iRhythm Shares Fall 30.70% After Third-Quarter Report
The pick
iRhythm Holdings (IRTC) had the biggest jump in trading volume compared with its usual level. Volume was 10.8x its 30-day average, and the stock fell 30.70%.
What happened
iRhythm reported third-quarter results after the market closed on November 5. Revenue was $221.6 million, up 14.9% from the third quarter of 2025. Gross margin was 74.2%. Adjusted EBITDA was $51.2 million. The GAAP net loss was $29.9 million.
The company raised its 2026 revenue guidance to $890 million to $895 million. It also raised its adjusted EBITDA margin guidance to 15.5% to 16.0%. The revenue guidance includes about $16 million expected from VitalConnect, which the company bought on October 5, 2026.
CEO Quentin Blackford said demand for Zio Monitor "remains robust, exceeding our expectations in the quarter." The company also said it closed a new $300 million senior secured revolving credit facility on November 3, 2026.
The company's filings do not say why the stock fell the next day.
Source: [SEC filing]
What news reports said
Yahoo Finance reported that iRhythm raised its outlook even as demand for its Zio AT telemetry product fell short of expectations. [Yahoo Finance] The Motley Fool's call transcript summary said Zio AT "softened as buyers waited on VitalConnect." [The Motley Fool]
Seeking Alpha reported that the filing of the Zio MCT device with the FDA slipped to 2027. [Seeking Alpha]
Yahoo Finance reported that the full-year revenue guidance midpoint of $892.5 million came in 1.5% below analysts' consensus estimates. [Yahoo Finance]
A law firm's marketing notice, distributed by PR Newswire, said shares opened down more than 17% on November 6 and fell by more than 30% by midday. It also said revenue trailed the FactSet consensus estimate of $222.2 million, and that management said Zio AT revenue was "roughly flat compared to the prior year." [press release]
The numbers
Previous close: $130.19
Close: $90.22
Change: -30.70%
Volume: 5,663,093
30-day average volume: 522,863
Volume multiple: 10.8x
Behind the move: an earnings report
IRTC's most unusual trading day in 5 years
Its sector (Health Care, XLV) moved -0.06% that day
What to watch
Yahoo Finance carried a company announcement that iRhythm will take part in the Jefferies Global Healthcare Conference in London on Thursday, November 19, 2026, at 11:00 a.m. GMT. [Yahoo Finance]
The same announcement lists the 9th Annual Evercore Healthcare Conference on Tuesday, December 1, 2026, at 2:10 p.m. ET. [Yahoo Finance]
Pro: IRTC has had 8+ earlier days at 5x+ normal volume since 2016. Pro members see what it did over the next 5 and 20 trading days after each one. See Pro
More coverage
Pro: 9 more stocks made Friday's unusual-volume top 10, the next one at 6.2x its normal level. Pro members can also test any setup in plain English on every U.S. stock since 2016 ("what happened after stocks traded 11x their normal volume?"), and get the full top 10 every morning plus intraday alerts on big moves. 25 of 25 founding spots left: $9/month, locked in for as long as you stay ($14 after Dec 31 or when the spots are gone). Claim a founding spot