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IRTC, iRhythm Technologies

Medical Devices & Equipment asset-light UnprofitableDistress / turnaround

IRhythm is a leading digital healthcare company that creates trusted solutions that detect, predict, and prevent disease.

Since first receiving clearance from FDA for our technology in 2009, we have supported physician and patient use of this technology and provided ambulatory cardiac monitoring ("ACM") services from our Medicare-enrolled independent diagnostic testing facilities ("IDTFs") with our qualified technicians.

We have provided ambulatory cardiac monitoring services, including long-term continuous monitoring ("LTCM") services ("LTCM Services"), short-term continuous monitoring, and mobile cardiac telemetry ("MCT") monitoring services ("MCT Services" and collectively, the "iRhythm Services"), using the iRhythm ACM System.

Latest annual: FY2025 10-K

IRTC · iRhythm Technologies

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$747M

+26.2% YoY · 23% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $788M 5-yr avg $513M

Gross margin 71% 5-yr avg 68%

Operating margin −5.2% 5-yr avg −22.3%

ROIC −6% 5-yr avg −35%

Owner-earnings margin 5% 5-yr avg −6%

Free cash flow margin 2% 5-yr avg −10%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is led by Commercial Payors (52%) and Centers for Medicare and Medicaid (24%), with 2 more lines behind.
Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Operating margin has run around −26% through the cycle on a 69% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Stock-based pay runs about 12% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on the installed base and what follows it. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −29%, above 15% in 0 of 10 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 4 lines, the largest Commercial Payors at 52%.

Revenue by product line, FY2025

Commercial Payors52%$392M
Centers for Medicare and Medicaid24%$179M
Healthcare institutions17%$126M
Non-contracted third-party payors7%$50M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$64M	$99M	$147M	$215M	$265M	$323M	$411M	$493M	$592M	$747M	$788M	RevenueRevenue
67%	72%	74%	76%	73%	66%	69%	67%	69%	71%	71%	Gross marginGross mgn
81%	86%	91%	84%	74%	85%	78%	78%	71%	66%	65%	SG&A / revenueSG&A/rev
11%	13%	14%	17%	16%	12%	11%	12%	12%	11%	11%	R&D / revenueR&D/rev
($16M)	($28M)	($46M)	($55M)	($44M)	($100M)	($114M)	($125M)	($116M)	($57M)	($41M)	Operating incomeOp. inc.
−24.3%	−27.8%	−31.0%	−25.5%	−16.5%	−31.0%	−27.7%	−25.4%	−19.5%	−7.7%	−5.2%	Operating marginOp. mgn
($21M)	($30M)	($50M)	($55M)	($44M)	($101M)	($116M)	($123M)	($113M)	($45M)	($28M)	Net incomeNet inc.
											Cash flow & returns
($17M)	($15M)	($29M)	($22M)	($14M)	($38M)	($23M)	($50M)	$3M	$81M	$63M	Operating cash flowOp. cash
$568K	$2M	$2M	$3M	$7M	$10M	$13M	$16M	$21M	$21M	$21M	DepreciationDeprec.
$2M	$3M	$3M	$3M	($18M)	($719K)	$22M	($20M)	$20M	$16M	($17M)	Working capital & otherWC & other
$3M	$4M	$5M	$20M	$14M	$28M	$30M	$40M	$34M	$46M	$44M	CapexCapex
4.3%	3.6%	3.5%	9.5%	5.1%	8.7%	7.3%	8.2%	5.7%	6.2%	5.6%	Capex / revenueCapex/rev
($17M)	($17M)	($31M)	($25M)	($21M)	($48M)	($36M)	($66M)	($17M)	$60M	$42M	Owner earningsOwner earn.
−26.9%	−16.7%	−21.3%	−11.8%	−7.8%	−14.7%	−8.9%	−13.5%	−2.9%	8.1%	5.3%	Owner earnings marginOE mgn
($19M)	($18M)	($34M)	($42M)	($27M)	($66M)	($53M)	($91M)	($31M)	$35M	$19M	Free cash flowFCF
−30.3%	−18.6%	−23.3%	−19.7%	−10.3%	−20.4%	−12.9%	−18.4%	−5.2%	4.6%	2.4%	Free cash flow marginFCF mgn
—	—	—	—	—	—	$0	$0	$25M	$0	—	BuybacksBuybacks
-17%	-21%	-54%	-29%	-12%	-46%	-46%	-47%	-29%	-8%	-6%	ROICROIC
-22%	-37%	-97%	-40%	-13%	-36%	-48%	-59%	-125%	-29%	-17%	Return on equityROE
−22%	−37%	−97%	−40%	−13%	−36%	−48%	−59%	−125%	−29%	−17%	Retained to equityRetained/eq
											Balance sheet
$117M	$105M	$20M	$20M	$89M	$239M	$213M	$134M	$536M	$584M	$553M	Cash & investmentsCash+inv
$9M	$13M	$20M	$24M	$30M	$46M	$50M	$61M	$80M	$76M	$81M	ReceivablesReceiv.
$1M	$2M	$2M	$4M	$5M	$10M	$15M	$14M	$14M	$22M	$24M	InventoryInvent.
$2M	$2M	$2M	$8M	$4M	$11M	$8M	$6M	$7M	$2M	$9M	Accounts payablePayables
$9M	$12M	$20M	$20M	$31M	$46M	$58M	$70M	$87M	$95M	$96M	Operating working capitalOper. WC
$119M	$120M	$104M	$173M	$378M	$306M	$289M	$231M	$646M	$703M	$681M	Current assetsCur. assets
$13M	$21M	$30M	$52M	$66M	$88M	$89M	$107M	$111M	$152M	$132M	Current liabilitiesCur. liab.
9.0×	5.7×	3.4×	3.3×	5.8×	3.5×	3.2×	2.1×	5.8×	4.6×	5.2×	Current ratioCurr. ratio
$862K	$862K	$862K	$862K	$862K	$862K	$862K	$862K	$862K	$862K	$862K	GoodwillGoodwill
$138M	$133M	$118M	$306M	$512M	$463M	$448M	$433M	$931M	$1.0B	$1.0B	Total assetsAssets
$32M	$34M	$35M	$35M	$33M	$21M	$35M	$35M	$646M	$650M	$650M	Total debtDebt
($85M)	($71M)	$15M	$14M	($56M)	($218M)	($178M)	($99M)	$111M	$66M	$98M	Net debt / (cash)Net debt
-4.8×	-8.1×	-14.7×	-33.3×	-28.8×	-85.5×	-27.5×	-34.3×	-9.0×	-4.4×	-3.1×	Interest coverageInt. cov.
$93M	$79M	$52M	$135M	$342M	$280M	$240M	$210M	$91M	$153M	$161M	Shareholders’ equityEquity
2.9%	9.8%	11.1%	12.2%	15.7%	16.9%	14.1%	15.7%	12.8%	11.8%	11.0%	Stock comp / revenueSBC/rev
											Per share
5.3M	22.6M	23.9M	25.3M	27.8M	29.3M	29.9M	30.5M	31.2M	32.0M	32.5M	Shares out (diluted)Shares
$12.12	$4.38	$6.17	$8.49	$9.55	$11.01	$13.74	$16.14	$18.97	$23.35	$24.24	Revenue / shareRev/sh
$-3.95	$-1.31	$-2.11	$-2.16	$-1.58	$-3.46	$-3.88	$-4.04	$-3.63	$-1.39	$-0.85	EPS (diluted)EPS
$-3.26	$-0.73	$-1.31	$-1.00	$-0.74	$-1.62	$-1.22	$-2.18	$-0.55	$1.88	$1.29	Owner earnings / shareOE/sh
$-3.67	$-0.82	$-1.43	$-1.67	$-0.98	$-2.24	$-1.77	$-2.97	$-0.98	$1.08	$0.58	Free cash flow / shareFCF/sh
$0.52	$0.16	$0.22	$0.81	$0.49	$0.96	$1.00	$1.32	$1.09	$1.45	$1.35	Cap. spending / shareCapex/sh
$17.60	$3.51	$2.18	$5.36	$12.31	$9.53	$8.02	$6.88	$2.91	$4.77	$4.96	Book value / shareBVPS

The diluted share count moved ×4.28 into 2017 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+7.6%/yr	+19.6%/yr
Capital spending / share	+12.0%/yr	+24.3%/yr
Book value / share	−13.5%/yr	−17.3%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Revenue+26.2%
“Revenue, net Revenue increased by $155.3 million, or 26%, to $747.1 million during the year ended December 31, 2025, as compared to $591.8 million during the year ended December 31, 2024. The increase in revenue was primarily attributable to increases in the volume of iRhythm Services resulting from increased demand.”
✓ figure matches the filed record

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

32Mpeak FY2025

ROIC

−8%low FY2018

Gross margin

71%low FY2021

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$60Mowner earningsvs.($45M)net incomelow FY2023

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $60M of owner earnings, the operating cash left after the $21M it takes just to hold its position. It put $26M more into growth; free cash flow, after that spending, was $35M.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($45M)	($113M)	($123M)	($116M)	($101M)
Depreciation & amortizationnon-cash charge added back	+$21M	+$21M	+$16M	+$13M	+$10M
Stock-based compensationreal costnon-cash, but a real cost	+$88M	+$76M	+$77M	+$58M	+$55M
Working capital & othertiming of cash in and out, other non-cash items	+$16M	+$20M	−$20M	+$22M	−$719K
Cash from operations	$81M	$3M	($50M)	($23M)	($38M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$21M	−$21M	−$16M	−$13M	−$10M
Owner earnings	$60M	($17M)	($66M)	($36M)	($48M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$26M	−$13M	−$24M	−$16M	−$18M
Free cash flow	$35M	($31M)	($91M)	($53M)	($66M)
Owner-earnings marginowner earnings ÷ revenue	8%	-3%	-13%	-9%	-15%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $21M, roughly its depreciation, the rate its assets wear out). The other $26M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $88M), owner earnings is nearer ($28M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -4.4×

Does not cover its interest

Operating income ($57M) ÷ interest expense $13M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? $66M

Net debt against an operating loss

Cash $236M + ST investments $348M − debt $650M

What this means
Netting $584M of cash and short-term investments against $650M of debt leaves $66M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. It also holds $3M in longer-dated marketable securities; counting those, it sits at $63M of net debt. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 69d

Long (60+ days)

DSO 37 + DIO 36 − DPO 4 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital -29%

Below average through the cycle

10-yr median, range -54%–-8%; -8% latest = NOPAT ($45M) ÷ invested capital $566M

Industry peers: median 6%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran -8% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 8%

Positive this year, negative across the cycle

latest $60M = operating cash $81M − maintenance capex $21M (positive this year), after an earlier loss stretch (10-yr median -13%)

Industry peers: median 3%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 8% of revenue this year, a -13% median across 10 years. It chose to put $26M more into growth, so free cash flow this year was $35M — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $88M of SBC) leaves ($28M).
Are earnings backed by cash? $81M

Loss, but cash-generative

Net income ($45M) · cash from operations $81M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 0%

Reinvests most of it

Dividends + buybacks $0 ÷ Owner Earnings $60M

What this means
Of $60M Owner Earnings, $0 (0%) went back to shareholders, $0 dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 2.24×

Expanding

Capex $46M ÷ depreciation $21M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $747M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 4.63×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Near

Debt ≤ working capital · $650M vs $551M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 10 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-2.85/share (latest year $-1.36), the averaged base the calculator's gate runs on, and book value is $4.65/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 0 of 10

What this means
Lost money in 10 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −28% → −18% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −28% early to −18% lately, median −26% — pricing power intact or improving.
Reinvestment, incremental ROIC −19%

What this means
Reinvested capital came back at a negative incremental return over this window — the invested base grew while operating profit did not. The filings show where it went.
Worst year 2018 · −31.0% op. margin

What this means
Operations went underwater in 2018, understand why before trusting the good years.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“Issues relating to the use of new and evolving technologies such as AI that we integrate into our products, services and internal operations may cause us to experience brand or reputational harm, competitive harm, legal liability, new or enhanced governmental or regulatory scrutiny, and to incur additional costs to res…”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$681M

Cash & short-term investments$550M
Receivables$81M
Inventory$24M
Other current assets$26M

Current liabilities$132M

Accounts payable$9M
Other current liabilities$123M

Current ratio5.17×all current assets ÷ what's due · Graham looked for 2×

Quick ratio4.98×stricter: inventory excluded

Cash ratio4.17×strictest: cash alone against what's due

Working capital$549Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+25.7%the freshest read on whether the business is still growing

Current ratio, recent quarters6.9× → 5.2×

Deeper floors

Tangible book value$160Mequity stripped of goodwill & intangibles

Net current asset value($165M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$114M$79M of it operating leases

Deferred revenue$4Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid.

Insider ownership1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$88M
The slice of the business handed to employees in shares this year, 12% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why iRhythm Technologies is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 4 tests turned up something to look into; the other 3 came back clean.

Look hereDid debt outgrow the business?$32M → $650M
Debt rose from $32M to $650M while owner earnings went from about ($22M) to ($8M): the borrowing grew and the earnings that would carry it are not there now. Debt raised for buybacks or deals rather than growth is the kind that bites in a downturn.

And these came back clean

Is it less profitable than it was?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Stock compensation, Contingencies as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Medical Devices & Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
NOCNorthrop Grumman Corporation	$42.0B	71%	11.4%	16%	8%
ROPRoper Technologies Inc.	$7.9B	69%	28.0%	6%	26%
IRTCiRhythm Technologies	$747M	70%	-25.5%	-29%	-13%
TCMDTactile Systems Technology Inc.	$330M	71%	4.3%	9%	3%
HTFLHeartflow Inc.	$176M	75%	-48.7%	-20%	-58%
NNNextNav Inc.	$5M	40%	-1657.1%	-157%	-1066%
Group median	—	70%	-10.6%	-7%	-5%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what iRhythm Technologies has delivered.

Today’s price $

Base Normalize · through-cycle (($29M)) Net of stock comp (−$86M) Steady-state · maintenance capex ($42M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $19M on 33M shares outstanding, per the 10-Q cover, as of 2026-04-23; net debt $98M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($44M) runs well above depreciation ($21M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $42M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh IRTC against another business →

Cite: Owner Scorecard, "iRhythm Technologies (IRTC), the owner's record," https://ownerscorecard.com/c/IRTC, data as of 2026-07-09.

Manual order: ← IRT its page in the Manual IRWD →

Industry order: ← IRMD the Medical Devices & Equipment chapter ISRG →