RadNet revises financial projections upward after ‘record’ quarter, with revenue up 22%

RadNet Inc. said Sunday that it’s revising its financial projections upward for 2026 following a “record” quarter for the company. 

The publicly traded, Los Angeles-based imaging center operator saw quarterly revenues leap 22% when compared to Q1 of 2025, up to $576 million. This comes after RadNet executed several acquisitions so far this year, including buying French AI firm Gleamer for approximately $270 million in March and multiple new imaging centers.

Altogether, the company reported adjusted earnings—before interest, taxes, depreciation and amortization—of over $63 million, up 36% from the first quarter of 2025. 

“RadNet’s balance sheet continues to be among the strongest in the diagnostic imaging industry,” President and CEO Howard Berger, MD, said in a statement May 10. He estimated the company has a cash balance of $455 million, with net debt at about twice its adjusted earnings (RadNet’s total debt was about $1.85 billion at the end of 2025.)

“Financial leverage and liquidity will continue to be carefully managed to maintain optimal future operating flexibility,” Berger added. 

RadNet was negatively impacted by severe weather in the Northeast in January and February, reducing revenue by about $13 million and earnings by $9 million. However, its business “strongly rebounded” in March to boost the Q1 numbers upward. RadNet said the record quarterly performance was driven by aggregate advanced imaging (MRI, CT and PET/CT) growth of nearly 20% and same-center (only counting locations RadNet operated in both quarters) advanced imaging growth of over 8% versus 2025.

Demand in MR, CT and PET/CT contributed to a 235 basis-point shift in RadNet’s advanced imaging procedural volume mix (relative to routine imaging), increasing from 27% up to over 29%. On a same-center basis, MRI volumes increased 10% year over year, while CT was up almost 5% and PET/CT 15%. Overall same-center volume—including routine imaging exams such as X-ray, ultrasound and mammography—were up about 2% compared to the same quarter in 2025. Revenue in its digital health segment, which includes AI products and workflow tools, also was up 52% year over year, rising to $29 million in Q1. 

Given strong performance in its imaging center segment, RadNet is revising financial projections upward. The company now expects to collect upward of $2.405 billion in revenue from its imaging centers this year, up from original estimates of $2.375 billion. RadNet also expects to tally upward of $353 million in adjusted earnings for 2026, up from the original estimate of $348 million. Meanwhile, Berger and colleagues affirmed their projections of up to $145 million in revenue and $12 million in adjusted earnings from the digital health segment. 

RadNet said its portfolio now includes interpretive AI solutions across virtually all imaging modalities. By the end of this year, it expects over 70% of RadNet studies could be running through clinical AI, and all of its radiologist reports will be processed through DeepHealth’s Reporting Pro AI-powered auto-impression/summarization engine. 

“When fully implemented, these initiatives should result in significant enhancement to patient care and workflow productivity intended to achieve a measurable improvement to RadNet’s operating expenses,” Berger said in a statement. 

The company was impacted by several “unusual or one-time” items, hampering its performance in Q1. They included nearly $1 million in expenses related to leases for centers under construction that had not yet opened. Another nearly $4 million went toward acquisition transaction costs, and $3 million was allocated for losses on the sale and disposal of old equipment. Adjusting for these items, RadNet’s total losses were about $22 million for Q1 compared to a $25 million loss in the first quarter of 2025. Altogether, the company operates about 435 outpatient imaging centers spread across a dozen states. 

RadNet plans to host a quarterly earnings call on Monday, May 11, at 9:30 a.m. Central Time to discuss the results. There will be a simultaneous and archived webcast of the call available here.