RadNet Q3 2026 revenue rises 22.1% to $638M
Imaging Center guidance now calls for $2,385–$2,435 million in 2026 revenue, alongside higher Adjusted EBITDA and Free Cash Flow ranges.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
RadNet, Inc. (RDNT) reported third-quarter 2026 revenue of $638.3 million, up 22.1% from $522.9 million, and Adjusted EBITDA of $105.0 million, up 23.8% from $84.9 million. Adjusted EBITDA margin was 16.5%, versus 16.2%, and adjusted diluted earnings per share was $0.30, versus $0.24. Net income attributable to RadNet common stockholders was $4.2 million, compared with $5.4 million.
Aggregate advanced imaging procedures increased 19.9%, with same-center advanced imaging procedures up 8.9%. Digital Health revenue, including intersegment revenue, rose 32.6% to $32.9 million, while segment Adjusted EBITDA fell 11.8% to $3.0 million. For the first nine months, revenue was $1,836.6 million and Adjusted EBITDA $268.0 million; net loss attributable to common stockholders was $21.8 million, versus $18.1 million.
RadNet raised 2026 Imaging Center guidance to $2,385–$2,435 million in revenue, $350–$363 million in Adjusted EBITDA, and $120–$130 million in Free Cash Flow. Digital Health Adjusted EBITDA guidance before non-capitalized R&D rose to $11–$13 million. Cash was $750.6 million and net debt to Adjusted EBITDA was 1.66x as of September 30, 2026; the previously announced ONRAD acquisition remained pending.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Imaging Center 2026 guidance: revenue $2,385–$2,435 million; Adjusted EBITDA $350–$363 million.
- Moderate pointThird-quarter revenue increased 22.1% to $638.3 million.
- Moderate pointThird-quarter Adjusted EBITDA increased 23.8% to $105.0 million.
- Minor pointNine-month Adjusted EBITDA rose 26.1% to $268.0 million.
Negative
- Moderate pointRadNet common-stockholder net income fell to $4.2 million in Q3 2026.
- Moderate pointDigital Health Adjusted EBITDA declined 11.8% to $3.0 million in Q3.
- Minor pointNine-month net loss attributable to common stockholders widened to $21.8 million.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Free Cash Flow financial
same-center advanced imaging procedural volumes medical
capitation arrangements financial
Earnings Snapshot
Revised 2026 Imaging Center guidance: total net revenue of $2,385–$2,435 million, Adjusted EBITDA of $350–$363 million, and Free Cash Flow of $120–$130 million. Digital Health Adjusted EBITDA guidance before non-capitalized R&D is $11–$13 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were RDNT's third-quarter 2026 revenue and Adjusted EBITDA?
What are RDNT's revised 2026 guidance ranges?
How did RDNT's Digital Health segment perform in Q3 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
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(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On November 8, 2026, RadNet, Inc. issued a press release regarding its financial results for the Third quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
| Item 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
(d) Exhibits
| Exhibit Number | Description of Exhibit | |
| 99.1 | Press Release dated November 8, 2026 relating to RadNet, Inc.’s financial results for the quarter ended September 30, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document). |
| 2 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: November 9, 2026 | RADNET, INC. | ||
| By: | /s/ Mark D. Stolper | ||
| Name: | Mark D. Stolper | ||
| Title: | Chief Financial Officer | ||
| 3 |
Exhibit 99.1
FOR IMMEDIATE RELEASE
RadNet Reports Third Quarter Financial Results with Record Quarterly Revenue and Adjusted EBITDA(1) and Revises Upwards 2026 Financial Guidance Ranges
| · | Total Company Revenue increased 22.1% to $638.3 million in the third quarter of 2026 from $522.9 million in the third quarter of 2025; Revenue from the Digital Health reportable segment (inclusive of intersegment revenue) increased 32.6% to $32.9 million in the third quarter of 2026 from $24.8 million in the third quarter of 2025 | |
| · | Total Company Adjusted EBITDA(1) was $105.0 million in the third quarter of 2026 as compared with $84.9 million in the third quarter of 2025, an increase of 23.8%; Digital Health reportable segment Adjusted EBITDA(1) decreased 11.8% to $3.0 million in the third quarter of 2026 from $3.5 million in the third quarter of 2025 | |
| · | Total Company Adjusted EBITDA(1) margin increased to 16.5% in the third quarter of 2026 as compared with 16.2% in the third quarter of 2025 | |
| · | Adjusting for unusual or one-time items in the quarter, Adjusted Diluted Earnings Per Share(3) was $0.30 for the third quarter of 2026; This compares with Adjusted Diluted Earnings Per Share(3) of $0.24 for the third quarter of 2025 | |
| · | In the third quarter of 2026, aggregate advanced imaging (MRI, CT and PET/CT) procedural volumes increased 19.9% and same-center advanced imaging procedural volumes increased 8.9% as compared with the third quarter of 2025 | |
| · | As of September 30, 2026, we had a cash balance of $750.6 million and Net Debt to Adjusted EBITDA(1) ratio of 1.66x | |
| · | RadNet revises full-year 2026 guidance levels to increase Imaging Center Revenue, Adjusted EBITDA(1)and Free Cash Flow(2) ranges |
LOS ANGELES, California, November 8, 2026 – RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective outpatient diagnostic imaging services and a premier global developer of digital health solutions, today reported financial results for its third quarter of 2026.
Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “We delivered record quarterly Revenue and Adjusted EBITDA(1) in the third quarter. Total Company Revenue grew 22.1% and Adjusted EBITDA(1) grew 23.8% compared with last year’s third quarter, and Adjusted EBITDA(1) margin expanded 23 basis points. These results were driven by continued initiatives to create and fill capacity at existing imaging centers, new center openings, the continued shift in the business mix towards advanced imaging, tuck-in acquisitions, improved reimbursement from commercial payors, the expansion of our health system joint ventures and 32.6% Revenue growth in the Digital Health segment.”
| 1 |
Dr. Berger continued, “Advanced imaging growth continues to be strong, both in aggregate and on a same-center basis. Compared with last year’s third quarter, aggregate advanced imaging procedural volumes increased 19.9% and same-center advanced imaging procedural volumes increased 8.9%. As a result, RadNet’s advanced imaging business mix increased 232 basis points, from 28.2% of all procedures in the third quarter of 2025 to 30.6% in the third quarter of 2026.”
“With strong performance across nearly every part of the core imaging center business, we are again raising certain guidance ranges in anticipation that full-year results will exceed both our original expectations and the revised ranges issued in conjunction with first and second quarter 2026 results. We are raising 2026 Imaging Center guidance ranges for Revenue, Adjusted EBITDA(1) and Free Cash Flow(2),” added Dr. Berger.
Dr. Berger continued, “We are particularly excited about the opportunities for growth and expansion that will be made possible as a result of the recently announced pending acquisition of ONRAD. The inbound interest from current joint venture partners and potential new partners and customers has exceeded our expectations. The strategic fit that ONRAD’s capabilities have with both RadNet’s core imaging center business and Digital Health solutions is already being recognized in the imaging marketplace, and we look forward to the opportunities that could result once the acquisition is closed.”
“RadNet’s balance sheet remains healthy and continues to provide the operating flexibility necessary to achieve further growth. We ended the third quarter with $750.6 million in cash and a Net Debt to Adjusted EBITDA(1) leverage ratio of 1.66x. This liquidity enables us to keep investing in organic growth and to pursue attractive strategic acquisitions in the coming quarters,” concluded Dr. Berger.
| 2 |
Third Quarter Financial Results
For the third quarter of 2026, RadNet reported Total Company Revenue of $638.3 million and Adjusted EBITDA(1) of $105.0 million. Revenue increased $115.4 million (or 22.1%) and Adjusted EBITDA(1) increased $20.2 million (or 23.8%) as compared with the third quarter of 2025.
For the third quarter of 2026, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of $32.9 million and Adjusted EBITDA(1) of $3.0 million. Revenue increased $8.1 million (or 32.6%) and Adjusted EBITDA(1) decreased $0.4 million (or -11.8%) as compared with the third quarter of 2025.
Unadjusted for unusual or one-time items impacting the third quarter, Total Company Net Income for the third quarter of 2026 was $4.2 million as compared with a Total Company Net Income of $5.4 million for the third quarter of 2025. Fully diluted Net Income Per Share for the third quarter of 2026 was $0.05, compared with a fully diluted Net Income Per Share of $0.07 in the third quarter of 2025, based upon a weighted average number of diluted shares outstanding of 79.2 million shares in the third quarter of 2026 and 77.4 million shares in the third quarter of 2025.
There were a number of unusual, one-time and noteworthy items impacting the third quarter including: $1.2 million in severance expense related to cost-savings initiatives; $7.5 million gain on the contribution of imaging centers into joint ventures; $0.6 million expense related to leases for de novo facilities under construction that have yet to open their operations; $5.4 million loss on the disposal of equipment; $7.3 million intangibles amortization expense related to the Digital Health operating segment; $5.6 million of non-capitalized research and development expenses related to the DeepHealth Cloud OS and AI solutions; $2.8 million in legal settlements; $2.7 million of acquisition transaction costs; $8.3 million in non-cash change in contingent consideration; and $2.1 million of lease abandonment charges. Adjusting for the above items, Total Company Adjusted Earnings(3) was $23.8 million and diluted Adjusted Earnings Per Share(3) was $0.30 during the third quarter of 2026. This compares with Total Company Adjusted Earnings(3) of $18.8 million and diluted Adjusted Earnings Per Share(3) of $0.24 during the third quarter of 2025.
For the third quarter of 2026, as compared with the prior year’s third quarter, MRI volume increased 18.3%, CT volume increased 22.0% and PET/CT volume increased 30.4%. Overall volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 10.8% over the prior year’s third quarter. On a same-center basis, including only those centers which were part of RadNet for both the third quarters of 2026 and 2025, MRI volume increased 8.2%, CT volume increased 10.2% and PET/CT volume increased 8.2%. Overall same-center volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 3.2% over the prior year’s same quarter
Nine Month Financial Results
For the first nine months of 2026, RadNet reported Total Company Revenue of $1,836.6 million and Adjusted EBITDA(1) of $268.0 million. Revenue increased $344.1 million (or 23.1%) and Adjusted EBITDA(1) increased $55.4 million (or 26.1%) as compared with the first nine months of 2025.
For the first nine months of 2026, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of $94.5 million and Adjusted EBITDA(1) of $6.8 million. Revenue increased $29.7 million (or 45.8%) and Adjusted EBITDA(1) decreased $3.7 million (or -35.4%) as compared with the first nine months of 2025.
Unadjusted for one-time or unusual items, Total Company Net Loss for the first nine months of 2026 was $21.8 million as compared with a Total Company Net Loss of $18.1 million for the first nine months of 2025. Fully diluted Net Loss Per Share for the nine month period of 2026 was $(0.28), compared with a fully diluted Net Loss Per Share of $(0.24) in the nine month period of 2025, based upon a weighted average number of diluted shares outstanding of 77.6 million shares for the nine month period in 2026 and 74.7 million shares for the nine month period in 2025.
| 3 |
2026 Guidance Update
RadNet amends its previously announced guidance levels as follows:
Imaging Center Segment
| Original Guidance Range | Revised Guidance Range After Q1 Results | Revised Guidance Range After Q2 Results | Revised Guidance Range After Q3 Results | |||||
| Total Net Revenue | $2,325 - $2,375 million | $2,355 - $2,405 million | $2,370 - $2,420 million | $2,385 - $2,435 million | ||||
| Adjusted EBITDA(1) | $335 - $348 million | $340 - $353 million | $345 - $358 million | $350 - $363 million | ||||
| Capital Expenditures(a) | $165 - $175 million | $165 - $175 million | $165 - $175 million | $170 - $180 million | ||||
| Cash Interest Expense(b) | $45 - $50 million | $45 - $50 million | $48 - $53 million | $48 - $53 million | ||||
| Free Cash Flow (2) | $105 - $115 million | $112 - $122 million | $115 - $125 million | $120 - $130 million |
| (a) | Net of proceeds from the sale of equipment and the New Jersey Imaging Network L.L.C. joint venture capital expenditures. |
| (b) | Net of payments received 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 | Revised Guidance Range After Q3 Results | |||||
| Total Net Revenue (inclusive of intersegment revenue) | $135 - $145 million | $135 - $145 million | $135 - $145 million | $135 - $145 million | ||||
| Adjusted EBITDA(1) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | $10 - $12 million | $10 - $12 million | $10 - $12 million | $11 - $13 million | ||||
| Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | $17 - $19 million | $17 - $19 million | $17 - $19 million | $17 - $19 million | ||||
| Capital Expenditures | $9 - $12 million | $9 - $12 million | $9 - $12 million | $10 - $13 million | ||||
| Free Cash Flow(2) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | $(1) - $3 million | $(1) - $3 million | $(1) - $3 million | $(1) - $3 million | ||||
| Free Cash Flow(2) After Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | $(17) - $(19) million | $(17) - $(19) million | $(17) - $(19) million | $(17) - $(19) million |
Dr. Berger explained, “The Imaging Center segment has outperformed projections in each of the first three quarters of this year. As a result, we are raising its guidance ranges for Revenue, Adjusted EBITDA(1) and Free Cash Flow(2). In the Digital Health segment, we are raising the Adjusted EBITDA(1) guidance range as a result of effective expense management and faster-than-projected integration of acquired operations.”
| 4 |
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 third quarter 2026 results on Monday, November 9th, 2026 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).
Conference Call Details:
Date: Monday, November 9, 2026
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 10:30 a.m. call. There will also be simultaneous and archived webcasts available at https://viavid.webcasts.com/starthere.jsp?ei=1780998&tp_key=f33fc0e8e8 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 10213035.
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/or operated outpatient imaging centers. RadNet’s imaging center 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 globally. Together with contracted radiologists, and inclusive of full-time and per diem employees and technologists, RadNet has over 12,000 team members. Learn more at www.radnet.com.
| 5 |
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.
| 6 |
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
| 7 |
RADNET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
| September 30, 2026 | December 31, 2025 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and Cash equivalents | $ | 750,607 | $ | 767,215 | ||||
| Accounts receivable | 248,893 | 200,317 | ||||||
| Due from affiliates | 5,600 | 12,592 | ||||||
| Prepaid expenses and other current assets | 63,341 | 52,003 | ||||||
| Total current assets | 1,068,441 | 1,032,127 | ||||||
| PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS | ||||||||
| Property and equipment, net | 904,274 | 807,702 | ||||||
| Operating lease right-of-use assets | 755,606 | 690,250 | ||||||
| Total property, equipment and right-of-use assets | 1,659,880 | 1,497,952 | ||||||
| OTHER ASSETS | ||||||||
| Goodwill | 1,136,986 | 907,663 | ||||||
| Other intangible assets | 235,063 | 148,508 | ||||||
| Deferred financing costs | 1,248 | 1,684 | ||||||
| Investment in joint ventures | 131,507 | 130,340 | ||||||
| Deposits and other | 47,273 | 40,289 | ||||||
| Total Assets | $ | 4,280,398 | $ | 3,758,563 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable, accrued expenses and other | $ | 500,750 | $ | 422,029 | ||||
| Due to affiliates | 96,065 | 70,104 | ||||||
| Deferred revenue | 16,116 | 7,272 | ||||||
| Current operating lease liability | 70,598 | 61,934 | ||||||
| Current portion of notes payable | 31,796 | 25,424 | ||||||
| Current portion of finance lease | 1,317 | – | ||||||
| Total current liabilities | 716,642 | 586,763 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Long-term finance lease liability | 3,951 | – | ||||||
| Long-term operating lease liability | 772,771 | 707,001 | ||||||
| Notes payable, net of current portion | 1,293,505 | 1,064,495 | ||||||
| Deferred tax liability, net | 46,457 | 21,903 | ||||||
| Other non-current liabilities | 10,193 | 22,515 | ||||||
| Total liabilities | 2,843,519 | 2,402,677 | ||||||
| EQUITY | ||||||||
| RadNet, Inc. stockholders' equity: | ||||||||
| Common stock - $0.0001 par value, 200,000,000 shares authorized; 78,768,800 and 77,399,615 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively | 8 | 8 | ||||||
| Additional paid-in-capital | 1,246,319 | 1,180,434 | ||||||
| Accumulated other comprehensive (loss) income | (7,811 | ) | 4,885 | |||||
| Accumulated deficit | (117,220 | ) | (95,437 | ) | ||||
| Total RadNet, Inc.'s Stockholders' equity: | 1,121,296 | 1,089,890 | ||||||
| Noncontrolling interests | 315,583 | 265,996 | ||||||
| Total Equity | 1,436,879 | 1,355,886 | ||||||
| Total liabilities and equity | $ | 4,280,398 | $ | 3,758,563 | ||||
| 8 |
RADNET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| REVENUE | ||||||||||||||||
| Service fee revenue | $ | 607,015 | $ | 491,426 | $ | 1,744,822 | $ | 1,398,838 | ||||||||
| Revenue under capitation arrangements | 31,242 | 31,443 | 91,786 | 93,660 | ||||||||||||
| Total service revenue | 638,257 | 522,869 | 1,836,608 | 1,492,498 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Cost of operations, excluding depreciation and amortization | 552,382 | 450,379 | 1,637,534 | 1,332,944 | ||||||||||||
| Lease abandonment charges | 2,052 | 2,819 | 3,358 | 8,330 | ||||||||||||
| Depreciation and amortization | 47,010 | 39,799 | 137,506 | 111,275 | ||||||||||||
| Loss (gain) on sale and disposal of equipment and other | 5,359 | 1,042 | 9,067 | 3,168 | ||||||||||||
| Severance costs | 1,193 | 1,441 | 3,317 | 2,614 | ||||||||||||
| Total operating expenses | 607,996 | 495,480 | 1,790,782 | 1,458,331 | ||||||||||||
| INCOME (LOSS) FROM OPERATIONS | 30,261 | 27,389 | 45,826 | 34,167 | ||||||||||||
| OTHER INCOME AND EXPENSES | ||||||||||||||||
| Interest expense | 20,682 | 17,355 | 56,492 | 51,783 | ||||||||||||
| Equity in earnings of joint ventures | (4,200 | ) | (3,567 | ) | (12,735 | ) | (10,522 | ) | ||||||||
| Non-cash change in fair value of interest rate hedge | – | 2,371 | – | 6,433 | ||||||||||||
| Debt restructuring and extinguishment expenses | – | – | 3,368 | – | ||||||||||||
| Loss (gain) on contribution of imaging centers into joint venture | (7,528 | ) | – | (7,528 | ) | – | ||||||||||
| Other (income) expenses | (6,205 | ) | (9,044 | ) | (15,072 | ) | (24,520 | ) | ||||||||
| Total other (income) expenses | 2,749 | 7,115 | 24,525 | 23,174 | ||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 27,512 | 20,274 | 21,301 | 10,993 | ||||||||||||
| Provision for income taxes | (8,361 | ) | (6,385 | ) | (6,628 | ) | (3,807 | ) | ||||||||
| NET INCOME (LOSS) | 19,151 | 13,889 | 14,673 | 7,186 | ||||||||||||
| Net income (loss) attributable to noncontrolling interests | 14,998 | 8,472 | 36,456 | 25,241 | ||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 4,153 | $ | 5,417 | $ | (21,783 | ) | $ | (18,055 | ) | ||||||
| BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.05 | $ | 0.07 | $ | (0.28 | ) | $ | (0.24 | ) | ||||||
| DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.05 | $ | 0.07 | $ | (0.28 | ) | $ | (0.24 | ) | ||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||||||||
| Basic | 77,926,702 | 75,950,350 | 77,594,151 | 74,703,658 | ||||||||||||
| Diluted | 79,174,226 | 77,388,477 | 77,594,151 | 74,703,658 | ||||||||||||
| 9 |
RADNET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS
(IN THOUSANDS)
(unaudited)
| Nine Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income | $ | 14,673 | $ | 7,186 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 137,506 | 111,275 | ||||||
| Noncash operating lease expense | 49,425 | 44,605 | ||||||
| Equity in earnings of joint ventures, net of dividends | (4,244 | ) | (4,590 | ) | ||||
| Amortization of deferred financing costs and loan discount | 2,355 | 2,242 | ||||||
| Loss on sale and disposal of equipment | 9,067 | 3,168 | ||||||
| Loss on extinguishment of debt | 407 | – | ||||||
| Gain on contribution of imaging centers into joint venture | (7,528 | ) | – | |||||
| Lease abandonment charges | 3,358 | 8,330 | ||||||
| Amortization of cash flow hedge | – | 2,273 | ||||||
| Non-cash change in fair value of interest rate swap | – | 6,433 | ||||||
| Stock-based compensation | 51,933 | 46,276 | ||||||
| Change in fair value of contingent consideration | 7,864 | – | ||||||
| Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in purchase transactions: | ||||||||
| Accounts receivable | (30,461 | ) | (20,476 | ) | ||||
| Other current assets | (4,292 | ) | 2,093 | |||||
| Other assets | (7,478 | ) | (2,764 | ) | ||||
| Deferred taxes | 4,334 | 2 | ||||||
| Operating leases | (45,252 | ) | (48,760 | ) | ||||
| Deferred revenue | 581 | 3,934 | ||||||
| Accounts payable, accrued expenses and other | 81,393 | 53,429 | ||||||
| Net cash provided by operating activities | 263,641 | 214,656 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of imaging facilities and other acquisitions, net of cash acquired | (315,708 | ) | (66,464 | ) | ||||
| Purchase of property and equipment and other | (181,721 | ) | (162,221 | ) | ||||
| Proceeds from sale of equipment | 1,270 | 75 | ||||||
| Equity contributions in existing and purchase of interest in joint ventures | – | (4,147 | ) | |||||
| Collection of notes receivable | 8,541 | 2,832 | ||||||
| Net cash used in investing activities | (487,618 | ) | (229,925 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Principal payments on notes and leases payable | (13,993 | ) | (5,229 | ) | ||||
| Payments on Term Loan Debt | (17,028 | ) | (15,504 | ) | ||||
| Proceeds from issuance of new debt, net of issuing costs | 248,937 | 99,001 | ||||||
| Purchase of noncontrolling interests by third party | – | 2,389 | ||||||
| Payments on contingent consideration and holdbacks | (2,198 | ) | – | |||||
| Distributions paid to noncontrolling interests | (8,362 | ) | (3,313 | ) | ||||
| Proceeds from issuance of common stock upon exercise of options | 2,517 | 2,258 | ||||||
| Net cash provided by financing activities | 209,873 | 79,602 | ||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | (2,504 | ) | 363 | |||||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (16,608 | ) | 64,696 | |||||
| CASH AND CASH EQUIVALENTS, beginning of period | 767,215 | 740,020 | ||||||
| CASH AND CASH EQUIVALENTS, end of period | 750,607 | 804,716 | ||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||
| Cash paid during the period for interest | $ | 53,635 | $ | 53,679 | ||||
| Cash paid during the period for income taxes | $ | 3,908 | $ | 3,480 | ||||
| 10 |
RADNET, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS TO ADJUSTED EBITDA
(IN THOUSANDS)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income (loss) attributable to Radnet, Inc. common stockholders | $ | 4,153 | $ | 5,417 | $ | (21,783 | ) | $ | (18,055 | ) | ||||||
| Income taxes | 8,361 | 6,385 | 6,628 | 3,807 | ||||||||||||
| Interest expense | 20,682 | 17,355 | 56,492 | 51,783 | ||||||||||||
| Severance costs | 1,193 | 1,441 | 3,317 | 2,614 | ||||||||||||
| Depreciation and amortization | 47,010 | 39,799 | 137,506 | 111,275 | ||||||||||||
| Non-cash employee stock-based compensation | 10,018 | 9,041 | 51,933 | 46,276 | ||||||||||||
| Loss (gain) on sale and disposal of equipment and other | 5,359 | 1,042 | 9,067 | 3,168 | ||||||||||||
| Non-cash change in fair value of interest rate hedge | – | 2,371 | – | 6,433 | ||||||||||||
| Other expenses (income) | (6,205 | ) | (9,044 | ) | (15,072 | ) | (24,520 | ) | ||||||||
| Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI | 5,565 | 5,486 | 15,235 | 13,835 | ||||||||||||
| Lease abandonment charges | 2,052 | 2,819 | 3,358 | 8,330 | ||||||||||||
| Loss (gain) on contribution of imaging centers into joint venture | (7,528 | ) | – | (7,528 | ) | – | ||||||||||
| Loss (gain) on extinguishment of debt and related expenses | – | – | 3,368 | – | ||||||||||||
| Legal settlements | 2,815 | – | 2,815 | – | ||||||||||||
| Non-cash change to contingent consideration | 8,257 | – | 7,864 | – | ||||||||||||
| Non-operational rent expenses | 604 | 621 | 2,002 | 2,459 | ||||||||||||
| Acquisition transaction costs | 2,708 | 2,136 | 12,761 | 5,109 | ||||||||||||
| Adjusted EBITDA - Radnet, Inc. | $ | 105,044 | $ | 84,869 | $ | 267,963 | $ | 212,514 | ||||||||
| NOTE | ||||||||||||||||
| Adjusted EBITDA - Imaging Center Segment | 101,998 | 81,417 | 261,136 | 201,948 | ||||||||||||
| Adjusted EBITDA - Digital Health Segment | 3,046 | 3,452 | 6,827 | 10,566 | ||||||||||||
| 11 |
PAYMENTS BY PAYOR CLASS
| Third Quarter | ||||
| 2026 | ||||
| Commercial Insurance | 56.4% | |||
| Medicare | 24.8% | |||
| Capitation | 4.9% | |||
| Medicaid | 2.3% | |||
| Workers Compensation/Personal Injury | 2.1% | |||
| Other* | 9.5% | |||
| Total | 100.0% | |||
* Includes management fee, teleradiology and Digital Health financial reporting unit revenue.
RADNET PAYMENTS BY MODALITY
| Third Quarter | Full Year | Full Year | Full Year | |||||||||||||
| 2026 | 2025 | 2024 | 2023 | |||||||||||||
| MRI | 38.6% | 37.7% | 37.1% | 36.8% | ||||||||||||
| CT | 15.4% | 15.6% | 15.9% | 16.8% | ||||||||||||
| PET/CT | 10.2% | 8.8% | 7.2% | 6.4% | ||||||||||||
| X-ray | 4.9% | 5.5% | 6.0% | 6.5% | ||||||||||||
| Ultrasound | 13.4% | 13.5% | 13.6% | 12.9% | ||||||||||||
| Mammography | 14.1% | 15.6% | 16.4% | 16.0% | ||||||||||||
| Nuclear Medicine | 0.8% | 0.9% | 1.0% | 0.8% | ||||||||||||
| Other | 2.6% | 2.5% | 2.7% | 3.9% | ||||||||||||
| 100.0% | 100.0% | 100.0% | 100.0% |
PROCEDURES BY MODALITY*
| Third Quarter | Third Quarter | |||||||
| 2026 | 2025 | |||||||
| MRI | 606,795 | 512,861 | ||||||
| 354,953 | 290,975 | |||||||
| PET/CT | 29,750 | 22,817 | ||||||
| Nuclear Medicine | 10,347 | 8,965 | ||||||
| Ultrasound | 771,224 | 705,347 | ||||||
| Mammography | 527,552 | 496,465 | ||||||
| X-ray and Other | 943,648 | 889,888 | ||||||
| Total | 3,244,269 | 2,927,318 | ||||||
* Volumes include wholly owned and joint venture centers.
| 12 |
RADNET, INC. AND SUBSIDIARIES
SCHEDULE OF ADJUSTED EARNINGS AND EARNINGS PER SHARE (3)
(IN THOUSANDS EXCEPT SHARE DATA)
(unaudited)
| Three Months Ended | ||||||||
| September 30, | September 30, | |||||||
| 2026 | 2025(iv) | |||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC.COMMON STOCKHOLDERS | $ | 4,153 | $ | 5,417 | ||||
| Non-cash impact of cash flow hedges (i) | – | 2,587 | ||||||
| Severance costs | 1,194 | 1,441 | ||||||
| Loss (gain) on contribution of imaging centers into joint ventures | (7,528 | ) | – | |||||
| Non-operational rent expenses (iii) | 604 | 621 | ||||||
| Loss (gain) on sale and disposal of equipment and other | 5,359 | 1,042 | ||||||
| Intangibles Amortization Expense - Digital Health Operating Segment | 7,260 | 3,353 | ||||||
| Non-capitalized R&D - DeepHealth cloud OS & generative AI | 5,565 | 5,486 | ||||||
| Legal Settlement | 2,815 | – | ||||||
| Acquisition transaction costs | 2,708 | 2,136 | ||||||
| Non-cash change to contingent consideration | 8,257 | – | ||||||
| Lease abandonment charges | 2,052 | 2,819 | ||||||
| Total adjustments - loss (gain) | 28,286 | 19.485 | ||||||
| Subtract tax impact of Adjustments (ii) | (8,596 | ) | (6,138 | |||||
| Tax effected impact of adjustments | 19,690 | 13,347 | ||||||
| TOTAL ADJUSTMENT TO NET INCOME ATTRIBUTABLE TO RADNET, INC. COMMON SHAREHOLDERS | 19,690 | 13,347 | ||||||
| ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | 23,843 | 18,764 | ||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||
| Diluted | 79,174,226 | 77,388,477 | ||||||
| ADJUSTED DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS | $ | 0.30 | $ | 0.24 | ||||
| (i) | Impact is the sum of (a) the loss in fair value of the hedges during the quarter of $2,371 in 2025 and (b) the amortization of the accumulation of the changes in fair value out of Other Comprehensive Income that existed prior to the hedges becoming ineffective of $216 in 2025. | |
| (ii) | Tax effected using 31.5% blended federal and state effective tax rate for 2025 and 30.4% for 2026. | |
| (iii) | Represents rent expense associated with de novo sites under construction prior to them becoming operational. | |
| (iv) | Adjusted from what was reported during last year's third quarter for additional addbacks of (a) $1,042,000 related to Loss (gain) on sale and disposal of equipment and other and (b) Intangible amortization expense of the Digital Health operating segment of $3,353,000. |
| 13 |
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.
| 14 |