0001388658FALSE00013886582025-02-202025-02-20

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 8-K 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 20, 2025
iRhythm Technologies, Inc. 
(Exact name of Registrant as specified in its charter) 
Delaware001-3791820-8149544
(State or other jurisdiction of
incorporation or organization)		(Commission
File Number)		(I.R.S. Employer
Identification Number)
699 8th Street, Suite 600 
San Francisco, California 94103 
(Address of principal executive office) (Zip Code)
(415) 632-5700 
(Registrant’s telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, Par Value $0.001 Per ShareIRTCThe NASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐ 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition.

On February 20, 2025, iRhythm Technologies, Inc. issued a press release regarding its financial results for the fourth quarter and full year ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
The information in this Item 2.02, including Exhibit 99.1 to this Form 8-K, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The information contained in this Item 2.02 and in the accompanying Exhibit 99.1 shall not be incorporated by reference into any other filing under the Exchange Act or under the Securities Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits
(d)Exhibits.
 
Exhibit No. Description
99.1 
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


IRHYTHM TECHNOLOGIES, INC.
Date: February 20, 2025
By:/s/ Daniel G. Wilson
Daniel Wilson
Chief Financial Officer

Exhibit 99.1



iRhythm Technologies Announces Fourth Quarter and
Full Year 2024 Financial Results

SAN FRANCISCO, February 20, 2025 (GLOBE NEWSWIRE) -- iRhythm Technologies, Inc. (NASDAQ: IRTC), a leading digital health care company focused on creating trusted solutions that detect, predict, and prevent disease, today reported financial results for the three months and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights
•Revenue of $164.3 million, a 24.0% increase compared to fourth quarter 2023
•Gross margin of 70.0%, a 410-basis point increase compared to fourth quarter 2023
•Net loss of $1.3 million, a $37.4 million improvement compared to fourth quarter 2023
•Adjusted EBITDA of $19.3 million, a $16.9 million improvement compared to fourth quarter 2023
•Cash, cash equivalents and marketable securities of $535.6 million at December 31, 2024, a $13.6 million increase from September 30, 2024

Full Year 2024 Financial Highlights
•Revenue of $591.8 million, a 20.1% increase compared to full year 2023
•Gross margin of 68.9%, a 160-basis point increase compared to full year 2023
•Net loss of $113.3 million, a $10.1 million improvement compared to full year 2023
•Adjusted EBITDA of $(7.7) million, a decline of $2.9 million compared to full year 2023

Recent Operational Highlights
•Fourth quarter 2024 capped a year of progressively accelerating year-over-year volume growth every quarter, with full year 2024 revenue driven by sustained volume demand across all customer channels
•Analysis of real-world claims data conducted by Eversana and presented at AHA in November 2024 suggested that early detection with arrhythmia monitoring devices could have the combined potential to help prevent serious outcomes like stroke and heart failure while also significantly reducing acute care utilization and related costs in patients with type 2 diabetes and chronic obstructive pulmonary disease
•Upcoming data presentations at the American College of Cardiology's Annual Scientific Session & Expo in Chicago, IL, from March 29 – 31, 2025

"“Our fourth quarter capped a transformative year for iRhythm, marked by 24% revenue growth and significant operational achievements," said Quentin Blackford, President and CEO of iRhythm. "We achieved record new account onboarding, with balanced volume contributions across multiple channels, particularly in risk-bearing, primary care settings where Zio's value as a population health management tool has resonated strongly. Throughout 2024, we enhanced our quality systems, improved customer experience through EHR integration and innovative product launches, expanded into multiple international markets, and secured strategic technology licensing agreements to advance connected patient care. Our commitment to operational discipline has yielded positive cash flow for three consecutive quarters, while our extensive scientific publications have further validated our approach. Looking ahead, we remain focused on delivering a best-in-class quality system while creating shareholder value through our strategies of expanding our core U.S. market presence, accelerating international growth, advancing product innovation, and further advancing operational efficiencies. As we scale the Zio platform globally, we're uniquely positioned to shape the future of healthcare while driving value for patients, physicians, health systems, and shareholders."

Fourth Quarter 2024 Financial Results
Revenue for the three months ended December 31, 2024, increased 24.0% to $164.3 million, from $132.5 million during the same period in 2023. The increase was primarily attributable to increases in the volume of Zio Services resulting from increased demand, partially offset by a slight decline in average selling price.

Gross profit for the fourth quarter of 2024 was $115.1 million, up from $87.4 million during the same period in 2023, while gross margins were 70.0% as compared to 66.0% during the same period in 2023. The improvement in gross margin was primarily driven by operational efficiencies leading to lower costs per unit to serve a higher volume of patients compared to the prior year.

Operating expenses for the fourth quarter of 2024 were $119.2 million, compared to $126.6 million for the same period in 2023 and $151.8 million in the third quarter of 2024. The fourth quarter of 2023 included $11.1 million of higher operating expenses due to an impairment charge for our right-of-use capitalized leased asset value of our San Francisco office. The

Exhibit 99.1



decrease in operating expenses compared to the third quarter 2024 was due primarily to a $32.1 million charge in the third quarter of 2024 for in-process research and development charges related to technology license consideration.

Net loss for the fourth quarter of 2024 was $1.3 million, or a diluted loss of $0.04 per share, compared with net loss of $38.7 million, or a diluted loss of $1.26 per share, for the same period in 2023.

Full Year 2024 Financial Results
Revenue for the year ended December 31, 2024, increased 20.1% to $591.8 million, from $492.7 million in 2023. The increase in revenue was primarily due to increased volume of Zio services provided as a result of increased demand.

Gross profit for the year was $407.5 million, up from $331.8 million in 2023, while gross margin was 68.9%, an improvement from 67.3% in 2023. The improvement in gross margin was primarily driven by operational efficiencies leading to lower costs per unit to serve a higher volume of patients compared to the prior year.

Operating expenses for the year were $523.0 million, an increase of 14.5% compared to 2023. The increase was mainly due to acquired IPR&D expenses related to license consideration, along with an increase in headcount-related costs and professional fees to support the growth in our business.

Net loss for 2024 was $113.3 million, or a diluted loss of $3.63 per share, compared with net loss of $123.4 million, or a diluted loss of $4.04 per share in 2023.

Cash, cash equivalents and marketable securities were $535.6 million as of December 31, 2024.

2025 Guidance
iRhythm projects revenue for the full year 2025 between $675 million to $685 million. Adjusted EBITDA margin for the full year 2025 is expected to range from approximately 7.0% to 8.0% of revenues.

Webcast and Conference Call Information
iRhythm’s management team will host a conference call today beginning at 1:30 p.m. PT/4:30 p.m. ET. Investors interested in listening to the conference call may do so by accessing the live and archived webcast of the event, which will be available on the investors section of the Company’s website at investors.irhythmtech.com.

About iRhythm Technologies, Inc.
iRhythm is a leading digital health care company that creates trusted solutions that detect, predict, and prevent disease. Combining wearable biosensors and cloud-based data analytics with powerful proprietary algorithms, iRhythm distills data from millions of heartbeats into clinically actionable information. Through a relentless focus on patient care, iRhythm’s vision is to deliver better data, better insights, and better health for all.

Use of Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP) in this press release, including adjusted EBITDA, adjusted net loss, adjusted net loss per share and adjusted operating expenses. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. See the schedules attached to this press release for additional information and reconciliations of such non-GAAP financial measures. We have not reconciled our adjusted operating expenses and adjusted EBITDA estimates for full year 2025 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, a reconciliation of adjusted operating expenses and adjusted EBITDA estimates is not available without unreasonable effort.

Adjusted EBITDA excludes non-cash operating charges for stock-based compensation expense, changes in fair value of strategic investments, impairment and restructuring charges, business transformation costs, and loss on extinguishment of debt. Business transformation costs include costs associated with professional services, employee termination and relocation, third-party merger and acquisition, integration, and other costs to augment and restructure the organization, inclusive of both outsourced and offshore resources.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They

Exhibit 99.1



use words such as ‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future actions or operating or financial performance. In particular these statements include statements regarding financial guidance, market opportunity, ability to penetrate the market, international market expansion, anticipated productivity and quality improvements, and expectations for growth. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in our filings made with the Securities and Exchange Commission, including those on the Form 10-K expected to be filed on or about February 20, 2025. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements.

Investor Contact
Stephanie Zhadkevich
investors@irhythmtech.com

Media Contact
Kassandra Perry
irhythm@highwirepr.com

Exhibit 99.1



IRHYTHM TECHNOLOGIES, INC.
Consolidated Balance Sheets
(In thousands, except par value)

December 31,
20242023
Assets
Current assets:
Cash and cash equivalents$419,597 $36,173 
Marketable securities115,956 97,591 
Accounts receivable, net79,941 61,484 
Inventory14,039 13,973 
Prepaid expenses and other current assets16,286 21,591 
Total current assets645,819 230,812 
Property and equipment, net125,092 104,114 
Operating lease right-of-use assets47,564 49,317 
Restricted cash
8,358 — 
Goodwill862 862 
Long-term strategic investments
61,902 3,000 
Other assets41,852 45,039 
Total assets$931,449 $433,144 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$7,221 $5,543 
Accrued liabilities84,900 83,362 
Deferred revenue2,932 3,306 
Operating lease liabilities, current portion15,867 15,159 
Total current liabilities110,920 107,370 
Long-term senior convertible notes
646,443 — 
Debt, noncurrent portion— 34,950 
Other noncurrent liabilities8,579 1,012 
Operating lease liabilities, noncurrent portion74,599 79,715 
Total liabilities840,541 223,047 
Stockholders’ equity:
Preferred stock, $0.001 par value – 5,000 shares authorized; none issued and outstanding at December 31, 2024 and 2023
— — 
Common stock, $0.001 par value – 100,000 shares authorized; 31,621 shares issued and 31,392 shares outstanding at December 31, 2024, respectively; and 30,954 shares issued and outstanding at December 31, 2023
31 31 
Additional paid-in capital874,607 855,784 
Accumulated other comprehensive income (loss)
165 (112)
Accumulated deficit(758,895)(645,606)
Treasury stock, at cost; 229 and 0 shares at December 31, 2024 and 2023, respectively
(25,000)— 
Total stockholders’ equity90,908 210,097 
Total liabilities and stockholders’ equity$931,449 $433,144 


Exhibit 99.1



IRHYTHM TECHNOLOGIES, INC.
Consolidated Statements of Operations
(In thousands, except per share data)

(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2024202320242023
Revenue, net$164,325 $132,511 $591,839 $492,681 
Cost of revenue49,257 45,085 184,308 160,875 
Gross profit115,068 87,426 407,531 331,806 
Operating expenses:
Research and development19,081 15,416 71,459 60,244 
Acquired in-process research and development
302 — 32,371 — 
Selling, general and administrative99,768 100,114 418,565 385,645 
Impairment and restructuring charges— 11,078 641 11,078 
Total operating expenses119,151 126,608 523,036 456,967 
Loss from operations(4,083)(39,182)(115,505)(125,161)
Interest and other income (expense), net:
Interest income
5,740 1,734 21,938 6,353 
Interest expense
(3,320)(941)(12,821)(3,650)
Loss on extinguishment of debt
— — (7,589)— 
Other income (expense), net
481 (55)1,253 (198)
Total interest and other income (expense), net
2,901 738 2,781 2,505 
Loss before income taxes
(1,182)(38,444)(112,724)(122,656)
Income tax provision151 255 565 750 
Net loss$(1,333)$(38,699)$(113,289)$(123,406)
Net loss per common share, basic and diluted$(0.04)$(1.26)$(3.63)$(4.04)
Weighted-average shares, basic and diluted31,343 30,702 31,196 30,528 























Exhibit 99.1



IRHYTHM TECHNOLOGIES, INC.
Reconciliation of GAAP to Non-GAAP Financial Information
(In thousands, except per share data)
(Unaudited)

Three Months Ended December 31,Year Ended December 31,
2024202320242023
Adjusted EBITDA reconciliation*
Net loss1
$(1,333)$(38,699)$(113,289)$(123,406)
Interest expense3,320 941 12,821 3,650 
Interest income(5,740)(1,734)(21,938)(6,353)
Changes in fair value of strategic investments(843)— (1,902)— 
Income tax provision151 255 565 750 
Depreciation and amortization5,289 4,914 20,715 16,348 
Stock-based compensation16,008 23,846 75,978 77,204 
Impairment charges— 11,078 641 11,078 
Business transformation costs2,416 1,772 11,072 15,866 
Loss on extinguishment of debt— — 7,589 — 
Adjusted EBITDA$19,268 $2,373 $(7,748)$(4,863)
*Certain numbers expressed may not sum due to rounding.
1Net loss for the three and twelve months ended December 31, 2024, includes acquired in-process research and development expense of $0.3 million and $32.4 million, respectively.

Exhibit 99.1



Adjusted net income (loss) reconciliation*
Net loss, as reported1
$(1,333)$(38,699)$(113,289)$(123,406)
Impairment charges— 11,078 641 11,078 
Business transformation costs2,416 1,772 11,072 15,866 
Changes in fair value of strategic investments(843)— (1,902)— 
Loss on extinguishment of debt— — 7,589 — 
Adjusted net income (loss)$240 $(25,849)$(95,889)$(96,462)
Adjusted net income (loss) per share reconciliation:*
Diluted net loss per share, as reported1
$(0.04)$(1.26)$(3.63)$(4.04)
Impairment charges per share— 0.36 0.02 0.36 
Business transformation costs per share0.08 0.06 0.35 0.52 
Changes in fair value of strategic investments per share(0.03)— (0.06)— 
Loss on extinguishment of debt per share— — 0.24 — 
Adjusted diluted net income (loss) per share
$0.01 $(0.84)$(3.08)$(3.16)
Weighted-average shares, basic31,343 30,702 31,196 30,528 
Weighted-average shares, diluted
31,710 30,702 31,196 30,528 
Adjusted operating expenses reconciliation*
Operating expenses, as reported$119,151 $126,608 $523,036 $456,967 
Impairment charges— (11,078)(641)(11,078)
Business transformation costs(2,416)(1,772)(11,072)(15,866)
Adjusted operating expenses$116,735 $113,758 $511,323 $430,023 

*Certain numbers expressed may not sum due to rounding.
1Net loss for the three and twelve months ended December 31, 2024, includes acquired in-process research and development expense of $0.3 million and $32.4 million, respectively.

v3.25.0.1
Cover
Feb. 20, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 20, 2025
Entity Registrant Name iRhythm Technologies, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-37918
Entity Tax Identification Number 20-8149544
Entity Address, Address Line One 699 8th Street
Entity Address, Address Line Two Suite 600
Entity Address, City or Town San Francisco
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94103
City Area Code 415
Local Phone Number 632-5700
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, Par Value $0.001 Per Share
Trading Symbol IRTC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001388658
Amendment Flag false
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