RadNet’s stock price falls 20%, driven down by 3 potential factors

Imaging center operator RadNet Inc. has seen its stock price fall 20% this month following positive earnings results and plans to purchase AI firm Gleamer for almost $270 million. 

The publicly traded, Los Angeles radiology firm’s shares hit their lowest value since August, falling to around $60 a share Tuesday after a quarterly earnings call March 2. RadNet said Wednesday it does not comment on its stock price, but analysts who follow the company closely shared their insights this week. 

The imaging services provider delivered record revenue in the fourth quarter of 2025, rising 15% year over year to nearly $548 million. The “fundamental story remains intact” for RadNet, with “strong growth,” said Yuan Zhi, PhD, a senior healthcare equity research analyst at B. Riley Securities, an investment banking firm. 

“That said, the recent stock weakness likely reflects the impact from a couple of factors,” he told Radiology Business by email Wednesday. 

Zhi cited three reasons that might be dragging down RadNet’s value for investors, offering insights to other radiology providers. RadNet (RDNT) operates a total of over 420 imaging centers across 9 states, recently entering Indiana by acquiring 6 facilities for $9 million.

Here are Zhi’s 3 factors: 

1. High price paid for AI asset: “The Gleamer acquisition is on the expensive side of asset valuations. It's a good fit to RDNT's digital health [division], but we would like to see meaningful impact to RDNT's operation when Gleamer's applications are deployed internally,” Zhi said. 
2. Concerns over key accounting metric: “A recent short-seller report [read more from Radiology Business here] raised questions about RDNT's same-center growth methodology related to center consolidations. RDNT subsequently removed same-center revenue language from its 2025 10-K [earnings] filing, which created an optics issue even if the underlying business performance is solid. We expect management to provide revised disclosure metrics on organic growth across its platform in the near future; however, the gap between the allegation and a clear response has allowed uncertainty to linger.”
3. High price shifts investor thinking: “RDNT's current valuation is at a relative premium to healthcare services peers, which leaves a limited margin for error. When disclosure questions arise around a key operating metric at a premium-valued name, it changes investors' sentiment, and investors naturally reassess.”

“We believe RDNT will continue to benefit from the secular tailwinds in outpatient imaging,” Zhi closed. “RDNT's capacity expansion strategy, both organic and through acquisitions, supported by its AI platform, still puts RDNT in the leading position in outpatient imaging.”