Radnet (RDNT) AI Stock Analysis

• Market Cap: $4.84B
• Dividend Yield: N/A
• Average Volume (3M): 792.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 11.09%
• EPS Growth: -165.89%
• Country: US
• Employees: 11,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.23
• Shares Outstanding: 77,612,120
• 10 Day Avg. Volume: 1,016,107
• 30 Day Avg. Volume: 792,213
• PEG Ratio: 0.38
• Price to Book (P/B): 4.92
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 62.70
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.90
• Enterprise Value/Gross Profit: 25.88
• Enterprise Value/Ebitda: 23.29
• 1Y Price Target: $90.80
• Price Target Upside: 45.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.68
• Revenue Forecast (FY): $2.41B

• Rating: 62 Neutral
• Price Target: $64.00 ▲(2.68% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

RDNT scores as moderately attractive overall, led by improving fundamentals (profitability and stronger operating/free cash flow) and an optimistic 2026 outlook emphasizing growth, margin expansion, and accelerating Digital Health ARR. Offsetting this are leverage-related balance sheet constraints, a mixed technical backdrop with soft momentum signals, and weak/unclear valuation support given the negative P/E and no dividend yield provided.

Positive Factors

Digital Health ARR Momentum

A rapidly growing, recurring-revenue Digital Health ARR reduces reliance on per-procedure volume. Doubling ARR via organic growth and acquisitions (Gleamer, iCAD) supports predictable revenue, improves SaaS-like margin leverage, and creates durable cross-sell opportunities into RadNet’s large imaging network.

Improved Cash Generation

Stronger operating cash flow and positive free cash flow provide durable funding for reinvestment, tuck-ins, and deleveraging without excessive equity issuance. While FCF has been volatile historically, the 2025 improvement signals better cash conversion that can sustainably support strategic M&A and capex over the next several quarters.

Scale & Health-System Partnerships

A large, expanding national center footprint and significant health-system JV penetration strengthen referral flows and negotiation leverage with payers. Scale and partnerships create durable competitive advantages in access, volume mix (advanced imaging) and distribution for Digital Health offerings across an integrated network.

Negative Factors

High Absolute Leverage

Elevated absolute debt and near-term higher pro forma leverage reduce financial flexibility and increase sensitivity to operational setbacks or higher rates. Sustained investment or integration costs could delay deleveraging, constrain capital allocation, and raise refinancing or interest coverage risk over the medium term.

Acquisition Integration & Execution Risk

Large, transformative acquisitions expand capabilities but create execution risk: synergy realization, regulatory clearances, product integration and cross-sell take time. Persistent integration costs can compress margins and delay accretion, making near-to-medium-term profit and cash outcomes uncertain until synergies are proven.

Labor Cost Inflation

Imaging centers are labor intensive; a structural ~$30M labor headwind pressures operating margins absent offsetting productivity gains or better reimbursement. Sustained wage inflation requires durable efficiency improvements or pricing power, otherwise margin expansion targets may be difficult to achieve.

Radnet Business Overview & Revenue Model

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.

How the Company Makes Money

Radnet generates revenue primarily through the provision of diagnostic imaging services to patients, which are often reimbursed by insurance providers, including Medicare and Medicaid. The company operates a fee-for-service model, where it bills patients or their insurance for each imaging procedure performed. Key revenue streams include payments for various imaging modalities such as MRI, CT, and ultrasound services. Additionally, Radnet benefits from strategic partnerships with healthcare providers and payers that facilitate patient referrals and enhance service delivery. The company may also engage in value-based care contracts that incentivize the delivery of cost-effective imaging services, contributing to its overall earnings.

Radnet Financial Statement Overview

Summary

Profitability and cash generation improved meaningfully in 2025 (net income up to ~$46.8M; operating cash flow ~$298.8M; free cash flow ~$85.6M), but the balance sheet remains a constraint due to high absolute debt (~$1.86B) and elevated leverage, and there are noted income statement data-consistency issues that reduce confidence in margin trends.

Income Statement

Revenue has grown steadily from 2022–2024 (~9–13% per year), but 2025 annual growth accelerated sharply (203.6%), suggesting a step-change that may be less repeatable. Profitability is positive and improving in 2025, with net income rising to ~$46.8M (about a 2.3% net margin) versus near break-even in 2023–2024. However, margins remain relatively thin for the revenue base, and some profitability fields appear inconsistent in 2025 (e.g., gross profit/margins shown as 0), which reduces confidence in the quality/consistency of the income statement trend.

Balance Sheet

Leverage is the key constraint: total debt is high at ~$1.86B in 2025 with debt-to-equity still elevated (~1.7x), though it has improved meaningfully from very high levels in 2020–2022. Equity has expanded substantially over time (to ~$1.09B in 2025), which is a positive de-risking signal. Returns on equity remain modest (about 4.3% in 2025), indicating profitability is improving but not yet strong relative to the capital base.

Cash Flow

Cash generation is generally solid: operating cash flow increased to ~$298.8M in 2025 (from ~$233.0M in 2024), and free cash flow turned meaningfully higher (~$85.6M, up ~64% in 2025). That said, free cash flow has been volatile (notably negative in 2021–2022), and free cash flow remains a relatively small portion of operating cash flow, implying ongoing reinvestment needs or capital intensity. Cash flow support versus profits is mixed, with free cash flow at roughly 29% of net income in 2025.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.04B	1.83B	1.62B	1.43B	1.32B
Gross Profit	90.80M	249.12M	221.39M	165.72M	191.80M
EBITDA	242.93M	262.55M	292.79M	278.53M	278.37M
Net Income	-18.65M	2.79M	3.04M	10.65M	24.73M
Balance Sheet
Total Assets	3.76B	3.29B	2.69B	2.43B	2.06B
Cash, Cash Equivalents and Short-Term Investments	767.22M	740.02M	342.57M	127.83M	134.61M
Total Debt	1.86B	1.73B	1.49B	1.51B	1.40B
Total Liabilities	2.40B	2.15B	1.88B	1.94B	1.71B
Stockholders Equity	1.09B	902.31M	630.70M	333.00M	228.90M
Cash Flow
Free Cash Flow	85.57M	44.95M	44.26M	-103.00M	-71.20M
Operating Cash Flow	298.82M	233.02M	220.86M	146.42M	149.49M
Investing Cash Flow	-343.87M	-233.07M	-201.47M	-246.95M	-221.51M
Financing Cash Flow	72.21M	397.95M	195.63M	93.65M	104.67M

Radnet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDNT, the sentiment is Negative. The current price of 62.33 is below the 20-day moving average (MA) of 69.54, below the 50-day MA of 71.40, and below the 200-day MA of 69.16, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 34.96 is Neutral, neither overbought nor oversold. The STOCH value of 22.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDNT.

Radnet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXAS	64 Neutral	$19.80B	-92.15	-8.51%	―	14.47%	-353.69%
RVTY	64 Neutral	$10.30B	27.94	3.24%	0.29%	3.37%	-18.80%
RDNT	62 Neutral	$4.84B	-287.63	-1.88%	―	11.09%	-165.89%
SHC	57 Neutral	$4.14B	64.26	14.98%	―	2.67%	-21.96%
NEOG	56 Neutral	$2.11B	-20.21	-26.92%	―	-2.77%	-4327.53%
NEO	52 Neutral	$1.16B	-2.79	-12.64%	―	10.10%	-44.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Radnet Corporate Events

RadNet Acquires Gleamer to Expand Global Radiology AI

On March 2, 2026, RadNet announced it had acquired Paris-based radiology AI specialist Gleamer SAS for up to €230 million in an all-cash deal, including a €15 million milestone payment. Gleamer, which serves more than 700 customer contracts in 44 countries with FDA-cleared and CE-marked AI solutions, will be integrated into RadNet’s DeepHealth digital health division.

The combination of Gleamer’s cloud-first, multimodality portfolio and DeepHealth’s existing clinical AI suites makes DeepHealth the largest provider of radiology clinical AI solutions worldwide. RadNet expects the integration and deployment of Gleamer’s technology across its network, particularly in high-volume X-ray workflows, to boost productivity, enhance automated exam prioritization and draft reporting, and deliver operational and cost efficiencies by the third quarter of 2026.

Gleamer’s rapid ARR growth and broad product portfolio, together with DeepHealth’s global footprint, are set to create a comprehensive AI platform spanning MR, CT, X-ray, mammography and ultrasound. The move strengthens RadNet’s competitive positioning in AI-enabled imaging at a time of rising imaging volumes and radiologist shortages, with implications for improved access, standardized interpretation and patient outcomes across multiple major disease areas.

The most recent analyst rating on (RDNT) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Radnet stock, see the RDNT Stock Forecast page.

RadNet Registers Cimar Acquisition Shares for Resale

On January 30, 2026, RadNet filed a prospectus supplement with the SEC to register for resale up to 190,924 shares of its common stock by the Cimar Sellers, who are designated as selling stockholders. These shares represent the non-cash portion of the consideration paid for RadNet’s acquisition of all shares of Cimar (UK) Limited, completed on November 10, 2025, through its Netherlands-based subsidiary DH AI International Holdings, B.V., highlighting RadNet’s continued use of equity to finance strategic technology acquisitions and integrate Cimar’s capabilities into its broader imaging platform.

The most recent analyst rating on (RDNT) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Radnet stock, see the RDNT Stock Forecast page.

RadNet announces major executive leadership promotions and realignment

On January 7, 2026, RadNet expanded its executive leadership team, promoting Stephen Forthuber and Norman Hames from presidents and chief operating officers of Eastern and Western Operations, respectively, to presidents and chief executive officers of those regions, while elevating Mital Patel to executive vice president and chief operating officer and appointing Dr. Greg Sorensen, M.D., from chief science officer to chief strategy officer. In conjunction with these promotions and broader leadership realignments, RadNet’s compensation committee approved amendments to executive employment agreements to raise base salaries for several senior leaders, moves that underscore the company’s emphasis on seasoned internal talent to support its recent record financial performance and to strengthen its positioning in both its imaging center and digital health segments as it pursues further growth and a more proactive, prevention-oriented role in healthcare.

The most recent analyst rating on (RDNT) stock is a Buy with a $92.00 price target. To see the full list of analyst forecasts on Radnet stock, see the RDNT Stock Forecast page.