With the business potentially at an important milestone, we thought we'd take a closer look at iRhythm Technologies, Inc.'s (NASDAQ:IRTC) future prospects. iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology that provides ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. The US$3.4b market-cap company announced a latest loss of US$113m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which iRhythm Technologies will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 12 of the American Medical Equipment analysts is that iRhythm Technologies is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$17m in 2027. So, the company is predicted to breakeven approximately 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 70%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for iRhythm Technologies given that this is a high-level summary, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for iRhythm Technologies

One thing we would like to bring into light with iRhythm Technologies is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of iRhythm Technologies which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at iRhythm Technologies, take a look at iRhythm Technologies' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

1. Valuation: What is iRhythm Technologies worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether iRhythm Technologies is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on iRhythm Technologies’s board and the CEO’s background .
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.