RadNet, Inc. reported fourth‑quarter 2025 results that surpassed analyst expectations, with total revenue of $547.7 million, a 14.8% year‑over‑year increase from $477.1 million in Q4 2024. Adjusted EBITDA rose to $87.7 million, up 16.9% from $75.0 million, and the company’s adjusted EBITDA margin expanded to 16.0% from 15.7% in the prior year, a 29‑basis‑point gain driven by a higher mix of advanced imaging procedures and operational efficiencies.
The Digital Health segment delivered $27.9 million in revenue, a 48.2% jump from $18.9 million in Q4 2024, and $4.9 million in adjusted EBITDA, up 8.9% from $4.5 million. Advanced imaging volumes grew 14.1% overall and 9.6% at same‑center sites, supporting the margin lift and reinforcing the company’s focus on high‑margin services.
Adjusted earnings per share were $0.23, beating the consensus estimate of $0.19 by $0.04 (a 22.7% beat) and slightly below the $0.24 reported in Q4 2024, underscoring the company’s ability to generate earnings growth while maintaining a disciplined cost structure.
Management reiterated 2026 guidance, projecting revenue growth of 17%–19%, adjusted EBITDA growth of 18%–22%, and free‑cash‑flow growth of 29%–41%. The company also announced the acquisition of Gleamer SAS, a Paris‑based AI firm, for up to €230 million in an all‑cash transaction. The deal will be integrated into RadNet’s DeepHealth subsidiary, with expectations of cost efficiencies and enhanced patient‑care capabilities by Q3 2026.
Despite the strong results, market participants reacted with caution, as shares fell under pressure. Investors expressed concerns that the company’s valuation may already reflect the robust growth outlook, tempering enthusiasm for the earnings beat.
"I am very pleased with the fourth‑quarter performance," said Dr. Howard Berger, President and Chief Executive Officer. "We intend to continue to develop and bring‑to‑market solutions that address the critical challenges the industry faces, including labor shortages, capacity constraints and the inability of radiologists to keep pace with growing industry volumes, all in an effort to improve patient care and outcomes."
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