RadNet, Inc.
For the period ended Mar 31, 2026. Filed May 11, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 11, 2026
RDNT$76.00-2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0000790526-25-000008
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001628280-26-033607
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 167 previous paragraphs and 139 current paragraphs.
73 unchanged; 32 reworded; 32 added; 49 removed; 13 previous and 2 current paragraphs rearranged.
Tables are not compared: 28 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
We established a Digital Health business segment during our 2024 fiscal year, under the umbrella brand “DeepHealth”. The Digital Health segment combines our former Artificial Intelligence (“AI”) business with our workflow solutions, including those previously marketed under the eRAD brand. This includes providing AI-powered health informatics with the aim of empowering breakthroughs in care through imaging. It leverages advanced AI for operational efficiency and improved clinical outcomes in breast, chest, musculoskeletal, neuro, prostate and thyroid health. At the heart of the portfolio is a cloud-native operating system – DeepHealth OS – that unifies data across the clinical and operational workflow. By integrating AI, workflow orchestration, and data management into a single operating system, the Digital Health segment enables health systems to drive radiology workflow efficiency & productivity, help mitigate the impacts of staff shortages, and reduce diagnostic variability. The Digital Health segment provides these solutions to RadNet and to over 2,890 customers in the US and outside of the US.
Current report
The Digital Health segment’s solutions have been clinically validated and are already delivering measurable impact at scale. The company’s technology is deployed across 2,890+ customers worldwide, including thousands of screening sites in the United States and Europe, and is the most widely used solution for lung cancer screening in the United Kingdom. Clinical outcomes demonstrate strong performance, including a 21% increase in cancer detection rates in breast screening. Our end-to-end solutions are widely adopted in real-world settings, including RadNet and external customers, supporting more than 24 million scans worldwide.
Current report
Our Digital Health segment currently provides this comprehensive suite of solutions to RadNet and to over 2,890 customers in the United States, Europe and other countries around the world.
Current report
Regional Radiology Center: 13 imaging centers in Florida;
Current report
Northwest Radiology Network PC: 6 imaging centers in Indiana;
Current report
Our 8.9% increase in Imaging Center same-center revenue compared to the same period last year was driven by higher fees per imaging procedure and increased procedure volumes. This is a function of procedural volume growth at our consolidated centers. This growth reflects both organic increases at existing centers and incremental volumes from centers acquired since the prior-year period.
Current report
The increase in revenue was largely attributable to the procedural volume growth, increased reimbursement from commercial and capitated payors and favorable changes in product mix, as advanced imaging represented a greater proportion of total procedures. A significant contributor to this shift was the increase in PET and CT procedures related to prostate cancer and Alzheimer’s-related studies, which are included within advanced modality imaging procedures. Additionally, the increase in same center revenue was the result of net increases in reimbursement from commercial and capitated payors.
Current report
In response to higher procedure volumes, we increased staffing levels across clinical, administrative and technical functions to support patient demand. These increases were partially offset by improved labor efficiency initiatives, workflow optimization technologies and operating leverage from higher procedural volumes, which contributed to salary expense growth remaining below the rate of same-center revenue growth. Overall, the increase in compensation expense remained generally consistent with same-center revenue trends.
Current report
Professional reading fees
Current report
The increase in same-center professional fees was primarily attributable to higher procedural volumes. The increase in professional fees relative to the 8.9% increase in same-center sales was primarily driven by (i) a greater mix of advanced imaging procedures, for which professional fees generally represent a higher proportion of revenue, and (ii) disproportionately higher growth in California imaging centers staffed by BRMG radiologists, whose professional fees are consolidated within our financial results. In many imaging centers outside of California, revenues are reported net of professional fees and, accordingly, the related professional fees are not consolidated within our financial results.
Current report
Stock-based compensation for the three months ended March 31, 2026 increased approximately $0.8 million, or 3.3%, to $26.1 million from $25.2 million for the three months ended March 31, 2025.
Current report
Other operating expenses, which include outside services, software licensing fees, including approximately $10.3 million of intersegment license fees paid to Digital Health, repair and maintenance, and utilities, have increased $12.1 million, or 14.5%, to approximately $95.9 million for the three months ended March 31, 2026 compared to $83.8 million for three months ended March 31, 2025.
Current report
The increase was primarily attributable to higher outside service costs associated with acquisition activity, increased contractor services, and higher equipment and maintenance costs. In addition, certain increases relate to intersegment software licensing fees from the Digital Health segment, which are eliminated in consolidation and therefore impact segment operating results but not consolidated operating income.
Current report
For the three months ended March 31, 2026, Digital Health segment revenues increased $9.9 million or 51.5%, to $29.1 million, compared to $19.2 million for the three months ended March 31, 2025. The growth was primarily driven by a 125% increase in AI-related revenue and a 17% increase in Enterprise Imaging revenue.
Current report
External revenue represented 65% of total segment revenue for three months ended March 31, 2026. Compared to last year, the segment’s customer base expanded from 460+ to 2,890+, and procedure volumes supported by Digital Health solutions increased from $4.9 million to $10.5 million, primarily reflecting the addition of iCAD, Gleamer, and CIMAR.
Current report
Annual Recurring Revenue or ARR, as of March 31, 2026 was $96.9 million as compared with $49.8 million as of March 31, 2025. The Company defines Annual Recurring Revenue ("ARR") as a key subscription economy metric representing the predictable, normalized annualized value of contracted recurring revenue generated from customers from active customer contracts. ARR includes subscription fees, recurring support fees, and contracted usage charges and excludes one-time, non-recurring fees such as, implementation, hardware sales, professional services, consulting and one-off training. ARR is a non-GAAP measure and does not represent GAAP revenue recognized over time.
Current report
Consolidated
Current report
The following discussion relates to consolidated interest expense and other items managed at the corporate level, which are not separately allocated to our reportable segments.
Current report
In addition, our 2019 interest rate swap agreements matured in 2025. As a result, there were no interest related to derivatives during the current period, whereas prior periods included the impact of such swap-related amounts.
Current report
No non-cash change in fair value of interest rate hedge was recognized during the three months ended March 31, 2026, as our 2019 Swaps matured in 2025.
Current report
Systemwide Operating Metrics
Current report
At March 31, 2026, 150 of our imaging centers were operating as joint ventures with hospital and health system partners, including 12 unconsolidated joint ventures operating 50 diagnostic imaging centers that represent partnerships with hospitals, or health systems and were formed for the purpose of owning and operating diagnostic imaging centers. Professional services at the joint venture diagnostic imaging centers are performed by contracted radiology practices or a radiology practice that participates in the joint venture. Our investment in these joint ventures is accounted for under the equity method, as we do not have a controlling financial interest in such ventures. We evaluate our investment in joint ventures, including cost in excess of book value (equity method goodwill) for impairment whenever indicators of impairment exist.
Current report
We charged management service fees from the centers underlying these joint ventures of approximately $6.6 million and $6.1 million for the three months ended March 31, 2026 and 2025, respectively. These management fees are expenses of the unconsolidated joint ventures and are recognized as service fee revenue. These management fees are earned for providing to the unconsolidated joint venture centers, among other things, day-to-day operational oversight, revenue cycle, human resources, finance, accounting and information systems. These joint ventures are considered related parties. Amounts transacted between us and the entities are in the ordinary course of business and are disclosed on our balance sheet in the due from/to affiliate accounts.
Current report
Given the significance of these unconsolidated joint ventures to our business, in addition to our consolidated results, management evaluates performance on a systemwide basis that includes both our consolidated operations and the operations of our unconsolidated joint ventures. We refer to metrics derived solely from entities we consolidate for financial reporting purposes as “consolidated,” and metrics that incorporate the results of our unconsolidated joint ventures as “Systemwide.”
Current report
Systemwide measures are non-GAAP financial measures and should not be considered substitutes for, or superior to, our consolidated GAAP results. Because Systemwide measures combine amounts derived from our consolidated results with amounts derived from entities that are not consolidated, they do not represent our actual revenue or other GAAP financial measures. Investors should not rely on Systemwide metrics in isolation and should review them only in conjunction with our consolidated financial statements and related notes as a supplement to understanding the overall scale and performance of our imaging network.
Current report
Management uses Systemwide measures, including Systemwide imaging center revenue, to assess the aggregate performance of our diagnostic imaging center network. Because a significant portion of our imaging center network operates through unconsolidated joint ventures, consolidated revenue alone does not capture the full revenue-generating activity of our network, and we believe investors benefit from understanding Systemwide revenue as an indicator of the economic performance and growth trajectory management considers. These metrics are intended to present the full scope of imaging center activity from which we derive economic benefit. Systemwide revenue is equal to consolidated revenue plus 100% of the revenues of our unconsolidated joint ventures, without adjustment for our ownership percentage.
Current report
We believe these measures provide insight into the total scale of our diagnostic imaging center network and the aggregate revenues generated across all centers in which we hold an economic interest which is consistent with how management internally evaluates the business, allocates resources, and assesses operational performance. We believe such measures facilitate a more complete understanding of trends in our business. We believe these measures enable period-over-period comparisons of operating performance across the full network on a same-center and total-center basis, including volume, revenue, and growth rates.
Current report
The following table reconciles Systemwide imaging center revenue to total service revenue as reported under GAAP for the periods presented:
Current report
1."Unconsolidated affiliates revenue” represents revenue generated by unconsolidated joint ventures that are accounted for under the equity method and therefore not included in our consolidated GAAP revenue.
Current report
2.“Unconsolidated affiliates same-center revenue” represents same-center revenue generated by unconsolidated joint ventures included in Systemwide measures and not included in consolidated GAAP revenue.
Current report
The following tables present our systemwide procedural volumes by modality and systemwide same-center procedural volumes by modality for the three months ended March 31, 2026 and 2025, including the percentage change compared to the prior year period. Management believes these metrics provide useful supplemental information regarding trends in procedural demand and utilization across our imaging network, including consolidated and unconsolidated joint ventures.
Current report
Cash used by financing activities for the three months ended March 31, 2026 increased by $10.0 million compared to the three months ended March 31, 2025, as well as the repayment of notes payable assumed in connection with acquisitions.
Removed paragraphs (49)
Previous report
In addition to our imaging business, we have established a Digital Health business segment during our 2024 fiscal year, which combines our former Artificial Intelligence (“AI”) business segment with our eRad, Inc. business. Our Digital Health segment develops and delivers AI-powered health informatics solutions to drive quality, efficiency, and outcomes in imaging and radiology. The portfolio of software solutions is anchored by eRad, Inc.'s RIS/PACS, informatics designed specifically for outpatient radiology and DeepHealth OS, a cloud-native operating system that helps operate all aspects of the radiology service line from scheduling and patient preparation to technologist workflow to interpretation and referral management.
Previous report
In addition, we are using AI to develop solutions that employ machine learning to assist radiologists and other clinicians in interpreting images and improving radiologist efficiency and patient care, initially in the fields of screening for breast, prostate, lung and colon cancers. Our DeepHealth, Inc. subsidiary has received clearance from the U.S. Food and Drug Administration ("FDA") for use of its SaigeQ ”triage”/workflow products, the SaigeDX advanced diagnostic product and the Saige-Density breast density assessment software for screening breast mammography, which we have begun to roll out in certain markets as an Enhanced Breast Cancer Detection solution. Our Aidence Holding B.V. subsidiary is developing solutions for interpretation of chest and lung computed tomography ("CT") scans for lung cancer screening. It has received the CE mark for its solution and has existing customers in seven European countries, with its largest concentration in the United Kingdom, and plans to submit an application for FDA clearance to sell in the United States. Our Quantib B.V. subsidiary is primarily focused on interpretation of prostate magnetic resonance imaging ("MRI") for widespread prostate cancer screening. Quantib’s prostate MRI post-processing software has both FDA clearances and European CE marking. Our Digital Health segment provides these solutions to RadNet and to over 400 customers in the United States, Europe, and Israel.
Previous report
HALO Centers LLC*: 1 imaging center in California;
Previous report
Hillcroft Medical Clinic*: 1 imaging center in Sugar Land, Texas;
Previous report
North County Radiology Oceanside LLC: 1 imaging center in California;
Previous report
Faculty Physicians and Surgeons of LLUSM (Palm Imaging): 1 imaging center in California;
Previous report
California MSK MSO, LLC (OSS Burbank): 1 imaging center in California; and
Previous report
HALO Centers LLC (Indian Wells): 1 imaging center in California
Previous report
Kolb Radiology P.C.: 3 imaging centers in New York
Previous report
Schonholz and Drossman, LLP: 1 imaging centers in New York
Previous report
Goodwill and Indefinite Lived Intangibles
Previous report
Goodwill at September 30, 2025 totaled $827.5 million. Indefinite Lived Intangible Assets at September 30, 2025 were $18.5 million and are associated with the value of certain trade name intangibles and in process research and development ("IPR&D"). Goodwill, trade name intangibles and IPR&D are recorded as a result of business combinations. When we determine the carrying value of goodwill for a reporting unit exceeds its fair value, an impairment charge would be recognized which should not exceed the total amount of goodwill allocated to that reporting unit. We determined fair values for each of the reporting units using the market approach, when available and appropriate, or the income approach, or a combination of both. We assess the valuation methodology based upon the relevance and availability of the data at the time we perform the valuation. If multiple valuation methodologies are used, the results are weighted appropriately. Our annual impairment test of goodwill, IPR&D and trade name noted no impairment as of October 1, 2024, and we have not identified any other indicators of impairment through September 30, 2025.
Previous report
Our 9.6% increase in same center revenue over the same period last year was driven by increases in fees charged per imaging procedure and same center total procedure volume growth of 4.4%, inclusive of rises in routine and advanced modality imaging procedures of 2.7% and 9.1%, respectively. The increase in revenue was largely attributable to product mix, as advanced imaging represented a greater portion of overall procedures. Within advanced imaging, MRI increased by 11.1%, CT by 5.3%, and PET/CT by 14.9% on a same-store basis. The Enhanced Breast Cancer Detection program, an AI-powered diagnostic solution, also contributed to revenue growth.
Previous report
Including non-consolidated joint ventures where we are a minority owner, same center total procedure volume increased approximately 4.9%, inclusive of rises in routine and advanced modality imaging procedures of 3.1% and 9.1%, respectively. We provide this additional information to reflect trends across all centers we operate or manage, consistent with how management evaluates overall business performance.
Previous report
In response to higher procedure volumes, we increased staffing levels across clinical, administrative, and technical functions to support the influx of patients. Compensation-related expenses were further impacted by increased 401K match contributions and more vacation and paid time off taken during the period. We also continued to experience wage inflation across the board, driven by a competitive labor market and the October 2024 increase in California’s minimum wage for healthcare workers. Additionally, higher workers’ compensation insurance premiums contributed to the overall rise in staffing costs. Overall, the increase in compensation expenses remained generally in line with our same center revenue growth.
Previous report
Stock-based compensation for the three months ended September 30, 2025 increased approximately $2.6 million, or 61.4%, to $6.8 million from $4.2 million for the three months ended September 30, 2024. The increase is primarily due to a greater number of shares granted and higher grant-date fair values compared to prior-year period.
Previous report
Other operating expenses increased primarily due to a $7.3 million rise in outside services. This increase was driven by expanded contact center support related to acquisitions and growing patient demand, as well as higher legal and consulting costs associated with transaction activities and operational initiatives. The remaining increase was attributable to other operating expense categories. The investments reflect our continued focus on technology-driven enhancements aimed at supporting long-term operational efficiency across the organization.
Previous report
Other income for the three months ended September 30, 2024 included money market interest income of $9.6 million, partially offset by an impairment of non-marketable securities of $1.2 million.
Previous report
During the three months ended September 30, 2025, interest rates were above the arranged rates in our 2019 Swaps for most of the year, and we received $2.5 million in cash payments from our 2019 Swaps counterparties, which was reported as a component of interest expense. See the Derivative Instruments section of Note 2, Significant Accounting Policies, in the notes accompanying in our Annual Report and Part 1, Item 3 — "Quantitative and Qualitative Disclosure About Market Risk" below for more details on our derivative transactions.
Previous report
In 2020, we determined that the cash flows from the 2019 Swaps did not match the cash flows of our Barclays Term Loan (as defined in the notes to our condensed consolidated financial statements) and were therefore ineffective as cash flow hedges. Since that time, in accordance with accounting guidelines, all changes in fair value are being recognized in other income and expense.
Previous report
The fair value of the 2019 Swaps at September 30, 2025 was a net asset of $0.7 million compared to a net asset of $3.1 million at June 30, 2025, resulting in a loss of $2.4 million during the three months ended September 30, 2025. This change in fair value was driven by market expectations of continued declines in interest rates over the remaining term of the 2019 Swaps.
Previous report
Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
Previous report
Total Revenue
Previous report
Our 5.7% increase in same center revenue over the same period last year was driven by increases in fees charged per imaging procedure and same center total procedure volume growth of 1.6% inclusive of rises in advanced modality imaging procedures of 5.9%, and a 0.1% increase in routine modality imaging. The increase in revenue was largely attributable to product mix, as advanced imaging was a greater portion of overall procedures. Within advanced imaging, MR increased by 6.5%, CT by 4.3%, and PET/CT by 12.8% on a same-store basis. The Enhanced Breast Cancer Detection (EBCD) program, an AI-powered diagnostic solution, also contributed to revenue growth.
Previous report
Including non-consolidated joint ventures in which we hold a minority interest, same-center total procedure volume increased approximately 2.2%, inclusive of rises in routine and advanced modality imaging procedures of 0.7% and 6.4%, respectively. We provide this information to present trends across all centers we operate or manage, consistent with how management evaluates overall business performance.
Previous report
Operating Expenses
Previous report
Total operating expenses for the nine months ended September 30, 2025 increased approximately $154.3 million, or 12.7%, to $1,370.4 million for the nine months ended September 30, 2025 from $1,216.1 million for the nine months ended September 30, 2024. The following table breaks down our cost of operations and total operating expenses for the nine months ended September 30, 2025 and 2024 (in thousands):
Previous report
Salaries and professional reading fees, excluding stock-based compensation and severance
Previous report
In response to higher procedure volumes, we increased staffing levels across clinical, administrative, and technical functions to support the influx of patients. This included permanent headcount growth as well as a significant number of temporary hires to keep our centers operating smoothly during the first quarter of 2025. Compensation-related expenses were further impacted by increased 401K match contributions and more vacation and paid time off taken during the period. We also continued to experience wage inflation across the board, driven by a competitive labor market and the October 2024 increase in California’s minimum wage for healthcare workers. Additionally, higher workers’ compensation insurance premiums contributed to the overall rise in staffing costs.
Previous report
Stock-based compensation
Previous report
Stock-based compensation for the nine months ended September 30, 2025 increased approximately $18.5 million, or 94.2%, to $38.1 million from $19.6 million for the nine months ended September 30, 2024. The increase is primarily due to a greater number of shares granted and higher grant-date fair values compared to prior-year period.
Previous report
Building and equipment rental
Previous report
Medical supplies
Previous report
Lease abandonment charges
Previous report
We closely monitor patient levels at our imaging centers and occasionally divest or shut down centers to maximize utilization rates. We may abandon low utilization leases and divert the patients to nearby centers. During the nine months ended September 30, 2025, we closed several imaging centers with lower utilization and recognized lease abandonment charges of approximately $8.3 million in our Imaging Center segment. Of these amounts, $6.5 million were related to right-of-use assets impairment and $1.9 million were related to the write-off of leasehold improvements for the nine months ended September 30, 2025.
Previous report
Other operating expenses
Previous report
Other operating expenses increased primarily due to a $16.9 million rise in outside services. This increase was driven by expanded contact center support related to acquisitions and growing patient demand, as well as higher legal and consulting costs associated with transaction activities and operational initiatives. The remaining increase was attributable to other operating expense categories. The investments reflect our continued focus on technology-driven enhancements aimed at supporting long-term operational efficiency across the organization.
Previous report
The fair value of the 2019 Swaps at September 30, 2025 was a net asset of $0.7 million compared to a net asset of $7.1 million at December 31, 2024, resulting in a loss of $6.4 million during the nine months ended September 30, 2025. This change in fair value was driven by market expectations of continued declines in interest rates over the remaining term of the 2019 Swaps.
Previous report
Other income for the nine months ended September 30, 2025 included money market interest income of $24.4 million. Other income for the nine months ended September 30, 2024 included money market interest income of $22.7 million, partially offset by an impairment of non-marketable securities of $1.2 million and debt extinguishment and restructuring charges of $8.9 million, which related to refinancing of our Barclays credit facility. See Note 6 Credit Facilities and Notes Payable included in the notes to our condensed consolidated financial statements.
Previous report
Interest income for the nine months ended September 30, 2025 increased approximately $1.7 million, or 7.6%, to $24.4 million from $22.7 million for the nine months ended September 30, 2024. The increase is primarily due to higher average cash balance in our money market account for the nine months ended September 30, 2025
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Reworded paragraphs (32)
Previous wording
You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q (this "report") and with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K, as amended, for the fiscal year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (the "SEC")(the "Annual Report").
Current wording
You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q (this "report") and with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K, as amended, for the fiscal year ended December 31, 2025 (the "Annual Report") filed with the U.S. Securities and Exchange Commission (the "SEC").
Previous wording
We are a national provider of diagnostic imaging services in the United States. At September 30, 2025, we operated directly or indirectly through joint ventures with hospitals, 407 centers located in Arizona, California, Delaware, Florida, Maryland, New Jersey, New York and Texas. Our centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, often reducing the cost and amount of care for patients. Internationally, our subsidiary The HLH Imaging Group Limited, provides teleradiology services for remote interpretation of images on behalf of providers within the framework of the United Kingdom's National Health Service.
Current wording
Within our Imaging Centers segment, we are a national provider of diagnostic imaging services in the United States. As of March 31, 2026, we operated directly or indirectly through joint ventures with hospitals, 435 centers located in Arizona, California, Delaware, Florida, Maryland, New Jersey, New York and Texas. Our centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, often reducing the cost and amount of care for patients. Internationally, our subsidiary The HLH Imaging Group Limited, provides teleradiology services for remote interpretation of images on behalf of providers within the framework of the United Kingdom's National Health Service.
Previous wording
As part of our continued strategic expansion in Digital Health, we recently completed two acquisitions: iCAD, Inc., a provider of AI-powered breast health solutions, and See-Mode Technologies, a medical technology company focused on enhancing ultrasound-based diagnostics through artificial intelligence. We are currently in the process of integrating both businesses into our Digital Health segment.
Current wording
As part of our continued strategic expansion in Digital Health, we recently completed four acquisitions: iCAD, Inc., a provider of AI-powered breast health solutions, See-Mode Technologies, a medical technology company focused on enhancing ultrasound-based diagnostics through artificial intelligence, CIMAR UK, a cloud-native provider of image exchange solutions, and Gleamer SAS, a Radiology AI company with a portfolio of AI solutions across X-Ray, MRI, CT, and Mammography. iCAD Inc. and SeeMode technologies are already fully integrated into the Digital Health segment, with SeeMode’s technology deployed in over 300 RadNet Imaging Services sites for improving efficiencies in Thyroid Ultrasounds across the network. CIMAR UK and Gleamer are currently being integrated into the business, with significant early momentum, including launching go-live of Gleamer X-Ray products in RadNet Services in California in April 2026, just a month post-acquisition.
Previous wording
Our operations comprise two segments for financial reporting purposes for this reporting period, Imaging Centers and Digital Health. For further financial information about these segments, see Note 5, Segment Reporting, in the notes accompanying our financial statements included in this report.
Current wording
For further financial information about these segments, see Note 5, Segment Reporting, in the notes accompanying our financial statements included in this report.
Previous wording
The following table shows our imaging centers in operation and revenues for the nine months ended September 30, 2025 and 2024:
Current wording
The following table presents the total number of imaging centers in operation, including both consolidated and non-consolidated centers, and our consolidated revenues for the three months ended March 31, 2026 and 2025:
Previous wording
Our imaging services include MRI, CT, positron emission tomography ("PET"), nuclear medicine, mammography, ultrasound, diagnostic radiology ("X-ray"), fluoroscopy and other related procedures. The vast majority of our centers offer multi-modality imaging services, a key point of differentiation from our competitors. The multi-modality offering provides a “one-stop” solution for our customers and referral sources. It also diversifies our revenue base, and reduces our exposure to changes in reimbursement rates for certain imaging modalities.
Current wording
Our imaging services include MRI, CT, PET, nuclear medicine, mammography, ultrasound, X-ray, fluoroscopy and other related procedures. The vast majority of our centers offer multi-modality imaging services, a key point of differentiation from our competitors. The multi-modality offering provides a “one-stop” solution for our customers and referral sources. It also diversifies our revenue base, and reduces our exposure to changes in reimbursement rates for certain imaging modalities.
Previous wording
Our revenue is derived from a diverse mix of payors, including private payors and commercial insurance companies, managed care capitated payors, and government payors, such as Medicare and Medicaid. We believe our payor diversity mitigates our exposure to possible unfavorable reimbursement trends within any one payor class. Our total service fee revenue, net of contractual allowances and discounts, and implicit price concessions for the three and nine months ended September 30, 2025 and 2024 received from our various payors is summarized in the following table (in thousands):
Current wording
Our revenue is derived from a diverse mix of payors, including private payors and commercial insurance companies, managed care capitated payors, and government payors, such as Medicare and Medicaid. We believe our payor diversity mitigates our exposure to possible unfavorable reimbursement trends within any one payor class. Our total service fee revenue, net of contractual allowances and discounts, and implicit price concessions for the three months ended March 31, 2026 and 2025 received from our various payors is summarized in the following table (in thousands):
Previous wording
During the nine months ended September 30, 2025, we completed the acquisition of certain assets of entities which engage directly in the practice of radiology or in associated businesses for an aggregate consideration of $73.1 million. These acquisitions include:
Current wording
During the three months ended March 31, 2026, we completed the acquisition of certain assets of entities which engage directly in the practice of radiology or in associated businesses for an aggregate consideration of $67.3 million. These acquisitions include:
Previous wording
At September 30, 2025, 37% of our imaging centers were operating as joint ventures with large health care providers. We manage the day-to-day operations for these joint ventures and perform most management services in exchange for a management fee. We charged management service fees from the centers underlying these joint ventures of approximately $6.5 million and $5.9 million for the three months ended September 30, 2025 and 2024, respectively, and approximately $19.1 million and $17.8 million for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
At March 31, 2026, 150 of our imaging centers were operating as joint ventures with hospital and health system partners. On behalf of the joint ventures, we manage the day-to-day operations and perform most management and support services in exchange for a management fee. We charged management service fees from the centers underlying these joint ventures of approximately $6.6 million and $6.1 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Substantially all of our accounts receivable are due under fee-for-service contracts from third party payors, such as insurance companies and government-sponsored healthcare programs, or directly from patients. Services are generally provided pursuant to one-year contracts with healthcare providers. Receivables generally are collected within industry norms for third-party payors. We continuously monitor collections from our payors and maintain an allowance for bad debts based upon specific payor collection issues that we have identified and our historical experience. Our estimates and assumptions for allowances on our account receivable did not change materially during the quarter ended September 30, 2025.
Current wording
The vast majority all of our accounts receivable are due under fee-for-service contracts from third party payors, such as insurance companies and government-sponsored healthcare programs, or directly from patients. Services are generally provided pursuant to one-year contracts with healthcare providers. Receivables generally are collected within industry norms for third-party payors. We continuously monitor collections from our payors and maintain an allowance for bad debts based upon specific payor collection issues that we have identified and our historical experience. Our estimates and assumptions for allowances on our account receivable did not change materially during the quarter ended March 31, 2026.
Previous wording
We have developed our medical imaging centers segment through a combination of organic growth, acquisitions and joint venture formations. In the discussion below same center metrics are based on imaging centers that were in operation throughout the period of April 1, 2024 through September 30, 2025. Excluded amounts relate to imaging centers that were acquired or divested between April 1, 2024 through September 30, 2025. The revenue analysis presented below includes intersegment revenue prior to elimination.
Current wording
We have developed our Imaging Centers segment through a combination of organic same-center growth, new center buildouts, acquisitions and joint venture formations. In the discussion below, "same center" metrics are based on imaging centers that we operate and were in operation throughout the period of January 1, 2025 through March 31, 2026, excluding amounts relating to imaging centers that were acquired or divested between January 1, 2025 through March 31, 2026, unless the procedural volumes of closed centers were relocated into centers that existed throughout such period. The revenue analysis presented below includes intersegment revenue prior to elimination.
Previous wording
Total operating expenses for the three months ended September 30, 2025 increased approximately $53.5 million, or 13.1%, to $460.8 million for the three months ended September 30, 2025 from $407.2 million for the three months ended September 30, 2024. The following table breaks down our cost of operations and total operating expenses for the three months ended September 30, 2025 and 2024 (in thousands):
Current wording
Total operating expenses for the three months ended March 31, 2026 increased approximately $83.7 million, or 17.5%, to $563.0 million for the three months ended March 31, 2026 from $479.4 million for the three months ended March 31, 2025. The following table breaks down our cost of operations and total operating expenses for the three months ended March 31, 2026 and 2025 (in thousands):
Previous wording
Salaries and professional reading fees, excluding stock-based compensation and severance
Current wording
Salaries, excluding stock-based compensation and severance
Previous wording
Consistent with the shift in our procedural mix toward more advanced imaging, medical supplies expense increased at a higher rate than revenue growth. The growth in PET/CT procedures, particularly for prostate cancer and suspected Alzheimer’s studies, drove higher utilization of high-cost isotope tracers, contributing to the increase. In addition, price increases for these tracers further elevated medical supplies expense compared to the prior year.
Current wording
Consistent with the shift in our procedural mix toward more advanced imaging, medical supplies expense increased at a higher rate than revenue growth. The growth in PET and CT procedures, particularly for prostate cancer and suspected Alzheimer’s studies, drove higher utilization of high-cost isotope tracers, contributing to the increase. In addition, price increases for these tracers further elevated medical supplies expense compared to the prior year.
Previous wording
Other income for the three months ended September 30, 2025 included $8.9 million of money market interest income.
Current wording
Other income for the three months ended March 31, 2026 included $5.0 million of money market interest income.
Previous wording
The breakdown of revenue and expenses of the Digital Health segment for the three and nine months ended September 30, 2025 and 2024 are as follows:
Current wording
The breakdown of revenue and expenses of the Digital Health segment for the three months ended March 31, 2026 and 2025 are as follows:
Previous wording
Revenues for the Digital Health segment increased significantly compared to the prior-year period, primarily reflecting the contribution from the iCAD acquisition and continued growth in our AI and informatics product lines.
Current wording
Revenues for the Digital Health segment increased significantly compared to the prior-year period, reflecting a combination of strong growth in our Population Health AI and Enterprise Informatics portfolios, combined with the impact of inorganic growth from the acquisitions of iCAD, SeeMode, CIMAR.
Previous wording
Segment operating expenses increased year over year due to higher engineering and executive headcount, increased stock-based compensation, and higher non-capitalized R&D costs, reflecting continued investment in scaling our platforms for broader deployment. We expect the segment to continue operating at a net loss in the near term as integration of iCAD, Inc. and See-Mode Technologies progresses.
Current wording
Segment operating expenses increased year over year due to the addition of new costs resulting from acquisitions (iCAD, SeeMode, CIMAR and Gleamer); investments in the personnel to build foundational capabilities and support the segment’s growth trajectory , investments in software and cloud costs, increased stock-based compensation commensurate with the growing organization, and higher non-capitalized R&D costs, reflecting continued investment in scaling our platforms for broader deployment. We expect the segment to continue operating at a net loss in the near term as integration of iCAD, See-Mode, CIMAR, and Gleamer progresses.
Previous wording
The decrease in interest expense was primarily due to the repricing transaction of our Barclays Revolving Credit Facility (as defined in the notes to our condensed consolidated financial statements) in the fourth quarter of 2024, which resulted in lower interest rates compared to the same period in the prior year. This benefit was partially offset by the $100.0 million of incremental term loan borrowings under our existing Barclays Revolving Credit Facility in the second quarter of 2025. See Note 6 Credit Facilities and Notes Payable included in the notes to our condensed consolidated financial statements.
Current wording
The decrease in interest expense was primarily driven by a lower average outstanding debt balance during the three months ended March 31, 2026, compared to the same period in the prior year.
Previous wording
For the three months ended September 30, 2025 and 2024, we recognized equity in earnings from unconsolidated joint ventures in the amount of $3.6 million and $3.6 million, respectively, remaining essentially flat year over year.
Current wording
For the three months ended March 31, 2026 and 2025, we recognized equity in earnings from unconsolidated joint ventures in the amount of $3.8 million and $2.6 million, respectively. The increase was primarily driven by improved income from Santa Monica Imaging Group LLC and lower losses from Arizona Diagnostic Radiology Group LLC.
Previous wording
At September 30, 2025, our consolidated subsidiaries operated 356 imaging centers of which 101 were not wholly-owned and thus a portion of their operating results were attributable to noncontrolling interests. At September 30, 2024, our consolidated subsidiaries included 345 centers of which 98 were not wholly-owned.
Current wording
At March 31, 2026, our consolidated subsidiaries operated 385 diagnostic imaging centers of which 100 were not wholly-owned. At March 31, 2025, our consolidated subsidiaries included 347 imaging centers, of which 100 were not wholly-owned. Thus, a portion of the operating results of our consolidated subsidiaries were attributable to noncontrolling interests.
Previous wording
For the three months ended September 30, 2025, we recognized net income attributable to noncontrolling interests of $8.5 million versus $9.0 million for the three months ended September 30, 2024, respectively, remaining essentially flat year over year.
Current wording
For the three months ended March 31, 2026, we recognized net income attributable to noncontrolling interests of $8.7 million versus $8.2 million for the three months ended March 31, 2025, respectively, remaining essentially flat year over year.
Previous wording
As noncontrolling interests only represent a portion of our imaging center business, and excludes our Digital Health segment, which generated losses of $9.9 million for the three months ended September 30, 2025, we do not expect changes in net income attributable to noncontrolling interests to correlate with changes in consolidated operating income or pretax income.
Current wording
As noncontrolling interests only represent a portion of our imaging center business, and excludes our Digital Health segment, which generated losses of $17.7 million for the three months ended March 31, 2026, we do not expect changes in net income attributable to noncontrolling interests to correlate with changes in consolidated operating income or pretax income.
Previous wording
We use both U.S. generally accepted accounting principles ("GAAP") and non-GAAP metrics to measure our financial results. We believe that, in addition to GAAP metrics, non-GAAP metrics such as Adjusted EBITDA assist us in measuring our core operations from period to period.
Current wording
We use both U.S. generally accepted accounting principles ("GAAP") and non-GAAP metrics to measure our financial results. We believe that, in addition to GAAP metrics, non-GAAP metrics such as Adjusted EBITDA assist us in measuring our core operations from period to period. We also utilize systemwide measures and other supplemental operating metrics that include both consolidated and unconsolidated affiliates to provide further insight into the overall scale and performance of our diagnostic imaging centers.
Previous wording
The following is a reconciliation of the nearest comparable GAAP financial measure, net income, to Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024, respectively.
Current wording
The following is a reconciliation of the nearest comparable GAAP financial measure, net income, to Adjusted EBITDA for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
The following table summarizes key balance sheet data related to our liquidity as of September 30, 2025 and December 31, 2024 and income statement data for the nine months ended September 30, 2025 and 2024 (in thousands):
Current wording
The following table summarizes key balance sheet data related to our liquidity as of March 31, 2026 and December 31, 2025 and income statement data for the three months ended March 31, 2026 and 2025 (in thousands):
Previous wording
The following table summarizes key components of our sources and uses of cash for the nine months ended September 30, 2025 and 2024 (in thousands):
Current wording
The following table summarizes key components of our sources and uses of cash for the three months ended March 31, 2026 and 2025 (in thousands):
Previous wording
Cash provided by operating activities for the nine months ended September 30, 2025 increased by $24.2 million compared to September 30, 2024 primarily driven by a $4.0 million change in assets and liabilities, primarily due to the timing of payments for accounts payable and accrued expenses.
Current wording
Cash provided by operating activities for the three months ended March 31, 2026 increased by $37.5 million compared to March 31, 2025 primarily driven by a $25.8 million change in assets and liabilities, primarily due to the timing of payments for accounts payable and accrued expenses.
Previous wording
Cash used in investing activities for the three months ended September 30, 2025 increased $45.7 million compared to the nine months ended September 30, 2024. The increase was primarily due to a $28.7 million increase in purchases of imaging facilities and other acquisitions, $2.7 million increase in equity contributions to and purchases of interests in joint ventures, and a $17.1 million increase in capital expenditures for property and equipment.
Current wording
Cash used in investing activities for the three months ended March 31, 2026 increased $314.2 million compared to the three months ended March 31, 2025. The increase was primarily due to a $300.4 million increase in purchases of imaging facilities and other acquisitions, mainly related to the acquisition of Gleamer, a digital health business, as well as imaging facilities.
Previous wording
On April 18, 2024, we refinanced our Barclays Revolving Credit Facility, replacing the prior facility with an $875.0 million term loan and a $282.0 million revolving credit facility. The refinance transaction reduced our interest rates on the Barclays Term Loan and revolving credit facility and extended the maturity date for the term loan to April 18, 2031 and for the revolving credit facility to April 18, 2029. The new term loan calls for quarterly principal payments of $2.2 million, compared to $1.8 million under the prior credit facility.
Current wording
Barclays Term Loan and revolving credit facility and extended the maturity date for the term loan to April 18, 2031 and for the revolving credit facility to April 18, 2029. The new term loan calls for quarterly principal payments of $2.2 million, compared to $1.8 million under the prior credit facility.
Previous wording
Our condensed consolidated balance sheets at September 30, 2025 include $1,090.1 million of total term loan debt (exclusive of unamortized discounts of $12.8 million) in thousands:
Current wording
Our condensed consolidated balance sheets at March 31, 2026 include $1,079.6 million of total term loan debt (exclusive of unamortized discounts of $11.6 million) in thousands:
Previous wording
At September 30, 2025, we had no borrowings under our Barclays or Truist revolving credit facilities. After reserves for outstanding letters of credit of $7.0 million, we had $275.0 million available for borrowing under our Barclays Revolving Credit Facility and $50.0 million available under our Truist revolving credit facility.
Current wording
At March 31, 2026, we had no borrowings under our Barclays or Truist revolving credit facilities. After reserves for outstanding letters of credit of $8.6 million, we had $273.4 million available for borrowing under our Barclays Revolving Credit Facility and $50.0 million available under our Truist revolving credit facility.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Our operations comprise two segments for financial reporting purposes for this reporting period, Imaging Centers and Digital Health.
Current report — wording carried from elsewhere
On April 18, 2024, we refinanced our Barclays Revolving Credit Facility, replacing the prior facility with an $875.0 million term loan and a $282.0 million revolving credit facility. The refinance transaction reduced our interest rates on the
Rearranged previous paragraphs (13)
Previous report — wording carried elsewhere
In the discussion below, same center metrics are based on imaging centers that were in operation throughout the period of January 1, 2024 through September 30, 2025. Excluded amounts relate to imaging centers that were acquired or divested between January 1, 2024 through September 30, 2025.
Previous report — wording carried elsewhere
*Includes billing fees, office supplies, repairs and maintenance, insurance, business tax and license, outside services, telecom, utilities, marketing, travel and other expenses.
Previous report — wording carried elsewhere
Building and equipment rental expense on a same-center basis increased slightly, primarily due to higher rent and common area maintenance charges.
Previous report — wording carried elsewhere
Consistent with the shift in our procedural mix toward more advanced imaging, medical supplies expense increased at a higher rate than revenue growth. The growth in PET/CT procedures, particularly for prostate cancer and suspected Alzheimer’s studies, drove higher utilization of high-cost isotope tracers, contributing to the increase. In addition, price increases for these tracers further elevated medical supplies expense compared to the prior year.
Previous report — wording carried elsewhere
Additional segment operating and non-operating expenses:
Previous report — wording carried elsewhere
The increase in depreciation expense was the result of our higher depreciable asset base.
Previous report — wording carried elsewhere
*Includes payments from 2019 Swaps and Swaps amortization
Previous report — wording carried elsewhere
**Includes noncash amortization of deferred loan costs and discount on issuance of debt
Previous report — wording carried elsewhere
***Includes interest related to our term loans, revolving credit line, notes, and other
Previous report — wording carried elsewhere
Equity in earnings from unconsolidated joint ventures
Previous report — wording carried elsewhere
Net income attributable to noncontrolling interests
Previous report — wording carried elsewhere
At September 30, 2025, our consolidated subsidiaries operated 356 imaging centers of which 101 were not wholly-owned and thus a portion of their operating results were attributable to noncontrolling interests. At September 30, 2024, our consolidated subsidiaries included 345 centers of which 98 were not wholly-owned.
Previous report — wording carried elsewhere
As noncontrolling interests only represent a portion of our imaging center business, and excludes our Digital Health segment which generated losses of $23.1 million for the nine months ended September 30, 2025, we do not expect changes in net income attributable to noncontrolling interests to correlate with changes in consolidated operating income or pretax income.