RadNet Reports Second Quarter Financial Results with Record Quarterly Revenue and Adjusted EBITDA(1) and Revises Upwards 2026 Financial Guidance Ranges
Rhea-AI Summary
RadNet (NASDAQ: RDNT) reported second quarter 2026 results with record Total Company revenue of $622.7 million, up 25.0% year over year, and record Adjusted EBITDA(1) of $99.7 million, up 22.7%. Digital Health revenue (including intersegment) rose 56.5% to $32.4 million, while Annual Recurring Revenue(4) nearly doubled to $105.5 million versus June 30, 2025.
GAAP net income was $7.5 million (EPS $0.10), down from $14.5 million (EPS $0.19), impacted by items including R&D, intangibles amortization and acquisition costs. Adjusted Earnings(3) were $23.2 million (EPS $0.29) versus $25.7 million (EPS $0.34) a year ago. RadNet ended June 30, 2026 with $726.3 million of cash and a Net Debt to Adjusted EBITDA(1) Ratio(5) of 1.8x.
For the Imaging Center segment, Adjusted EBITDA(1) margin rose to 16.1% and advanced imaging reached 29.9% of procedural volumes. RadNet raised 2026 Imaging Center guidance for revenue, Adjusted EBITDA(1) and Free Cash Flow(2), while reaffirming all Digital Health guidance ranges.
Positive
- Q2 2026 revenue $622.7 million, up 25.0% year over year
- Q2 2026 Adjusted EBITDA(1) $99.7 million, up 22.7% year over year
- Digital Health ARR(4) $105.5 million at June 30, 2026, up from $53.5 million
- Advanced imaging mix increased to 29.9% of volumes, up 238 basis points
- Cash balance $726.3 million and Net Debt to Adjusted EBITDA(1) Ratio(5) 1.8x
- 2026 Imaging Center guidance raised for revenue, Adjusted EBITDA(1) and Free Cash Flow(2)
Negative
- Q2 2026 GAAP net income $7.5 million vs $14.5 million in Q2 2025
- Q2 2026 Adjusted EPS(3) $0.29 vs $0.34 in Q2 2025
- Digital Health Q2 2026 Adjusted EBITDA(1) $2.5 million, down 27.2% year over year
- First half 2026 GAAP net loss $25.9 million vs $23.5 million in first half 2025
- Imaging Center 2026 cash interest expense guidance increased to $48–$53 million
- Digital Health 2026 Free Cash Flow(2) after non-capitalized R&D guided to $(17)–$(19) million
News Explained
Diluted shares used for EPS were higher in the second-quarter report than a year earlier.
RadNet’s completed second-quarter report adds balance-sheet context: cash was
On the reported results, the EPS calculation used a larger diluted share base than in the prior-year quarter.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 10 | Q1 earnings report | Positive | -3.9% | Record revenue, higher EBITDA, and increased Imaging Center guidance |
| Mar 02 | Q4 earnings report | Positive | +7.8% | Record quarterly revenue, EBITDA growth, and initial 2026 guidance |
| Nov 09 | Q3 earnings report | Positive | +3.2% | Record revenue, EBITDA growth, and increased 2025 guidance |
| Aug 10 | Q2 earnings report | Positive | +16.2% | Record revenue, EBITDA growth, and increased 2025 guidance |
| May 11 | Q1 earnings report | Positive | +2.3% | Revenue growth, revised guidance, and planned iCAD acquisition |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings history showed predominantly positive reactions, but the May 2026 earnings release diverged with a -3.94% reaction.
Key Terms
annual recurring revenue financial
adjusted ebitda financial
free cash flow financial
net debt to adjusted ebitda ratio financial
intersegment revenue financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Total Company Revenue increased
25.0% to a quarterly record of$622.7 million in the second quarter of 2026 from$498.2 million in the second quarter of 2025 - Revenue from the Digital Health reportable segment (inclusive of intersegment revenue) increased
56.5% to a quarterly record of$32.4 million in the second quarter of 2026 from$20.7 million in the second quarter of 2025; Annual Recurring Revenue(4) (ARR) increased from$53.5 million at June 30, 2025 to$105.5 million at June 30, 2026 and sequentially increased from$96.9 million at March 31, 2026 - Total Company Adjusted EBITDA(1) was a quarterly record of
$99.7 million in the second quarter of 2026 as compared with$81.2 million in the second quarter of 2025, an increase of22.7% ; Digital Health reportable segment Adjusted EBITDA(1) was$2.5 million in the second quarter of 2026 compared with$3.4 million in the second quarter of 2025, the result of continued infrastructure investments to fuel growth - Imaging Center Segment Adjusted EBITDA(1) margin increased by 17 basis points to
16.1% in the second quarter of 2026 from16.0% in the second quarter of 2025 - Adjusting for unusual or one-time items, Adjusted Earnings(3) was
$23.2 million and Adjusted Earnings Per Share(3) was$0.29 for the second quarter of 2026 as compared with Adjusted Earnings(3) of$25.7 million and Adjusted Earnings Per Share(3) of$0.34 for the second quarter of 2025 - As a percentage of total procedural volumes, advanced imaging increased by 238 basis points to
29.9% in the second quarter of 2026 from27.5% in the second quarter of 2025 - In the second quarter of 2026, aggregate advanced imaging (MRI, CT and PET/CT) procedural volumes increased
21.2% and same-center advanced imaging procedural volumes increased9.6% as compared with the second quarter of 2025 - As of June 30, 2026, balance sheet cash was
$726.3 million and Net Debt to Adjusted EBITDA(1) Ratio(5) was 1.8x - RadNet revises full-year 2026 Imaging Center guidance levels with increases to Revenue, Adjusted EBITDA(1) and Free Cash Flow(2) and reaffirms all Digital Health guidance ranges
LOS ANGELES, Aug. 09, 2026 (GLOBE NEWSWIRE) -- RadNet, Inc. (NASDAQ: RDNT) (“RadNet” or the “Company”), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 442 owned and operated outpatient imaging centers, today reported financial results for its second quarter of 2026.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “The Imaging Center and Digital Health reportable operating segments continue to demonstrate strong growth and achieve record quarterly results. In the second quarter of 2026, Total Company Revenue grew
Dr. Berger continued, “Within the Imaging Center operating segment, we continue to have success in driving more advanced imaging procedures and increasing advanced imaging capacity through a variety of operating and Digital Health technology initiatives. Aggregate advanced imaging procedural volumes increased
“The Digital Health division continues to make significant progress. At June 30, 2026, ARR was
Dr. Berger continued, “Our joint venture business continues to grow. As of the end of the second quarter, 157 of our 442 locations (or approximately
“Given the positive trends within the industry and RadNet’s strong financial performance of the second quarter, we are revising upwards 2026 Imaging Center guidance levels for Revenue, Adjusted EBITDA(1) and Free Cash Flow(2) 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 2026 results in May,” concluded Dr. Berger.
Second Quarter Financial Results
For the second quarter of 2026, RadNet reported Total Company Revenue of
For the second quarter of 2026, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of
Unadjusted for unusual or one-time items impacting the second quarter of 2026, Total Company Net Income for the second quarter of 2026 was
There were a number of unusual or one-time items impacting the second quarter including:
For the second quarter of 2026, as compared with the prior year’s second quarter, MRI volume increased
Six Month Financial Results
For the first six months of 2026, RadNet reported Total Company Revenue of
For the first six months of 2026, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of
Unadjusted for one-time or unusual items, Total Company Net Loss for the first six months of 2026 was
2026 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 | ||||||
| Adjusted EBITDA(1) | ||||||
| Capital Expenditures(a) | ||||||
| Cash Interest Expense(b) | ||||||
| Free Cash Flow(2) | ||||||
(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 | |||
| Original Guidance Range | Revised Guidance Range After Q1 Results | Revised Guidance Range After Q2 Results | |
| Total Net Revenue (inclusive of intersegment revenue) | |||
| Adjusted EBITDA(1)Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | |||
| Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | |||
| Capital Expenditures | |||
| Free Cash Flow(2)Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | |||
| Free Cash Flow(2)After Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | |||
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 2026 results on Monday, August 10th, 2026 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Monday, August 10, 2026
Time: 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time)
Dial In-Number: 844-744-1280
International Dial-In Number: 412-564-6465
It is recommended that participants dial in approximately 5 minutes prior to the start of the call. There will also be simultaneous and archived webcasts available at https://viavid.webcasts.com/starthere.jsp?ei=1770869&tp_key=f4d7c2481f or http://www.radnet.com under the “News” menu section 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 10210872.
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 owned and operated outpatient imaging centers. RadNet’s markets include Arizona, California, Delaware, Florida, Idaho, Indiana, Maryland, New Jersey, New York, Texas and Virginia. 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 employees. 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, guidance 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 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 impact of a pandemic, significant deterioration in the broader economy, severe acts of nature or other exogenous factors on our business, suppliers, payors, customers, referral sources, partners, patients and employees;
- 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 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.
- With respect to mergers and acquisitions: (1) the termination of or occurrence of any event, change or other circumstances that could give rise to the termination of the merger or acquisition agreement or the inability to complete the proposed transaction on the anticipated terms and timetable, (2) the inability to complete the proposed transaction due to any applicable regulatory approval that may be required for the proposed transaction that is delayed, that is not obtained or that is obtained subject to conditions that are not anticipated, (3) the ability to recognize the anticipated benefits of the proposed transaction, which may be affected by, among other things, the ability to maintain relationships with its customers, patients, payers, physicians, and providers and retain its management and key employees, (4) the ability of RadNet following the proposed transaction to achieve the synergies contemplated by the proposed transaction or such synergies taking longer to realize than expected, (5) costs related to the proposed transaction, (6) the ability of RadNet following the proposed transaction to execute successfully its strategic plans, (7) the ability of RadNet following the proposed transaction to promptly and effectively integrate the target into its business, (8) the risk of litigation related to the proposed transaction, (9) the diversion of management's time and attention from ordinary course business operations to completion of the proposed transaction and integration matters, (10) the risk of legislative, regulatory, economic, competitive, and technological changes, (11) risks relating to the value of RadNet's securities to be issued in the proposed merger, and (12) the effect of the announcement, pendency or completion of the proposed transactions on the market price of RadNet’s common stock.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included elsewhere. Additional information concerning risks, uncertainties and assumptions can be found in RadNet's filings with the United States Securities and Exchange Commisssion (the “SEC”), including the risk factors discussed in RadNet's most recent Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and future filings with the SEC.
Any forward-looking statement contained in this release 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, 310-445-2800
Executive Vice President and Chief Financial Officer
| RADNET, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) | |||||||
| June 30, 2026 | December 31, 2025 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and Cash equivalents | $ | 726,272 | $ | 767,215 | |||
| Accounts receivable | 241,845 | 200,317 | |||||
| Due from affiliates | 6,863 | 12,592 | |||||
| Prepaid expenses and other current assets | 60,776 | 52,003 | |||||
| Total current assets | 1,035,756 | 1,032,127 | |||||
| PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS | |||||||
| Property and equipment, net | 879,904 | 807,702 | |||||
| Operating lease right-of-use assets | 759,225 | 690,250 | |||||
| Total property, plant, equipment and right-of-use assets | 1,639,129 | 1,497,952 | |||||
| OTHER ASSETS | |||||||
| Goodwill | 1,122,468 | 907,663 | |||||
| Other intangible assets | 245,348 | 148,508 | |||||
| Deferred financing costs | 1,393 | 1,684 | |||||
| Investment in joint ventures | 135,019 | 130,340 | |||||
| Deposits and other | 47,238 | 40,289 | |||||
| Total Assets | $ | 4,226,351 | $ | 3,758,563 | |||
| LIABILITIES AND EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable, accrued expenses and other | $ | 489,818 | $ | 422,029 | |||
| Due to affiliates | 91,298 | 70,104 | |||||
| Deferred revenue | 16,480 | 7,272 | |||||
| Current operating lease liability | 69,557 | 61,934 | |||||
| Current portion of notes payable | 30,669 | 25,424 | |||||
| Total current liabilities | 697,822 | 586,763 | |||||
| LONG-TERM LIABILITIES | |||||||
| Long-term finance lease liability | 4,288 | - | |||||
| Long-term operating lease liability | 776,329 | 707,001 | |||||
| Notes payable, net of current portion | 1,301,862 | 1,064,495 | |||||
| Deferred tax liability, net | 39,005 | 21,903 | |||||
| Other non-current liabilities | 12,994 | 22,515 | |||||
| Total liabilities | 2,832,300 | 2,402,677 | |||||
| EQUITY | |||||||
| RadNet, Inc. stockholders' equity: | |||||||
| Common stock - | 8 | 8 | |||||
| Additional paid-in-capital | 1,222,961 | 1,180,434 | |||||
| Accumulated other comprehensive loss | (5,504 | ) | 4,885 | ||||
| Accumulated deficit | (121,373 | ) | (95,437 | ) | |||
| Total RadNet, Inc.'s Stockholders' equity: | 1,096,092 | 1,089,890 | |||||
| Noncontrolling interests | 297,959 | 265,996 | |||||
| Total Equity | 1,394,051 | 1,355,886 | |||||
| Total liabilities and equity | $ | 4,226,351 | $ | 3,758,563 | |||
| 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, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| REVENUE | |||||||||||||||
| Service fee revenue | $ | 592,589 | $ | 468,063 | $ | 1,137,807 | $ | 907,412 | |||||||
| Revenue under capitation arrangements | 30,131 | 30,167 | 60,544 | 62,217 | |||||||||||
| Total service revenue | 622,720 | 498,230 | 1,198,351 | 969,629 | |||||||||||
| OPERATING EXPENSES | |||||||||||||||
| Cost of operations, excluding depreciation and amortization | 534,640 | 429,085 | 1,085,152 | 882,565 | |||||||||||
| Lease abandonment charges | 1,306 | 123 | 1,306 | 5,511 | |||||||||||
| Depreciation and amortization | 45,529 | 35,993 | 90,496 | 71,476 | |||||||||||
| Loss (gain) on sale and disposal of equipment and other | 1,117 | 1,724 | 3,708 | 2,126 | |||||||||||
| Severance costs | 660 | 426 | 2,124 | 1,173 | |||||||||||
| Total operating expenses | 583,252 | 467,351 | 1,182,786 | 962,851 | |||||||||||
| INCOME (LOSS) FROM OPERATIONS | 39,468 | 30,879 | 15,565 | 6,778 | |||||||||||
| OTHER INCOME AND EXPENSES | |||||||||||||||
| Interest expense | 18,153 | 17,189 | 35,810 | 34,428 | |||||||||||
| Equity in earnings of joint ventures | (4,710 | ) | (4,356 | ) | (8,535 | ) | (6,955 | ) | |||||||
| Non-cash change in fair value of interest rate hedge | - | 1,956 | - | 4,062 | |||||||||||
| Debt restructuring and extinguishment expenses | 3,368 | - | 3,368 | - | |||||||||||
| Other (income) expenses | (3,960 | ) | (7,764 | ) | (8,867 | ) | (15,476 | ) | |||||||
| Total other (income) expenses | 12,851 | 7,025 | 21,776 | 16,059 | |||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 26,617 | 23,854 | (6,211 | ) | (9,281 | ) | |||||||||
| Provision for income taxes | (6,363 | ) | (820 | ) | 1,733 | 2,578 | |||||||||
| NET INCOME (LOSS) | 20,254 | 23,034 | (4,478 | ) | (6,703 | ) | |||||||||
| Net income (loss) attributable to noncontrolling interests | 12,724 | 8,580 | 21,458 | 16,769 | |||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 7,530 | $ | 14,454 | $ | (25,936 | ) | $ | (23,472 | ) | |||||
| BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.10 | $ | 0.19 | $ | (0.33 | ) | $ | (0.32 | ) | |||||
| DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.10 | $ | 0.19 | $ | (0.33 | ) | $ | (0.32 | ) | |||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||||||||
| Basic | 77,788,452 | 74,352,498 | 77,425,061 | 74,070,438 | |||||||||||
| Diluted | 78,731,021 | 75,531,743 | 77,425,061 | 74,070,438 | |||||||||||
| RADNET, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS | |||||||
| (IN THOUSANDS) | |||||||
| (unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2026 | 2025 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net loss | $ | (4,478 | ) | $ | (6,703 | ) | |
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 90,496 | 71,476 | |||||
| Noncash operating lease expense | 32,658 | 29,356 | |||||
| Equity in earnings of joint ventures, net of dividends | (4,679 | ) | (1,267 | ) | |||
| Amortization of deferred financing costs and loan discount | 1,550 | 1,471 | |||||
| Loss on sale and disposal of equipment | 3,708 | 2,126 | |||||
| Loss on extinguishment of debt | 407 | - | |||||
| Lease abandonment charges | 1,306 | 5,511 | |||||
| Amortization of cash flow hedge | - | 2,712 | |||||
| Non-cash change in fair value of interest rate swap | - | 4,062 | |||||
| Stock-based compensation | 41,915 | 37,235 | |||||
| Change in fair value of contingent consideration | (393 | ) | - | ||||
| Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions: | |||||||
| Accounts receivable | (23,413 | ) | (14,159 | ) | |||
| Other current assets | (1,131 | ) | 22,381 | ||||
| Other assets | (7,443 | ) | (2,544 | ) | |||
| Deferred taxes | (3,784 | ) | (3,511 | ) | |||
| Operating leases | (29,238 | ) | (34,726 | ) | |||
| Deferred revenue | 1,016 | 145 | |||||
| Accounts payable, accrued expenses and other | 74,574 | 48,264 | |||||
| Net cash provided by operating activities | 173,071 | 161,829 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchase of imaging facilities and other acquisitions, net of cash acquired | (315,707 | ) | (31,985 | ) | |||
| Purchase of property and equipment and other | (126,215 | ) | (101,776 | ) | |||
| Proceeds from sale of equipment | 744 | 40 | |||||
| Equity contributions in existing and purchase of interest in joint ventures | - | (20,480 | ) | ||||
| Collection of notes receivable | 6,651 | - | |||||
| Net cash used in investing activities | (434,527 | ) | (154,201 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Principal payments on notes and leases payable | (11,767 | ) | (3,461 | ) | |||
| Payments on Term Loan Debt | (11,140 | ) | (10,252 | ) | |||
| Proceeds from issuance of new debt, net of issuing costs | 248,937 | 99,001 | |||||
| Purchase of noncontrolling interests by third party | - | 2,389 | |||||
| Distributions paid to noncontrolling interests | (3,927 | ) | (3,313 | ) | |||
| Proceeds from issuance of common stock upon exercise of options | 612 | 554 | |||||
| Net cash provided by financing activities | 222,715 | 84,918 | |||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | (2,202 | ) | 586 | ||||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (40,943 | ) | 93,132 | ||||
| CASH AND CASH EQUIVALENTS, beginning of period | 767,215 | 740,020 | |||||
| CASH AND CASH EQUIVALENTS, end of period | 726,272 | 833,152 | |||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
| Cash paid during the period for interest | $ | 35,632 | $ | 35,018 | |||
| Cash paid during the period for income taxes | $ | 2,143 | $ | 2,428 | |||
| RADNET, INC. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA | |||||||||||||||
| (IN THOUSANDS) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income (loss) attributable to Radnet, Inc. common stockholders | $ | 7,530 | $ | 14,454 | $ | (25,936 | ) | $ | (23,472 | ) | |||||
| Income taxes | 6,363 | 820 | (1,733 | ) | (2,578 | ) | |||||||||
| Interest expense | 18,153 | 17,189 | 35,810 | 34,428 | |||||||||||
| Severance costs | 660 | 426 | 2,124 | 1,173 | |||||||||||
| Depreciation and amortization | 45,529 | 35,993 | 90,496 | 71,476 | |||||||||||
| Non-cash employee stock-based compensation | 10,540 | 8,741 | 41,915 | 37,235 | |||||||||||
| Loss (gain) on sale and disposal of equipment and other | 1,117 | 1,724 | 3,708 | 2,126 | |||||||||||
| Non-cash change in fair value of interest rate hedge | - | 1,956 | - | 4,062 | |||||||||||
| Other expenses (income) | (3,960 | ) | (7,764 | ) | (8,867 | ) | (15,476 | ) | |||||||
| Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | 5,110 | 4,787 | 9,670 | 8,349 | |||||||||||
| Lease abandonment charges | 1,306 | 123 | 1,306 | 5,511 | |||||||||||
| Loss (gain) on extinguishment of debt and related expenses | 3,368 | - | 3,368 | - | |||||||||||
| Non-cash change to contingent consideration | (3,157 | ) | - | (393 | ) | - | |||||||||
| Non-operational rent expenses | 498 | 496 | 1,398 | 1,838 | |||||||||||
| Acquisition transaction costs | 6,599 | 2,301 | 10,053 | 2,973 | |||||||||||
| Adjusted EBITDA - Radnet, Inc. | $ | 99,656 | $ | 81,246 | $ | 162,919 | $ | 127,645 | |||||||
| NOTE | |||||||||||||||
| Adjusted EBITDA - Imaging Center Segment | 97,178 | 77,843 | 159,138 | 120,531 | |||||||||||
| Adjusted EBITDA - Digital Health Segment | 2,478 | 3,403 | 3,781 | 7,114 | |||||||||||
| PAYMENTS BY PAYOR CLASS | |||
| Second Quarter | |||
| 2026 | |||
| Commercial Insurance | 57.2 | % | |
| Medicare | 24.2 | % | |
| Capitation | 4.8 | % | |
| Medicaid | 2.3 | % | |
| Workers Compensation/Personal Injury | 2.2 | % | |
| Other* | 9.2 | % | |
| Total | 100.0 | % | |
| * Includes Management Fees, Digital Health Revenue and Heart Lung Health Revenue. | |||
| RADNET PAYMENTS BY MODALITY | |||||||||||||
| Second Quarter | Full Year | Full Year | Full Year | ||||||||||
| 2026 | 2025 | 2024 | 2023 | ||||||||||
| MRI | 38.5 | % | 37.7 | % | 37.1 | % | 36.8 | % | |||||
| CT | 16.3 | % | 15.6 | % | 15.9 | % | 16.8 | % | |||||
| PET/CT | 9.9 | % | 8.8 | % | 7.2 | % | 6.4 | % | |||||
| X-ray | 5.0 | % | 5.5 | % | 6.0 | % | 6.5 | % | |||||
| Ultrasound | 12.8 | % | 13.5 | % | 13.6 | % | 12.9 | % | |||||
| Mammography | 14.2 | % | 15.6 | % | 16.4 | % | 16.0 | % | |||||
| Nuclear Medicine | 0.9 | % | 0.9 | % | 1.0 | % | 0.8 | % | |||||
| Other | 2.5 | % | 2.5 | % | 2.7 | % | 3.9 | % | |||||
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
| PROCEDURES BY MODALITY* | |||||
| Second Quarter | Second Quarter | ||||
| 2026 | 2025 | ||||
| MRI | 593,143 | 490,299 | |||
| CT | 352,734 | 291,820 | |||
| PET/CT | 29,027 | 22,155 | |||
| Nuclear Medicine | 10,460 | 9,377 | |||
| Ultrasound | 776,541 | 701,917 | |||
| Mammography | 537,732 | 508,000 | |||
| X-ray and Other | 962,376 | 900,095 | |||
| Total | 3,262,013 | 2,923,663 | |||
| * Volumes include wholly owned and joint venture centers. | |||||
| RADNET, INC. AND SUBSIDIARIES | |||||||
| SCHEDULE OF ADJUSTED EARNINGS AND EARNINGS PER SHARE(3) | |||||||
| (IN THOUSANDS EXCEPT SHARE DATA) | |||||||
| (unaudited) | |||||||
| Three Months Ended | |||||||
| June 30, | |||||||
| 2026 | 2025 (iv) | ||||||
| NET INCOME ATTRIBUTABLE TO RADNET, INC. | |||||||
| COMMON STOCKHOLDERS | $ | 7,530 | $ | 14,454 | |||
| Add/Subtract non-cash change in fair value of interest rate swaps (i) | - | 1,956 | |||||
| Non-operational rent expenses (iii) | 498 | 496 | |||||
| Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | 5,110 | 4,787 | |||||
| Intangibles Amortization Expense - Digital Health Operating Segment (v) | 6,838 | 2,032 | |||||
| Lease abandonment charge | 1,306 | 123 | |||||
| Acquisition transaction costs | 6,599 | 2,301 | |||||
| Change to contingent consideration | (3,157 | ) | - | ||||
| Debt restructing and extinguishment expenses (iv) | 3,368 | - | |||||
| Total adjustments - loss (gain) | 20,562 | 11,695 | |||||
| Subtract tax impact of Adjustments (ii) | (4,916 | ) | (402 | ) | |||
| Tax effected impact of adjustments | 15,646 | 11,293 | |||||
| TOTAL ADJUSTMENT TO NET INCOME ATTRIBUTABLE | |||||||
| TO RADNET, INC. COMMON SHAREHOLDERS | 15,646 | 11,293 | |||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO RADNET, INC. | 23,176 | 25,747 | |||||
| COMMON STOCKHOLDERS | |||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||
| Diluted | 78,731,021 | 75,531,743 | |||||
| ADJUSTED DILUTED NET INCOME PER SHARE | |||||||
| ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.29 | $ | 0.34 | |||
| (i) Impact from the change in fair value of the swaps during the quarter. Excludes the recurring amortization of the accumulation of the changes in fair value out of Other Comprehensive Income that existed prior to the hedges becoming ineffective. | |||||||
| (ii) Tax effected using | |||||||
| (iii) Represents rent expense associated with de novo sites under construction prior to them becoming operational. | |||||||
| (iv) Extraordinary expense related to the Company's successful June 2026 debt repricing and add-on transaction. | |||||||
| (v) Intangible amortization expense related to the Digital Health operating segment. | |||||||
| (vi) Adjusted from what was reported during last year's second quarter for an additional addback of | |||||||
Footnotes
(1) The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, each from continuing operations and adjusted for losses or gains on the sale of equipment, other income or loss, debt extinguishments and non-cash equity compensation. Adjusted EBITDA includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries, and is adjusted for non-cash or extraordinary and one-time events taken place during the period.
Adjusted EBITDA is reconciled to its nearest comparable GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure used as analytical indicator by RadNet management and the healthcare industry to assess business performance, and is a measure of leverage capacity and ability to service debt. Adjusted EBITDA should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies.
(2) As noted above, the Company defines Free Cash Flow as Adjusted EBITDA less total Capital Expenditures (whether completed with cash or financed) and Cash Interest Expense. Free Cash Flow is a non-GAAP financial measure. The Company uses Free Cash Flow because the Company believes it provides useful information for investors and management because it measures our capacity to generate cash from our operating activities. Free Cash Flow does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. In addition, our definition of Free Cash Flow may differ from definitions used by other companies.
Free Cash Flow should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted EBITDA should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies.
(3) The Company defines Adjusted Earnings (Loss) Per Share as net income or loss attributable to RadNet, Inc. common stockholders and excludes losses or gains on the disposal of equipment, loss on debt extinguishments, bargain purchase gains, severance costs, loss on impairment, loss or gain on swap valuation, gain on extinguishment of debt, unusual or non-recurring entries that impact the Company’s tax provision and any other non-recurring or unusual transactions recorded during the period.
Adjusted Earnings (Loss) Per Share is reconciled to its nearest comparable GAAP financial measure. Adjusted Earnings (Loss) Per Share is a non-GAAP financial measure used as analytical indicator by RadNet management and the healthcare industry to assess business performance. Adjusted Earnings Per Share should not be considered a measure of financial performance under GAAP, and the items excluded from Adjusted Earnings Per Share should not be considered in isolation or as alternatives to net income, cash flows generated by operating, investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity. As Adjusted Earnings Per Share is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation, this metric, as presented, may not be comparable to other similarly titled measures of other companies.
(4) We use Annual Recurring Revenue (“ARR”) as a key operating metric to evaluate the scale, growth and health of the recurring component of our Digital Health business. We define ARR as a key subscription-economy metric representing the predictable, normalized annualized value of contracted recurring revenue generated from active customer contracts. ARR includes subscription fees, recurring support fees and contracted usage charges, and excludes one-time or non-recurring fees, such as implementation fees, hardware sales, professional services, consulting and one-time training. ARR is determined based on the contractual terms of active customer arrangements and is not calculated by reference to revenue recognized under GAAP, deferred revenue or another GAAP financial measure. Accordingly, ARR is an operating metric and not a non-GAAP financial measure. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with, or to replace, either measure. ARR is not a forecast of future revenue, which may be affected by contract start and end dates, cancellations, renewal rates, customer usage and other factors. ARR does not have a standardized definition and may not be comparable to similarly titled measures presented by other companies.
(5) Net Debt to Adjusted EBITDA(1) Ratio is calculated by taking our Total Debt at par value less our cash balance divided by our Adjusted EBITDA(1). This amount excludes our joint venture partner’s proportionate share (
