RadNet — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total Company Revenue increased 22.1% year-over-year to $638.3 million in Q3 2026 from $522.9 million in Q3 2025.
• Total Company Adjusted EBITDA increased 23.8% year-over-year to $105.0 million in Q3 2026 from $84.9 million in Q3 2025.
• Adjusted EBITDA margin expanded to 16.5% in Q3 2026 from 16.2% in Q3 2025.
• Adjusted Diluted Earnings Per Share was $0.30 in Q3 2026, compared to $0.24 in Q3 2025.
• Unadjusted Net Income was $4.2 million in Q3 2026, down from $5.4 million in Q3 2025.
• Unadjusted Diluted Net Income Per Share was $0.05 in Q3 2026, compared to $0.07 in Q3 2025.
• For the nine months ended September 30, 2026, Total Company Revenue was $1,836.6 million (up 23.1% from $1,492.5 million in 2025) and Adjusted EBITDA was $268.0 million (up 26.1% from $212.6 million in 2025).
• Unadjusted Net Loss for the nine months ended September 30, 2026, was $21.8 million, compared to a Net Loss of $18.1 million in the same period in 2025.
• Cash balance was $750.6 million as of September 30, 2026.
• Net Debt to Adjusted EBITDA ratio was 1.66x as of September 30, 2026.
• Deferred revenue was $16.1 million as of September 30, 2026, compared to $7.3 million as of December 31, 2025.
• Total assets were $4.28 billion as of September 30, 2026, compared to $3.76 billion as of December 31, 2025.

Guidance and Future Outlook:

• RadNet revised full-year 2026 guidance ranges upward for Imaging Center Revenue, Adjusted EBITDA, and Free Cash Flow.
• Revised 2026 Imaging Center Total Net Revenue guidance range is $2,385 million to $2,435 million.
• Revised 2026 Imaging Center Adjusted EBITDA guidance range is $350 million to $363 million.
• Revised 2026 Imaging Center Free Cash Flow guidance range is $120 million to $130 million.
• Revised 2026 Imaging Center Capital Expenditures guidance range is $170 million to $180 million.
• Revised 2026 Imaging Center Cash Interest Expense guidance range is $48 million to $53 million.
• Revised 2026 Digital Health Adjusted EBITDA (before Non-Capitalized R&D) guidance range is $11 million to $13 million.
• Digital Health Total Net Revenue guidance remains $135 million to $145 million.
• Digital Health Capital Expenditures guidance range is $10 million to $13 million.
• Management anticipates full-year results will exceed original expectations and previously revised ranges.

Business Segments and Product Lines:

• Digital Health segment Revenue (inclusive of intersegment revenue) increased 32.6% to $32.9 million in Q3 2026 from $24.8 million in Q3 2025.
• Digital Health segment Adjusted EBITDA decreased 11.8% to $3.0 million in Q3 2026 from $3.5 million in Q3 2025.
• For the nine months ended September 30, 2026, Digital Health Revenue was $94.5 million (up 45.8% from $64.8 million in 2025) and Adjusted EBITDA was $6.8 million (down 35.4% from $10.5 million in 2025).
• Aggregate advanced imaging (MRI, CT, and PET/CT) procedural volumes increased 19.9% in Q3 2026 compared to Q3 2025.
• Same-center advanced imaging procedural volumes increased 8.9% in Q3 2026 compared to Q3 2025.
• Advanced imaging business mix increased 232 basis points to 30.6% in Q3 2026 from 28.2% in Q3 2025.
• MRI volume increased 18.3% (aggregate) and 8.2% (same-center) in Q3 2026.
• CT volume increased 22.0% (aggregate) and 10.2% (same-center) in Q3 2026.
• PET/CT volume increased 30.4% (aggregate) and 8.2% (same-center) in Q3 2026.
• Overall volume (including routine exams) increased 10.8% (aggregate) and 3.2% (same-center) in Q3 2026.
• Revenue from commercial insurance payors was 56.4% in Q3 2026; Medicare was 24.8%; Capitation was 4.9%; Medicaid was 2.3%; Workers Compensation/Personal Injury was 2.1%.

Market and Competitive Landscape:

• Inbound interest from current joint venture partners and potential new partners and customers has exceeded expectations.
• The strategic fit of the pending ONRAD acquisition with RadNet's core imaging center business and Digital Health solutions is being recognized in the marketplace.
• RadNet operates in markets including Arizona, California, Delaware, Florida, Idaho, Indiana, Maryland, New Jersey, New York, Texas, and Virginia.
• The company has over 12,000 team members.

Risks and Challenges:

• Risks include availability and terms of capital, ability to service indebtedness and comply with debt covenants, changes in general economic conditions, and ability to maintain credit ratings.
• Risks include ability to acquire, develop, and monetize technology and AI algorithms, volatility in interest/exchange rates, and adequacy of cash flow to fund operations.
• Risks include changes in service mix, revenue mix, procedure volumes, delays in payments, and increased bankruptcies among partner physicians or joint venture partners.
• Risks include political environment impacts, healthcare reform legislation, labor cost increases, and labor difficulties.
• Risks include hostilities, political instability, catastrophic events, pandemics, and cybersecurity incidents or privacy law noncompliance.

Management Commentary and Tone:

• Dr. Howard Berger, President and CEO, stated the company delivered record quarterly Revenue and Adjusted EBITDA.
• Management attributed growth to initiatives to create and fill capacity at existing centers, new center openings, a shift toward advanced imaging, tuck-in acquisitions, improved commercial payor reimbursement, expansion of health system joint ventures, and Digital Health revenue growth.
• Dr. Berger expressed excitement about growth opportunities from the pending ONRAD acquisition.
• Management noted the balance sheet remains healthy with liquidity enabling further organic growth and strategic acquisitions.
• The tone is confident, citing outperformance in the Imaging Center segment and effective expense management in the Digital Health segment.

Other Key Points:

• RadNet has announced a pending acquisition of ONRAD.

• Unusual items impacting Q3 2026 results included a $7.5 million gain on the contribution of imaging centers into joint ventures, $1.2 million in severance expense, $5.4 million loss on disposal of equipment, $2.8 million in legal settlements, $2.7 million in acquisition transaction costs, $8.3 million non-cash change in contingent consideration, and $2.1 million in lease abandonment charges.

• Non-capitalized R&D expenses for DeepHealth Cloud OS and AI solutions were $5.6 million in Q3 2026.

• Intangibles amortization expense related to the Digital Health operating segment was $7.3 million in Q3 2026.

• A conference call to discuss results is scheduled for November 9, 2026, at 7:30 a.m. Pacific Time.