iRhythm Holdings (IRTC) opened 2026 with Q1 revenue of US$199.4 million and a basic EPS loss of US$0.43, alongside trailing 12 month revenue of US$787.9 million and a basic EPS loss of US$0.86 that keep profitability in focus for investors. Over the past year, the company has seen quarterly revenue move from US$158.7 million in Q1 2025 to US$199.4 million in Q1 2026. Over the same period, basic EPS shifted from a loss of US$0.97 to a loss of US$0.43, setting up a results season where margin trends sit at the center of the story.

See our full analysis for iRhythm Holdings.

With the latest figures on the table, the next step is to see how these revenue and EPS trends line up with the widely followed growth and profitability narratives around iRhythm, and where the numbers start to push back against them.

US$199 million revenue with losses narrowing on a yearly view

• On a trailing 12 month basis, revenue reached US$787.9 million while net income was a loss of US$27.8 million, compared with a loss of US$98.3 million on US$618.6 million of revenue a year earlier.
• Supporters of the bullish view point to analysts forecasting earnings growth of about 97.9% per year and an expectation that iRhythm becomes profitable within three years. However, the current trailing net loss of US$27.8 million means that path still depends on turning this improving but loss making profile into consistent earnings.
  • The bullish narrative highlights revenue growth assumptions of around 16.3% to 18.6% a year, while the actual trailing revenue growth cited at 13.6% shows progress but also a gap to the upper end of those expectations.
  • What stands out is that losses have been reduced at an average rate of 4.2% per year over five years, which supports the bullish focus on improving earnings but still leaves investors watching how quickly that trend can bridge the remaining loss.

Bulls argue that narrowing losses and double digit revenue growth could set up a powerful earnings swing if current trends continue, and the bullish narrative digs into how product adoption and margins would need to evolve for that to play out 🐂 iRhythm Holdings Bull Case.

Q1 loss of US$13.9 million keeps profitability in play

• For Q1 2026, iRhythm reported revenue of US$199.4 million with a net loss of US$13.9 million and a basic EPS loss of US$0.43, compared with Q4 2025 revenue of US$208.9 million, net income of US$5.6 million and basic EPS of US$0.17.
• Critics in the bearish camp focus on how fragile profitability still is, and the swing from a US$5.6 million profit in Q4 2025 back to a US$13.9 million loss in Q1 2026 underlines that concern by showing that a single profitable quarter has not yet turned into a steady pattern.
  • Bears also flag that even with the trailing loss narrowing to US$27.8 million, iRhythm has remained unprofitable over the past five years, so the Q1 EPS loss of US$0.43 fits their view that earnings are still sensitive to spending and reimbursement factors.
  • At the same time, the move from a Q1 2025 loss of US$30.7 million to a Q1 2026 loss of US$13.9 million gives some evidence of progress, which challenges the most cautious assumptions that losses would stay close to prior levels without visible improvement.

Skeptics warn that the step back into a quarterly loss after Q4’s profit shows how easily earnings can move around as the business invests and responds to reimbursement and product timing issues 🐻 iRhythm Holdings Bear Case.

DCF fair value vs premium P/S multiple

• The supplied DCF fair value of US$216.05 sits well above the current share price of US$120.80, yet the P/S ratio of about 5x is higher than the US Medical Equipment industry average of 2.7x and a peer average of 3.9x.
• Analysts’ consensus narrative leans on strong forecast growth to justify that mixed picture, but the tension is clear, with a DCF fair value suggesting room above US$120.80 while the richer P/S multiple versus peers signals that the market already prices in some of that growth.
  • The consensus view cites forecast revenue growth of 16.3% a year and margin expansion from about 6% loss to a 5.7% profit, so the current 5x P/S and unprofitable trailing EPS of a US$0.86 loss show how much of that future shift is already embedded in today’s multiple.
  • On top of that, the analysts’ price target of US$191.14 relative to US$120.80 indicates that some expect the growth story to be rewarded over time, even though recent insider selling flagged in the data gives investors a reason to think carefully about how they weigh those expectations.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for iRhythm Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Seeing both optimism and caution in the numbers, it helps to look at the data directly and form your own view quickly. To round out that view, check the balance of 3 key rewards and 1 important warning sign

See What Else Is Out There

iRhythm is still loss making despite revenue growth, with earnings swinging between quarters and a P/S ratio that sits above both industry and peer averages.

If this mix of fragile profitability and a richer multiple makes you cautious, compare it with companies that look better value on key metrics using the 51 high quality undervalued stocks

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.