iRhythm Holdings reported a transformative year in 2025, marked by strong revenue growth, significant margin expansion, and the achievement of positive GAAP net income for the first time. The company's Zio platform continues to gain traction across various healthcare channels, driven by its value in proactive arrhythmia detection and efficient care delivery.
Achieved first quarter of positive GAAP net income in Company history.
positiveRecord quarterly revenue of $208.9 million, a 27.1% increase compared to Q4 2024.
positiveFull year revenue of $747.1 million, a 26.2% increase compared to full year 2024.
positiveGross margin improved to 70.9% in Q4 2025, a 90-basis point increase YoY.
positiveFull year gross margin improved to 70.6%, a 170-basis point increase YoY.
positiveAchieved first year of positive free cash flow in Company history ($34.5 million).
positiveAdjusted EBITDA improved significantly to $34.3 million in Q4 2025, a $15.0 million increase YoY.
positiveAdjusted EBITDA margin improved to 16.4% in Q4 2025, a 470-basis point increase YoY.
positiveFull year net loss of $44.6 million, although improved from a $113.3 million net loss in 2024.
attentionInventory levels increased to $21.6 million in 2025 from $14.0 million in 2024, a 54% increase YoY.
attentionOperating expenses increased to $584.7 million in 2025, an 11.8% increase compared to 2024, driven by headcount and professional fees.
attentionSignificant intellectual property litigation costs of $3.1 million in Q4 2025 and $10.1 million for the full year 2025.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
The fourth quarter capped a transformational year for iRhythm, delivering strong revenue growth, meaningfully expanded margins, and achieving positive quarterly GAAP net income for the first time.
Demand for Zio continues to broaden across cardiology, primary care, and innovative channel partnerships as health systems and payers increasingly recognize the value of proactive, data-driven arrhythmia detection.
As health systems and payers increasingly focus on reducing avoidable acute care utilization, the growing body of real-world evidence supporting Zio’s ability to enable earlier diagnosis and more efficient care delivery continues to differentiate our platform.
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