{
  "docId": "019dd923-622c-750b-8b99-bca3fd68622d",
  "docSlug": "4c8fe6013c68",
  "documentTitle": "iRhythm Technologies, Inc. (IRTC)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-08-18 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 101,
  "pageCount": 101,
  "prevPage": 100,
  "nextPage": null,
  "slideType": "valuation_table",
  "function": "show_valuation_bridge",
  "density": "overcrowded",
  "nDataPoints": 20,
  "notes": "The slide uses a 'services business' argument to justify a lower revenue multiple (2x-4x) compared to medical device peers.",
  "elementsJson": [
    "headline_text",
    "callout_box",
    "valuation_table",
    "bullet_list",
    "quote_block",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-bca3fd68622d/101",
  "deckHref": "/decks/019dd923-622c-750b-8b99-bca3fd68622d",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-bca3fd68622d.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-bca3fd68622d#slide-101",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Thus, even if we assume iRhythm can achieve the low end to consensus of Wall Street analyst revenue estimates for 2026, which we doubt, applying a more appropriate 2x to 4x revenue multiple range yields approximately 40% to 70% stock price downside and material underperformance risk.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-0396-73da-b8fa-e9d3364490da",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.58,
        "w": 0.46,
        "x": 0.52,
        "y": 0.375
      },
      "kind": "list",
      "text": "Rationale For Multiple Compression list",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "def7590d-ecfc-4085-9ecb-6f4c663804ab",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "stock price downside: 40% to 70%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-0396-73da-b8fa-f36a08c502f3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.96,
        "x": 0.02,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "iRhythm's former CFO acknowledged that the Company is a “services” business, justifying testing services company multiples for the low end of our valuation.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e84e146f-0a3a-4a0d-a2dc-fc20118b4788",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.34,
        "x": 0.16,
        "y": 0.665
      },
      "kind": "quote",
      "text": "“And I think this is a really important note because it talks about how difficult or challenging it is for us because we're not a medical device. We're a service.”",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2ed647cf-df78-4f19-bcbf-d4c6ecdd1cd3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.34,
        "x": 0.16,
        "y": 0.84
      },
      "kind": "quote",
      "text": "“We once again take this opportunity to remind investors...that we are a services business that faces material summer seasonality.”",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e4901ce4-2ef6-4564-9ad2-4b24495a129d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "“And I think this is a really important note because it talks about how difficult or challenging it is for us because we're not a medical device. We're a service.” — iRhythm CFO Garrett at Morgan Stanley Conference, 9/10/19",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd953-0396-73da-b8fa-efae6bca483c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.4,
        "x": 0.02,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "Source: Bloomberg, iRhythm Q2 2019 earnings call transcript, S&P Capital IQ",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "661b96c9-37d2-417a-a552-453f54473159",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.26,
        "w": 0.48,
        "x": 0.02,
        "y": 0.375
      },
      "kind": "table",
      "text": "Spruce Point Price Target Derivation table",
      "attrs": null,
      "subkind": "valuation",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dddfb02b-9e48-41e5-8080-e5a3ab9a9407",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "We See Approximately 40% To 70% Downside In iRhythm Shares",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a1ee9aaf-806f-4229-ba69-5cdd6998b713",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "valuation-bridge",
      "slug": null,
      "matchId": "b3235b4c-b91a-4734-a6c9-1a8386a863f6",
      "evidence": "Price target derivation table showing adjustments from revenue to price per share",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}