0001628280-26-033607
SEC filingRadNet's Q1 2026 revenue grew 22.1% YoY to $575.6M, driven by Imaging Centers and Digital Health, while net loss improved to $33.5M from $37.9M.
RadNet's consolidated revenue for Q1 2026 reached $575.6 million, a 22.1% increase from $471.4 million in Q1 2025. Imaging Centers segment revenue grew 20.7% to $556.8 million, driven by an 8.9% increase in same-center revenue. This same-center growth was fueled by higher procedural volumes and a favorable mix shift toward advanced imaging modalities such as PET and CT, particularly for prostate cancer and Alzheimer’s-related studies. The Digital Health segment posted a 51.5% revenue increase to $29.1 million, largely due to acquisitions (iCAD, See-Mode, CIMAR, Gleamer) and strong growth in AI and enterprise imaging.
Operating expenses increased 17.5% to $563.0 million, led by higher salaries (up 15.6%), professional reading fees (up 24.3%), and medical supplies (up 45.3%), the latter reflecting the higher cost of tracers for advanced imaging. Stock-based compensation rose modestly to $26.1 million. Despite higher expenses, Imaging Center segment profit more than doubled to $36.3 million from $15.6 million, driven by revenue growth and cost controls. Digital Health segment loss widened to $11.1 million from $3.1 million due to acquisition integration costs and R&D investments.
Net loss attributable to RadNet common stockholders improved to $33.5 million from $37.9 million, as revenue gains and higher equity in earnings from joint ventures ($3.8 million vs. $2.6 million) offset increased operating losses in Digital Health. Adjusted EBITDA, a key non-GAAP metric, rose 36.3% to $63.3 million, with Imaging Center Adjusted EBITDA of $62.0 million and Digital Health Adjusted EBITDA of $1.3 million.
Imaging Centers: The segment benefited from strong procedural volume growth (systemwide volumes up 10.1% YoY) and improved reimbursement from commercial and capitated payors. Same-center revenue growth of 8.9% outpaced same-center expense growth for most categories, indicating operating leverage. The proportion of advanced imaging procedures increased, boosting revenue per procedure. Acquisitions added 34 net new centers year-over-year, contributing $54.3 million in revenue. Joint venture activity remained robust, with 150 centers operating as joint ventures and management fees of $6.6 million.
Digital Health: Segment revenue surged 51.5%, with AI-related revenue growing 125% and enterprise imaging revenue up 17%. External revenue accounted for 65% of total segment revenue. The customer base expanded from 460+ to 2,890+, and procedures supported by Digital Health solutions grew from 4.9 million to 10.5 million. Annual Recurring Revenue (ARR) doubled to $96.9 million. However, operating expenses rose 84.7%, driven by acquisition-related costs, increased salaries and R&D, and higher stock compensation, leading to a segment loss. Management expects continued near-term losses as integration of recent acquisitions progresses.
Management did not provide explicit financial guidance for upcoming periods. However, strategic priorities include integrating the four recent Digital Health acquisitions (iCAD, See-Mode, CIMAR, Gleamer) and scaling the DeepHealth platform. Capital allocation focuses on funding acquisitions through cash flow and borrowings, with $273.4 million available under the Barclays revolving credit facility at quarter-end. The company expects seasonally lower revenue in Q1 due to weather and high-deductible health plan resets but remains optimistic about continued growth in Imaging Centers through organic expansion and acquisitions, and in Digital Health through AI adoption and customer base expansion. Adjusted EBITDA is emphasized as a key performance metric, and the company expects to generate sufficient liquidity to sustain operations and pursue strategic opportunities.
RadNet’s balance sheet remains liquid with $455.3M in cash and equivalents, though down $311.9M from year-end due to $304.2M in acquisition outflows. The company has $273.4M undrawn on its $282M Barclays revolver and $50M on its Truist revolver. Deferred revenue stands at $12.0M, and total debt is $1,086.5M, a slight decrease of $3.4M in the quarter.
The Notes do not disclose explicit purchase commitments. However, contingent consideration from acquisitions totals $26.1M (See-Mode $7.0M, Kolb $4.1M, CIMAR $6.6M, Gleamer $8.4M), with potential payouts up to $39.8M based on milestone achievements. Operating lease liabilities amount to $843.9M ($66.6M current, $777.3M long-term).
Debt management: RadNet made $9.95M in principal payments on notes/leases and $5.25M on term loans. No buybacks or dividends were reported. Capital expenditures totaled $69.9M (12.1% of revenue), primarily for imaging equipment and leasehold improvements. The $67.3M in Imaging Center acquisitions was funded with cash and $0.4M holdback.
Segment data highlights strong Imaging Center performance with 20.7% revenue growth and $36.3M segment profit (6.5% margin). Digital Health grew 87.8% to $18.8M external revenue but incurred an $11.1M operating loss, reflecting R&D and integration costs for acquired AI firms (Gleamer, See-Mode). Geographic exposure is limited to nine U.S. states and select international markets via Digital Health.