New York, January 12, 2026, 16:13 EST — After-hours
- iRhythm shares dropped despite the heart-monitor maker forecasting another year of robust growth.
- A preliminary update unveiled 2026 sales and profit targets before earnings season kicked off.
- Traders are focusing on more detailed information about costs, margins, and the company’s upcoming corporate name change.
Shares of iRhythm Technologies Inc (IRTC.O) fell 5.6% to $169.30 in late Monday trading following a preliminary business update at the J.P. Morgan Healthcare Conference. The stock fluctuated between $157.34 and $179.82, with roughly 1.35 million shares changing hands.
Timing is crucial. JPM week typically pushes companies to reveal their cards sooner, and the market has little patience for results that come off as just “fine” after a solid rally.
iRhythm now expects 2025 revenue to top the high end of its previous guidance of $740 million, driven by record unit volumes in Q4. The company forecasts 2026 revenue around $870 million to $880 million, marking a 17% to 18% increase year over year, with an adjusted EBITDA margin between 11.5% and 12.5%. (Adjusted EBITDA excludes certain costs and represents earnings before interest, taxes, depreciation, and amortization.) CEO Quentin Blackford highlighted that iRhythm generated “free cash flow positivity for the first time in company history,” referring to cash from operations after capital expenditures. (GlobeNewswire)
Needham analyst David Saxon noted the full-year update suggests fourth-quarter revenue around $202 million, edging past the roughly $200 million consensus. “We believe the company can see another year of beat-and-raises,” Saxon wrote. (Investors)
Monday’s trading highlighted just how narrow expectations are. Investors demand clear evidence that sales growth will continue boosting cash flow without a sharp rise in operating expenses.
iRhythm offers the Zio patch, a wearable heart monitor designed to identify irregular rhythms like atrial fibrillation. The market is growing crowded as major players like Medtronic and Abbott enter rhythm monitoring, going head-to-head with consumer wearable devices.
A filing revealed that iRhythm submitted a Form 8-K12B on Monday. This form serves as a notice indicating that a successor issuer’s securities are considered registered following specific corporate reorganizations. (SEC)
However, the company’s update remains preliminary, with investors still waiting on the full fourth-quarter income statement and cash-flow details. Any hiccup in reimbursement, a slowdown in order growth, or rising operating costs could make hitting margin targets more challenging.
The next catalyst lies in the details: final Q4 figures, cost structures, and if the 2026 profit targets stay intact after the company moves through conference season.
Nasdaq also announced that iRhythm Holdings Inc will undergo a corporate name change with the creation of a holding company, effective Tuesday, Jan. 13. The ticker symbol will remain IRTC. (NASDAQ Trader)
