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RadNet Reports Second Quarter Financial Results with Record Quarterly Revenue and Adjusted EBITDA¹ and Revises Upwards 2025 Financial Guidance Ranges

  • Total Company Revenue increased 8.4% to a quarterly record of $498.2 million in the second quarter of 2025 from $459.7 million in the second quarter of 2024; Revenue from the Digital Health reportable segment (inclusive of intersegment revenue) increased 30.9% to a quarterly record of $20.7 million in the second quarter of 2025 from $15.8 million in the second quarter of 2024
  • Total Company Adjusted EBITDA(1) was a quarterly record of $81.2 million in the second quarter of 2025 as compared with $72.3 million in the second quarter of 2024, an increase of 12.3%; Digital Health reportable segment Adjusted EBITDA(1) increased 4.1% to $3.4 million in the second quarter of 2025 from $3.3 million in the second quarter of 2024
  • Total Company Adjusted EBITDA(1) margins increased by 57 basis points to 16.3% in the second quarter of 2025 as compared with 15.7% in the second quarter of 2024
  • As a percentage of total procedural volumes, advanced imaging increased to 27.5% in the second quarter of 2025 from 26.5% in the second quarter of 2024, an increase of 102 basis points
  • Adjusting for unusual or one-time items in the quarter, Adjusted Earnings(3) was $23.8 million and Adjusted Earnings Per Share(3) was $0.31 for the second quarter of 2025; This compares with Adjusted Earnings(3) of $12.0 million and Adjusted Earnings Per Share(3) of $0.16 for the second quarter of 2024  
  • In the second quarter of 2025, aggregate advanced imaging (MRI, CT and PET/CT) procedural volumes increased 9.0% and same-center advanced imaging procedural volumes increased 6.6% as compared with the second quarter of 2024
  • As of June 30, 2025, balance sheet cash was $833.2 million and Net Debt to Adjusted EBITDA(1) ratio was 0.96x
  • RadNet revises full-year 2025 guidance levels to increase Revenue and Adjusted EBITDA(1) guidance ranges

LOS ANGELES, Aug. 10, 2025 (GLOBE NEWSWIRE) — RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 405 owned and operated outpatient imaging centers, today reported financial results for its second quarter of 2025.

Dr. Howard Berger, President and Chief Executive Officer of RadNet, commented, “Both the Imaging Center and Digital Health reportable operating segments demonstrated strong growth and achieved record quarterly results. In the second quarter of 2025, total Company Revenue grew 8.4% and Digital Health segment Revenue increased 30.9% from last year’s same quarter. Growth was driven by strong increases in aggregate and same center procedural volumes, improved reimbursement from commercial and capitated payors, a continuing shift in procedural volumes towards advanced imaging modalities and incremental Digital Health sales and licenses of workflow software and AI solutions.”

Dr. Berger continued, “Our focus has been on driving more advanced imaging procedures (MRI, CT and PET/CT) and increasing advanced imaging capacity at the imaging centers through a variety of initiatives. Within MRI, the 9.0% aggregate and 6.6% same center growth in the second quarter as compared with last year’s second quarter is partially the result of capacity created from investments made in MRI software upgrades and operating protocols which enable shorter scan times. CT programs have expanded on both coasts to offer more complex procedures, such as Cardiac CT Angiography, which is often enhanced with AI-assisted analytics. Within PET/CT, our fastest growing modality with 22.4% growth from last year’s second quarter, emphasis has been on newer diagnostic and screening offerings for prostate cancer, Alzheimer’s disease and dementia and new procedures with leading-edge tumor-specific radioactive tracers. The growth in advanced imaging, particularly MRI, has been furthered by the implementation of Digital Health’s TechLiveTM, our remote screening technology recently cleared by the FDA. TechLiveTM is assisting with ongoing technologist staffing challenges by enabling remote control of advanced imaging equipment to expand hours of operation and by staffing exam rooms which otherwise would have been closed.”

“The growth in advanced imaging from these initiatives along with effective cost management contributed to an increase in our Adjusted EBITDA(1) margin to 16.3% during the second quarter of 2025, which compares with 15.7% in last year’s second quarter, an improvement of 57 basis points. Adjusted EBITDA(1) during the second quarter of 2025 increased by 12.3% to $81.2 million from $72.3 million in last year’s second quarter,” added Dr. Berger.

Dr. Berger continued, “In response to high demand and patient backlogs in many of RadNet’s local markets, we continue to pursue capacity expansion through the development and construction of new imaging centers. One new facility was opened during the second quarter in East Brunswick, New Jersey, and nine additional de novo facility openings are projected for the remainder of 2025. Within Digital Health, we continue to see growth from the nationwide expansion of the AI-powered Enhanced Breast Cancer Detection program, where today almost 45% of RadNet screening mammography patients are electing to participate for a $40 out-of-pocket charge. We continue to make progress with the internal RadNet implementation of the TechLiveTM remote scanning solution, elements of the DeepHealth Operations and Diagnostic suites and the newly acquired See-Mode ultrasound AI capabilities.”

“Given the sustainable positive trends we are experiencing and the strong financial performance of the second quarter, we are revising upwards 2025 guidance levels for Revenue and Adjusted EBITDA(1) in anticipation of financial results that we believe will exceed both our original expectations and the amendments we made to the guidance ranges upon releasing first quarter 2025 results in May,” concluded Dr. Berger.

Second Quarter Financial Results

For the second quarter of 2025, RadNet reported Total Company Revenue of $498.2 million and Adjusted EBITDA(1) of $81.2 million. Revenue increased $38.5 million (or 8.4%) and Adjusted EBITDA(1) increased $8.9 million (or 12.3%) as compared with the second quarter of 2024.  

For the second quarter of 2025, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of $20.7 million and Adjusted EBITDA(1) of $3.4 million. Revenue increased $4.9 million (or 30.9%) and Adjusted EBITDA(1) increased $134,000 (or 4.1%) as compared with the second quarter of 2024.

Unadjusted for unusual or one-time items impacting the second quarter of 2025, Total Company Net Income for the second quarter of 2025 was $14.5 million as compared with a Total Company Net Loss of $3.0 million for the second quarter of 2024. Net Income Per Share for the second quarter of 2025 was $0.19, compared with a Net Loss per share of $(0.04) in the second quarter of 2024, based upon a weighted average number of diluted shares outstanding of 75.5 million shares in 2025 and 73.4 million shares in 2024.

There were a number of unusual or one-time items impacting the second quarter including: $2.0 million of non-cash loss from interest rate swaps; $496,000 expense related to leases for de novo facilities under construction that have yet to open their operations; $123,000 of lease abandonment charge; $2.3 million of acquisition transaction costs; and $4.8 million of non-capitalized research and development expenses related to the DeepHealth Cloud OS and generative AI. Adjusting for the above items, Total Company Adjusted Earnings(3) was $23.8 million and diluted Adjusted Earnings Per Share(3) was $0.31 during the second quarter of 2025. This compares with Total Company Adjusted Earnings(3) of $12.0 million and diluted Adjusted Earnings Per Share(3) of $0.16 during the second quarter of 2024.

For the second quarter of 2025, as compared with the prior year’s second quarter, MRI volume increased 9.0%, CT volume increased 8.1%, PET/CT volume increased 22.4% and routine imaging (inclusive of nuclear medicine, ultrasound, mammography, x-ray and other exams) increased 3.5% over the prior year’s second quarter. On a same-center basis, including only those centers which were part of RadNet for both the second quarters of 2025 and 2024, MRI volume increased 6.6%, CT volume increased 5.9%, PET/CT volume increased 16.2% and routine imaging increased 1.4% over the prior year’s second quarter.

Six Month Financial Results

For the first six months of 2025, RadNet reported Total Company Revenue of $969.6 million and Adjusted EBITDA(1) of $127.6 million. Revenue increased $78.2 million (or 8.8%) and Adjusted EBITDA(1) decreased $3.1 million (or 2.4%) as compared with the first six months of 2024. The decrease in Adjusted EBITDA(1) was primarily the result of the previously estimated loss of $15 million of Adjusted EBITDA(1) as a result of the California wildfires and severe winter weather conditions impacting the first quarter of 2025.   

For the first six months of 2025, RadNet reported Digital Health Revenue (inclusive of intersegment revenue) of $39.9 million and Adjusted EBITDA(1) of $7.1 million. Revenue increased $9.5 million (or 31.0%) and Adjusted EBITDA(1) increased $325,000 (or 4.8%) as compared with the first six months of 2024.

Unadjusted for one-time or unusual items, Total Company Net Loss for the first six months of 2025 was $23.5 million as compared with a Total Company Net Loss of $5.8 million for the first six months of 2024. Net Loss Per Share for the six-month period of 2025 was $(0.32), compared with a Net Loss per share of $(0.08) in the six-month period of 2024, based upon a weighted average number of diluted shares outstanding of 74.1 million shares in 2025 and 71.8 million shares in 2024.

2025 Guidance Update

RadNet updates guidance levels as follows:

Imaging Center Segment
    
 Original Guidance
Range
Revised Guidance
Range After Q1 Results
Revised Guidance
Range After Q2 Results
Total Net Revenue$1,825 – $1,875 million$1,835 – $1,885 million$1,850 – $1,900 million
Adjusted EBITDA(1)$265 – $273 million$268 – $276 million$271 – $279 million
Capital Expenditures(a)$140 – $150 million$145 – $155 million$152 – $162 million
Cash Interest Expense(b)$35 – $40 million$35 – $40 million$35 – $40 million
Free Cash Flow (2)$70 – $80 million$70 – $80 million$70 – $80 million
    
(a)   Net of proceeds from the sale of equipment and New Jersey Imaging Network capital expenditures.
(b)   Net of payments from counterparties on interest rate swaps and interest income from our cash balance recorded in Other Income.

Digital Health Segment
 
 Original
Guidance Range
Revised
Guidance Range After
Q1 Results
 Revised
Guidance Range After
Q2 Results
    
Total Net Revenue (inclusive of intersegment revenue)$80 – $90 million$80 – $90 million$80 – $90 million
    
Adjusted EBITDA(1) Before Non-Capitalized R&D – DeepHealth Cloud OS & Generative AI$15 – $17 million$15 – $17 million$15 – $17 million
    
Non-Capitalized R&D – DeepHealth Cloud OS & Generative AI$16 – $18 million$16 – $18 million$17 – $19 million
    
Capital Expenditures$3 – $5 million$3 – $5 million$2 – $4 million
    
Free Cash Flow(2) Before Non-Capitalized R&D – DeepHealth Cloud OS & Generative AI$11 – $13 million$11 – $13 million$11 – $13 million
    
Free Cash Flow(2) After Non-Capitalized R&D – DeepHealth Cloud OS & Generative AI$(5) – $(8) million$(5) – $(8) million$(5) – $(8) million
    

Conference Call for Tomorrow

Dr. Howard Berger, President and Chief Executive Officer, and Mark Stolper, Executive Vice President and Chief Financial Officer, will host a conference call to discuss its second quarter 2025 results on Monday, August 11th, 2025 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).

Conference Call Details:

Date: Monday, August 11, 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 – $0.0001 value, 200,000,000 shares authorized; 75,067,102 and 74,036,993 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 8   7 
Additional paid-in-capital 1,025,936   988,147 
Accumulated other comprehensive loss 6,627   (9,061)
Accumulated deficit (100,257)  (76,785)
Total RadNet, Inc.’s Stockholders’ equity: 932,314   902,308 
Noncontrolling interests 246,947   231,102 
Total Equity 1,179,261   1,133,410 
Total liabilities and equity$3,514,966  $3,286,690 
    

RADNET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS EXCEPT FOR SHARE AND PER SHARE DATA)
(unaudited)
        
 Three Months Ended June 30, Six Months Ended June 30,
  2025   2024   2025   2024 
        
REVENUE       
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 Insurance58.3% 
Medicare23.3% 
Capitation6.1% 
Medicaid2.5% 
Workers Compensation/Personal Injury2.1% 
Other*7.6% 
Total100.0% 
  
* 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  
         
MRI37.3% 37.1% 36.8% 36.8% 
CT15.7% 15.9% 16.8% 17.5% 
PET/CT8.7% 7.2% 6.4% 5.8% 
X-ray5.6% 6.0% 6.5% 6.7% 
Ultrasound13.6% 13.6% 12.9% 12.6% 
Mammography15.8% 16.4% 16.0% 15.3% 
Nuclear Medicine0.9% 1.0% 0.8% 0.9% 
Other2.5% 2.7% 3.9% 4.5% 
 100.0% 100.0% 100.0% 100.0% 
         

PROCEDURES BY MODALITY*
      
  Second QuarterSecond Quarter 
  2025 2024 
      
MRI490,299 449,781 
CT 291,820 269,939 
PET/CT22,155 18,107 
Nuclear Medicine9,377 9,610 
Ultrasound701,917 664,043 
Mammography508,000 483,510 
X-ray and Other900,095 890,814 
      
 Total2,923,663 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 3.44% and 26.10% blended federal and state effective tax rate for the second quarter of 2025 and 2024, respectively.
(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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