MeritValue

iRhythm Holdings, Inc.

IRTCdata completeness 88%12 fiscal years on file
The thesis, from the filings

iRhythm Holdings, Inc. earns about -44% on invested capital, but has diluted owners by 9% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$322.8M1$410.9M2$492.7M3$591.8M3$747.1M3
Net income−$101.4M4−$116.2M5−$123.4M6−$113.3M6−$44.6M6
Operating cash flow−$37.8M7−$23M8−$50.1M9$3.39M9$80.9M9
Capital expenditure$28.1M10$29.8M11$40.4M12$33.9M12$46.3M12
Free cash flow (derived)−$65.8M7−$52.8M8−$90.5M9−$30.6M9$34.5M9
Total debt$31M13$34.9M14$35M14——
Cash & equivalents$127.6M15$78.8M16$36.2M17$419.6M17$236M17
Diluted shares29.3M29.9M30.5M31.2M32.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$47.73
your share of equity
Profit it earned you last year
−$13.92
Free cash flow it threw off
$10.79
Debt you’d be carrying
—

10 shares is a claim on $47.73 of net worth that earned you −$13.92 and generated $10.79 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-44% avg · 5y
FY21 -43%FY22 -45%FY23 -45%FY24 —FY25 —

It earned an average -44% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+9% shares · 5y

Share count is up 9% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 13% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001388658-24-000014 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001388658-25-000028 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001388658-26-000011 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001388658-24-000014 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001388658-25-000028 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001388658-26-000011 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001388658-24-000014 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001388658-25-000028 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001388658-26-000011 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001388658-24-000014 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001388658-25-000028 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001388658-26-000011 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001388658-23-000007 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001388658-24-000014 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2021-12-31 · accession 0001388658-23-000007 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0001388658-25-000028 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0001388658-26-000011 (CashAndCashEquivalentsAtCarryingValue)