RadNet — Second Quarter 2026 Earnings Summary

Financial Performance

• Total Company Revenue increased 25.0% year-over-year to a record $622.7 million in Q2 2026, compared to $498.2 million in Q2 2025.
• Total Company Adjusted EBITDA reached a quarterly record of $99.7 million in Q2 2026, up 22.7% from $81.2 million in Q2 2025.
• Digital Health segment revenue increased 56.5% to $32.4 million in Q2 2026 from $20.7 million in Q2 2025.
• Digital Health segment Adjusted EBITDA was $2.5 million in Q2 2026, down from $3.4 million in Q2 2025, due to infrastructure investments.
• Imaging Center segment Adjusted EBITDA margin improved by 17 basis points to 16.1% in Q2 2026 from 16.0% in Q2 2025.
• Adjusted Earnings were $23.2 million ($0.29 per share) in Q2 2026, compared to $25.7 million ($0.34 per share) in Q2 2025.
• Unadjusted Net Income was $7.5 million ($0.10 per share) in Q2 2026, down from $14.5 million ($0.19 per share) in Q2 2025.
• For the first six months of 2026, Total Company Revenue was $1,198 million (up 23.6% YoY) and Adjusted EBITDA was $162.9 million (up 27.6% YoY).
• As of June 30, 2026, balance sheet cash was $726.3 million and the Net Debt to Adjusted EBITDA ratio was 1.8x.
• Deferred revenue increased to $16.5 million at June 30, 2026, from $7.3 million at December 31, 2025.

Guidance and Future Outlook

• RadNet revised full-year 2026 Imaging Center guidance upwards for Revenue, Adjusted EBITDA, and Free Cash Flow.
• Revised 2026 Imaging Center Total Net Revenue guidance range is $2,370 million to $2,420 million.
• Revised 2026 Imaging Center Adjusted EBITDA guidance range is $345 million to $358 million.
• Revised 2026 Imaging Center Free Cash Flow guidance range is $115 million to $125 million.
• Revised 2026 Imaging Center Capital Expenditures guidance remains $165 million to $175 million.
• Revised 2026 Imaging Center Cash Interest Expense guidance range is $48 million to $53 million.
• RadNet reaffirmed all Digital Health guidance ranges for 2026, including Total Net Revenue of $135 million to $145 million.
• Management anticipates financial results will exceed original expectations and previous amendments made in May 2026.

Business Segments and Product Lines

• Digital Health Annual Recurring Revenue (ARR) increased 97.2% year-over-year to $105.5 million at June 30, 2026, from $53.5 million at June 30, 2025.
• Digital Health ARR increased 8.9% sequentially from $96.9 million at March 31, 2026.
• External (non-RadNet) customers now comprise approximately 63% of Digital Health Revenue.
• New business signed in Q2 2026 had a Total Contract Value of approximately $21 million, bringing six-month new business TCV to approximately $37 million.
• DeepHealth's breast ultrasound AI solution received FDA clearance at the end of July 2026, with implementation expected at year-end.
• 157 of RadNet's 442 locations (36%) were held within health system partnerships as of the end of Q2 2026.
• Announced a multi-site joint venture in Boise, Idaho, with Trinity Health's Saint Alphonsus Health System, initially including five multimodality outpatient imaging centers.
• Advanced imaging procedural volumes (MRI, CT, PET/CT) increased 21.2% aggregate and 9.6% same-center in Q2 2026 compared to Q2 2025.
• Advanced imaging mix increased by 238 basis points to 29.9% of total procedural volumes in Q2 2026 from 27.5% in Q2 2025.
• Specific volume growth in Q2 2026 vs Q2 2025: MRI +21.0%, CT +20.9%, PET/CT +31.0%, Routine imaging +7.9%.

Market and Competitive Landscape

• RadNet operates a network of 442 owned and operated outpatient imaging centers across Arizona, California, Delaware, Florida, Idaho, Indiana, Maryland, New Jersey, New York, Texas, and Virginia.
• The company has over 11,000 employees, including contracted radiologists and technologists.
• The joint venture business continues to grow, with partnerships expanding to include health systems like Trinity Health.
• New business acquisitions are primarily with hospitals and health systems, spanning DeepHealth AI and Enterprise Imaging solutions.

Risks and Challenges

• Digital Health Adjusted EBITDA decreased due to continued investments in headcount for sales, marketing, customer service, and implementation teams.
• Unadjusted Net Income was impacted by one-time items including $6.6 million in acquisition transaction costs, $3.4 million in debt restructuring losses, and $5.1 million in non-capitalized R&D expenses.
• Risks include potential changes in reimbursement rates, healthcare reform, labor difficulties, and the ability to service indebtedness.

Management Commentary and Tone

• CEO Dr. Howard Berger stated that both the Imaging Center and Digital Health segments demonstrated strong growth and achieved record quarterly results.
• Management attributed growth to strong increases in procedural volumes, recent acquisitions, a shift toward advanced imaging, and incremental Digital Health sales.
• Dr. Berger noted the favorable business mix shift contributed to the improved Imaging Center Adjusted EBITDA margin.
• Management expressed confidence in the positive industry trends and the company's ability to exceed financial expectations for the full year.

Other Key Points

• RadNet announced a multi-site joint venture in Boise, Idaho, with Saint Alphonsus Health System.
• DeepHealth's breast ultrasound AI solution received FDA clearance in July 2026.
• The company incurred $3.4 million in losses from debt restructuring and extinguishment related to a recent debt repricing transaction.
• The company reported $6.8 million of intangibles amortization within the Digital Health division primarily related to recent acquisitions.
• The company reported $1.3 million in lease abandonment charges and $0.5 million in expenses for leases on de novo facilities under construction.
• A gain of $3.2 million was recorded on the change in contingent consideration related to recent acquisitions.
• The company hosts a conference call for August 10, 2026, to discuss results.