iRhythm Technologies (IRTC) Sinks 37.6% in Six Months as High Valuation Weighs

Shares of iRhythm Technologies Inc. (NASDAQ: IRTC) have fallen 37.6% over the six months ending June 1, 2026, to $114.01 per share, even as the cardiac monitoring device maker posted robust long-term revenue growth. Over the past five years, iRhythm grew revenue at a compound annual rate of 23.3%, reaching $787.9 million in the trailing 12 months. Free cash flow margin improved by 21.2 percentage points in that period and stood at 2.4% recently, reflecting operational leverage. Despite these gains, the small-cap company faces skepticism due to its size and valuation. The stock trades at a forward price-to-earnings multiple of 329.7, raising questions about sustainability. iRhythm develops AI-powered wearable heart monitors that replace traditional bulky devices.