RadNet NASDAQ: RDNT reported record quarterly revenue and adjusted EBITDA for the second quarter of 2026, supported by higher imaging volumes, acquisitions, a shift toward advanced imaging procedures and growth in its Digital Health segment.
Total revenue rose 25% year over year to $622.7 million, while adjusted EBITDA increased 22.7% to $99.7 million, President and CEO Howard Berger said. The company cited broad-based gains across its imaging-center operations and Digital Health products.
Advanced Imaging Volumes Drive Core Operations
Within the imaging-center segment, RadNet said demand remained strong for MRI, CT and PET/CT procedures. Aggregate advanced-imaging volumes increased 21.2% from a year earlier, while same-center advanced-imaging volume rose 9.6%.
- Aggregate MRI volume increased 21%, while same-center MRI volume grew 4%.
- Aggregate CT volume increased 20.9%, while same-center CT volume rose 8.6%.
- Aggregate PET/CT volume increased 31%, while same-center PET/CT volume rose 8.8%.
The higher growth rate in advanced procedures increased advanced imaging’s share of total procedural volume to 29.9%, from 27.5% in the second quarter of 2025. Berger said the mix shift and operating cost controls helped increase the imaging-center segment’s adjusted EBITDA margin by 17 basis points to 16.1%.
Chief Financial Officer Mark Stolper said the company has increased advanced-imaging capacity through investments in faster MRI equipment, expanded operating hours, remote technologist capabilities through TechLive, and operational changes intended to move more patients through its centers. He also pointed to growing use of prostate PSMA and brain amyloid studies, which represented more than 25% of PET/CT volume during the quarter.
RadNet ended the quarter with 442 centers, including 157 centers operated through health-system partnerships. During the period, the company announced a multi-site joint venture with Trinity Health’s Saint Alphonsus Health System in Boise, Idaho. The arrangement will initially include five multimodality outpatient imaging centers, while Gem State Radiology and Saint Alphonsus hospitals will adopt several DeepHealth software products.
Digital Health Revenue and ARR Expand
Digital Health revenue increased 56.5% year over year and 11.4% sequentially to $32.4 million. The total included $16.1 million in AI revenue, up 136% from a year earlier, and $16.3 million in enterprise imaging revenue, up 17.3%.
Kees Westdorp, president and CEO of Digital Health, said annual recurring revenue, or ARR, reached $105.5 million at quarter-end, up 97% year over year and nearly 9% from the first quarter. Revenue generated outside RadNet accounted for 63% of ARR, a figure the company expects to reach about 65% to 70% by year-end.
The segment signed about $21 million in total contract value during the second quarter, bringing first-half contract value to approximately $37 million. Of that amount, $24 million came from hospital customers. The company’s clinical AI and enterprise-imaging sales funnel expanded to more than $224 million in total contract value, equivalent to $65 million in annual contract value, according to Westdorp.
Digital Health adjusted EBITDA was $2.5 million, compared with $1.3 million in the first quarter and $3.4 million in the prior-year quarter. Westdorp said the year-over-year decline reflected deliberate commercial and implementation hiring, as well as temporary margin dilution from acquisitions. He said legacy iCAD and See-Mode businesses had become profitable after their acquisitions, while Gleamer was following a similar trajectory.
Gleamer’s legacy portfolio exited the quarter at approximately $25 million of ARR and is expected to exceed $30 million by year-end, Westdorp said. RadNet expects about $4 million in cost synergies from the acquisition by 2027, in addition to cross-selling and upselling opportunities.
AI Deployment and Breast Ultrasound Clearance
RadNet highlighted FDA 510(k) clearance for its DeepHealth breast ultrasound AI solution, which is designed to assist with lesion detection, measurement, characterization and draft reporting. In validation studies cited by the company, the software localized breast lesions with more than 98% accuracy, improved breast-cancer detection sensitivity by 8%, and reduced radiologist interpretation time by 37%.
Sham Sokka, RadNet’s chief operating and technology officer of Digital Health, said the company expects to deploy the breast ultrasound product across its network by year-end, covering nearly 1 million annual breast ultrasound exams. The solution may be eligible for reimbursement under an existing Category III CPT code.
RadNet said its thyroid and breast ultrasound AI applications could cover about 40% of its more than 3 million annual ultrasound exams with potentially reimbursable, FDA-cleared draft-reporting tools. The company expects nearly 15% of RadNet volumes to run through AI-powered automated draft-report solutions by year-end, increasing to more than 50% by the end of the second quarter of 2027.
Berger said RadNet’s goal is to use clinical and generative AI tools to address shortages of radiologists and technologists, while improving reporting productivity and supporting future imaging demand.
Raised Imaging-Center Outlook and Liquidity Position
RadNet increased its 2026 guidance for the imaging-center segment while maintaining its Digital Health guidance. The company now expects imaging-center revenue of $2.37 billion to $2.42 billion, adjusted EBITDA of $345 million to $358 million, and free cash flow of $115 million to $125 million.
Digital Health guidance remains revenue of $135 million to $145 million and adjusted EBITDA of $10 million to $12 million. The company continues to target ARR of more than $140 million by the end of 2026.
RadNet ended the quarter with $726.3 million in cash and full availability under its $282 million revolving credit facility. Net debt was $616.4 million, and net debt to adjusted EBITDA was 1.8 times. In June, the company repriced its term loan and revolving facility at a 25-basis-point lower interest rate and added a $250 million incremental term loan for acquisitions, organic expansion, health-system partnerships and other corporate purposes.
On reimbursement, Stolper said RadNet’s initial review of proposed 2027 Medicare physician-fee-schedule rates indicated an expected revenue impact of less than $1 million. Medicare represents about 24% of the company’s business mix. He added that a proposed site-neutrality provision could reduce hospital reimbursement for certain non-contrast procedures by 30% to 50%, depending on the CPT code, potentially adding to hospitals’ financial pressure and interest in outpatient partnerships.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider RadNet, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and RadNet wasn't on the list.
While RadNet currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Enter your email address and we’ll send you MarketBeat’s list of ten stocks set to soar in Summer 2026, despite the threat of tariffs and what's happening in Iran. These ten stocks are incredibly resilient and are likely to thrive in any economic environment.
Get This Free Report
