iRhythm Technologies (IRTC) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $224.2M, up 20.1% year-over-year, driven by robust demand, commercial adoption, and volume growth across all channels.

• Net loss narrowed to $0.4M from $14.2M in Q2 2025; adjusted net income was $19.3M, or $0.58 per diluted share, versus an adjusted net loss of $10.2M a year ago.

• Adjusted EBITDA rose to $43.3M (19.3% margin), up from $15.7M (8.4%) in Q2 2025.

• Announced agreement to acquire VitalConnect for $287.5M, expanding cardiac monitoring capabilities and market reach.

• Achieved FDA clearance for a next-generation AI algorithm, expected to reduce review time by 50% and save $100M over five years.

Financial highlights

• Q2 2026 revenue: $224.2M (+20.1% YoY); gross profit: $163.2M (+22.8% YoY); gross margin: 72.8% (up 160 bps YoY).

• Adjusted EBITDA: $43.3M (19.3% margin), up over 1,000 bps year-over-year.

• Adjusted net income: $19.3M ($0.58/share); GAAP net loss: $0.4M ($0.01/share).

• Free cash flow: $37.5M, record for the company; unrestricted cash and equivalents at $591.3M as of June 30, 2026.

• Operating expenses: $145M (flat YoY); accounts receivable, net: $84.3M.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $880M–$890M (18–19% growth YoY); adjusted EBITDA margin guidance increased to 13–14%.

• Q3 2026 revenue expected at $221M–$223M; Q3 adjusted EBITDA margin guidance at 12–13%.

• Combined company targeting 15% adjusted EBITDA margin in 2027; VitalConnect expected to contribute to revenue growth from 2027 onward.

• Guidance reflects expectations for continued volume-led growth, margin expansion, and disciplined investment.

• Updated 2026 net revenue guidance: $875–$885M (previously $880–$890M); adjusted EBITDA margin guidance revised to 12–13% (previously 13–14%).