{
  "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",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-08-18 00:00:00",
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  "pageNumber": 83,
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  "notes": "The slide highlights that despite 10x revenue growth, iRhythm's margins have barely improved, contrasting this with BioTelemetry's superior profitability at similar scales.",
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      "kind": "callout",
      "text": "Of note, close peer BioTelemetry was significantly more profitable at similar revenue scale. Thus, we question iRhythm's financial management.",
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      "text": "Operating Margin: 10%",
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      "text": "iRhythm has grown revenue by almost 10x, or $528 million, since 2016. However, over that period, Company gross margins have increased by only one percentage point. What little operating leverage the Company has achieved has come from SG&A, yet those expenses remain at 71% and 61% of revenue (GAAP and non-GAAP, respectively). In addition, we suspect much of that improvement has come from the outsourcing overseas of CCTs and various administrative functions. Of note, close peer BioTelemetry was significantly more profitable at similar revenue scale. Thus, we question iRhythm's financial management.",
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      "kind": "source-note",
      "text": "Source: iRhythm SEC filings, S&P Capital IQ",
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      "text": "iRhythm Revenue and Profit / Expense Margins From 2016 to 2024 and Comparison to BioTelemetry Operating Profitability at Similar Revenue Scale",
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      "kind": "title",
      "text": "iRhythm Has Demonstrated Little Operating Leverage Since 2016",
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      "name": "Cost Of Inaction",
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      "evidence": "The document discusses potential risks and consequences of inaction.",
      "position": 1,
      "objective": "To highlight the risks of not addressing concerns about iRhythm's business practices",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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