Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026
iRhythm Holdings, Inc. (IRTC)
A forensic read on iRhythm Holdings, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
0.8
Altman Z-score
Clean
Earnings quality
5
Forensic signals
-20.6%
ROE
$3.9B
Market cap
IRhythm Holdings, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 0.8, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by inventory days.
What the filings flag
36dInventory days.Days inventory outstanding moved from 28 to 36 FY2024→FY2025 (against cost of goods sold; inventory +54% vs +19% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
-7%Return on invested capital.Return on invested capital is -7% and rising from -32% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+2.3%/yrShare-count dilution.Diluted share count changed +7% over the last 3 years to FY2025 (+2.3%/yr). The count is GROWING — existing holders are being diluted. That's ~2.3% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~7%.
12% of revStock-based comp load.Stock-based compensation ran 12% of revenue and 256% of free cash flow in FY2025 — about $2.76 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
stoppedShareholder returns — halted.Capital returns have STOPPED — $25M of buybacks + dividends in FY2024, but ~$0 in FY2025. A halt usually means the company is conserving cash; understand why before reading it as neutral.
Key fundamentals
Net Margin-6.0%
Debt / Equity0.23x
Free Cash Flow$34.5M
Latest Revenue$747.1M
Return on Equity-29.2%
Revenue Growth YoY+26.2%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on iRhythm Holdings, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about IRTC's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown