RadNet NASDAQ: RDNT reported record first-quarter 2026 revenue and adjusted EBITDA, with management saying demand for advanced imaging and the growing contribution of its Digital Health business helped offset severe winter weather disruptions on the East Coast.
President and Chief Executive Officer Dr. Howard Berger said the quarter was negatively affected by an estimated $13 million of revenue and $9 million of adjusted EBITDA due to weather in January and February. Even with that impact, Berger said revenue rose 22.1% from the prior-year quarter and adjusted EBITDA increased 36.3%, producing 115 basis points of adjusted EBITDA margin improvement.
Berger noted that last year’s first quarter was also hurt by weather and by Southern California wildfires. Adjusting for those items in both periods, he said RadNet’s margin improved by 52 basis points.
“I’m extremely pleased with the performance of the first quarter,” Berger said, adding that operating strength in March continued through April and into early May.
Advanced Imaging Drives Volume Mix
RadNet executives said the company continues to benefit from a shift toward advanced imaging. Berger said advanced imaging represented 29.3% of procedural volume in the quarter, compared with 26.9% in the year-ago period.
Chief Financial Officer Mark Stolper said same-center advanced imaging procedure volume increased 8.2% in the quarter. In response to an analyst question, Stolper said same-center MRI volume grew 10.1%, CT was regularly growing in the mid-single digits, and PET/CT growth remained above 14% on a same-center basis.
Berger said PET/CT procedure growth was being driven by studies used to identify and stage prostate cancer and by studies used to detect brain plaques correlated with Alzheimer’s disease and dementia. PET/CT procedures increased 35.2% in aggregate and 14.7% on a same-center basis during the quarter.
Management said routine imaging remains a large part of the business, representing about 71% of procedure volume, but advanced imaging accounts for more than 60% of revenue. Stolper said routine imaging is still expected to grow, but likely in the low single digits, more in line with population growth.
Guidance Raised for Imaging Center Segment
RadNet raised full-year 2026 guidance for its imaging center business, citing stronger-than-expected performance in March, April and early May. Stolper said the company increased imaging center revenue guidance by $30 million at both the low and high ends of the range, adjusted EBITDA guidance by $5 million at both ends, and free cash flow guidance by $7 million at both ends.
Stolper said the updated guidance was not driven by acquisitions that had already been included in the company’s earlier outlook. Instead, he said it reflected stronger same-center performance and additional capacity created by Digital Health initiatives.
All guidance ranges for the Digital Health segment were reaffirmed. Kees Westdorp, President and CEO of Digital Health, said the segment remains on plan for full-year revenue of $135 million to $145 million and adjusted EBITDA of $10 million to $12 million.
Digital Health Segment Gains Momentum
Westdorp said DeepHealth, RadNet’s Digital Health platform, is moving beyond individual AI tools and toward an enterprise radiology workflow solution that combines clinical AI, image management, radiologist viewing and reporting, and remote operations.
He said DeepHealth ended the first quarter with $97 million in annual recurring revenue, representing 95% year-over-year growth, and remains on track to exceed $114 million in annual recurring revenue by year-end. Westdorp said $7 million in signed annual recurring revenue has been secured but was not yet reflected in first-quarter ARR because those sites are still moving through the go-live process.
Westdorp also cited $16 million in total contract value wins across 40 customers during the quarter and said the commercial funnel includes more than $150 million in total contract value opportunities.
DeepHealth’s technology is also being deployed inside RadNet’s own imaging centers. Westdorp said DeepHealth and third-party AI solutions now cover more than 70% of RadNet studies across mammography, MR, CT, ultrasound and X-ray. He said thyroid ultrasound AI from the See-Mode acquisition has been embedded across nearly 300 RadNet sites, helping reduce ultrasound slot times from 30 minutes to 20 minutes.
Shyam Sokka, Chief Operating and Technical Officer of Digital Health, said the company is in various stages of deploying AI tools across X-ray and neuro MR, among other areas. He said the primary benefits include radiologist productivity and, for certain applications, reimbursement opportunities tied to T-codes.
Acquisitions and Partnerships Expand Footprint
RadNet completed several acquisitions during the quarter. In the imaging center segment, the company acquired Radiology Regional, which owns 13 multimodality imaging centers in Southwest Florida, and Northwest Radiology, which operates six imaging centers in the greater Indianapolis area.
Berger said RadNet is integrating those businesses by deploying DeepHealth AI-powered solutions, streamlining operations and improving the patient experience. Stolper later said the two acquisitions were contributing to results but were not a major driver of first-quarter outperformance, adding that integration efforts were ahead of schedule or on plan.
In Digital Health, RadNet acquired France-based Gleamer SAS in March. Berger described Gleamer as a developer of FDA-cleared and CE-marked solutions for musculoskeletal, breast, lung and neurologic applications, with particular strength in X-ray. Westdorp said Gleamer is performing ahead of expectations and that cross-selling efforts have already begun.
RadNet also announced a new joint venture with Trinity Health Saint Alphonsus Health System in Boise, Idaho, after the quarter ended. Berger said the venture currently generates about $30 million in annual revenue and will initially operate five centers, including two outpatient facilities at Saint Alphonsus Health System. RadNet purchased a 51% interest in the existing partnership entity for approximately $17 million.
Berger said 155 of RadNet’s 444 centers, or about 35.2%, are held within health system partnerships, and he indicated that additional joint venture opportunities are in the pipeline.
Liquidity Remains Strong
Stolper said RadNet ended the quarter with $455.3 million in cash and full availability under a $282 million revolving credit facility. Net debt was $631 million as of March 31, 2026, and the company’s net debt-to-adjusted EBITDA leverage ratio was approximately 2.
He also said revenue cycle improvements lowered days sales outstanding to a company record of 29.5 days. Stolper attributed the improvement to better patient collections, including efforts to identify patient responsibility at scheduling and at the time of service.
Looking ahead, Stolper said there was nothing new to report on 2027 Medicare reimbursement. He said the company expects the Centers for Medicare & Medicaid Services to release preliminary Physician Fee Schedule rates in June or July, with management likely to comment on any potential impact during RadNet’s second-quarter call in August.
About RadNet NASDAQ: RDNT
RadNet, Inc is a leading independent provider of outpatient diagnostic imaging services in the United States. Through a nationwide network of fixed-site imaging centers and affiliated joint-venture locations, the company delivers a comprehensive suite of radiology services including MRI, CT, PET/CT, ultrasound, X-ray, mammography, bone densitometry, nuclear medicine and interventional radiology procedures. RadNet also offers teleradiology and imaging management solutions to physician practices, hospitals and healthcare systems.
Founded in 1981 and headquartered in Los Angeles, RadNet has expanded its footprint organically and through strategic acquisitions.
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