New York, Jan 13, 2026, 14:56 (EST) — Regular session
Shares of iRhythm Technologies (IRTC) fell 7.5% to $156.24 in Tuesday afternoon trading, following the company’s release of its 2026 sales and profitability goals alongside a plan for corporate restructuring.
The timing is key. The update landed right in the middle of the J.P. Morgan Healthcare Conference in San Francisco, a week when medtech and biotech firms typically shape the year’s initial outlook.
iRhythm is working hard to reassure investors it can sustain growth as it pushes toward profitability. The company hasn’t published its full 2025 results yet, leaving the preliminary update and 2026 outlook to carry the weight for forecasts and investor confidence.
The company announced in a press release that it now anticipates full-year 2025 revenue will top the upper limit of its earlier $740 million forecast, driven by record revenue unit volume in Q4. Looking ahead to 2026, it projects revenue around $870 million to $880 million, marking 17% to 18% growth, with an adjusted EBITDA margin between 11.5% and 12.5%. For clarity, adjusted EBITDA margin is a non-GAAP metric showing operating profit before interest, taxes, depreciation, and amortization, adjusted for specific items.
Chief executive Quentin Blackford described 2025 as a “transformative year,” highlighting that the company turned free cash flow positive for the first time. He pointed to growth drivers like deeper primary care penetration, mobile cardiac telemetry, and plans to expand into related areas such as obstructive sleep apnea.
iRhythm boosted its 2025 net revenue forecast to “$740+ million,” up from the previous $735 million to $740 million range, according to its conference deck. The adjusted EBITDA margin guidance remains steady at 8.25% to 8.75%. The presentation also hints at a higher margin target for 2026, contingent on meeting its operating plan. SEC
A U.S. securities filing revealed that on Jan. 12, iRhythm set up a holding-company structure, creating iRhythm Holdings as the new parent and successor issuer. According to the filing, every share of iRhythm common stock automatically converted into one share of iRhythm Holdings common stock, with no need to exchange stock certificates.
Nasdaq announced the corporate action will show up as a company name change to iRhythm Holdings on Jan. 13. The ticker symbol will stay as IRTC, and the CUSIP remains the same.
Needham analyst David Saxon noted the early update points to fourth-quarter revenue around $202 million, just a bit higher than analyst estimates. “We believe the company can see another year of beat-and-raises,” Saxon wrote in a note referenced by Investors.com. Investors
Investors are keeping an eye on iRhythm’s mobile cardiac telemetry efforts, where it currently markets the Zio AT and is developing a next-gen Zio MCT device. The company noted the new device hasn’t yet received FDA clearance, having submitted a 510(k) application — the usual FDA route for medical devices — targeting up to 21 days of wear time.
That outlook isn’t without risks. A hold-up in FDA approval, softer volume growth, or tighter insurer reimbursements could derail iRhythm’s 2026 goals. The company also cautioned that actual outcomes may vary significantly from its projections.
