Slides
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43rd Annual J.P . Morgan Healthcare Conference January 13, 2025
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© 2025 iRhythm Technologies, Inc. 2 Cautionary statement re forward-looking statements, non-GAAP measures and other matters Certain data in this presentation was obtained from various external sources, and neither “iRhythm Technologies, Inc. (“iRhythm” or the “Company”) nor its affiliates, advisers or representatives has verified such data with independent sources. Accordingly, neither the Company nor any of its affiliates, advisers or representatives makes any representations as to the accuracy of that third-party data or undertakes to update such data after the date of this presentation. Such data involves risks and uncertainties and is subject to change based on various factors. The trademarks included herein are the property of the owners and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company. This presentation and the accompanying oral presentation include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements give the Company’s current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, strategy and plans, market size and opportunity, competitive position, industry environment, potential growth opportunities, business model, reimbursement rates and coverage, the outcome of contingencies such as legal proceedings and our expectations for future operations and results. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, but not limited to, those described herein and in “Risk Factors” in our most recent 10-K and 10-Q filed with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations. This presentation regarding the Company and the accompanying oral presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Sales and offers to sell iRhythm securities will only be made in accordance with the Securities Act of 1933, as amended, and applicable SEC regulations, including prospectus requirements. This presentation and the accompanying oral presentation contain non-GAAP financial measures. The appendix to this presentation reconciles the non-GAAP financial measures to the most directly comparable financial measure prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measure include adjusted operating expenses, non-GAAP net income (loss), non-GAAP net income (loss) per share, adjusted EBITDA, and adjusted EBITDA margin. iRhythm reports non-GAAP financial measures in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. We believe that non-GAAP financial measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP financial measures. Other companies, including other companies in our industry, may not use this measure or may calculate this measures differently than as presented. We encourage investors to carefully consider our results under GAAP as well as our supplemental non-GAAP information and reconciliations between these presentations to more fully understand our business.
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© 2025 iRhythm Technologies, Inc. 3 The Zio platform enables us to address the challenges of tomorrow AI PLATFORM (34 -LAYER DEEP NEURAL NET) 2nd Generation, FDA-cleared, deep-learned ECG detection algorithm PATENTED WEARABLE BIOSENSORS Single-use monitor that patients prefer 1 2 ACTIONABLE AND SCALABLE DIGITAL PLATFORM High-quality digital report delivered via desktop, mobile or EHR 3
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Vision Better Data, Better Insights, Better Health for All. Mission Boldly innovating to create trusted solutions that detect, predict, and prevent disease.
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© 2025 iRhythm Technologies, Inc. 5 $582.5 – $587.5 million 2024 revenue guidance 5+ million tests Target market opportunity across prioritized EU and APAC countries* Data on file. iRhythm Technologies, January 2025. *See sources in appendix for ‘Multiple levers for long -term growth and sustainable value creation’ and ‘International opportunity represents $1+ billion TAM with 5+ million tests in prioritized countries across EMEA and Asia Pacific’ 27+ million Potential patients in the United States who could benefit from ambulatory cardiac monitoring* 2+ billion Hours of curated ECG data since company inception thru 2024 100+ Original scientific research manuscripts ~30% penetration in core U.S. ambulatory cardiac monitoring market as of December 31, 2024 9.5+ million Patient reports posted since company inception thru 2024 2+ million Patient reports posted annually
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© 2025 iRhythm Technologies, Inc. 6 iRhythm uniquely positioned to win with clinically accurate, trusted services and the ability to scale in expanded channels, international markets, and additional vitals Clinical evidence: Clinical evidence translated rapidly to product feature set demonstrating superior outcomes and costs for continued traction with clinicians, health systems, payers AI: FDA cleared AI, expansive data set for future signal development, and world-class clinical oversight deliver comprehensive, curated clinical reports to support clinicians and physicians Provider preference: Long-term continuous monitoring market dominance, first mover advantage into primary care physician channels, and positioned to own additional specialties IDTF: Largest IDTF in the ACM space with physician and clinician trust to deliver accurate monitoring with ability to expand well beyond arrythmias at scale, effectively and efficiently Ability to scale: Continuous operational excellence delivering the most clinically accurate product at efficient scale and cost profile maximizing commercial opportunities Superior workflows: Proven seamless staff and provider workflow with bidirectional, EHR-agnostic integrations, including a new collaboration with Epic Competitive Advantage
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© 2025 iRhythm Technologies, Inc. 7 Zio® Patient PREVALENCE 11M with arrhythmias 40% Lifetime risk of AFib for individuals over 55 FINANCIAL BURDEN 450,000 Hospitalizations per year due to AFib $34B Annual cost of stroke CONSEQUENCES 5x Increased risk of stroke due to Atrial Fibrillation (AFib) 160,000 Deaths per year associated with AFib See appendix for sources Cardiac arrhythmia burden in the U.S. is immense
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© 2025 iRhythm Technologies, Inc. 8 Multiple levers for long-term growth and sustainable value creation 6.5M ACM tests in the US today 5M+ ACM tests in prioritized countries across EMEA and Asia Pacific 27M+ Patients presenting in primary care who may be symptomatic or at- risk for arrhythmias CURRENT U.S. MARKET Over 70% market share in LTCM with Zio monitor (of 3.0M annual tests)1 Over 10% market share in MCT with Zio AT (of 950k annual tests)1 INTERNATIONAL TAM U.K. registrations primarily through private hospital contracts Early commercial launch in Switzerland, Austria, Netherlands, Spain Reimbursement negotiations in Japan UNDIAGNOSED TAM Record number of contracts with innovative primary care channels Addressing population health management through targeted patient inclusion criteria at large, national customer accounts LTCM = long-term continuous monitoring; MCT = mobile cardiac telemetry. 1. Estimates based off combination of Internal Data, Medicare Public -Use Files, IQVIA data, Definitive Healthcare data, Komodo Health data, and other publicly-available information.
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© 2025 iRhythm Technologies, Inc. 9 15M+ Primary care patients with palpitations and cardiac disease suspected 16M+ ≥65 individuals in the U.S. with undiagnosed arrhythmias per mSToPs criteria Underpenetrated ambulatory cardiac monitoring market in the United States TOTAL MARKET OPPORTUNITY BENEFITS OF BRINGING DIAGNOSIS EARLIER IN CARE PATHWAY 4M 20% potential overlap due to symptoms 27M+ Nearly half (46.3%) of all counties in the U.S. – including 86.2% of rural counties - do not have any cardiologists Many patients are referred for cardiology specialty care due to concerns of symptoms without any diagnostic testing performed Average wait time to see a cardiologist in the U.S. is around 26.6 days for non-urgent appointments, representing significant increase compared to prior years See appendix for sources
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© 2025 iRhythm Technologies, Inc. 10 SLEEP APNEA: US prevalence of 40.1 million, with up to 80% of AFib patients having sleep apnea1 Addressing population health management through the power of artificial intelligence to enable targeted monitoring for undiagnosed arrhythmias COPD 11.7 million TAM 2.0M2 CAD 20.5 Million TAM 8.4M2 CKD 35.5 Million TAM 12.7M2 Diabetes 32.2 Million TAM 10.3M2 1. See appendix for sources. 2. TAMs are not mutuality exclusive as there is likely significant overlap in patient populations. 3. Real World Evidence on Health Care Resource Utilization and Economic Burden of Arrhythmias in Patients with Diabetes and COPD. Abstract presented at: 2024 AHA Scientific Sessions; November 16 to 18, 2024; Chicago, IL. ARRHYTHMIA PATIENTS USE THE HEALTHCARE SYSTEM AT A MUCH HIGHER RATE COMPARED TO NON -ARRHYTHMIA PATIENTS 3 Arrhythmia patients were hospitalized more than 2x per 1,000 cohort patients per year than non-arrhythmia patients Of those hospitalized, patient length of stay increased by 2-5 days for arrhythmia patients with a combined cohort The rate of emergency room visits were more than 2x for arrhythmia cohort relative to non-arrhythmia cohorts HEART FAILURE : US prevalence of 8.4 million, with 25% of heart failure patients having AFib1
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© 2025 iRhythm Technologies, Inc. 11 Approaching the primary care channel through two-pronged strategy within both symptomatic and undiagnosed patient populations 1. Data on file. iRhythm Technologies, June 2024. 2. Data on file. iRhythm Technologies, January 2025. Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Zio XT registrations Card/EP Zio XT registrations PCP Zio XT registrations PCP onboarding LAND -AND -EXPAND WITHIN INTEGRATED DELIVERY NETWORKS 1 TOP -DOWN INTEGRATION AT LARGE NATIONAL ACCOUNTS 80.1% of patients in representative customer programs had at least one arrhythmia identified2
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© 2025 iRhythm Technologies, Inc. 12 Collaboration with Epic Aura enables bidirectional data flow, enhances clinician workflow efficiency, and supports rapid system-wide implementation Hospital EHR system Cloud Interface Engine Proprietary AI Clinical Curation Staff/Ordering Physician places order in EHR MA updates order on EHR and patches patient Order (ORM) Results/Report ORU/MDM w/ embedded PDF/discrete values Report published in EHR or CVIS Physician interprets Zio report in EHR System requirements: HL7 version 2.3 or higher; secure communication interface (e.g. VPN, HTTPs, SFTP). Integration Service are also available with the option for physicians to interpret Zio Patient Reports in ZioSuite.com. Physician interpreted reports can then be posted to the EHR/CVIS system.
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© 2025 iRhythm Technologies, Inc. 13 Leadership in long-term continuous monitoring with substantial room for upside in mobile cardiac telemetry market LTCM = long-term continuous monitoring; MCT = mobile cardiac telemetry. Estimates based off combination of Internal Data, Medica re Public-Use Files, IQVIA data, Definitive Healthcare data, Komodo Health data, and other publicly -available information. Over 70% Over 10% Growing approximately 20% annually Growing mid- to high- single digits annually iRhythm current share iRhythm current share ESTIMATED 2024 LTCM MARKET SHARE (OF 3.0 MILLION ANNUAL TESTS) ESTIMATED 2024 MCT MARKET SHARE (OF 950,000 ANNUAL TESTS)
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© 2025 iRhythm Technologies, Inc. 14 International opportunity represents $1+ billion TAM with 5+ million tests in prioritized countries across EMEA and Asia Pacific 1,600,000 Ambulatory cardiac monitoring tests annually JAPAN Pursuing reimbursement approval via high medical needs pathway GOALS Reimbursement listing by MHLW expected in 2025 500,000 Ambulatory cardiac monitoring tests annually UNITED KINGDOM Early commercialization GOALS Pursue growth in private market Pursue long-term reimbursement 2,100,000+ Ambulatory cardiac monitoring tests annually in target countries PRIORITIZED EU COUNTRIES Switzerland, Spain, Austria, the Netherlands, Germany and France Early commercialization GOALS Build commercial presence in Switzerland, Spain, Austria, and the Netherlands See appendix for sources
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© 2025 iRhythm Technologies, Inc. 15 Artificial intelligence underpins core capabilities and enables service innovation Curated heartbeat data and other data linkages opens opportunities for additional expansion Evolving from detection towards prediction and insights generation Artificial intelligence continues to add significant clinical value to Zio® and further differentiates Zio® versus competition Prediction of Atrial Fibrillation, Heart Failure Sleep, Activity Adjacent Market Opportunities Efficient Delivery of Service at Scale Insight Generation Alternative Business Model OpportunitiesCommercial Published evidence In development Artificial Intelligence
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© 2025 iRhythm Technologies, Inc. 16 STRATEGIC RATIONALE • Multiparameter sensing technologies natural complement to ECG to advance iRhythm’s premium positioning in ACM • Positions us to expand future platform capabilities and enter adjacent indications TECHNOLOGIES INCLUDED FOR USE WITHIN ACM • Patch-based pulse oximetry • Accelerometry • Trending non-invasive blood pressure LICENSE OVERVIEW • Exclusive license to develop and commercialize certain patented technology assets within ACM • BioIntelliSense received upfront payment and will be eligible to earn additional milestone-based consideration ACM = Ambulatory cardiac monitoring Technology licensing agreement with BioIntelliSense
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© 2025 iRhythm Technologies, Inc. 17 Future multi-modal sensing platform differentiates ACM business and unlocks adjacent market opportunities ENHANCES THE CORE Commercial shift to multi-sensing ECG + vital signals expected • Up to 60% of existing cardiac monitoring ACM market expected to convert to an ECG + vital signs platform • 55-70% of cardiologists and PCPs believe that cardiac ECG monitoring diagnostics will need to have vital signals to remain relevant UNLOCK CHANNEL EXPANSION Multi-sensing vital sign platforms will be critical to win in In-patient and hospital to home/hospital at home • 66% of physicians agree hospitals will want to consolidate ECG and vital signal monitoring device vendors for efficiencies • 55% are already part of a hospital or healthcare system that would push to use the same patch in the inpatient and outpatient setting Respiration Rate Oxygen Saturation Blood Pressure Activity, Sleep Single & Multi-Lead ECG Body & Skin Temperature Platform Heart Rate VariabilityHeart Rate Available today In developmentData on file. iRhythm Technologies, 2024.
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© 2025 iRhythm Technologies, Inc. 18 iRhythm on a journey to evolve and mature our corporate profile Fiscal Discipline & Responsibility Best-in-class Quality Management System Leadership Team Board Evolution Operational Transformation
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© 2025 iRhythm Technologies, Inc. 19 2024 accomplishments reflect ongoing commitment to execution and excellence Finalist for 2024 Fierce Life Sciences Innovation Award Chicago Athenaeum 2024 Good Design Award Winner Expanded into 4 European countries Received Japanese PMDA approval Signed BioIntelliSense technology license BRINGING INNOVATIVE PRODUCTS TO MARKET Grew to ~70% market share in LTCM Reached 1 million registrations for Zio® monitor in U.S. Expansion into large national, value-based care accounts CONTINUING MOMENTUM IN COMMERCIAL BUSINESS CAMELOT pub showing superiority of Zio® LTCM 20 peer-reviewed papers showing value of 14-day Zio for multiple arrhythmias, conditions Superiority of Zio® monitor to Zio® XT Favorable changes to clinical practice guidelines CREATING PEER -REVIEWED CLINICAL EVIDENCE Major policy shifts to provide favorable position for Zio® 93% of commercial lives eligible for coverage have access to Zio® EXPANDING MARKET ACCESS COVERAGE OPERATING WITH DISCIPLINE AND EFFICIENCY Launched manufacturing automation Closed $661.25 million of 1.50% convertible notes Named one of America’s Greenest Companies by Newsweek 2 million registrations via EHR-integrated accounts Launched Epic Aura collaboration Recognized on Newsweek’s list of World’s Best Digital Health Companies Improved compliance, patient experience with MyZio app PROVIDING A WINNING CUSTOMER EXPERIENCE
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© 2025 iRhythm Technologies, Inc. 20 Near-term opportunities can drive significant topline growth 2025 NET REVENUE GUIDANCE (USD, MILLIONS) $322.8 $410.9 $492.7 ~ $587.5 $675M – $685M 2021 2022 2023 2024G 2025G U.S. CORE COMMERCIAL BUSINESS • Further expansion into PCP channel • New technologies (e.g., PFA) expand monitoring • MCT market expansion with continued innovation INTERNATIONAL EXPANSION • Entry into Japan, the second largest global ACM market • Continued penetration in the UK and national reimbursement • Commercial ramp in select European countries ADJACENT MARKET OPPORTUNITIES • Movement into proactive monitoring programs • Addition of wellness insights into existing platform
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© 2025 iRhythm Technologies, Inc. 21 MARKET EXPANSION OPPORTUNITIES INNOVATION OPERATIONAL EFFICIENCY FOCUS IMPROVING FINANCIAL PROFILE Core US market penetration Greenfield specialist growth Primary care physician growth Channel expansion International expansion Adjacent market development Relentless patient focus Insight generation AI and prediction capabilities Connected care Commitment to quality, safety and regulatory compliance Supply chain resilience Unit cost economics Digital transformation Continuous process improvement Focus on generating leverage Disciplined opportunity prioritization Balanced reinvestments Strategic portfolio management Investments for opening adjacent markets Compelling investment thesis for long-term shareholder value creation
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© 2025 iRhythm Technologies, Inc. 22 Anticipated revenue growth from large underpenetrated markets on a global scale Expect to deliver meaningful improvements in financial profile Addressing the future focus of healthcare Expanding existing markets while extending into adjacent markets
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Appendix
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© 2025 iRhythm Technologies, Inc. 24 SLIDE(S) SOURCES Cardiac arrhythmia burden in the U.S. is immense • Morillo CA, Banerjee A, Perel P, Wood D, Jouven X. Atrial fibrillation: the current epidemic. J Geriatr Cardiol. 2017 Mar;14(3):195-203. • Weng, Lu-Chen et al. Genetic Predisposition, Clinical Risk Factor Burden, and Lifetime Risk of Atrial Fibrillation. Circulation, 2018;137:1027-38 • Rienstra, M., et al. Symptoms and functional status of patients with atrial fibrillation. Circulation. 2012 Jun 12;125(23):2933-43 • Atrial Fibrillation Fact Sheet. CDC, published May 15, 2024. Accessed January 12, 2025. https://www.cdc.gov/heart-disease/about/atrial- fibrillation.html • Wexler, R., et al. Palpitations: Evaluation in the Primary Care Setting. Am Fam Physician, 2017 • Probst, M., et al. Analysis of Emergency Department Visits for Palpitations (From the National Hospital Ambulatory Medical Care Survey). Am J Cardiol, 2014; Stroke Facts. • Stroke Fact Sheet. CDC, published October 24, 2024. Accessed January 12, 2025. https://www.cdc.gov/stroke/data-research/facts-stats/ • Benjamin EJ, Muntner P, Alonso A, Bittencourt MS, Callaway CW, Carson AP, et al. Heart disease and stroke statistics—2019 update: a report from the American Heart Association. Circulation. 2019;139(10):e56–528. Underpenetrated ambulatory cardiac monitoring market in the United States US Core ACM Market Sizing • iRhythm estimates based off combination of Internal Data, Medicare Public-Use Files, IQVIA data, Definitive Healthcare data, Komodo Health data, and other publicly-available information. Expansion opportunity in symptomatic market • U.S. Census Bureau. “U.S. Census Bureau Profile.” https://data.census.gov/profile/United_States?g=010XX00US. Accessed January 12, 2025. • CDC ambulatory care use and physician office visits. CDC, published October 26, 2024. Accessed January 12, 2025. https://www.cdc.gov/nchs/fastats/physician-visits.htm. • Wexler RK, Pleister A, Raman SV. Palpitations: Evaluation in the Primary Care Setting. Am Fam Physician. 2017 Dec 15;96(12):784-789. • Weber BE, Kapoor WN. Evaluation and outcomes of patients with palpitations. The American Journal of Medicine. 1996;14(6):138-148. Expansion opportunity in at-risk population • Steinhubl at al. Effect of a Home-Based Wearable Continuous ECG Monitoring Patch on Detection of Undiagnosed Atrial Fibrillation: The mSToPS Randomized Clinical Trial. JAMA. 2018 Jul 10;320(2):146-155. • U.S. Census Bureau. "Age and Sex." American Community Survey, ACS 1-Year Estimates Subject Tables, Table S0101, 2022, https://data.census.gov/table/ACSST1Y2022.S0101?q=Age and Sex. Accessed on February 29, 2024. • 4 out of 5 Medicare Advantage survey respondents indicated they would be more satisfied and likely to stay with their current plan if an early AFib detection program were offered to them at no cost. Market survey of 200 respondents currently enrolled in a Medicare Advantage plan. Data on file. iRhythm Technologies, 2022. • Nancy Ochieng, Jeannie Fuglesten Biniek, Meredith Freed, Anthony Damico, and Tricia Neuman. 2023. “Medicare Advantage in 2023: Enrollment Update and Key Trends.” Published August 09, 2023. Accessed February 29, 2024. https://www.kff.org/medicare/issue-brief/medicare- advantage-in-2023-enrollment-update-and-key-trends/#
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© 2025 iRhythm Technologies, Inc. 25 SLIDE(S) SOURCES Underpenetrated ambulatory cardiac monitoring market in the United States (cont’d) • American College of Cardiology. (2024, July 8). Almost Half of US Counties Have No Cardiologists Despite Higher Prevalence of CV Risk Factors, Mortality [Press Release]. https://www.acc.org/About-ACC/Press-Releases/2024/07/08/18/25/Almost-Half-of-US-Counties-Have-No- Cardiologists-Despite-Higher-Prevalence-of-CV-Risk-Factors-Mortality • Pallikadavath SP, et. al. High number of unnecessary referrals to cardiology clinics for benign palpitations due to poor adherence to local referral guidelines. European Journal of Arrhythmia & Electrophysiology. 2024;10(1):1-2 • Pallikadavath S, et. al. Palpitation referrals from primary care to a secondary care cardiology outpatient clinic: assessing adherence to guidelines, Family Practice, 2021;38(2):127–131. • Abbott AV. Diagnostic Approach to Palpitations. Am Fam Physician. 2005;71(4):743-750 • Weber BE, Kapoor WN. Evaluation and outcomes of patients with palpitations. Am J Med. 1996;100:138-48. • American College of Cardiology. (February 23, 2023). Five Things Physicians and Patients Should Question. https://www.acc.org/-/media/Non- Clinical/Files-PDFs-Excel-MS-Word-etc/2023/04/ACC-5-Things-List-2023.pdf • 2022 Survey of Physician Appointment Wait Times. Merritt Hawkins. https://www.merritthawkins.com/trends-and-insights/article/surveys/2022- physician-wait-times-survey/, Accessed January 12, 2025. Multiple levers for long- term growth and sustainable value creation / International opportunity represents $1+ billion TAM with 5+ million tests in prioritized countries across EMEA and Asia Pacific UK: iRhythm estimate. • UK Office for National Statistics; Hospital Episode Statistics, NHS Digital, 2019-2020 • UK Healthcare Market Review 33ed, LaingBuisson, 2021. Accessed 5 January 2022. • The UK private health market, Kings Fund, 2014. Accessed 5 January 2022. • NHS England and the Health and Social Care Information Centre, NHS Hospital Data and Datasets: A Consultation. Published July 22, 2013. • The Health and Social Care Information Centre, Hospital Episode Statistics (HES): Improving the quality and value of hospital data. Published 2011. Prioritized EU countries: iRhythm estimate. • Ohlrogge etc. Burden of Atrial Fibrillation and Flutter by National Income: Results From the Global Burden of Disease 2019 Database. J Am Heart Assoc. 2023;12:e030438; supplemental data tables https://www.ahajournals.org/doi/suppl/10.1161/JAHA.123.030438. • Global population and healthcare spend per capita, World Bank, 2019 and 2020. Accessed February 29, 2024. https://data.worldbank.org • The Burden of Cardiovascular Disease and Diabetes, OECD, 2011. Accessed 5 January 2022. • Federal Statistical Office of Germany and Gesundheitsberichterstattung; Dutch Healthcare Authority; Swedish ICD & Pacemaker Registry and Swedish Society for Clinical Physiology. Japan: • Irie, Shoichi and Hiroshi Tada. The Relationship between Holter Electrocardiography and Atrial Fibrillation Diagnosis Using Real-World Data in Japan: A Claims-Based Retrospective Study. Int Heart J, 2023; 64: 178-187. • Japan Ministry of Health Labor and Welfare.
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© 2025 iRhythm Technologies, Inc. 26 SLIDE(S) SOURCES Addressing population health management through the power of artificial intelligence to enable targeted monitoring for undiagnosed arrhythmias Sleep Apnea Market Sizing • Franklin, K. A., & Lindberg, E. (2015). Obstructive sleep apnea is a common disorder in the population—a review on the epidemiology of sleep apnea. Journal of thoracic disease, 7(8), 1311. doi: 10.3978/j.issn.2072-1439.2015.06.11 • Lyons, M. M., Bhatt, N. Y., Pack, A. I., & Magalang, U. J. (2020). Global burden of sleep‐disordered breathing and its implications. Respirology, 25(7), 690-702. https://doi.org/10.1111/resp.13838 • Marshall, N. S., Wong, K. K., Liu, P. Y., Cullen, S. R., Knuiman, M. W., & Grunstein, R. R. (2008). Sleep apnea as an independent risk factor for all- cause mortality: the Busselton Health Study. Sleep, 31(8), 1079-1085. https://doi.org/10.5665/sleep/31.8.1079 • Sleep apnea information for clinicians. (2022, May 10). www.sleepapnea.org. https://www.sleepapnea.org/learn/sleep-apnea-information- clinicians Heart Failure Market Sizing • Atrial Fibrillation Fact Sheet. CDC, published May 15, 2024. Accessed January 12, 2025. https://www.cdc.gov/heart-disease/about/atrial- fibrillation.html • Dumitru, I. (2021, October 17). What is the mortality rate for heart failure? Latest Medical News, Clinical Trials, Guidelines - Today on Medscape. https://www.medscape.com/answers/163062-86190/what-is-the-mortality-rate-for-heart-failure • Gidding, S. S., Lloyd-Jones, D., Lima, J., Ambale-Venkatesh, B., Shah, S. J., Shah, R., Lewis, C. E., Jacobs, D. R., & Allen, N. B. Prevalence of American Heart Association heart failure stages in black and white young and middle-aged adults. Circulation: Heart Failure, 2019; 12(9). • Heart failure Fact Sheet. CDC, published May 15, 2024. Accessed January 12, 2025. https://www.cdc.gov/heart-disease/about/heart-failure.html • Ritchey, M. D., Wall, H. K., George, M. G., & Wright, J. S. US trends in premature heart disease mortality over the past 50 years: Where do we go from here? Trends in Cardiovascular Medicine. 2020; 30(6), 364-374. • Gianluigi Savarese, Lars H Lund, Global Public Health Burden of Heart Failure, Cardiac Failure Review 2017;3(1):7–11. Additional Disease State Market Sizing • Hilas O. COPD Prevalence, Risks, and Mortality. US Pharm. 2024;49(7):14. • Cardiovascular Disease Fact Sheet. CDC, published June 3, 2024. Accessed January 12, 2025. https://www.cdc.gov/cdi/indicator- definitions/cardiovascular-disease.html • Chronic Kidney Disease in the United States, 2023. CDC, published May 15, 2024. Accessed January 12, 2025. https://www.cdc.gov/kidney- disease/php/data-research/index.html • National Diabetes Statistics Report. CDC, published May 15, 2024. Accessed January 12, 2025. https://www.cdc.gov/diabetes/php/data- research/index.html • Real World Evidence on Health Care Resource Utilization and Economic Burden of Arrhythmias in Patients with Diabetes and COPD. Abstract presented at: 2024 AHA Scientific Sessions; November 16 to 18, 2024; Chicago, IL.
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© 2025 iRhythm Technologies, Inc. 27 $124.6 $132.5 $131.9 $148.0 $147.5 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 0.3% 1.8% -9.2% 3.4% -13.5% * 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 66.2% 66.0% 66.3% 69.9% 68.8% 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 $107.1 $113.8 $125.7 $125.2 $143.8 * $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 R&D SG&A Third quarter 2024 financial performance GLOBAL NET REVENUE (USD, MILLIONS) GROSS PROFIT MARGIN ADJUSTED OPERATING EXPENSES * (USD, MILLIONS) ADJUSTED EBITDA MARGIN * *Adjusted operating expenses and adjusted EBITDA margin for the three months ended September 30, 2024, include $32.1 million of acquired in -process research and development expense. Adjusted operating expenses and adjusted EBITDA margin exclude impact from non- GAAP business transformation, impairment, and restructuring costs. Adjusted EBITDA defined for a particular period as net loss before income tax provision, depreciation and amortization, inter est expense, interest income and as further adjusted for stock-based compensation expense, changes in fair value of strategic investments, impairment and restructuring charges, business transformation costs, and loss on extinguishment of debt. See appendix for reconciliation.
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© 2025 iRhythm Technologies, Inc. 28 Reconciliation of net loss to adjusted EBITDA THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, ADJUSTED EBITDA RECONCILIATION 2024 2023 2024 2023 Net loss1 $ (46,182) $ (27,116) $ (111,956) $ (84,707) Interest expense 3,329 927 9,501 2,709 Interest income (6,456) (1,717) (16,198) (4,619) Changes in fair value of strategic investments (1,059) — (1,059) — Income tax provision 188 195 414 495 Depreciation and amortization 5,135 4,067 15,426 11,434 Stock-based compensation 17,158 21,008 59,970 53,358 Impairment charges 641 — 641 — Business transformation costs 7,360 2,999 8,656 14,094 Loss on extinguishment of debt — — 7,589 — Adjusted EBITDA $ (19,886) $ 363 $ (27,016) $ (7,236) 1. Net loss for the three and nine months ended September 30, 2024, includes $32.1 million of acquired in -process research and development expense. Adjusted EBITDA is a non-GAAP financial measure and is presented for supplemental informational purposes only and should not be considered as an alternative or substitute to financial information presented in accordance with GAAP. We define Adjusted EBITDA for a particular period as net loss before income tax provision, depreciation and amortization, interest expense, interest income and as further adjusted for stock-based compensation expense, changes in fair value of strategic investments, impairment and restructuring charges, business transformation costs, and loss on extinguishment of debt. Business transformation costs include costs associated with professional services, employee termination and relocation, third-party merger and acquisition, integration, and other costs to augment and restructure the organization, inclusive of both outsourced and offshore resources.
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© 2025 iRhythm Technologies, Inc. 29 Reconciliation of quarterly adjusted EBITDA margin THREE MONTHS ENDED (USD, THOUSANDS) SEPTEMBER 30, 2024 JUNE 30, 2024 MARCH 31, 2024 DECEMBER 31, 2023 SEPTEMBER 30, 2023 Net loss1 $ (46,182) $ (20,107) $ (45,667) $ (38,699) $ (27,116) Interest expense 3,329 3,312 2,860 941 927 Interest income (6,456) (6,685) (3,057) (1,734) (1,717) Changes in fair value of strategic investments (1,059) — — — — Income tax provision 188 194 32 255 195 Depreciation and amortization 5,135 5,160 5,131 4,914 4,067 Stock-based compensation 17,158 21,821 20,991 23,846 21,008 Impairment and restructuring charges 641 — — 11,078 — Business transformation costs 7,360 1,296 — 1,772 2,999 Loss on extinguishment of debt — — 7,589 — — Adjusted EBITDA $ (19,886) $ 4,991 $ (12,121) $ 2,373 $ 363 Revenue $ 147,538 $ 148,047 $ 131,929 $ 132,511 $ 124,604 Adjusted EBITDA margin -13.5% 3.4% -9.2% 1.8% 0.3% Adjusted EBITDA is a non-GAAP financial measure and is presented for supplemental informational purposes only and should not be considered as an alternative or substitute to financial information presented in accordance with GAAP. We define Adjusted EBITDA for a particular period as net loss before income tax provision, depreciation and amortization, interest expense, interest income and as further adjusted for stock-based compensation expense, changes in fair value of strategic investments, impairment and restructuring charges, business transformation costs, and loss on extinguishment of debt. Business transformation costs include costs associated with professional services, employee termination and relocation, third-party merger and acquisition, integration, and other costs to augment and restructure the organization, inclusive of both outsourced and offshore resources. 1. Net loss for the three and nine months ended September 30, 2024, includes $32.1 million of acquired in -process research and development expense.
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© 2025 iRhythm Technologies, Inc. 30 Reconciliation of GAAP to non-GAAP financial information THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, ADJUSTED NET LOSS RECONCILIATION 2024 2023 2024 2023 Net loss, as reported1 $ (46,182) $ (27,116) $ (111,956) $ (84,707) Impairment charges 641 — 641 — Business transformation costs 7,360 2,999 8,656 14,094 Changes in fair value of strategic investments (1,059) — (1,059) — Loss on extinguishment of debt — — 7,589 — Adjusted net loss $ (39,240) $ (24,117) $ (96,129) $ (70,613) THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, ADJUSTED NET LOSS PER SHARE RECONCILIATION* 2024 2023 2024 2023 Net loss per share, as reported1 $ (1.48) $ (0.89) $ (3.59) $ (2.78) Impairment charges per share 0.02 — 0.02 — Business transformation costs per share 0.24 0.10 0.28 0.46 Changes in fair value of strategic investments per share (0.03) — (0.03) — Loss on extinguishment of debt per share — — 0.24 — Adjusted net loss per share $ (1.26) $ (0.79) $ (3.09) $ (2.32) Weight-average shares, basic and diluted 31,262 30,607 31,147 30,470 THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, ADJUSTED OPERATING EXPENSE RECONCILIATION 2024 2023 2024 2023 Operating expense, as reported $ 151,779 $ 110,077 $ 403,885 $ 330,359 Impairment charges (641) — (641) — Business transformation costs (7,360) (2,999) (8,656) (14,094) Adjusted operating expense $ 143,778 $ 107,078 $ 394,588 $ 316,265 *Certain numbers may not sum due to rounding. 1. Net loss for the three and nine months ended September 30, 2024, includes $3 2.1 million of acquired in-process research and development expense.