Monitor Growth Cleared, Zio AT Did Not
iRhythm's GlobeNewswire release put third-quarter revenue at $221.6 million, up 14.9% from $192.9 million a year earlier. Gross margin was 74.2%, up 310 basis points, helped by about $3.1 million of one-time tariff refunds. Adjusted EBITDA was $51.2 million, or a 23.1% margin, up 1,190 basis points year over year. GAAP net loss widened to $29.9 million, or $0.90 per diluted share, from $5.2 million, or $0.16, a year earlier, after a $49.8 million litigation-settlement charge in the quarter. Adjusted net income was $27.8 million, or $0.82 per diluted share, versus an adjusted net loss of $0.06 a year earlier.
Wall Street Observer put the adjusted $0.82 against a consensus near $0.04, so the operating print cleared the Street by a wide margin. Investing.com flagged a GAAP miss versus a loss estimate near $0.18 and revenue of $221.59 million against a consensus near $222.23 million — a slight top-line shortfall that was not the tape's main complaint. Cash, cash equivalents, and marketable securities ended September at $560.7 million, and the company closed a new $300 million senior secured revolving credit facility on November 3, 2026.
VitalConnect Close, Zio AT Pause, and an MCT Filing That Slips to 2027
The cash selloff tracked the product map more than the Adjusted EBITDA print. On the Motley Fool transcript of the Thursday call, CEO Quentin Blackford said Zio Monitor again exceeded expectations and contributed most of the growth, with new accounts about 51% of year-over-year volume growth, while Zio AT revenue was roughly flat year over year as customers deferred onboarding after the VitalConnect deal. The company closed VitalConnect on October 5, 2026 — earlier than the prior year-end expectation — and said integrating that FDA-cleared mobile cardiac telemetry platform is now the near-term priority.
Blackford also said iRhythm no longer plans to submit next-generation Zio MCT to the FDA in 2026 and now expects to file in 2027, while VitalConnect covers live-look-in, 30-day, and multi-modality use cases that management estimates are about 25% of the MCT market. Full-year 2026 revenue guidance moved to $890 million to $895 million, including about $16 million of VitalConnect from the October 5 close through year-end, and Adjusted EBITDA margin guidance moved to 15.5% to 16.0%. Wall Street Observer noted that stripping the $16 million leaves roughly $874 million to $879 million of organic revenue against the August guide of $880 million to $890 million. Management also said fourth-quarter Zio AT revenue is expected to decline about 10% on a dollar basis year over year, while Zio Monitor should keep mid-teens growth, and reiterated a 2027 organic revenue target near $1 billion excluding VitalConnect.
Thirty-Three Percent Cash Against a Ten-to-Twelve-Percent Monthly Band
OptionSlam tracked a roughly 10.11% implied move on the November 20 monthly straddle into the report, with a $13.55 straddle marked against a $134 reference at the $135 strike. Options Analysis Suite showed a November 20 expected move of about 12.3% from a November 5 spot near $130.46, with an implied range near $114.46 to $146.46. Frenzy Capital had the November 5 7-day at-the-money straddle at $13.10 and the 30-day straddle at $18.30, then a November 6 post-move 7-day straddle of $8.55 and 30-day straddle of $12.60 as the event premium came off.
Against Thursday's $130.19 close, a 10.1% band puts approximate break-evens near $117.00 and $143.40, while a 12.3% band puts them near $114.20 and $146.20. A cash print near $87.50 is about 32.8% below the prior close — roughly three times the prepaid monthly move — and the session low near $86.33 sits even deeper past those lower break-evens. Yahoo Finance showed Friday volume above 3.3 million shares against an average near 569,000, so the gap was not a thin print. Delayed Cboe quotes are a reference for Friday's chain rather than fills: spreads can widen after a one-third gap, and November 6 same-day premium decays into the close.
Long November puts that needed a sustained break of the monthly lower break-even have been paid on the stock leg at these prints; short straddles and iron condors that sold a roughly 10% to 12% November 20 move face a stock already far outside that envelope. The Adjusted EBITDA beat and the headline revenue raise did not stop the repricing once the MCT filing slipped and Zio AT paused into the VitalConnect integration. Our implied volatility guide covers how event premium usually behaves once the uncertainty resolves, and the OCC options disclosure document explains the risks of standardized options.
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*By the OptionsPilot Editorial Team. Published November 6, 2026, 10:21 AM PT. This article is for education only and is not investment advice. Options involve risk and are not suitable for all investors.*
