RadNet (RDNT) Delivers Record-Breaking Q4 2025 Results as Digital Health Revenue Climbs 48%

Executive Summary

• Fourth quarter revenue climbs 14.8% year-over-year, powered by imaging center expansion and operational optimization.
• Digital Health platform experiences 48% revenue acceleration, bolstered by AI-powered subscription services.
• Advanced imaging modalities including MRI, CT, and PET/CT demonstrate double-digit volume increases.
• Full-year 2026 projections: Imaging revenue growth of 17–19%, EBITDA expansion of 18–22%, and free cash flow surge of 29–41%.
• Strategic Gleamer acquisition enhances AI capabilities; multiple FDA submissions targeted for 2026.

RadNet, Inc. (RDNT) settled at $69.81 in regular trading, declining 3.16% (-$2.28), though pre-market activity indicates recovery momentum to $74.50, representing a 6.72% advance.

RadNet, Inc., RDNT
RadNet, Inc. achieved unprecedented quarterly revenue of $547.7 million during the fourth quarter of 2025, reflecting a 14.8% advancement from the prior year’s $477.1 million. The company reported adjusted EBITDA of $87.7 million, marking a 16.9% improvement year-over-year. Robust procedure volumes combined with enhanced operational execution drove performance throughout the Imaging Center business unit.

The Digital Health division generated $27.9 million in revenue, demonstrating exceptional 48.2% growth compared to $18.9 million in the comparable 2024 period. Adjusted EBITDA for this segment reached $4.9 million, climbing 8.9% from the previous year. The organization maintained a consolidated Adjusted EBITDA margin of 16%, expanding 29 basis points annually.

Adjusted earnings per share held steady at $0.23, versus $0.24 in the year-ago quarter, when excluding non-recurring items. The company recorded a net loss of $0.6 million on an unadjusted basis, contrasting with net income of $5.3 million in Q4 2024. Weighted average diluted share count increased modestly to 76.6 million from 75.5 million during the comparative period.

Imaging Operations Demonstrate Robust Volume Expansion

Aggregate advanced imaging procedure counts advanced 14.1%, while same-center procedures expanded 9.6% compared to Q4 2024. MRI examinations increased 15.8%, CT scans grew 10.3%, and PET/CT studies surged 28.3% on an aggregate basis. Same-center metrics showed 11.4% growth for MRI, 6.3% for CT, and 14.3% for PET/CT, demonstrating consistent operational execution.

Full-year 2025 Imaging Center revenue played a pivotal role in achieving the company’s $2.04 billion annual top line. Annual adjusted EBITDA totaled $300.2 million, representing a 7.4% year-over-year increase. The combination of new facility launches, strategic acquisitions, and enhanced patient workflow efficiency propelled both revenue and profitability metrics.

Management forecasts 2026 Imaging Center revenue expansion of 17%-19% with adjusted EBITDA growth of 18%-22%. Free cash flow generation is projected to accelerate 29%-41% above 2025 performance. Strategic priorities include operational efficiency enhancements, capacity optimization initiatives, and advantageous reimbursement positioning.

Digital Health Platform Accelerates Through AI Innovation

Digital Health revenue expanded 41.1% throughout 2025, reaching $92.7 million, underpinned by predictable recurring revenue models. Adjusted EBITDA improved to $15.5 million, reflecting continued investment in clinical AI capabilities and workflow automation technologies. Annual Recurring Revenue (ARR) constituted 81.3% of 2025 segment revenue, demonstrating substantial subscription resilience.

The strategic acquisition of Gleamer SAS in 2026 broadens RadNet’s Digital Health portfolio in AI-powered clinical applications. Management anticipates securing multiple FDA clearances across mammography, pulmonary, prostate, thyroid, and musculoskeletal diagnostic areas. The proportion of Digital Health revenue derived from internal Imaging Center operations is expected to decrease from 45% to 33% in 2026, signaling broader market penetration.

For fiscal 2026, Digital Health guidance establishes a revenue range of $135-$145 million, with adjusted EBITDA before non-capitalized R&D expenses projected at $10-$12 million. Free cash flow, after accounting for non-capitalized research and development expenditures, is anticipated at negative $17-$19 million. Substantial investments in infrastructure development and team expansion aim to enable scalable growth trajectories and widespread industry adoption of sophisticated AI solutions.

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