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1. Company Snapshot

1.a. Company Description

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States.Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services.The company also develops and sells computerized systems for the diagnostic imaging industry, including picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of images in the field of mammography, as well as AI solutions for lung and prostate cancer.


As of December 31, 2021, it owned and managed 347 centers in Arizona, California, Delaware, Florida, Maryland, New Jersey, and New York.The company was founded in 1981 and is headquartered in Los Angeles, California.

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1.b. Last Insights on RDNT

RadNet's recent performance was driven by record quarterly revenue and adjusted EBITDA in Q3 2025. The company's financial results were positively impacted by its growing diagnostic imaging services and digital health solutions. RadNet's upward revision of its 2025 financial guidance ranges also boosted investor confidence. Additionally, the company's Investor Day on November 11, 2025, is expected to provide further insights into its growth strategy. Despite Harbor Capital selling almost $20 million of RadNet shares, the company's increasing cash flows and resilience have been noted by analysts.

1.c. Company Highlights

2. RadNet's Q3 2025 Earnings: A Strong Performance Driven by Advanced Imaging and Digital Health

RadNet, Inc. reported a robust third quarter 2025 financial performance, with revenue increasing 13.4% to $544.3 million and adjusted EBITDA growing 15.2% to $124.2 million compared to the same quarter last year. The company's earnings per share (EPS) came in at $0.2, slightly below analyst estimates of $0.23. The strong financial performance was driven by several positive trends, including robust same-center procedural volume, particularly in advanced imaging, which increased 9.9% on a same-center basis.

Publication Date: Nov -15

📋 Highlights
  • Revenue & EBITDA Growth:: Q3 2025 revenue rose 13.4% to $X, adjusted EBITDA up 15.2%, driven by 13% advanced imaging procedural growth (28.2% of procedures).
  • Reimbursement Rate Improvements:: Commercial/capitated payer rate hikes and capitated-to-fee-for-service conversions boosted profitability, reversing years of Medicare cuts.
  • Digital Health Expansion:: EBCD AI breast screening adoption hit 45%, iCAD acquisition integration accelerated, and C Mode tech reduced thyroid scan times by 30%.
  • Strong Liquidity & Guidance:: $804.7M cash balance, net debt/EBITDA of 1.0x, and 2025 revenue guidance raised by $50M (low) to $30M (high) for adjusted EBITDA.
  • Medicare Reimbursement Recovery:: $4–5M 2026 revenue uplift expected from CMS fee schedule reversal, with 45% of patients opting to pay out-of-pocket for EBCD coverage.

Advanced Imaging and Reimbursement Rates

Advanced imaging now accounts for 28.2% of procedures, up from 26.7% in the third quarter of last year. The company's strong financial performance is also attributed to improvements in reimbursement rates, with commercial and capitated payers recognizing RadNet's position as a lower-priced alternative to hospital-based imaging. As a result, the company has received rate increases from many larger commercial and capitated payers.

Digital Health Operating Segment

The digital health operating segment continues to expand, with the EBCD DeepHealth AI-powered breast cancer screening program experiencing a blended adoption rate nationally above 45%. The company has also made progress in securing reimbursement for its EBCD program, with several larger capitated medical groups agreeing to add it as a covered benefit for over 700,000 members. Howard Berger mentioned that the company is investing in AI and software to improve operating metrics and create better outcomes for patients.

Valuation and Outlook

RadNet's current valuation metrics indicate a P/E Ratio of -441.7, P/B Ratio of 5.3, and EV/EBITDA of 29.26. Analysts estimate revenue growth at 9.9% for next year. With the company's strong financial performance and growth prospects, the current valuation appears to be reasonable. The company's guidance for 2025 has been increased, with revenue expected to increase by $50 million at the low end and $30 million at the high end, and adjusted EBITDA expected to increase by $5 million at both the low and high ends.

Operational Highlights

The acquisition of iCAD, a global leader in clinically proven AI-powered breast health solutions, was completed on July 17, and the integration is ahead of plan. The company has also completed the implementation of C Mode's thyroid ultrasound technology across over 240 centers, with early deployment demonstrating a 30% reduction in scan time. The TechLive rollout is expected to be substantially complete by the end of the year, and has already demonstrated a significant reduction in exam room closures, resulting in a substantial increase in MRI volume.

3. NewsRoom

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DeepHealth Launches Breast Suite, Elevating Breast Cancer Detection, Risk Stratification and Workflow

Dec -01

Source: globenewswire.com

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DeepHealth Unveils Next-Generation Imaging Informatics and Clinical AI Solutions at RSNA 2025, Advancing a New Standard of AI-Powered Care

Nov -30

Source: globenewswire.com

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Creative Planning Boosts Stake in RadNet, Inc. $RDNT

Nov -29

Source: defenseworld.net

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RadNet, Inc. $RDNT Shares Purchased by Commonwealth of Pennsylvania Public School Empls Retrmt SYS

Nov -24

Source: defenseworld.net

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Landmark Nature Health Study Demonstrates the Effectiveness of DeepHealth's Novel AI-Powered Breast Cancer Detection Workflow

Nov -17

Source: globenewswire.com

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GE HealthCare and RadNet's DeepHealth Division Sign Letter of Intent to Advance Innovation and Adoption of AI-Powered Imaging Across Multiple Modalities and Remote Scanning

Nov -12

Source: globenewswire.com

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RadNet Acquires CIMAR UK, Empowering DeepHealth to Accelerate AI-Powered Imaging, Reporting and Image-Based Screening

Nov -11

Source: globenewswire.com

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RadNet, Inc. (RDNT) Q3 2025 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.01%)

6. Segments

Imaging Centers

Expected Growth: 6%

RadNet's Imaging Centers segment growth is driven by increasing demand for outpatient imaging services, strategic acquisitions, and expansion of existing centers. Additionally, the company's focus on value-based care and cost-effective solutions resonates with payers and patients, leading to increased market share and revenue growth.

Artificial Intelligence

Expected Growth: 8%

RadNet's AI segment growth is driven by increasing adoption in medical imaging, expanding applications in healthcare analytics, and strategic partnerships. Additionally, the company's investments in AI-powered diagnostic tools, such as image recognition and predictive analytics, are contributing to its growth. Furthermore, the growing demand for precision medicine and personalized healthcare is also fueling the segment's growth.

7. Detailed Products

Imaging Centers

RadNet operates a network of outpatient imaging centers that provide a range of diagnostic imaging services, including MRI, CT, PET, and X-ray scans.

Teleradiology Services

RadNet provides teleradiology services, allowing radiologists to remotely interpret medical images and provide diagnostic reports to healthcare providers.

Artificial Intelligence (AI) Solutions

RadNet develops and deploys AI-powered solutions to improve the accuracy and efficiency of medical imaging diagnoses.

Radiology Information Systems (RIS)

RadNet offers RIS software to manage medical imaging data, streamline workflows, and improve patient care.

Consulting and Advisory Services

RadNet provides consulting and advisory services to help healthcare providers optimize their medical imaging operations and improve patient care.

8. RadNet, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

RadNet, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the emergence of new technologies and competitors.

Bargaining Power Of Customers

RadNet, Inc.'s customers have limited bargaining power due to the company's strong market position and the lack of alternative providers.

Bargaining Power Of Suppliers

RadNet, Inc. relies on a few key suppliers for its medical imaging equipment, giving them some bargaining power, but the company's size and market position mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the medical imaging industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The medical imaging industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.42%
Debt Cost 5.53%
Equity Weight 41.58%
Equity Cost 12.37%
WACC 8.38%
Leverage 140.48%

11. Quality Control: RadNet, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Natera

A-Score: 4.5/10

Value: 4.0

Growth: 7.1

Quality: 3.3

Yield: 0.0

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

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Waters

A-Score: 3.9/10

Value: 1.5

Growth: 5.2

Quality: 7.5

Yield: 0.0

Momentum: 3.0

Volatility: 6.3

1-Year Total Return ->

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RadNet

A-Score: 3.7/10

Value: 3.8

Growth: 3.8

Quality: 3.1

Yield: 0.0

Momentum: 6.5

Volatility: 5.0

1-Year Total Return ->

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Twist Bioscience

A-Score: 3.6/10

Value: 6.8

Growth: 6.1

Quality: 4.8

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

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Exact Sciences

A-Score: 3.4/10

Value: 4.8

Growth: 6.0

Quality: 3.2

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Charles River Laboratories

A-Score: 3.3/10

Value: 4.7

Growth: 4.1

Quality: 3.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

78.59$

Current Price

78.59$

Potential

-0.00%

Expected Cash-Flows