RadNet Reports Second Quarter Financial Results with Record Quarterly Revenue and Adjusted EBITDA(1) and Revises Upwards 2026 Financial Guidance Ranges

RadNet posts record revenue and EBITDA, but earnings per share decline year-over-year.

Risk flags

• ●Adjusted Earnings and Adjusted EPS declined year-over-year despite record revenue and EBITDA, indicating that cost increases, margin compression, or dilution may be offsetting operational gains. This matters because it signals that revenue growth is not fully translating into bottom-line improvement.
• ●Digital Health segment Adjusted EBITDA decreased from $3.4 million to $2.5 million even as revenue surged 56.5%, highlighting margin pressure or increased investment in this segment. Sustained margin erosion could limit the long-term profitability of this growth area.
• ●Disclosure does not include a full income statement, balance sheet, or cash flow statement, restricting visibility into net income, operating cash flow, and leverage beyond headline metrics. This limits the ability to assess underlying profitability, working capital trends, and true liquidity risk.

Bottom line

RadNet’s Q2 2026 results show strong revenue and operational growth, with record highs in total revenue, Adjusted EBITDA, and recurring revenue. The Digital Health segment is expanding rapidly, but its profitability is under pressure, and overall Adjusted Earnings and EPS have declined from the prior year. The company’s cash position and leverage appear healthy based on the disclosed figures, but the absence of full financial statements leaves open questions on net profitability and cash flow. Forward-looking benefits from the DeepHealth AI rollout and revised guidance are expected within the current year, making the timeline for potential upside short and tangible. Investors should focus on whether margin pressures persist and if revenue growth can translate into sustained earnings improvement. The key takeaway is that while operational momentum is strong, earnings quality and disclosure completeness are the main areas to watch.

Announcement summary

(NASDAQ: RDNT) RadNet, Inc. reported Total Company Revenue increased 25.0% to a quarterly record of $622.7 million in the second quarter of 2026 from $498.2 million in the second quarter of 2025. Digital Health reportable segment revenue increased 56.5% to $32.4 million in the second quarter of 2026 from $20.7 million in the second quarter of 2025, and Annual Recurring Revenue (ARR) increased from $53.5 million at June 30, 2025 to $105.5 million at June 30, 2026. Total Company Adjusted EBITDA was a quarterly record of $99.7 million in the second quarter of 2026, up from $81.2 million in the second quarter of 2025, an increase of 22.7%. Adjusted Earnings were $23.2 million and Adjusted Earnings Per Share was $0.29 for the second quarter of 2026, compared to $25.7 million and $0.34, respectively, for the second quarter of 2025. Aggregate advanced imaging procedural volumes increased 21.2% and same-center advanced imaging procedural volumes increased 9.6% as compared with the second quarter of 2025. As of June 30, 2026, balance sheet cash was $726.3 million and Net Debt to Adjusted EBITDA Ratio was 1.8x. The company projects to implement DeepHealth’s breast ultrasound AI solution across RadNet’s breast imaging centers by year-end and anticipates both Revenue and cost savings contributions in the second half of this year from the roll-out.

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