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iRhythm Stock Jumps After Q2 Beat—Its $288 Million Bet Could Change Heart Monitoring Forever!

iRhythm Holdings gave investors two reasons to pay attention after its second-quarter results: another quarter of better-than-expected growth and a nearly $288 million acquisition that could materially broaden the company’s role in cardiac monitoring. Shares moved higher following the announcements as Q2 revenue reached $224.2 million, up 20.1% year over year, while adjusted earnings came in at $0.58 per share. Management also lifted full-year revenue guidance to $880 million-$890 million and adjusted EBITDA margin guidance to 13%-14%. Yet the more consequential development may be iRhythm’s agreement to acquire Vital Connect for approximately $237.5 million in cash and $50 million of stock. Vital Connect adds mobile cardiac telemetry, longer-duration monitoring, inpatient capabilities and multivital sensing to iRhythm’s portfolio. The strategic opportunity is significant, but so are the execution requirements, making the transaction a potentially transformative test of iRhythm’s ability to expand beyond its traditional Zio franchise.