RadNet, Inc.
For the period ended Sep 30, 2026. Filed Nov 9, 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.
Sep 30, 2026 · Filed Nov 9, 2026
RDNT$78.38+3.1%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001628280-26-055338
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001628280-26-072345
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 184 previous paragraphs and 198 current paragraphs.
124 unchanged; 53 reworded; 21 added; 5 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 37 previous and 37 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 (21)
Current report
We continued to make significant progress expanding the deployment of our DeepHealth solutions across RadNet imaging centers to drive clinical productivity, reduce operating costs, and enhance the patient experience. Key developments during the quarter included the continued expansion of Reporting Pro, our proprietary diagnostic reporting solution, to sites in Arizona, California, Indiana and the Northeast, and we expect to complete deployment across our network by the first quarter of 2027. We also deployed automated draft reporting technology for X-ray exams, our highest-volume modality at more than 2.8 million procedures annually, using our existing Gleamer X-ray AI workflow. Within our imaging centers, we began transitioning our patient self-registration tool from pilot to a broader rollout and started a regional rollout of our Breast Ultrasound AI solution.
Current report
Advanced Imaging at St. Joseph Medical Center, LLC: 4 imaging centers in Maryland
Current report
Baltimore Washington Imaging, LLC: 3 imaging centers in Maryland
Current report
The increase in same center professional fees was primarily attributable to higher procedural volumes, partially offset by the use of lower-cost contractors to provide coverage and modest productivity improvements from the continued deployment of DeepHealth tools across our imaging centers. These factors contributed to professional fees increasing at a lower rate than the 9.6% increase in same center revenue.
Current report
Medical supplies expense on a same center basis decreased $0.2 million, or 0.7%, primarily due to lower pricing resulting from renegotiated supplier contracts. This decrease was partially offset by increased utilization of high-cost isotope tracers associated with growth in PET and CT procedures, particularly for prostate cancer and suspected Alzheimer’s studies.
Current report
Other income for the three months ended September 30, 2026 included $6.5 million of money market interest income.
Current report
Other income for the three months ended September 30, 2025 included $8.9 million of money market interest income.
Current report
Gain on contribution of imaging centers into joint venture
Current report
For the three months ended September 30, 2026, we recognized a gain of $7.5 million in connection with the formation of Maryland Imaging Partners, LLC (“MIP”) on August 1, 2026. The gain represents the difference between the fair value and carrying value of our previously held equity interests in the Advanced Imaging at St. Joseph Medical Center, LLC (“St. Joseph”) and Baltimore Washington Imaging, LLC (“BWI”) imaging businesses upon obtaining control. No comparable gain was recognized during the three months ended September 30, 2025.
Current report
Nine Months Ended September 30, 2026 Compared to the Nine Months Ended September 30, 2025
Current report
Medical supplies expense on a same center basis increased $6.0 million, or 6.7%, primarily due to higher utilization of high-cost isotope tracers associated with growth in PET and CT procedures, particularly for prostate cancer and suspected Alzheimer’s studies. This increase was partially offset by lower pricing resulting from renegotiated supplier contracts, contributing to slower growth in medical supplies expense relative to same-center revenue.
Current report
Other income for the nine months ended September 30, 2025 included $24.4 million of money market interest income.
Current report
Gain on contribution of imaging centers into joint venture
Current report
For the nine months ended September 30, 2026, we recognized a gain of $7.5 million in connection with the formation of MIP on August 1, 2026. The gain represents the difference between the fair value and carrying value of our previously held equity interests in the St. Joseph and BWI imaging businesses upon obtaining control. No comparable gain was recognized during the nine months ended September 30, 2025.
Current report
Represents revenue from imaging centers that underwent changes in consolidation status during the periods presented. Such revenue is presented separately to maintain comparability of systemwide same-center revenue.
Current report
ONRAD Acquisition
Current report
On October 26, 2026, we entered into that certain Agreement and Plan of Merger (the “Merger Agreement”) with Radnet Management, Inc., our direct wholly owned subsidiary (the “Purchaser”), OnRad, Inc. (“ONRAD”), Red Rover Merger Sub, LLC, a direct wholly owned subsidiary of Purchaser (the “Surviving Merger Sub”), Javelin Merger Sub, Inc., a direct wholly owned subsidiary of the Surviving Merger Sub (the “First Merger Sub,” and together with Surviving Merger Sub, the “Merger Subs”), and, solely for purposes of the specified provisions therein, Housatonic IV CF, L.P., a Delaware limited partnership, solely in its capacity as the securityholder representative.
Current report
Pursuant to the Merger Agreement, and subject to the terms and conditions set forth therein, (a) First Merger Sub will merge with and into ONRAD, with ONRAD surviving the First Merger as a direct wholly owned subsidiary of Surviving Merger Sub (the “First Merger”), and (b) immediately thereafter, OnRad will merge with and into Surviving Merger Sub, with Surviving Merger Sub surviving the Second Merger as a direct wholly owned subsidiary of Purchaser (the “Second Merger,” and, together with the First Merger, the “Mergers”).
Current report
At the closing of the Mergers (the “Closing”), the holders (the “ONRAD Holders”) of ONRAD’s common stock, par value $0.0001 per share (the “ONRAD Common Stock”) (including any then outstanding shares of ONRAD Common Stock into which the holders of ONRAD’s outstanding preferred stock and warrants have converted in accordance with the Merger Agreement, but in all cases excluding Dissenting Shares (as defined in the Merger Agreement)) and the holders of Vested Company Options (as defined in the Merger Agreement) will receive an aggregate of (i) $350,000,000 in cash, subject to customary adjustments for cash, indebtedness, net working capital and transaction expenses and subject to certain escrow holdbacks, and (ii) 5,000,000 shares (the “Closing Shares”) of our common stock.
Current report
In addition, the ONRAD Holders may also be entitled to an earn-out payment of up to $210,000,000 (the “Earn-Out Amount”) if ONRAD achieves a certain target Post-Closing Annual Adjusted EBITDA (as defined in the Merger Agreement) for the fiscal year ending December 31, 2027. The Earn-Out Amount may be paid in cash, shares of our common stock or a combination thereof subject to certain tax-related requirements.
Current report
The Mergers are expected to close in the first quarter of 2027. We expect to fund the cash portion of the acquisition through existing cash balances and available borrowing capacity under our credit facilities. The Mergers are expected to result in a significant use of liquidity upon closing; however, we believe our existing liquidity resources and anticipated cash flows from operations will be sufficient to meet our ongoing operational and contractual obligations for the next twelve months and the foreseeable future.
Removed paragraphs (5)
Previous report
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 report
Other income for the three months ended June 30, 2025 included $7.8 million of money market interest income.
Previous report
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
Previous report
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 report
Other income for the six months ended June 30, 2025 included $15.5 million of money market interest income.
Reworded paragraphs (53)
Previous wording
Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and out of our control. Our actual results, level of activity, performance or achievements may be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Important factors that could cause our actual results to differ materially from those indicated or implied in our forward-looking statements include the factors included in “Risk Factors” in our Annual Report as supplemented by the information in Part II– Item 1A below. You should consider the inherent limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking statements.
Current wording
Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and out of our control. Our actual results, level of activity, performance or achievements may be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Important factors that could cause our actual results to differ materially from those indicated or implied in our forward-looking statements include the factors included in “Risk Factors” in our Annual Report as supplemented by the information in Part II– Item 1A below, if any. You should consider the inherent limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking statements.
Previous wording
Within our Imaging Centers segment, we are a national provider of diagnostic imaging services in the United States. As of June 30, 2026, we operated directly, or indirectly through joint ventures with hospitals and health system partners, 442 centers located in Arizona, California, Delaware, Florida, Idaho, Indiana, Maryland, New Jersey, New York, Texas, and Virginia. 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 (“HLH Imaging”), 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 September 30, 2026, we operated directly, or indirectly through joint ventures with hospitals and health system partners, 439 centers located in Arizona, California, Delaware, Florida, Idaho, Indiana, Maryland, New Jersey, New York, Texas, and Virginia. 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 (“HLH Imaging”), 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
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 aimed at empowering breakthroughs in care through imaging. It leverages advanced AI to improve operational efficiency and 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 clinical and operational workflows. By integrating AI, workflow orchestration and data management into a single operating system, the Digital Health segment enables health systems to better automate radiology, guide patient journeys, stage-shift disease and advance acute care. The Digital Health segment provides these solutions to RadNet and to 2,983 customers in the United States and internationally.
Current wording
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 aimed at empowering breakthroughs in care through imaging. It leverages advanced AI to improve operational efficiency and 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 clinical and operational workflows. By integrating AI, workflow orchestration and data management into a single operating system, the Digital Health segment enables health systems to better automate radiology, guide patient journeys, stage-shift disease and advance acute care. The Digital Health segment provides these solutions to RadNet and to 3,070 customers in the United States and internationally.
Previous wording
The Digital Health segment’s solutions have been clinically validated and are already delivering measurable impact at scale. Our technology is deployed worldwide, including at 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 by RadNet and external customers, and support more than 24 million scans worldwide.
Current wording
The Digital Health segment’s solutions have been clinically validated and are already delivering measurable impact at scale. Our technology is deployed worldwide, including at 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 by RadNet and external customers, and support more than 70 million scans worldwide on an annualized basis.
Previous wording
As part of our continued strategic expansion in Digital Health, in 2025 we completed three acquisitions: iCAD, Inc. (“iCAD”), a provider of AI-powered breast health solutions; See-Mode Technologies Pte. Ltd. (“See-Mode”), a medical technology company focused on enhancing ultrasound-based diagnostics through artificial intelligence; and CIMAR (UK) Limited (“CIMAR”), a cloud-native provider of image-exchange solutions. In the first quarter of 2026, we acquired Gleamer SAS (“Gleamer”), a radiology AI company with a portfolio of AI solutions across X-ray, magnetic resonance imaging (“MRI”), computed tomography (“CT”), and mammography. iCAD and See-Mode are already fully integrated into the Digital Health segment, with See-Mode’s technology deployed at 345 RadNet imaging services centers to improve the efficiency of thyroid ultrasound exams across the network. The CIMAR integration has also been completed, including the expansion of solution deployment for HLH Imaging, RadNet’s subsidiary in the United Kingdom. We expect to complete the integration of Gleamer in the third quarter of 2026. Gleamer products have already been deployed at RadNet imaging centers in California, Arizona, Maryland, New York and Florida, and we expect them to be rolled out across most RadNet centers by the end of 2026.
Current wording
As part of our continued strategic expansion in Digital Health, in 2025 we completed three acquisitions: iCAD, Inc. (“iCAD”), a provider of AI-powered breast health solutions; See-Mode Technologies Pte. Ltd. (“See-Mode”), a medical technology company focused on enhancing ultrasound-based diagnostics through artificial intelligence; and CIMAR (UK) Limited (“CIMAR”), a cloud-native provider of image-exchange solutions. In the first quarter of 2026, we acquired Gleamer SAS (“Gleamer”), a radiology AI company with a portfolio of AI solutions across X-ray, magnetic resonance imaging (“MRI”), computed tomography (“CT”), and mammography. iCAD and See-Mode are already fully integrated into the Digital Health segment, with See-Mode’s technology deployed at more than 385 RadNet imaging centers to improve the efficiency of thyroid ultrasound exams across the network. The CIMAR integration is also complete, including the expansion of solution deployment for HLH Imaging, RadNet’s subsidiary in the United Kingdom. Furthermore, the integration of Gleamer is on-going and progressing as planned. Gleamer products have already been deployed at RadNet imaging centers in California, Arizona, Maryland, New York and Florida, and we expect them to be rolled out across most RadNet centers by the end of 2026. We have largely realized the anticipated cost synergies from these acquisitions and expect to benefit from cross-selling and upselling opportunities beginning in 2027 as we market our offerings as an integrated portfolio on the DeepHealth Radiology AI Suite.
Previous 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 six months ended June 30, 2026 and 2025:
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 nine months ended September 30, 2026 and 2025:
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 six months ended June 30, 2026 and 2025 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 and nine months ended September 30, 2026 and 2025 received from our various payors is summarized in the following table (in thousands):
Previous wording
During the six months ended June 30, 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 $86.0 million. These acquisitions include:
Current wording
During the nine months ended September 30, 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 $107.2 million. These acquisitions include:
Previous wording
At June 30, 2026, 157 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 $7.9 million and $6.5 million for the three months ended June 30, 2026 and 2025, respectively, and $15.3 million and $12.6 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
At September 30, 2026, 161 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 $7.5 million and $6.5 million for the three months ended September 30, 2026 and 2025, respectively, and $22.9 million and $19.1 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Our 11.1% 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 existing consolidated centers.
Current wording
Our 9.6% 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 existing consolidated centers.
Previous wording
Total operating expenses for the three months ended June 30, 2026 increased approximately $98.5 million, or 21.9%, to $547.7 million for the three months ended June 30, 2026 from $449.2 million for the three months ended June 30, 2025. The following table breaks down our cost of operations and total operating expenses for the three months ended June 30, 2026 and 2025 (in thousands):
Current wording
Total operating expenses for the three months ended September 30, 2026 increased approximately $93.4 million, or 19.8%, to $564.3 million for the three months ended September 30, 2026 from $471.0 million for the three months ended September 30, 2025. The following table breaks down our cost of operations and total operating expenses for the three months ended September 30, 2026 and 2025 (in thousands):
Previous wording
In response to higher procedural volumes, we increased staffing levels across clinical, administrative and technical functions to support patient demand. Same center salary expense increased 6.8%, compared with an 11.1% increase in same center revenue. The lower rate of salary expense growth reflects improved labor efficiency, workflow optimization technologies, including early benefits from the deployment of DeepHealth technology, and operating leverage from higher procedural volumes.
Current wording
In response to higher procedural volumes, we increased staffing levels across clinical, administrative and technical functions to support patient demand. Same center salary expense increased 6.7%, compared with an 9.6% increase in same center revenue. The lower rate of salary expense growth reflects improved labor efficiency, workflow optimization technologies, including early benefits from the deployment of DeepHealth technology, and operating leverage from higher procedural volumes.
Previous wording
Stock-based compensation for the three months ended June 30, 2026 increased approximately $1.7 million, or 27.4%, to $7.8 million from $6.1 million for the three months ended June 30, 2025. The increase is primarily due to a greater number of shares granted and higher grant-date fair values compared to prior-year period.
Current wording
Stock-based compensation for the three months ended September 30, 2026 increased approximately $0.8 million, or 11.6%, to $7.6 million from $6.8 million for the three months ended September 30, 2025. The increase is primarily due to a greater number of shares granted and higher grant-date fair values compared to prior-year period.
Previous wording
Building and equipment rental expense on a same center basis increased slightly, primarily due to higher rent and common area maintenance charges.
Current wording
Building and equipment rental expense on a same center basis decreased slightly, primarily due to lower equipment lease expense and modest reductions in common area maintenance charges. Building rent remained relatively consistent with the prior-year period.
Previous wording
Other operating expenses, which include outside services, software licensing fees, including approximately $11.5 million of intersegment license fees paid to Digital Health, repair and maintenance, and utilities, have increased $12.4 million, or 14.4%, to approximately $99.0 million for the three months ended June 30, 2026 compared to $86.6 million for three months ended June 30, 2025.
Current wording
Other operating expenses, which include outside services, software licensing fees, including approximately $11.7 million of intersegment license fees paid to Digital Health, repair and maintenance, and utilities, have increased $26.5 million, or 29.3%, to approximately $116.7 million for the three months ended September 30, 2026 compared to $90.3 million for three months ended September 30, 2025.
Previous wording
Our 9.9% 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 existing consolidated centers.
Current wording
Our 10.2% 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 existing consolidated centers.
Previous wording
Total operating expenses for the six months ended June 30, 2026 increased approximately $182.3 million, or 19.6%, to $1,110.9 million for the six months ended June 30, 2026 from $928.6 million for the six months ended June 30, 2025. The following table breaks down our cost of operations and total operating expenses for the six months ended June 30, 2026 and 2025 (in thousands):
Current wording
Total operating expenses for the nine months ended September 30, 2026 increased approximately $275.4 million, or 19.7%, to $1,675.4 million for the nine months ended September 30, 2026 from $1,399.9 million for the nine months ended September 30, 2025. The following table breaks down our cost of operations and total operating expenses for the nine months ended September 30, 2026 and 2025 (in thousands):
Previous wording
In response to higher procedural volumes, we increased staffing levels across clinical, administrative and technical functions to support patient demand. Same center salary expense increased 5.4%, compared with a 9.9% increase in same center revenue. The lower rate of salary expense growth reflects improved labor efficiency, workflow optimization technologies, including early benefits from the deployment of DeepHealth technology, and operating leverage from higher procedural volumes.
Current wording
In response to higher procedural volumes, we increased staffing levels across clinical, administrative and technical functions to support patient demand. Same center salary expense increased 6.5%, compared with a 10.2% increase in same center revenue. The lower rate of salary expense growth reflects improved labor efficiency, workflow optimization technologies, including early benefits from the deployment of DeepHealth technology, and operating leverage from higher procedural volumes.
Previous wording
The increase in same center professional fees was primarily attributable to higher procedural volumes. Professional fees increased at a higher rate than the 11.1% increase in same center revenue, primarily due to (i) a greater mix of advanced imaging procedures, for which professional fees generally represent a higher proportion of revenue, and (ii) disproportionately higher growth at imaging centers in California and New York staffed by radiologists affiliated with BRMG and Lenox Hill Radiology, respectively, whose professional fees are consolidated within our financial results. At many imaging centers outside California and New York, revenue is reported net of professional fees and, accordingly, the related professional fees are not consolidated within our financial results.
Current wording
The increase in same center professional fees was primarily attributable to higher procedural volumes. Same center professional fees increased 12.7%, exceeding the 10.2% increase in same center revenue, primarily due to (i) a greater mix of advanced imaging procedures, for which professional fees generally represent a higher proportion of revenue, and (ii) disproportionately higher growth at imaging centers in California and New York staffed by radiologists affiliated with BRMG and Lenox Hill Radiology, respectively, whose professional fees are consolidated within our financial results. These increases were partially offset by improved operational efficiencies resulting from the continued deployment of technology-enabled workflow solutions across our imaging centers. At many imaging centers outside California and New York, revenue is reported net of professional fees and, accordingly, the related professional fees are not consolidated within our financial results.
Previous wording
Stock-based compensation for the six months ended June 30, 2026 increased approximately $2.5 million, or 8.0%, to $33.8 million from $31.3 million for the six months ended June 30, 2025. The increase is primarily due to a greater number of shares granted and higher grant-date fair values compared to prior-year period.
Current wording
Stock-based compensation for the nine months ended September 30, 2026 increased approximately $3.3 million, or 8.6%, to $41.4 million from $38.1 million for the nine months ended September 30, 2025. The increase is primarily due to a greater number of shares granted and higher grant-date fair values compared to prior-year period.
Previous wording
Other operating expenses, which include outside services, software licensing fees, including approximately $22.0 million of intersegment license fees paid to Digital Health, repair and maintenance, and utilities, have increased $24.7 million, or 14.5%, to approximately $195.1 million for the six months ended June 30, 2026 compared to $170.4 million for six months ended June 30, 2025.
Current wording
Other operating expenses, which include outside services, software licensing fees, including approximately $33.8 million of intersegment license fees paid to Digital Health, repair and maintenance, and utilities, have increased $50.9 million, or 19.5%, to approximately $311.9 million for the nine months ended September 30, 2026 compared to $261.1 million for nine months ended September 30, 2025.
Previous wording
Other income for the three months ended June 30, 2026 included $4.2 million of money market interest income, partially offset by $3.4 million of debt restructuring and extinguishment.
Current wording
Other income for the nine months ended September 30, 2026 included $15.7 million of money market interest income, partially offset by $3.4 million of debt restructuring and extinguishment.
Previous wording
The breakdown of revenue and expenses of the Digital Health segment for the three and six months ended June 30, 2026 and 2025 are as follows:
Current wording
The breakdown of revenue and expenses of the Digital Health segment for the three and nine months ended September 30, 2026 and 2025 are as follows:
Previous wording
Revenues for the Digital Health segment increased significantly for both the three and six months ended June 30, 2026 compared with the corresponding prior-year periods. The increases reflected strong organic growth across our Clinical AI and Enterprise Informatics portfolios, as well as inorganic growth resulting from the acquisitions of Gleamer, iCAD, See-Mode and CIMAR.
Current wording
Revenues for the Digital Health segment increased significantly for both the three and nine months ended September 30, 2026 compared with the corresponding prior-year periods. The increases reflected strong organic growth across our Clinical AI and Enterprise Informatics portfolios, as well as inorganic growth resulting from the acquisitions of Gleamer, iCAD, See-Mode and CIMAR.
Previous wording
For the three months ended June 30, 2026, Digital Health segment revenues increased $11.7 million, or 56.5%, to $32.4 million, compared with $20.7 million for the three months ended June 30, 2025. The increase was primarily driven by a 135.9% increase in Clinical AI-related revenue and a 17.3% increase in Enterprise Informatics revenue.
Current wording
For the three months ended September 30, 2026, Digital Health segment revenues increased $8.1 million, or 32.6%, to $32.9 million, compared with $24.8 million for the three months ended September 30, 2025. The increase was primarily driven by a 50.9% increase in Clinical AI-related revenue and an 18.6% increase in Enterprise Informatics revenue.
Previous wording
For the six months ended June 30, 2026, Digital Health segment revenues increased $21.6 million, or 54.1%, to $61.5 million, compared with $39.9 million for the six months ended June 30, 2025. The increase was primarily driven by a 130.3% increase in Clinical-related revenue and a 17% increase in Enterprise Informatics revenue.
Current wording
For the nine months ended September 30, 2026, Digital Health segment revenues increased $29.7 million, or 45.8%, to $94.5 million, compared with $64.8 million for the nine months ended September 30, 2025. The increase was primarily driven by a 94.6% increase in Clinical-related revenue and a 45.8% increase in Enterprise Informatics revenue.
Previous wording
External revenue represented 64.5% and 64.3% of total segment revenue for the three and six months ended June 30, 2026, respectively, compared with 53.1% and 52.7% for the corresponding prior-year periods.
Current wording
External revenue represented 65.1% and 64.6% of total segment revenue for the three and nine months ended September 30, 2026, respectively, compared with 58% and 53.5% for the corresponding prior-year periods.
Previous wording
As of June 30, 2026, the segment’s customer base had expanded to 2,983 customers, compared with 463 as of June 30, 2025. Procedure volumes supported by Digital Health solutions increased from 5.3 million to 17.3 million for the three months ended June 30, 2026 and from 10.2 million to 27.7 million for the six months ended June 30, 2026, in each case compared with the corresponding prior-year period. These increases primarily reflected organic growth and the additions of iCAD, See-Mode, Gleamer and CIMAR.
Current wording
As of September 30, 2026, the segment’s customer base had expanded to 3,070 customers, compared with 2,042 as of September 30, 2025. Procedure volumes supported by Digital Health solutions increased from 6.6 million to 18.1 million for the three months ended September 30, 2026 and from 16.8 million to 45.8 million for the nine months ended September 30, 2026, in each case compared with the corresponding prior-year period. These increases primarily reflected organic growth and the additions of iCAD, See-Mode, Gleamer and CIMAR.
Previous wording
Digital Health segment operating expenses increased for both the three and six months ended June 30, 2026 compared with the corresponding prior-year periods. The increases primarily reflected additional costs associated with the acquisitions of iCAD, See-Mode, CIMAR and Gleamer; investments in personnel to establish foundational capabilities and support the segment’s growth; increased software and cloud-computing costs; higher stock-based compensation expense associated with the expansion of the organization; and higher non-capitalized research and development costs reflecting continued investment in scaling our platforms for broader deployment.
Current wording
Digital Health segment operating expenses increased for both the three and nine months ended September 30, 2026 compared with the corresponding prior-year periods. The increases primarily reflected additional costs associated with the acquisitions of iCAD, See-Mode, CIMAR and Gleamer; investments in personnel to establish foundational capabilities and support the segment’s growth; increased software and cloud-computing costs; higher stock-based compensation expense associated with the expansion of the organization; and higher non-capitalized research and development costs reflecting continued investment in scaling our platforms for broader deployment.
Previous wording
We define ARR as the normalized annualized value of contracted recurring revenue attributable to active customer contracts as of the measurement date. ARR was $105.5 million as of June 30, 2026, compared with $53.5 million as of June 30, 2025. The increase primarily reflected ARR added through the acquisitions of Gleamer, iCAD, and CIMAR, together with organic growth from new and existing customers.
Current wording
We define ARR as the normalized annualized value of contracted recurring revenue attributable to active customer contracts as of the measurement date. ARR was $112.6 million as of September 30, 2026, compared with $67.3 million as of September 30, 2025. The increase primarily reflected ARR added through the acquisitions of Gleamer, iCAD, and CIMAR, together with organic growth from new and existing customers.
Previous wording
The decrease in adjusted interest expense was primarily driven by lower SOFR-based interest rates during the three and six months ended June 30, 2026 compared with the corresponding prior-year periods, including the impact of the 0.25% reduction in the applicable margin resulting from the June 2026 repricing of our term loan. These benefits were partially offset by higher average outstanding debt balances during the 2026 periods, including the $250.0 million incremental term loan funded on June 10, 2026.
Current wording
The increase in adjusted interest expense was primarily attributable to higher average outstanding debt balances during the three and nine months ended September 30, 2026, compared with the corresponding prior-year periods, including the impact of the $250.0 million incremental term loan funded on June 10, 2026. This increase was partially offset by lower SOFR-based interest rates and the 0.25% reduction in the applicable interest margin resulting from the June 2026 repricing of our term loan.
Previous wording
In addition, our 2019 interest rate swap agreements matured in 2025. As a result, there were no interest related to the 2026 period, whereas prior periods included the impact of such swap-related amounts.
Current wording
In addition, our 2019 interest rate swap agreements matured in 2025. As a result, no interest-related benefits from these agreements were recognized during the 2026 periods, whereas the corresponding prior-year periods included such benefits, contributing to the increase in total interest expense.
Previous wording
No non-cash change in fair value of interest rate hedge was recognized during the three and six months ended June 30, 2026, as our 2019 Swaps matured in 2025.
Current wording
No non-cash change in fair value of interest rate hedge was recognized during the three and nine months ended September 30, 2026, as our 2019 Swaps matured in 2025.
Previous wording
For the three months ended June 30, 2026 and 2025, we recognized equity in earnings from unconsolidated joint ventures in the amount of $4.7 million and $4.4 million, respectively. The increase was primarily driven by lower losses from Arizona Diagnostic Radiology Group, LLC and improved income from Franklin Imaging, LLC and Montgomery Community Magnetic Imaging Center, LLC, partially offset by lower income from Santa Monica Imaging Group, LLC.
Current wording
For the three months ended September 30, 2026 and 2025, we recognized equity in earnings from unconsolidated joint ventures in the amount of $4.2 million and $3.6 million, respectively. The increase was primarily driven by improved income from Santa Monica Imaging Group, LLC and Greater Baltimore Diagnostic Imaging, partially offset by lower equity in earnings from BWI and St. Joseph, which were contributed on August 1, 2026 to MIP, our consolidated joint venture with University of Maryland Medical System Corporation.
Previous wording
For the six months ended June 30, 2026 and 2025, we recognized equity in earnings from unconsolidated joint ventures in the amount of $8.5 million and $7.0 million, respectively. The increase was primarily driven by lower losses from Arizona Diagnostic Radiology Group, LLC and improved income from Santa Monica Imaging Group, LLC.
Current wording
For the nine months ended September 30, 2026 and 2025, we recognized equity in earnings from unconsolidated joint ventures in the amount of $12.7 million and $10.5 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, partially offset by lower equity in earnings from BWI and St. Joseph, which were contributed to MIP, our consolidated joint venture, on August 1, 2026.
Previous wording
At June 30, 2026, our consolidated subsidiaries operated 392 diagnostic imaging centers of which 107 were not wholly-owned. At June 30, 2025, our consolidated subsidiaries included 353 imaging centers, of which 103 were not wholly-owned. Thus, a portion of the operating results of our consolidated subsidiaries were attributable to noncontrolling interests.
Current wording
At September 30, 2026, our consolidated subsidiaries operated 396 diagnostic imaging centers of which 118 were not wholly-owned. At September 30, 2025, our consolidated subsidiaries included 356 imaging centers, of which 101 were not wholly-owned. Thus, a portion of the operating results of our consolidated subsidiaries were attributable to noncontrolling interests.
Previous wording
For the six months ended June 30, 2026, we recognized net income attributable to noncontrolling interests of $21.5 million versus $16.8 million for the six months ended June 30, 2025, respectively. The increases were primarily driven by improved performance at The New Jersey Imaging Network, LLC and our California majority-owned joint ventures, together with the addition of Intermountain Medical Imaging, LLC, which had no comparable prior year results.
Current wording
For the three months ended September 30, 2026, we recognized net income attributable to noncontrolling interests of $15.0 million versus $8.5 million for the three months ended September 30, 2025, respectively. The increase was primarily driven by improved performance at our California majority-owned joint ventures, The New Jersey Imaging Network, L.L.C. (“NJIN”) and our Maryland majority-owned joint ventures, including the newly formed MIP, partially offset by losses at Intermountain Medical Imaging, LLC, which had no comparable prior year results.
Previous wording
For the three months ended June 30, 2026, we recognized net income attributable to noncontrolling interests of $12.7 million versus $8.6 million for the three months ended June 30, 2025, respectively. The increases were primarily driven by improved performance at The New Jersey Imaging Network, LLC and our California majority-owned joint ventures, together with the addition of Intermountain Medical Imaging, LLC, which had no comparable prior year results.
Current wording
For the nine months ended September 30, 2026, we recognized net income attributable to noncontrolling interests of $36.5 million versus $25.2 million for the nine months ended September 30, 2025, respectively. The increase was primarily driven by improved performance at our California majority-owned joint ventures, NJIN and our Maryland majority-owned joint ventures, together with the addition of MIP and Intermountain Medical Imaging, LLC, which had no comparable prior year results.
Previous wording
As noncontrolling interests only represent a portion of our imaging center business, and excludes our Digital Health segment, which generated operating losses of $14.6 million and $32.3 million for the three and six months ended June 30, 2026, 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 operating losses of $22.4 million and $54.8 million for the three and nine months ended September 30, 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 define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted to exclude income taxes, interest expense, severance costs, depreciation and amortization, non-cash employee stock-based compensation, loss on sale and disposal of equipment and other, non-cash change in fair value of interest rate hedge, other income, non-capitalized research and development expenses related to DeepHealth Cloud OS and Generative AI, lease abandonment charges, and acquisition transaction costs. Adjusted EBITDA includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries, and is adjusted for non-cash or one-time events that take place during the period.
Current wording
We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted to exclude income taxes, interest expense, severance costs, depreciation and amortization, non-cash employee stock-based compensation, loss on sale and disposal of equipment and other, non-cash change in fair value of interest rate hedge, other income, non-capitalized research and development expenses related to DeepHealth Cloud OS and Generative AI, lease abandonment charges, gains and losses on contributions of imaging centers into joint ventures, gains and losses on extinguishment of debt and related expenses, legal settlements, non-cash changes in contingent consideration, non-operational rent expenses, and acquisition transaction costs. Adjusted EBITDA includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries, and is adjusted for non-cash or one-time events that take place during the period.
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Previous report — wording carried elsewhere
The increase in same center professional fees was primarily attributable to higher procedural volumes. Same center professional fees of 16.5% increased at a higher rate than the 9.9% increase in same center revenue, primarily due to (i) a greater mix of advanced imaging procedures, for which professional fees generally represent a higher proportion of revenue, and (ii) disproportionately higher growth at imaging centers in California and New York staffed by radiologists affiliated with Beverly Radiology Medical Group III (“BRMG”) and Lenox Hill Radiology and Medical Imaging Associates, P.C. (“Lenox Hill Radiology”), respectively, whose professional fees are consolidated within our financial results. At many imaging centers outside California and New York, revenue is reported net of professional fees and, accordingly, the related professional fees are not consolidated within our financial results.
Previous report — wording carried elsewhere
Other income for the six months ended June 30, 2026 included $9.2 million of money market interest income, partially offset by $3.4 million of debt restructuring and extinguishment.