RadNet Reports Second Quarter Financial Results with Record Quarterly Revenue and Adjusted EBITDA¹ and Revises Upwards 2025 Financial Guidance Ranges
Total Company Revenue increased 8.4% to a quarterly record of $498.2 million in the second quarter of 2025 from $459.7 million in the second quarter of 2024; Revenue from the Digital Health reportable segment (inclusive of intersegment revenue) increased 30.9% to a quarterly record of $20.7 million in the second quarter of 2025 from $15.8 million in the second quarter of 2024
Total Company Adjusted EBITDA(1) was a quarterly record of $81.2 million in the second quarter of 2025 as compared with $72.3 million in the second quarter of 2024, an increase of 12.3%; Digital Health reportable segment Adjusted EBITDA(1) increased 4.1% to $3.4 million in the second quarter of 2025 from $3.3 million in the second quarter of 2024
Total Company Adjusted EBITDA(1) margins increased by 57 basis points to 16.3% in the second quarter of 2025 as compared with 15.7% in the second quarter of 2024
As a percentage of total procedural volumes, advanced imaging increased to 27.5% in the second quarter of 2025 from 26.5% in the second quarter of 2024, an increase of 102 basis points
Adjusting for unusual or one-time items in the quarter, Adjusted Earnings(3) was $23.8 million and Adjusted Earnings Per Share(3) was $0.31 for the second quarter of 2025; This compares with Adjusted Earnings(3) of $12.0 million and Adjusted Earnings Per Share(3) of $0.16 for the second quarter of 2024
In the second quarter of 2025, aggregate advanced imaging (MRI, CT and PET/CT) procedural volumes increased 9.0% and same-center advanced imaging procedural volumes increased 6.6% as compared with the second quarter of 2024
As of June 30, 2025, balance sheet cash was $833.2 million and Net Debt to Adjusted EBITDA(1) ratio was 0.96x
RadNet revises full-year 2025 guidance levels to increase Revenue and Adjusted EBITDA(1) guidance ranges
LOS ANGELES, Aug. 10, 2025 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 405 owned and operated outpatient imaging centers, today reported financial results for its second quarter of 2025.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, "Both the Imaging Center and Digital Health reportable operating segments demonstrated strong growth and achieved record quarterly results. In the second quarter of 2025, total Company Revenue grew 8.4% and Digital Health segment Revenue increased 30.9% from last year's same quarter. Growth was driven by strong increases in aggregate and same center procedural volumes, improved reimbursement from commercial and capitated payors, a continuing shift in procedural volumes towards advanced imaging modalities and incremental Digital Health sales and licenses of workflow software and AI solutions."
Dr. Berger continued, "Our focus has been on driving more advanced imaging procedures (MRI, CT and PET/CT) and increasing advanced imaging capacity at the imaging centers through a variety of initiatives. Within MRI, the 9.0% aggregate and 6.6% same center growth in the second quarter as compared with last year's second quarter is partially the result of capacity created from investments made in MRI software upgrades and operating protocols which enable shorter scan times. CT programs have expanded on both coasts to offer more complex procedures, such as Cardiac CT Angiography, which is often enhanced with AI-assisted analytics. Within PET/CT, our fastest growing modality with 22.4% growth from last year's second quarter, emphasis has been on newer diagnostic and screening offerings for prostate cancer, Alzheimer's disease and dementia and new procedures with leading-edge tumor-specific radioactive tracers. The growth in advanced imaging, particularly MRI, has been furthered by the implementation of Digital Health's TechLiveTM, our remote screening technology recently cleared by the FDA. TechLiveTM is assisting with ongoing technologist staffing challenges by enabling remote control of advanced imaging equipment to expand hours of operation and by staffing exam rooms which otherwise would have been closed."
"The growth in advanced imaging from these initiatives along with effective cost management contributed to an increase in our Adjusted EBITDA(1) margin to 16.3% during the second quarter of 2025, which compares with 15.7% in last year's second quarter, an improvement of 57 basis points. Adjusted EBITDA(1) during the second quarter of 2025 increased by 12.3% to $81.2 million from $72.3 million in last year's second quarter," added Dr. Berger.
Dr. Berger continued, "In response to high demand and patient backlogs in many of RadNet's local markets, we continue to pursue capacity expansion through the development and construction of new imaging centers. One new facility was opened during the second quarter in East Brunswick, New Jersey, and nine additional de novo facility openings are projected for the remainder of 2025. Within Digital Health, we continue to see growth from the nationwide expansion of the AI-powered Enhanced Breast Cancer Detection program, where today almost 45% of RadNet screening mammography patients are electing to participate for a $40 out-of-pocket charge. We continue to make progress with the internal RadNet implementation of the TechLiveTM remote scanning solution, elements of the DeepHealth Operations and Diagnostic suites and the newly acquired See-Mode ultrasound AI capabilities."
"Given the sustainable positive trends we are experiencing and the strong financial performance of the second quarter, we are revising upwards 2025 guidance levels for Revenue and Adjusted EBITDA(1) in anticipation of financial results that we believe will exceed both our original expectations and the amendments we made to the guidance ranges upon releasing first quarter 2025 results in May," concluded Dr. Berger.
Second Quarter Financial Results
For the second quarter of 2025, RadNet reported Total Company Revenue of $498.2 million and Adjusted EBITDA(1) of $81.2 million. Revenue increased $38.5 million (or 8.4%) and Adjusted EBITDA(1) increased $8.9 million (or 12.3%) as compared with the second quarter of 2024.
For the second quarter of 2025, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of $20.7 million and Adjusted EBITDA(1) of $3.4 million. Revenue increased $4.9 million (or 30.9%) and Adjusted EBITDA(1) increased $134,000 (or 4.1%) as compared with the second quarter of 2024.
Unadjusted for unusual or one-time items impacting the second quarter of 2025, Total Company Net Income for the second quarter of 2025 was $14.5 million as compared with a Total Company Net Loss of $3.0 million for the second quarter of 2024. Net Income Per Share for the second quarter of 2025 was $0.19, compared with a Net Loss per share of $(0.04) in the second quarter of 2024, based upon a weighted average number of diluted shares outstanding of 75.5 million shares in 2025 and 73.4 million shares in 2024.
There were a number of unusual or one-time items impacting the second quarter including: $2.0 million of non-cash loss from interest rate swaps; $496,000 expense related to leases for de novo facilities under construction that have yet to open their operations; $123,000 of lease abandonment charge; $2.3 million of acquisition transaction costs; and $4.8 million of non-capitalized research and development expenses related to the DeepHealth Cloud OS and generative AI. Adjusting for the above items, Total Company Adjusted Earnings(3) was $23.8 million and diluted Adjusted Earnings Per Share(3) was $0.31 during the second quarter of 2025. This compares with Total Company Adjusted Earnings(3) of $12.0 million and diluted Adjusted Earnings Per Share(3) of $0.16 during the second quarter of 2024.
For the second quarter of 2025, as compared with the prior year's second quarter, MRI volume increased 9.0%, CT volume increased 8.1%, PET/CT volume increased 22.4% and routine imaging (inclusive of nuclear medicine, ultrasound, mammography, x-ray and other exams) increased 3.5% over the prior year's second quarter. On a same-center basis, including only those centers which were part of RadNet for both the second quarters of 2025 and 2024, MRI volume increased 6.6%, CT volume increased 5.9%, PET/CT volume increased 16.2% and routine imaging increased 1.4% over the prior year's second quarter.
Six Month Financial Results
For the first six months of 2025, RadNet reported Total Company Revenue of $969.6 million and Adjusted EBITDA(1) of $127.6 million. Revenue increased $78.2 million (or 8.8%) and Adjusted EBITDA(1) decreased $3.1 million (or 2.4%) as compared with the first six months of 2024. The decrease in Adjusted EBITDA(1) was primarily the result of the previously estimated loss of $15 million of Adjusted EBITDA(1) as a result of the California wildfires and severe winter weather conditions impacting the first quarter of 2025.
For the first six months of 2025, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of $39.9 million and Adjusted EBITDA(1) of $7.1 million. Revenue increased $9.5 million (or 31.0%) and Adjusted EBITDA(1) increased $325,000 (or 4.8%) as compared with the first six months of 2024.
Unadjusted for one-time or unusual items, Total Company Net Loss for the first six months of 2025 was $23.5 million as compared with a Total Company Net Loss of $5.8 million for the first six months of 2024. Net Loss Per Share for the six-month period of 2025 was $(0.32), compared with a Net Loss per share of $(0.08) in the six-month period of 2024, based upon a weighted average number of diluted shares outstanding of 74.1 million shares in 2025 and 71.8 million shares in 2024.
2025 Guidance Update
RadNet updates guidance levels as follows:
Imaging Center Segment
Original Guidance Range
Revised Guidance Range After Q1 Results
Revised Guidance Range After Q2 Results
Total Net Revenue
$1,825 - $1,875 million
$1,835 - $1,885 million
$1,850 - $1,900 million
Adjusted EBITDA(1)
$265 - $273 million
$268 - $276 million
$271 - $279 million
Capital Expenditures(a)
$140 - $150 million
$145 - $155 million
$152 - $162 million
Cash Interest Expense(b)
$35 - $40 million
$35 - $40 million
$35 - $40 million
Free Cash Flow (2)
$70 - $80 million
$70 - $80 million
$70 - $80 million
(a) Net of proceeds from the sale of equipment and New Jersey Imaging Network capital expenditures.
(b) Net of payments from counterparties on interest rate swaps and interest income from our cash balance recorded in Other Income.
Digital Health Segment
OriginalGuidance Range
RevisedGuidance Range AfterQ1 Results
RevisedGuidance Range AfterQ2 Results
Total Net Revenue (inclusive of intersegment revenue)
$80 - $90 million
$80 - $90 million
$80 - $90 million
Adjusted EBITDA(1) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI
$15 - $17 million
$15 - $17 million
$15 - $17 million
Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI
$16 - $18 million
$16 - $18 million
$17 - $19 million
Capital Expenditures
$3 - $5 million
$3 - $5 million
$2 - $4 million
Free Cash Flow(2) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI
$11 - $13 million
$11 - $13 million
$11 - $13 million
Free Cash Flow(2) After Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI
$(5) - $(8) million
$(5) - $(8) million
$(5) - $(8) million
Conference Call for Tomorrow
Dr. Howard Berger, President and Chief Executive Officer, and Mark Stolper, Executive Vice President and Chief Financial Officer, will host a conference call to discuss its second quarter 2025 results on Monday, August 11th, 2025 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Monday, August 11, 2025Time: 10:30 a.m. Eastern TimeDial In-Number: 844-826-3035International Dial-In Number: 412-317-5195
It is recommended that participants dial in approximately 5 minutes prior to the start of the 10:30 a.m. call. There will also be simultaneous and archived webcasts available at https://viavid.webcasts.com/starthere.jsp?ei=1729070&tp_key=3a3e8702a3 or http://www.radnet.com under the "Investors" menu section and "News Releases" sub-menu of the website. An archived replay of the call will also be available and can be accessed by dialing 844-512-2921 from the U.S., or 412-317-6671 for international callers, and using the passcode 10201853.
About RadNet, Inc.
RadNet, Inc. is a leading national provider of freestanding, fixed-site diagnostic imaging services in the United States based on the number of locations and annual imaging revenue. RadNet has a network of 405 owned and/or operated outpatient imaging centers. RadNet's markets include Arizona, California, Delaware, Florida, Maryland, New Jersey, New York and Texas. In addition, RadNet provides radiology information technology and artificial intelligence solutions marketed under the DeepHealth brand, teleradiology professional services and other related products and services to customers in the diagnostic imaging industry. Together with contracted radiologists, and inclusive of full-time and per diem employees and technologists, RadNet has a total of over 11,000 team members. For more information, visit http://www.radnet.com.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are expressions of our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, and anticipated future conditions, events and trends. Forward-looking statements can generally be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Forward-looking statements in this press release include, among others, statements about our anticipated business results, balance sheet and liquidity and our future liquidity, burn rate and our continuing ability to service or refinance our current indebtedness.
Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
the availability and terms of capital to fund our business;
our ability to service our indebtedness, make principal and interest payments as those payments become due and remain in compliance with applicable debt covenants, in addition to our ability to refinance such indebtedness on acceptable terms;
changes in general economic conditions nationally and regionally in the markets in which we operate;
the availability and terms of capital to fund the expansion of our business and improvements to our existing facilities;
our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so;
our ability to acquire, develop, implement and monetize technology, digital health initiatives, artificial intelligence algorithms and applications;
volatility in interest and exchange rates, or credit markets;
the adequacy of our cash flow and earnings to fund our current and future operations;
changes in service mix, revenue mix and procedure volumes;
delays in receiving payments for services provided;
increased bankruptcies among our partner physicians or joint venture partners;
the impact of the political environment and related developments on the current healthcare marketplace and on our business, including with respect to the future of the Affordable Care Act;
the extent to which the ongoing implementation of healthcare reform, or changes in or new legislation, regulations or guidance, enforcement thereof by federal and state regulators or related litigation result in a reduction in coverage or reimbursement rates for our services, or other material impacts to our business;
closures or slowdowns and changes in labor costs and labor difficulties, including stoppages affecting either our operations or our suppliers' abilities to deliver supplies needed in our facilities;
the occurrence of hostilities, political instability or catastrophic events;
the emergence or reemergence of and effects related to future pandemics, epidemics and infectious diseases; and
noncompliance by us with any privacy or security laws or any cybersecurity incident or other security breach by us or a third party involving the misappropriation, loss or other unauthorized use or disclosure of confidential information.
Any forward-looking statement contained in this current report is based on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of changed circumstances, new information, future developments or otherwise, except as required by applicable law.
Regulation G: GAAP and Non-GAAP Financial Information
This release contains certain financial information not reported in accordance with GAAP. The Company uses both GAAP and non-GAAP metrics to measure its financial results. The Company believes that, in addition to GAAP metrics, these non-GAAP metrics assist the Company in measuring its cash-based performance. The Company believes this information is useful to investors and other interested parties because it removes unusual and nonrecurring charges that occur in the affected period and provides a basis for measuring the Company's financial condition against other quarters. Such information should not be considered as a substitute for any measures calculated in accordance with GAAP, and may not be comparable to other similarly titled measures of other companies. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Reconciliation of this information to the most comparable GAAP measures is included in this release in the tables which follow.
CONTACTS:
RadNet, Inc.Mark Stolper, 310-445-2800Executive Vice President and Chief Financial Officer
RADNET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
June 30, 2025
December 31, 2024
(unaudited)
ASSETS
CURRENT ASSETS
Cash and Cash equivalents
$
833,152
$
740,020
Accounts receivable
199,991
185,821
Due from affiliates
12,959
41,869
Prepaid expenses and other current assets
48,277
51,542
Total current assets
1,094,379
1,019,252
PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS
Property and equipment, net
741,382
694,791
Operating lease right-of-use assets
666,054
639,740
Total property, plant, equipment and right-of-use assets
1,407,436
1,334,531
OTHER ASSETS
Goodwill
751,514
710,663
Other intangible assets
91,078
81,351
Deferred financing costs
1,974
2,265
Investment in joint ventures
125,804
104,057
Deposits and other
42,781
34,571
Total Assets
$
3,514,966
$
3,286,690
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable, accrued expenses and other
$
406,689
$
351,464
Due to affiliates
51,067
43,650
Deferred revenue
3,433
3,288
Current operating lease liability
59,537
56,618
Current portion of notes payable
25,484
24,692
Total current liabilities
546,210
479,712
LONG-TERM LIABILITIES
Long-term operating lease liability
678,783
655,979
Notes payable, net of current portion
1,077,251
991,574
Deferred tax liability, net
21,441
22,230
Other non-current liabilities
12,020
3,785
Total liabilities
2,335,705
2,153,280
EQUITY
RadNet, Inc. stockholders' equity:
Common stock - $0.0001 value, 200,000,000 shares authorized; 75,067,102 and 74,036,993 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively
8
7
Additional paid-in-capital
1,025,936
988,147
Accumulated other comprehensive loss
6,627
(9,061
)
Accumulated deficit
(100,257
)
(76,785
)
Total RadNet, Inc.'s Stockholders' equity:
932,314
902,308
Noncontrolling interests
246,947
231,102
Total Equity
1,179,261
1,133,410
Total liabilities and equity
$
3,514,966
$
3,286,690
RADNET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
REVENUE
