RadNet (RDNT) Q1 2026 earnings summary

Executive summary

• Achieved record first quarter revenue of $575.6 million, up 22.1% year-over-year, and adjusted EBITDA of $63.3 million, up 36.3%, despite $13M revenue and $9M EBITDA impact from severe winter weather.

• Digital Health segment revenue surged 51.5% to $29.1 million, with ARR nearly doubling to $96.9 million, reflecting strong AI and informatics growth and recent acquisitions.

• Imaging Center segment expanded to 435 centers, with same-center revenue up 8.9% and advanced imaging volumes now representing 29.3% of procedural volume.

• Net loss attributable to common stockholders narrowed to $33.5 million, with adjusted diluted loss per share improving to $(0.28) from $(0.34) year-over-year.

• Completed significant acquisitions in Florida, Indiana, and France, and expanded Digital Health with the Gleamer SAS acquisition.

Financial highlights

• Imaging Center revenue reached $556.8 million (up 20.7% year-over-year); Digital Health revenue was $29.1 million (up 51.5%).

• Adjusted EBITDA margin for Imaging Center segment improved by 52 basis points after weather adjustments.

• Cash and equivalents at quarter-end were $455.3 million; leverage ratio (Net Debt/Adjusted EBITDA) slightly below 2.0.

• Days sales outstanding (DSO) reached a record low of 29.5 days.

• Cash flow from operations was $79.0 million; net cash used in investing activities was $370.97 million, mainly for acquisitions.

Outlook and guidance

• 2026 Imaging Center guidance raised: revenue now $2,355–$2,405 million, adjusted EBITDA $340–$353 million, free cash flow $112–$122 million.

• Digital Health full-year guidance reaffirmed: $135M–$145M revenue, $10M–$12M adjusted EBITDA before non-capitalized R&D.

• Over 70% of studies expected to run through clinical AI by year-end; all radiologist reports to use AI-powered summarization.

• Sufficient liquidity and borrowing capacity to fund operations and future acquisitions.

• Expect continued margin improvement in Digital Health as recent investments and acquisitions are integrated.