In August 2025, RadNet released its Second Quarter (Q2) 2025 earnings, delivering record revenue and EBITDA while advancing its technology-driven growth initiatives. This report reviews the company’s financial performance, operational highlights, and strategic positioning for the remainder of 2025, through the lens of Pinnacle Healthcare Consulting.
Key Q2 Financial Metrics
RadNet reported strong year-over-year gains in both revenue and EBITDA, supported by growth in advanced imaging procedures and improvements in reimbursement rates.
- Revenue: $498.2 million (+8.4%)[1]
- Adjusted EBITDA: $81.2 million (+12.3%)
Segment & Service Line Performance
Advanced Imaging Growth
- MRI
- MRI volumes increased on both an aggregate and same-center basis, supported by MRI software upgrades and operational efficiencies from the FDA-approved TechLive remote screening technology.
- The TechLive platform shortened scan times, expanded operating hours, and reduced MRI room closures by 42% in pilot locations.
- More than 300 MRI, CT, and PET systems are currently connected to TechLive, with full network integration targeted by early 2026.
- CT
- CT programs expanded to include more complex procedures, particularly cardiac CT, which has seen rapid growth.
- Enhanced reimbursement has further supported the expansion of these services.
- PET/CT
- PET/CT was the fastest-growing modality, with a 22.4% aggregate volume increase.
- Growth was driven by new diagnostic and screening programs for prostate cancer, Alzheimer’s disease, and dementia.
Digital Health Segment
- Revenue grew 30.9% to $20.7 million, with adjusted EBITDA of $3.4 million (+4.1%).
- Strategic acquisitions included iCad for breast screening enhancement and See-Mode Technologies to expand diagnostic capacity.
- Early deployment of an FDA-approved thyroid ultrasound has cut scan times by 30%, with full implementation across centers expected by Q1 2026. RadNet is also pursuing FDA approval for AI-enabled breast ultrasounds.
Pinnacle sees RadNet’s service-line expansion as a clear growth driver. The TechLive system allows more scans without the use of extra equipment. Cardiac CT services add higher-value procedures, and PET/CT’s move into cancer and dementia screenings positions RadNet in fast-growing markets. The Digital Health segment’s new AI tools also help speed up exams and improve accuracy, making the company stand out from competitors. On the weaker side, much of this growth depends on continued technological adoption and smooth integration of acquisitions, meaning any delays or setbacks in those areas could slow down momentum.
Full Year Outlook
RadNet expects full-year revenue of $1.83-$1.88 billion and adjusted EBITDA of $265-$273 million. Growth will be driven by expanded advanced imaging capabilities, integration of new AI technologies, facility expansion, and increased adoption of outpatient diagnostic care.
Pinnacle believes RadNet’s valuation trajectory will depend on its ability to expand advanced imaging and tech-enabled service. The combination of strong finances, expanding technology footprint, and increasing outpatient adoption creates opportunities for both organic growth and strategic M&A. If RadNet can sustain operational efficiency while deepening its AI and specialty imaging capabilities, Pinnacle sees potential for meaningful growth over time.
[1] All percent changes represent Year-Over-Year growth unless otherwise noted
