RadNet Raises Outlook as Imaging Demand Accelerates
Quarterly revenue reached $622.7 million as demand shifted toward higher-value scans.
RadNet Inc. (RDNT), the diagnostic-imaging provider, reported record quarterly revenue and raised its full-year Imaging Center outlook for the second consecutive quarter as advanced-imaging demand accelerated.
Aggregate advanced-imaging volume rose 21.2% from a year earlier, accelerating from 19.7% in the prior quarter, while same-center growth increased to 9.6% from 8.2%. Advanced imaging accounted for 29.9% of procedure volume, up from 27.5% a year earlier.
Revenue rose 25.0% to $622.7 million, accelerating from 22.1% growth in the first quarter. Adjusted EBITDA increased 22.7% to $99.7 million, though that growth slowed from 36.3% in the prior quarter.
Adjusted earnings fell to $23.2 million, or $0.29 a share, from $25.7 million, or $0.34 a share, a year earlier. The result marked a sequential swing from a first-quarter adjusted loss of $0.28 a share. GAAP net income attributable to shareholders declined 47.9% to $7.5 million even as operating income increased to $39.5 million.
The imaging mix continued to favor higher-value procedures. Aggregate MRI and CT volumes each rose about 21%, while PET/CT volume increased 31.0%, compared with 7.9% growth in routine imaging. Imaging Center adjusted EBITDA margin widened 17 basis points to 16.1%.
Digital Health revenue climbed 56.5% to a record $32.4 million, and annual recurring revenue nearly doubled to $105.5 million. External customers accounted for about 63% of segment revenue, while RadNet signed roughly $21 million of Digital Health business during the quarter, primarily with hospitals and health systems.
RadNet now expects 2026 Imaging Center revenue of $2.370 billion to $2.420 billion, up from its previous range of $2.355 billion to $2.405 billion. Adjusted EBITDA guidance increased to $345 million to $358 million, while free-cash-flow guidance rose to $115 million to $125 million. Digital Health guidance remains unchanged, including revenue of $135 million to $145 million.
The company expanded its network to 442 imaging centers, including 157 held through health-system partnerships. DeepHealth also received Food and Drug Administration clearance in late July for its breast-ultrasound artificial-intelligence product, which RadNet expects to roll out across its breast-imaging centers by year-end and begin contributing revenue and cost savings during the second half.