RadNet (RDNT) investor relations material

Executive summary

• Achieved record quarterly revenue of $622.7 million in Q2 2026, up 25% year-over-year, and adjusted EBITDA of $99.7 million, up 22.7%.

• Growth driven by strong advanced imaging volumes, recent acquisitions, and increased Digital Health sales, including AI solutions.

• Digital Health segment revenue surged 56.5% year-over-year to $32.4 million, with ARR nearly doubling to $105.5 million.

• Net income attributable to common stockholders was $7.5 million for the quarter, down from $14.5 million in the prior year, primarily due to higher operating and acquisition-related costs.

• Expanded health system partnerships, now representing 36% of centers, and completed several acquisitions and joint ventures.

Financial highlights

• Total service revenue for the quarter was $622.7 million, up from $498.2 million year-over-year; six-month revenue was $1,198 million, up 23.6% year-over-year.

• Adjusted EBITDA for the quarter was $99.7 million, up from $81.2 million in the prior year period.

• Imaging center segment saw advanced imaging procedural volumes rise 21.2% in aggregate and 9.6% same center; MRI, CT, and PET/CT volumes increased 21.0%, 20.9%, and 31.0% respectively.

• Digital Health revenue grew 56.5% year-over-year to $32.4 million; ARR reached $105.5 million, up 97% year-over-year.

• Adjusted EBITDA margin for imaging centers improved to 16.1% from 16.0% year-over-year.

Outlook and guidance

• 2026 Imaging Center revenue guidance raised to $2.37B–$2.42B, Adjusted EBITDA to $345M–$358M, and Free Cash Flow to $115M–$125M.

• Digital Health guidance reaffirmed: $135M–$145M revenue and $10M–$12M adjusted EBITDA; on track to reach $140M ARR by year-end.

• Medicare reimbursement changes for 2027 expected to have minimal impact (less than $1M negative effect).

• Management expects continued growth in both segments, with further integration of acquisitions and expansion of AI-driven solutions.

• Capital resources and borrowing capacity are expected to be sufficient to sustain operations and fund future acquisitions.