RadNet, Inc.

For Q2 2026, total company revenue was $623 million, up 25% from $498 million in last year’s second quarter, and total company adjusted EBITDA was $99.7 million, up 22.7% from $81.2 million. Imaging-center advanced imaging procedural volumes increased 21.2% in aggregate and 9.6% same-center; aggregate MRI volume rose 21%, CT volume 20.9%, and PET/CT volume 31.0%. Imaging-center adjusted EBITDA margin improved to 16.1%, up 17 basis points year over year, while the advanced imaging mix rose to 29.9% of procedural volume from 27.5%. Digital Health revenue was $32.4 million, up 56.5% year over year, with AI revenue of $16.1 million up 136% and enterprise imaging revenue of $16.3 million up 17.3%. Digital Health ARR ended at $106 million, up 97% year over year and nearly 9% sequentially. The company ended the quarter with $726 million of cash, full availability of a $282 million revolver, and a net debt to adjusted EBITDA ratio of 1.8x. Guidance: Imaging-center 2026 net revenue guidance was raised to $2.37 billion to $2.42 billion, adjusted EBITDA guidance to $345 million to $358 million, and free cash flow guidance to $115 million to $125 million. Capital expenditures guidance remained $165 million to $175 million, while cash interest expense guidance increased to $48 million to $53 million. Digital Health guidance was reaffirmed at $135 million to $145 million of revenue and $10 million to $12 million of adjusted EBITDA. Management said it remains on track for over $140 million of ARR by year-end and expects external ARR to rise toward 65% to 70% of the base by year-end.

Howard Berger said he was “very pleased” with the quarter and framed RadNet’s strategy around using AI to address industry labor shortages, improve radiologist productivity, and expand capacity. He emphasized that the company has been investing for years in routine imaging, especially X-ray, ultrasound, and mammography, and expects most of these exams to move toward AI-assisted interpretation and draft reporting by mid-2027. His tone was confident and strategic, with repeated emphasis that RadNet is building tools that are FDA-cleared and commercially useful both inside and outside the company.

Mark Stolper highlighted quarterly records in revenue and adjusted EBITDA, then walked through the key operating drivers: stronger procedure volumes, advanced imaging mix, and digital health growth. He noted that Digital Health revenue increased 56.5% and that acquisitions contributed about $9.3 million of revenue in the quarter, while the segment ended with $106 million of ARR. On the balance sheet, he pointed to $726 million of cash, full availability under the $282 million revolver, and a 1.8x net debt to adjusted EBITDA ratio, and said the $250 million incremental term loan was used opportunistically to lower borrowing costs and fund future acquisitions, expansion, partnerships, and general corporate purposes.

Analysts focused on the new FDA-cleared breast ultrasound application, asking how quickly it could translate into revenue and reimbursement. Management said RadNet performs about 1 million breast ultrasound exams annually, expects rollout across major centers by year-end, and believes reimbursement could ramp faster than thyroid because payers already cover some relevant codes; Berger added the opportunity could be roughly 4x thyroid volume, though it will take time to scale. Questions also centered on advanced imaging demand and labor constraints: management said volumes are being supported by newer MRI equipment, longer operating hours, TechLive remote technologists, and better patient registration tools, but backlogs still exist in many markets and must be managed carefully to avoid losing referrals. Analysts also asked about margins, with management acknowledging wage pressure and integration costs from acquisitions, while saying those costs should ease in the second half and that digital-health and AI tools should eventually support margin expansion.