iRhythm Technologies Reports 26% Revenue Growth to $186.7 Million in Q2 2025

iRhythm Technologies, Inc. reported significant financial performance in its latest quarterly filing, with net revenue reaching $186.7 million for the three months ended June 30, 2025, a 26% increase from $148.0 million in the same period last year. For the first half of 2025, revenue totaled $345.4 million, up 23% from $280.0 million in the prior year. The growth was primarily driven by increased demand for the company's iRhythm Services, particularly the Zio AT product, which saw a notable rise in customer adoption. Despite the revenue increase, the company reported a net loss of $14.2 million for the second quarter, an improvement from a loss of $20.1 million in the same quarter of 2024.

The company's cost of revenue also increased, rising 21% to $53.8 million in the second quarter, attributed to higher material costs and increased operational expenses associated with the growth in service volume. Operating expenses for the quarter totaled $151.6 million, a 20% increase compared to the previous year, driven by higher selling, general, and administrative costs, as well as research and development expenses. Notably, iRhythm recorded impairment charges of $2.5 million related to internal-use software that is no longer expected to be launched commercially.

In terms of operational metrics, iRhythm's customer base continues to expand, with the company having provided its services to over eight million patients and collected more than two billion hours of curated heartbeat data since its inception. The company relies heavily on third-party payors for revenue, with contracted payors accounting for 52% of total revenue in the latest quarter, consistent with the previous year. The Centers for Medicare and Medicaid Services (CMS) contributed 24% of revenue, also unchanged from the prior year.

Strategically, iRhythm has made significant investments in technology and partnerships, including a Technology License Agreement with BioIntelliSense, which allows for the development of next-generation products. The company has also been actively managing its debt, having issued $661.3 million in senior convertible notes in March 2024, which it used to repay existing debt and fund operational needs. Looking ahead, iRhythm anticipates continued growth in its service offerings and is focused on navigating macroeconomic challenges, including inflation and supply chain disruptions, while maintaining adequate liquidity to support its operations. The company believes its current cash and marketable securities will be sufficient to meet its liquidity needs for at least the next 12 months.