RadNet Reports Second Quarter Financial Results with Record Quarterly Revenue and Adjusted EBITDA¹ and Revises Upwards 2025 Financial Guidance Ranges
RadNet (NASDAQ:RDNT), a leading outpatient diagnostic imaging services provider, reported record Q2 2025 results with total revenue increasing 8.4% to $498.2 million and Adjusted EBITDA growing 12.3% to $81.2 million. The company's Digital Health segment saw significant growth with revenue up 30.9% to $20.7 million.
Advanced imaging volumes showed strong performance, with MRI volume up 9.0%, CT volume up 8.1%, and PET/CT volume surging 22.4%. The company achieved Adjusted Earnings of $23.8 million ($0.31 per share), compared to $12.0 million ($0.16 per share) in Q2 2024.
Based on strong performance, RadNet revised its 2025 guidance upward, with total net revenue now projected at $1.85-1.90 billion and Adjusted EBITDA expected between $271-279 million.
RadNet (NASDAQ:RDNT), fornitore leader di servizi di diagnostica per immagini in regime ambulatoriale, ha registrato risultati record nel Q2 2025 con ricavi totali in aumento dell'8,4% a $498.2 million e EBITDA rettificato in crescita del 12,3% a $81.2 million. Il segmento Digital Health ha segnato una forte crescita, con ricavi saliti del 30,9% a $20.7 million.
I volumi di diagnostica avanzata hanno mostrato ottime performance: volumi MRI in aumento del 9,0%, CT +8,1% e PET/CT in forte crescita del 22,4%. L'utile rettificato ha raggiunto $23.8 million ($0.31 per azione), rispetto a $12.0 million ($0.16 per azione) nel Q2 2024.
Sulla base di questi risultati, RadNet ha rivisto al rialzo le previsioni per il 2025: i ricavi netti totali sono ora stimati a $1.85-1.90 miliardi e l'EBITDA rettificato è previsto tra $271-279 million.
RadNet (NASDAQ:RDNT), proveedor líder de servicios de diagnóstico por imagen ambulatorio, informó resultados récord en el Q2 2025 con ingresos totales que aumentaron 8.4% hasta $498.2 million y EBITDA ajustado que creció 12.3% hasta $81.2 million. Su segmento de Digital Health experimentó un crecimiento notable, con ingresos al alza 30.9% hasta $20.7 million.
Los volúmenes de imagen avanzada mostraron un rendimiento sólido: volumen de MRI +9.0%, CT +8.1% y PET/CT +22.4%. La utilidad ajustada fue de $23.8 million ($0.31 por acción), frente a $12.0 million ($0.16 por acción) en el Q2 2024.
Tras este desempeño, RadNet elevó su guía para 2025: ahora proyecta ingresos netos totales de $1.85-1.90 mil millones y un EBITDA ajustado esperado entre $271-279 million.
RadNet (NASDAQ:RDNT), 선도적인 외래 진단 영상 서비스 제공업체가 2025년 2분기 실적에서 기록적인 성과를 발표했습니다. 총수익은 8.4% 증가한 $498.2 million, 조정 EBITDA는 12.3% 성장한 $81.2 million을 기록했습니다. 디지털 헬스(Digital Health) 부문 매출은 30.9% 증가한 $20.7 million로 큰 폭의 성장을 보였습니다.
고급 영상의 볼륨도 견조하게 증가했으며, MRI 볼륨 9.0% 증가, CT 8.1% 증가, PET/CT 22.4% 급증했습니다. 조정 순이익은 $23.8 million($0.31/주)로, 전년 동기인 Q2 2024의 $12.0 million($0.16/주)에서 증가했습니다.
이 같은 강한 실적을 바탕으로 RadNet은 2025년 가이던스를 상향 조정했습니다. 총 순매출은 $1.85-1.90 billion으로, 조정 EBITDA는 $271-279 million 사이로 예상됩니다.
RadNet (NASDAQ:RDNT), acteur majeur des services d'imagerie diagnostique en ambulatoire, a publié des résultats records pour le T2 2025 avec des revenus totaux en hausse de 8,4% à $498,2 millions et un EBITDA ajusté en progression de 12,3% à $81,2 millions. Le segment Digital Health a connu une croissance marquée, les revenus augmentant de 30,9% à $20,7 millions.
Les volumes d'imagerie avancée ont été solides : volume MRI en hausse de 9,0%, CT +8,1% et PET/CT +22,4%. Le bénéfice ajusté s'est établi à $23,8 millions ($0,31 par action), contre $12,0 millions ($0,16 par action) au T2 2024.
Au vu de ces performances, RadNet a relevé ses prévisions pour 2025 : le chiffre d'affaires net total est désormais attendu entre $1,85 et $1,90 milliard et l'EBITDA ajusté entre $271 et $279 millions.
RadNet (NASDAQ:RDNT), ein führender Anbieter ambulanter diagnostischer Bildgebungsdienstleistungen, meldete Rekordergebnisse für das Q2 2025: der Gesamtumsatz stieg um 8,4% auf $498,2 Millionen und das bereinigte EBITDA wuchs um 12,3% auf $81,2 Millionen. Das Digital-Health-Segment verzeichnete ein deutliches Wachstum mit einem Umsatzanstieg von 30,9% auf $20,7 Millionen.
Die Volumina in der erweiterten Bildgebung entwickelten sich stark: MRI-Volumen +9,0%, CT +8,1% und PET/CT +22,4%. Das bereinigte Ergebnis betrug $23,8 Millionen ($0,31 je Aktie) gegenüber $12,0 Millionen ($0,16 je Aktie) im Q2 2024.
Aufgrund der soliden Performance hat RadNet die Prognose für 2025 nach oben korrigiert: Der Gesamtumsatz wird nun bei $1,85–1,90 Milliarden und das bereinigte EBITDA zwischen $271–279 Millionen erwartet.
- Record quarterly revenue of $498.2M, up 8.4% year-over-year
- Adjusted EBITDA margins improved by 57 basis points to 16.3%
- Digital Health segment revenue increased 30.9% to $20.7M
- Strong advanced imaging growth: MRI +9.0%, CT +8.1%, PET/CT +22.4%
- Adjusted EPS nearly doubled to $0.31 from $0.16 year-over-year
- Strong balance sheet with $833.2M cash and low leverage ratio of 0.96x
- Upward revision of 2025 financial guidance
- $23.5M net loss for first six months of 2025, compared to $5.8M loss in 2024
- Increased R&D expenses with $4.8M in non-capitalized research costs
- $15M estimated Adjusted EBITDA loss from California wildfires and winter weather in Q1 2025
Insights
RadNet posted record Q2 results with 8.4% revenue growth and 12.3% EBITDA growth, driving upward 2025 guidance revision.
RadNet delivered exceptional Q2 2025 performance with total revenue reaching a record
The profit metrics are particularly impressive. Adjusted EBITDA hit a record
RadNet's Digital Health segment shows promising momentum with
The company's balance sheet strength is noteworthy with
Looking at procedural volumes, PET/CT stands out with
The upward revision of 2025 guidance for both revenue and EBITDA signals management's confidence in continued strong performance. With nine additional de novo facilities planned for the remainder of 2025, RadNet is positioning for sustained growth while maintaining profitability.
- 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) increased30.9% 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 of12.3% ; Digital Health reportable segment Adjusted EBITDA(1) increased4.1% 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 with15.7% 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 from26.5% 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 increased6.6% 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
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
“The growth in advanced imaging from these initiatives along with effective cost management contributed to an increase in our Adjusted EBITDA(1) margin to
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
“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
For the second quarter of 2025, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of
Unadjusted for unusual or one-time items impacting the second quarter of 2025, Total Company Net Income for the second quarter of 2025 was
There were a number of unusual or one-time items impacting the second quarter including:
For the second quarter of 2025, as compared with the prior year’s second quarter, MRI volume increased
Six Month Financial Results
For the first six months of 2025, RadNet reported Total Company Revenue of
For the first six months of 2025, 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 2025 was
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 | ||||||
| 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 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, 2025
Time: 10:30 a.m. Eastern Time
Dial In-Number: 844-826-3035
International 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, 310-445-2800
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, 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 - | 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 | |||||||||||||||
| Service fee revenue | $ | 468,063 | $ | 422,745 | $ | 907,412 | $ | 819,934 | |||||||
| Revenue under capitation arrangements | 30,167 | 36,969 | 62,217 | 71,487 | |||||||||||
| Total service revenue | 498,230 | 459,714 | 969,629 | 891,421 | |||||||||||
| OPERATING EXPENSES | |||||||||||||||
| Cost of operations, excluding depreciation and amortization | 429,085 | 389,724 | 882,565 | 777,313 | |||||||||||
| Lease abandonment charges | 123 | - | 5,511 | - | |||||||||||
| Depreciation and amortization | 35,993 | 34,475 | 71,476 | 66,843 | |||||||||||
| Loss (gain) on sale and disposal of equipment and other | 1,724 | 401 | 2,126 | 587 | |||||||||||
| Severance costs | 426 | 268 | 1,173 | 493 | |||||||||||
| Total operating expenses | 467,351 | 424,868 | 962,851 | 845,236 | |||||||||||
| INCOME (LOSS) FROM OPERATIONS | 30,879 | 34,846 | 6,778 | 46,185 | |||||||||||
| OTHER INCOME AND EXPENSES | |||||||||||||||
| Interest expense | 17,189 | 26,082 | 34,428 | 42,349 | |||||||||||
| Equity in earnings of joint ventures | (4,356 | ) | (3,389 | ) | (6,955 | ) | (7,713 | ) | |||||||
| Non-cash change in fair value of interest rate hedge | 1,956 | 1,890 | 4,062 | 674 | |||||||||||
| Debt restructuring and extinguishment expenses | - | 8,762 | - | 8,762 | |||||||||||
| Other (income) expenses | (7,764 | ) | (7,900 | ) | (15,476 | ) | (10,834 | ) | |||||||
| Total other (income) expenses | 7,025 | 25,445 | 16,059 | 33,238 | |||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 23,854 | 9,401 | (9,281 | ) | 12,947 | ||||||||||
| Provision for income taxes | (820 | ) | (2,456 | ) | 2,578 | (592 | ) | ||||||||
| NET INCOME (LOSS) | 23,034 | 6,945 | (6,703 | ) | 12,355 | ||||||||||
| Net income (loss) attributable to noncontrolling interests | 8,580 | 9,927 | 16,769 | 18,116 | |||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 14,454 | $ | (2,982 | ) | $ | (23,472 | ) | $ | (5,761 | ) | ||||
| BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.19 | $ | (0.04 | ) | $ | (0.32 | ) | $ | (0.08 | ) | ||||
| DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.19 | $ | (0.04 | ) | $ | (0.32 | ) | $ | (0.08 | ) | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||||||||
| Basic | 74,352,498 | 73,419,124 | 74,070,438 | 71,795,080 | |||||||||||
| Diluted | 75,531,743 | 73,419,124 | 74,070,438 | 71,795,080 | |||||||||||
| RADNET, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS | |||||||
| (IN THOUSANDS) | |||||||
| (unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2025 | 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net (loss) income | $ | (6,703 | ) | $ | 12,355 | ||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 71,476 | 66,843 | |||||
| Noncash operating lease expense | 29,356 | 30,006 | |||||
| Equity in earnings of joint ventures, net of dividends | (1,267 | ) | (6,713 | ) | |||
| Amortization of deferred financing costs and loan discount | 1,471 | 1,541 | |||||
| Loss on sale and disposal of equipment | 2,126 | 587 | |||||
| Loss on extinguishment of debt | - | 2,080 | |||||
| Lease abandonment charges | 5,511 | - | |||||
| Amortization of cash flow hedge | 2,712 | 7,256 | |||||
| Non-cash change in fair value of interest rate swap | 4,062 | 674 | |||||
| Stock-based compensation | 37,235 | 16,645 | |||||
| Change in fair value of contingent consideration | - | 1,974 | |||||
| Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions: | |||||||
| Accounts receivable | (14,159 | ) | (31,581 | ) | |||
| Other current assets | 22,381 | 5,242 | |||||
| Other assets | (2,544 | ) | (5,553 | ) | |||
| Deferred taxes | (3,511 | ) | 1,791 | ||||
| Operating leases | (34,726 | ) | (27,707 | ) | |||
| Deferred revenue | 145 | (185 | ) | ||||
| Accounts payable, accrued expenses and other | 48,264 | 57,835 | |||||
| Net cash provided by operating activities | 161,829 | 133,090 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchase of imaging facilities and other acquisitions, net of cash acquired | (31,985 | ) | (32,771 | ) | |||
| Purchase of property and equipment and other | (101,776 | ) | (104,095 | ) | |||
| Proceeds from sale of equipment | 40 | 9 | |||||
| Equity contributions in existing and purchase of interest in joint ventures | (20,480 | ) | (1,421 | ) | |||
| Net cash used in investing activities | (154,201 | ) | (138,278 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Principal payments on notes and leases payable | (3,461 | ) | (2,624 | ) | |||
| Payments on Term Loan Debt | (10,252 | ) | (682,438 | ) | |||
| Proceeds from issuance of new debt, net of issuing costs | 99,001 | 863,869 | |||||
| Purchase of noncontrolling interests by third party | 2,389 | 4,169 | |||||
| Payments on contingent consideration and holdbacks | - | (3,614 | ) | ||||
| Distributions paid to noncontrolling interests | (3,313 | ) | (2,423 | ) | |||
| Proceeds from sale of economic interests in majority owned subsidiary, net of taxes | - | 8,713 | |||||
| Proceeds from issuance of common stock | - | 218,385 | |||||
| Proceeds from issuance of common stock upon exercise of options | 554 | 367 | |||||
| Net cash provided by financing activities | 84,918 | 404,404 | |||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | 586 | (107 | ) | ||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 93,132 | 399,109 | |||||
| CASH AND CASH EQUIVALENTS, beginning of period | 740,020 | 342,570 | |||||
| CASH AND CASH EQUIVALENTS, end of period | 833,152 | 741,679 | |||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||
| Cash paid during the period for interest | $ | 35,018 | $ | 34,203 | |||
| Cash paid during the period for income taxes | $ | 2,428 | $ | 705 | |||
| 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, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income (loss) attributable to Radnet, Inc. common stockholders | $ | 14,454 | $ | (2,982 | ) | $ | (23,472 | ) | $ | (5,761 | ) | ||||
| Income taxes | 820 | 2,456 | (2,578 | ) | 592 | ||||||||||
| Interest expense | 17,189 | 26,082 | 34,428 | 42,349 | |||||||||||
| Severance costs | 426 | 268 | 1,173 | 493 | |||||||||||
| Depreciation and amortization | 35,993 | 34,475 | 71,476 | 66,843 | |||||||||||
| Non-cash employee stock-based compensation | 8,741 | 4,749 | 37,235 | 16,646 | |||||||||||
| Loss (gain) on sale and disposal of equipment and other | 1,724 | 401 | 2,126 | 587 | |||||||||||
| Non-cash change in fair value of interest rate hedge | 1,956 | 1,890 | 4,062 | 674 | |||||||||||
| Other expenses (income) | (7,764 | ) | (7,900 | ) | (15,476 | ) | (10,834 | ) | |||||||
| Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | 4,787 | 3,317 | 8,349 | 6,632 | |||||||||||
| Lease abandonment charges | 123 | - | 5,511 | - | |||||||||||
| Loss (gain) on extinguishment of debt and related expenses | - | 8,762 | - | 8,762 | |||||||||||
| Non-cash change to contingent consideration | - | - | - | 1,974 | |||||||||||
| Non-operational rent expenses | 496 | 809 | 1,838 | 1,832 | |||||||||||
| Acquisition transaction costs | 2,301 | - | 2,973 | - | |||||||||||
| Adjusted EBITDA - Radnet, Inc. | $ | 81,246 | $ | 72,327 | $ | 127,645 | $ | 130,789 | |||||||
| NOTE | |||||||||||||||
| Adjusted EBITDA - Imaging Center Segment | 77,843 | 69,058 | 120,531 | 124,000 | |||||||||||
| Adjusted EBITDA - Digital Health Segment | 3,403 | 3,269 | 7,114 | 6,789 | |||||||||||
| PAYMENTS BY PAYOR CLASS | ||
| Second Quarter | ||
| 2025 | ||
| Commercial Insurance | ||
| Medicare | ||
| Capitation | ||
| Medicaid | ||
| Workers Compensation/Personal Injury | ||
| Other* | ||
| Total | ||
| * Includes Management Fees, Digital Health Revenue and Heart Lung Health Revenue. | ||
| RADNET PAYMENTS BY MODALITY | ||||||||||||
| Second Quarter | Full Year | Full Year | Full Year | |||||||||
| 2025 | 2024 | 2023 | 2022 | |||||||||
| MRI | 37.3 | % | 37.1 | % | 36.8 | % | 36.8 | % | ||||
| CT | 15.7 | % | 15.9 | % | 16.8 | % | 17.5 | % | ||||
| PET/CT | 8.7 | % | 7.2 | % | 6.4 | % | 5.8 | % | ||||
| X-ray | 5.6 | % | 6.0 | % | 6.5 | % | 6.7 | % | ||||
| Ultrasound | 13.6 | % | 13.6 | % | 12.9 | % | 12.6 | % | ||||
| Mammography | 15.8 | % | 16.4 | % | 16.0 | % | 15.3 | % | ||||
| Nuclear Medicine | 0.9 | % | 1.0 | % | 0.8 | % | 0.9 | % | ||||
| Other | 2.5 | % | 2.7 | % | 3.9 | % | 4.5 | % | ||||
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
| PROCEDURES BY MODALITY* | |||||
| Second Quarter | Second Quarter | ||||
| 2025 | 2024 | ||||
| MRI | 490,299 | 449,781 | |||
| CT | 291,820 | 269,939 | |||
| PET/CT | 22,155 | 18,107 | |||
| Nuclear Medicine | 9,377 | 9,610 | |||
| Ultrasound | 701,917 | 664,043 | |||
| Mammography | 508,000 | 483,510 | |||
| X-ray and Other | 900,095 | 890,814 | |||
| Total | 2,923,663 | 2,785,804 | |||
| * Volumes include wholy 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, | |||||||||
| 2025 | 2024 | ||||||||
| NET INCOME ATTRIBUTABLE TO RADNET, INC. | |||||||||
| COMMON STOCKHOLDERS | $ | 14,454 | $ | (2,982 | ) | ||||
| Add/Subtract non-cash change in fair value of interest rate swaps (i) | 1,956 | 1,890 | |||||||
| Non-cash interest expense from extraordinary interest rate swap OCI amortization | - | 5,559 | |||||||
| Non-operational rent expenses (iii) | 496 | 809 | |||||||
| Contingent consideration | - | - | |||||||
| Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | 4,787 | 3,317 | |||||||
| Lease abandonment charge | 123 | - | |||||||
| Acquisition transaction costs | 2,301 | - | |||||||
| Debt restructing and extinguishment expenses (iv) | - | 8,762 | |||||||
| Total adjustments - loss (gain) | 9,663 | 20,337 | |||||||
| Subtract tax impact of Adjustments (ii) | (332 | ) | (5,308 | ) | |||||
| Tax effected impact of adjustments | 9,331 | 15,029 | |||||||
| TOTAL ADJUSTMENT TO NET INCOME ATTRIBUTABLE | |||||||||
| TO RADNET, INC. COMMON SHAREHOLDERS | 9,331 | 15,029 | |||||||
| ADJUSTED NET INCOME ATTRIBUTABLE TO RADNET, INC. | 23,785 | 12,047 | |||||||
| COMMON STOCKHOLDERS | |||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | |||||||||
| Diluted | 75,531,743 | 74,944,366 | |||||||
| ADJUSTED DILUTED NET INCOME PER SHARE | |||||||||
| ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.31 | $ | 0.16 | |||||
| (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 April 2024 debt refinancing transaction. | |||||||||
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.
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