We feel now is a pretty good time to analyse iRhythm Technologies, Inc.'s (NASDAQ:IRTC) business as it appears the company may be on the cusp of a considerable accomplishment. iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. On 31 December 2023, the US$3.3b market-cap company posted a loss of US$123m for its most recent financial year. The most pressing concern for investors is iRhythm Technologies' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

Consensus from 12 of the American Medical Equipment analysts is that iRhythm Technologies is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$3.7m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 66% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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

Before we wrap up, there's one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 17% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on iRhythm Technologies, so if you are interested in understanding the company at a deeper level, take a look at iRhythm Technologies' company page on Simply Wall St. We've also put together a list of essential 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.