At the 2026-10-13 close of $107.71, FairStock calculations show a P/B of 19.10, a negative P/E of -256.45, an EV/EBITDA of 151.96, and a TTM FCF yield of only 1.1% on $39.0M of free cash flow. Debt-to-equity is 3.91, Altman Z is 2.15, ROCE is 0.65%, and the FairStock Score is 35/100. Some progress is real, but the price already assumes a lot. I see no margin of safety unless profitability becomes durable and cash generation scales. The moat may come from reimbursement, data, and switching costs, but the numbers do not yet prove it. I would require consistent profits and better returns on capital before calling this a value investment.

In plain English: iRhythm makes wearable heart-monitoring devices and services, mainly the Zio system, that help doctors detect irregular heartbeats. Sales are growing and losses are getting smaller, but the company still is not consistently profitable and carries a lot of debt compared with its shareholder equity. At the recent price, the shares look expensive relative to current profits and accounting value, so the market is paying for a lot of future improvement.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer