Key Takeaways
- Q4 revenue surged 14.8% year-over-year, powered by imaging center expansion and operational excellence.
- Digital Health division exploded 48% higher, with AI-powered solutions driving subscription revenue.
- Advanced imaging volumes showed impressive double-digit gains across MRI, CT, and PET/CT modalities.
- 2026 outlook projects Imaging revenue expansion of 17–19%, EBITDA growth of 18–22%, and FCF increase of 29–41%.
- Strategic Gleamer acquisition broadens AI portfolio; multiple FDA approvals targeted for 2026.
RadNet, Inc. (RDNT) concluded regular trading at $69.81, declining 3.16% (-$2.28), though pre-market activity indicates recovery to $74.50, representing a 6.72% gain.
RadNet, Inc., RDNT
RDNT delivered exceptional fourth-quarter 2025 results with revenue reaching a record $547.7 million, representing a 14.8% climb from $477.1 million in the year-ago period. Adjusted EBITDA expanded to $87.7 million, demonstrating a robust 16.9% improvement compared to the prior year. The quarterly success reflects strong procedure volumes combined with enhanced operational capabilities throughout its Imaging Center operations.
The Digital Health division experienced dramatic expansion with revenue climbing to $27.9 million, capturing a substantial 48.2% increase from $18.9 million recorded in Q4 2024. Adjusted EBITDA within Digital Health advanced to $4.9 million, reflecting an 8.9% year-over-year improvement. The company achieved a consolidated Adjusted EBITDA margin of 16%, expanding by 29 basis points versus the comparable period.
Adjusted earnings per share held steady at $0.23, essentially matching the $0.24 reported in Q4 2024 when excluding non-recurring items. The consolidated net loss on a GAAP basis totaled $0.6 million, contrasting with net income of $5.3 million in the previous year’s quarter. Weighted average diluted share count increased modestly to 76.6 million from 75.5 million in Q4 2024.
Imaging Center Operations Deliver Exceptional Volume Expansion
Total advanced imaging procedures across the network jumped 14.1%, with same-center procedure growth reaching 9.6% compared to Q4 2024. MRI procedures expanded by an impressive 15.8%, CT scanning volume increased 10.3%, and PET/CT procedures experienced remarkable growth of 28.3%. Same-center metrics showed MRI volumes up 11.4%, CT volumes advancing 6.3%, and PET/CT surging 14.3%, demonstrating consistent operational strength.
Full-year 2025 Imaging Center revenue played a pivotal role in achieving total annual revenue of $2.04 billion. Adjusted EBITDA for the complete year reached $300.2 million, representing a solid 7.4% advancement over 2024. Strategic initiatives including new facility launches, strategic acquisitions, and enhanced patient flow optimization collectively drove revenue and profitability expansion.
Management projects 2026 Imaging Center revenue growth in the range of 17%-19% with adjusted EBITDA expansion of 18%-22%. Free cash flow generation is forecasted to increase 29%-41% above 2025 performance. Strategic priorities remain centered on operational efficiency, capacity enhancement, and advantageous reimbursement dynamics.
Digital Health Division Accelerates Growth Through AI Innovation
Digital Health revenue expanded 41.1% throughout 2025 to reach $92.7 million, underpinned by predictable recurring revenue models. Adjusted EBITDA improved modestly to $15.5 million, reflecting continued investment in clinical AI platforms and workflow automation technology. Annual Recurring Revenue (ARR) comprised 81.3% of total 2025 segment revenue, demonstrating exceptional subscription durability.
The strategic acquisition of Gleamer SAS completed in 2026 significantly expands RadNet’s Digital Health capabilities in AI-powered clinical applications. Management anticipates securing multiple FDA clearances throughout 2026 across mammography, pulmonary, prostate, thyroid, and musculoskeletal applications. Internal Imaging Center contribution to Digital Health revenue is projected to decrease from 45% to 33% in 2026, signaling broader market penetration.
For 2026, Digital Health guidance anticipates revenue between $135-$145 million, with adjusted EBITDA before non-capitalized R&D expenses projected at $10-$12 million. Free cash flow, incorporating non-capitalized R&D investment, is expected to range from negative $17-$19 million. Substantial investments in infrastructure and talent acquisition are designed to enable scalable expansion and widespread industry adoption of advanced AI solutions.
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