RadNet Reports First Quarter Financial Results and Revises Upwards 2025 Financial Guidance Ranges for Revenue and Adjusted EBITDA

RadNet, Inc., a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 401 owned and operated outpatient imaging centers, has released its financial results for the first quarter of 2025. The company also revised its 2025 financial guidance ranges for revenue and adjusted EBITDA upwards.

Financial Highlights

For the first quarter of 2025, RadNet reported:

• Total Company Revenue increased by 9.2% to $471.4 million from $431.7 million in the first quarter of 2024.
• Adjusted EBITDA decreased by 20.6% to $46.4 million from $58.5 million in the first quarter of 2024.
• Net Loss Per Share was $(0.51), compared with a Net Loss per share of $(0.04) in the first quarter of 2024.
• Revenue from the Digital Health segment increased by 31.1% to $19.2 million from $14.7 million in the first quarter of 2024.

Business and Operational Highlights

RadNet's business was significantly impacted by the Southern California wildfires and severe winter weather conditions, which negatively affected revenue by approximately $22 million and adjusted EBITDA by approximately $15 million. Despite these challenges, the company saw a recovery in March and continued strong procedural volumes and revenue through April and early May.

Key operational highlights include:

• Implementation of TechLiveTM remote scanning capability on approximately 255 MRIs, with testing on ultrasound systems beginning.
• The Enhanced Breast Cancer Detection (EBCD) AI-powered diagnostic program achieved a blended adoption rate of over 40% nationwide.
• Advanced imaging procedural volume grew, with PET/CT volume increasing by almost 23% from the previous year's first quarter.

Strategic Initiatives and Corporate Developments

On April 15, 2025, RadNet announced the signing of a definitive agreement to acquire iCAD, Inc. This acquisition aims to accelerate AI-powered early detection and diagnosis of breast cancer. Upon completion, iCAD will contribute to RadNet's Digital Health division, facilitating over eight million annual mammograms in over 50 countries.

RadNet's balance sheet remains strong, with a cash balance of $717 million and a leverage ratio of Net Debt to Adjusted EBITDA slightly above 1.0x.

Management's Perspective

Dr. Howard Berger, President and CEO of RadNet, commented on the financial results, highlighting the recovery from the impact of wildfires and severe weather. He emphasized the company's advancements in remote scanning technology, AI-powered breast cancer diagnostics, and the growth in advanced imaging procedures. Dr. Berger expressed confidence in the company's ability to achieve its revised 2025 guidance ranges for revenue and adjusted EBITDA.

Future Outlook

RadNet has revised its full-year 2025 guidance levels, increasing the ranges for revenue and adjusted EBITDA. The company now expects total net revenue for the Imaging Center Segment to be between $1,835 million and $1,885 million, and adjusted EBITDA to be between $268 million and $276 million. For the Digital Health Segment, total net revenue is expected to be between $80 million and $90 million, with adjusted EBITDA before non-capitalized R&D projected to be between $15 million and $17 million.

SEC Filing: RadNet, Inc. [ RDNT ] - 8-K - May. 12, 2025