Revenue

FY 2025

$690M to $700M " "

$720M to $730M " "

raised

Gross Margin

FY 2025

Flat for FY 2025 " "

Slightly exceed full‐year 2024 gross margin; tariff impact ≈ –20 to –40 bps "

raised

Adjusted EBITDA Margin

FY 2025

7.5% to 8.5% "

8% to 8.5% "

raised

Free Cash Flow

FY 2025

Slightly negative "

Slightly negative "

no change

Incremental Remediation Expenses

FY 2025

Approximately $15M "

Approximately $15M "

no change

Tariff Impact

FY 2025

–50 to –75 bps "

–20 to –40 bps "

lowered

CMS Reimbursement Rates for 2026

FY 2025

no prior guidance

Flat to slightly up for Zio Monitor; up 2% for Zio AT "

no prior guidance

Revenue

Q3 2025

no prior guidance

Slightly down sequentially; decline ≈1% " "

no prior guidance

Gross Margin

Q3 2025

no prior guidance

Anticipated to decline slightly from Q2 2025 "

no prior guidance

Adjusted EBITDA Margin

Q3 2025

no prior guidance

8% to 9.5% "

no prior guidance

Revenue Growth & Guidance

Earlier calls (Q1 2025, Q4 2024, Q3 2024) emphasized strong revenue performance with record volumes, consecutive 20%+ growth and raised full‐year guidance. " " " " " " "

Q2 2025 reported record revenue ($186.7M, >26% YoY), raised guidance for 2025 ($720–730M) and noted seasonality with an expected slight Q3 dip. " " " "

The narrative remains consistently positive with robust growth and increased guidance, while seasonality is now explicitly integrated into near‐term planning.

Innovative Channel Partners

In Q1 2025 and Q4 2024, innovative channel partners were described as emerging contributors with early-stage, low single-digit volume impact and cautious outlook; Q4 2024 noted a significant one-time boost with uncertainty about sustainability. " " " " " "

Q2 2025 highlighted an increased and more meaningful contribution from innovative partners with expansions (e.g. Signify Health, CenterWell) and integration of AI-driven initiatives; their contribution is now factored as a meaningful, though measured, part of growth. " " " "

The role of innovative channels is maturing from an early-stage, experimental phase to a more established, repeating source of growth while remaining cautiously integrated into overall guidance.

Epic Integration Benefits

Across Q1, Q3 and Q4 calls, Epic Aura integration was praised for its ease of use, improved workflow efficiency and early success in increasing prescribing patterns, with early adopters seeing 20–40% uplifts. " " " " " "

Q2 2025 continues to emphasize strong operational benefits from Epic integrations, noting significant customer interest, reduced implementation times (over 50% savings) and increased prescribing patterns, which further drive volume growth. " "

Consistent positive sentiment with ongoing operational efficiencies; the integration’s benefits are deepening and becoming a key element of iRhythm’s growth strategy.

Primary Care Expansion

Q1, Q3 and Q4 earnings calls stressed the strategic shift upstream to primary care, citing major growth in prescription volumes (from 20% to over 33%) and an expanded market opportunity (e.g. 27 million potential patients). " " " "

Q2 2025 underscored primary care as a major growth opportunity, highlighting accelerated volume growth, deeper engagements with large health systems and enhanced EHR integration strategies to move the prescribing process earlier in the patient journey. " " " "

A consistent theme with steadily increasing impact; primary care expansion is recognized as a critical lever for future market growth and improved patient outcomes.

Zio Product Line Developments

In previous periods (Q1, Q3, Q4), the Zio product line was highlighted for strong Zio AT momentum, favorable patient wear times, competitive differentiation over legacy products, and evolving timelines for the FDA submission of the new Zio MCT product. " " " " " "

Q2 2025 maintained robust performance for Zio AT with record quarterly results, while announcing plans to file for FDA approval for the next-generation Zio MCT, aiming to address competitive gaps and further capture market share. " " " "

The product line remains at the core of growth with sustained momentum; continued innovation in Zio AT and the anticipated Zio MCT launch underline ongoing competitiveness and future revenue potential.

Regulatory Uncertainty and FDA Oversight

Previous calls (Q1, Q3, Q4) detailed significant remediation efforts in response to FDA warning letters and 483 observations, with a strong focus on rebuilding the quality management system and maintaining transparent, ongoing communications with the FDA. " " " " " " "

Q2 2025 emphasized comprehensive progress on FDA remediation—including completed commitments, a planned third-party audit and improved collaborative communication with the FDA—while noting that new product submissions (like Zio MCT) remain on track. " "

Ongoing regulatory challenges persist but are being managed more effectively; continuous improvements and a proactive approach are maturing the company’s quality systems and reducing regulatory uncertainty.

International Expansion

Earlier periods (Q1, Q3, Q4) focused on expansion into Japan and Europe, with detailed discussions on market opportunities, regulatory approvals, and challenges such as Japan reimbursement issues and NHS reimbursement dynamics. " " " " " "

Q2 2025 highlighted continued strong demand in the UK and expanded launches in several European markets, while maintaining a broad emphasis on global growth; specific reimbursement challenges in Japan were less emphasized in Q2. " "

The international strategy remains robust and central to growth, though the emphasis on risks (e.g. Japan reimbursement) appears to be evolving as new market opportunities are prioritized.

Tariffs and Pricing Pressure

In Q1 and Q4 discussions, tariffs were forecast to impose a 50–75 basis point negative margin hit, with additional low single-digit pricing headwinds (including an 8% Medicare price decline for Zio AT) incorporated into guidance. " " " "

Q2 2025 indicates a more moderate tariff impact (20–40 basis points) and flat pricing versus the prior year; anticipated supply chain strategies and adjustments are helping to mitigate previous concerns. " "

Persistent concerns remain but the estimated impact on margins has lessened, indicating improved supply chain management and pricing strategies compared to earlier periods.

Seasonality and Revenue Fluctuations

Earlier calls (Q1 and Q4) noted seasonal patterns—Q1 expecting historical averages and Q4 highlighting that seasonality affects revenue and operating expenses—with some variability year over year, though Q3 did not emphasize this topic explicitly. " " "

Q2 2025 explicitly mentioned the expected seasonal dip in Q3 (approximately 1% lower than Q2) due to normal summer vacation patterns, confirming seasonality as an ongoing factor in revenue forecasts. " "

Seasonality has consistently been a part of revenue guidance; recent discussions in Q2 provide clearer quantification of expected fluctuations, integrating these patterns into near-term forecasts.

Extended Sales Cycles/EHR Integration Delays

Q3 2024 mentioned somewhat longer sales cycles tied to full EHR integrations in large accounts, while Q1 and Q4 focused on positive integration outcomes and operational efficiencies. " " "

Q2 2025 did not note any EHR integration delays; instead, the focus was on strong progress with Epic Aura integrations and smooth implementation across over 40 health systems. " "

Previously identified issues with extended cycles and delays have largely diminished as integrations become more streamlined, indicating improved execution and more rapid onboarding of new accounts.

Temporary Reliance on Innovative Channel Benefits

Earlier periods (Q1 and Q4) described innovative channels as contributing modest, early-stage volume with caution regarding their sustainability, with isolated boosts noted in Q4 that were seen as temporary. " " " " " "

Q2 2025 shows that innovative channel benefits are now contributing meaningfully to growth—though they account for only about one-fourth of the full-year guidance increase—indicating a move toward greater sustainability while still being monitored cautiously. " " "

The reliance on innovative channels is evolving from a temporary, experimental boost toward a more integrated, consistent contributor, though with continued cautious validation from management.

Strategic Partnerships and Emerging Technologies

Across Q1, Q3, and Q4 calls, strategic initiatives such as the Epic Aura partnership, the acquisition/in-licensing of BioIntelliSense technology for multi-sensing capabilities, and AI-driven patient identification were discussed, with early pilots and value-based care initiatives highlighting potential long-term benefits. " " " " " " "

Q2 2025 introduced a new partnership with Lusim Health, emphasizing AI-driven early detection initiatives, while also reinforcing the ongoing success of Epic Aura integrations; these initiatives are designed to enhance diagnostic precision and expand the product platform further. " " " "

Strategic partnerships remain a vital aspect of iRhythm’s innovation agenda, with new initiatives building on earlier technologies; the focus is increasingly on scalable, AI-driven solutions and multi-sensing capabilities to secure competitive advantage.

Competitive Product Advancements and Market Share Capture

Previous periods (Q1, Q3, Q4) underscored strong momentum in Zio AT performance, favorable patient adoption metrics, and competitive differentiation (aided by disruptions in competitor offerings), with clear discussions on gaining modest market share in MCT while maintaining a dominant position in long-term monitoring. " " " " "

Q2 2025 reaffirmed a market share exceeding 70% in long-term continuous monitoring and highlighted sustained competitive momentum with Zio AT, alongside preparations for a Zio MCT FDA filing designed to close competitive gaps and drive further share capture. " " " "

The competitive positioning remains robust with continuous product improvements and strategic market share gains; iRhythm is leveraging innovation to maintain its leadership while proactively addressing competitive challenges.