RadNet (RDNT) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 revenue of $575.6 million, up 22.1% year-over-year, and adjusted EBITDA of $63.3 million, up 36.3%, despite a $13M revenue and $9M EBITDA impact from severe winter weather.

• Digital Health segment revenue increased 51.5% to $29.1 million, with ARR reaching $96.9 million and strong AI and informatics growth.

• Imaging Center segment expanded to 435 centers, with same-center revenue up 8.9% and total procedural volumes up 10.1%.

• Net loss attributable to common stockholders narrowed to $33.5 million, an improvement from $37.9 million loss in Q1 2025.

• Raised 2026 full-year guidance for Imaging Center revenue, adjusted EBITDA, and free cash flow.

Financial highlights

• Imaging Center revenue was $556.8 million (up 20.7% year-over-year); Digital Health revenue was $29.1 million (up 51.5%).

• Adjusted EBITDA margin for Imaging Center segment improved by 52 basis points after weather adjustments.

• Cash and equivalents at quarter-end were $455.3 million; leverage ratio (Net Debt/Adjusted EBITDA) slightly below 2.0.

• Cash flow from operations was $79.0 million; net cash used in investing activities was $371.0 million, mainly for acquisitions.

• Days sales outstanding (DSO) reached a record low of 29.5 days.

Outlook and guidance

• 2026 Imaging Center guidance raised: revenue $2,355–$2,405 million, adjusted EBITDA $340–$353 million, free cash flow $112–$122 million.

• Digital Health full-year guidance reaffirmed: $135–$145 million revenue, $10–$12 million adjusted EBITDA.

• Over 70% of studies expected to run through clinical AI by year-end; all radiologist reports to use AI-powered summarization.

• Commercial pipeline for Digital Health exceeds $150 million in total contract value.

• Sufficient liquidity and borrowing capacity to fund operations and future acquisitions.