iRhythm Stock Falls 31% Day After Q3 Results Show Wider Loss

iRhythm Holdings (Nasdaq: IRTC) fell 30.7% on Friday, Nov. 6, 2026, on volume about 11.5 times its usual level, while the S&P 500 ETF (SPY) rose 0.31%. The drop came the session after the company reported third-quarter results on Nov. 5 after the close, in an 8-K that furnished its press release. The company did not state a reason for the decline in that release or in the filings.

Revenue grew, but the loss widened

Third-quarter revenue was $221.6 million, up 14.9% from a year earlier. Gross margin was 74.2%, and the company raised its 2026 revenue guidance to $890 million to $895 million. The net loss, however, was $29.9 million, against $5.2 million a year earlier. The quarter included $49.8 million in litigation settlement charges, which the company excludes from its adjusted figures.

In its 10-Q, filed the evening of Nov. 5, iRhythm reported unrestricted cash, cash equivalents and marketable securities of $560.7 million as of Sept. 30, 2026. The company also closed a $300 million senior secured revolving credit facility on Nov. 3.

Analyst view before the open

BTIG kept its Buy rating on the stock before the open on Friday but lowered its price target to $170 from $185.

Scale of the move

The company's market capitalization was about $4.38 billion before the session, based on its shares outstanding as of Oct. 29, 2026. The filings do not link the decline to any single item, and no source describes investor reaction to the settlement charge specifically.