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Radnet
(NASDAQ:RDNT)
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Rating:67Neutral
Price Target:
$79.00
▲(28.31% Upside)
Action:Reiterated
Date:08/10/26
RDNT scores in the upper-middle range primarily due to a strong earnings-call setup (raised guidance, rapid Digital Health ARR growth, and solid liquidity) and strong technical momentum (price above key moving averages with positive MACD). These positives are tempered by weaker financial statement quality (TTM net loss, volatile margins, negative TTM free cash flow, and leverage) and an unfavorable valuation signal from the negative P/E.
Positive Factors
Digital Health ARR Growth
Rapid ARR expansion creates a growing recurring revenue base and predictable cash flows. A ~2x ARR increase YoY and a large commercial funnel improve long-term revenue visibility, support SaaS-like margin scaling, and enable cross-sell into RadNet’s clinical footprint.
Negative Factors
Elevated Leverage
High absolute debt and a debt-to-equity near 1.8x heighten interest and refinancing sensitivity. Until consistent net profitability and FCF restoration occur, leverage limits strategic optionality, raises financing costs, and increases risk from macro or reimbursement shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital Health ARR Growth
Rapid ARR expansion creates a growing recurring revenue base and predictable cash flows. A ~2x ARR increase YoY and a large commercial funnel improve long-term revenue visibility, support SaaS-like margin scaling, and enable cross-sell into RadNet’s clinical footprint.
Read all positive factors
Radnet (RDNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.01B
Dividend YieldN/A
Average Volume (3M)909.69K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth18.92%
EPS Growth-37.55%
CountryUS
Employees9,060
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.27
Shares Outstanding78,697,260
10 Day Avg. Volume653,452
30 Day Avg. Volume909,693
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)4.92
Price to Sales (P/S)2.63
P/FCF Ratio62.70
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$84.67Price Target Upside37.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.51
Revenue Forecast (FY)$2.51B
Radnet Business Overview & Revenue Model
Company Description
RadNet, Inc. operates as a prominent healthcare services company specializing in outpatient diagnostic imaging across the United States. Their comprehensive offerings span a broad spectrum of advanced imaging techniques, including magnetic resonan...
How the Company Makes Money
RadNet primarily makes money by providing diagnostic imaging procedures and related radiology services to patients referred by physicians and health systems, with payment coming largely from third-party payors (commercial insurers and government p...
Radnet Earnings Call Summary
Earnings Call Date:Aug 09, 2026
(Q2-2026)
| Next Earnings Date:Mar 02, 2027
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum: record company revenue and adjusted EBITDA, robust advanced imaging growth and mix improvement, meaningful Digital Health ARR acceleration and commercial funnel expansion, successful acquisitions/integrations, and a major FDA clearance for breast ultrasound AI. Near-term pressures include deliberate Digital Health investment-driven margin dilution, labor cost inflation, integration/implementation expenses, and reimbursement/regulatory uncertainty. Overall, the positive operational execution, liquidity position, guidance raises for the imaging segment, and clear path to scale Digital Health ARR and profitability outweigh the transitory challenges noted.Positive Updates
Record Quarterly Revenue and Adjusted EBITDA
Total company revenue of $623.0M, up 25.0% year-over-year (from $498M), and total company adjusted EBITDA of $99.7M, up 22.7% year-over-year (from $81.2M) — both quarterly records.
Negative Updates
Digital Health Profitability Pressure (YoY)
Digital Health adjusted EBITDA was $2.5M in Q2 (up vs Q1 $1.3M) but down from $3.4M in prior-year Q2. Management attributes YoY decline to deliberate investments in commercial and implementation headcount and temporary margin dilution from recent acquisitions (e.g., Gleamer integration costs earlier in the year).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Adjusted EBITDA
Total company revenue of $623.0M, up 25.0% year-over-year (from $498M), and total company adjusted EBITDA of $99.7M, up 22.7% year-over-year (from $81.2M) — both quarterly records.
Read all positive updates
Company Guidance
Management raised 2026 imaging‑center guidance and reaffirmed Digital Health targets: imaging center net revenue is now guided to $2.37–$2.42 billion (up $15M at both ends), imaging center adjusted EBITDA $345–$358 million (up $5M), and free cash flow $115–$125 million (up $3M); capital expenditures remain $165–$175 million and cash interest expense was increased to $48–$53 million (up $3M). Digital Health guidance was reaffirmed at $135–$145 million of revenue and $10–$12 million of adjusted EBITDA, with ARR at $106 million at quarter end (↑97% YoY, ↑~9% vs Q1) and management expecting ARR to grow ~91% YoY to >$140 million by year‑end; external ARR is ~63% (targeting 65–70%), Q2 Digital Health revenue was $32.4 million (↑56.5% YoY), Q2 TCV closed ~$21 million (H1 TCV ≈ $37M) with a funnel of $224M TCV (~$65M ACV). Company liquidity/leverage remained strong with $726 million cash and net debt/adjusted EBITDA of 1.8x (Q2 total company revenue $623M; total company adjusted EBITDA $99.7M).Radnet Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.27B | 2.04B | 1.83B | 1.62B | 1.43B | 1.32B |
| Gross Profit | 220.11M | 90.80M | 249.12M | 221.39M | 165.72M | 191.80M |
| EBITDA | 337.29M | 253.95M | 262.55M | 292.79M | 278.53M | 278.37M |
| Net Income | -21.12M | -18.65M | 2.79M | 3.04M | 10.65M | 24.73M |
Balance Sheet | ||||||
| Total Assets | 4.23B | 3.76B | 3.29B | 2.69B | 2.43B | 2.06B |
| Cash, Cash Equivalents and Short-Term Investments | 726.27M | 767.22M | 740.02M | 342.57M | 127.83M | 134.61M |
| Total Debt | 2.18B | 1.86B | 1.73B | 1.49B | 1.51B | 1.40B |
| Total Liabilities | 2.83B | 2.40B | 2.15B | 1.88B | 1.94B | 1.71B |
| Stockholders Equity | 1.10B | 1.09B | 902.31M | 630.70M | 333.00M | 228.90M |
Cash Flow | ||||||
| Free Cash Flow | -58.45M | 85.57M | 44.95M | 44.26M | -103.00M | -71.20M |
| Operating Cash Flow | 317.02M | 298.82M | 233.02M | 220.86M | 146.42M | 149.49M |
| Investing Cash Flow | -624.19M | -343.87M | -233.07M | -201.47M | -246.95M | -221.51M |
| Financing Cash Flow | 202.20M | 72.21M | 397.95M | 195.63M | 93.65M | 104.67M |
Radnet Technical Analysis
Positive
61.57
Price Trends
62.05
Positive
59.30
Positive
66.29
Positive
Market Momentum
3.70
Negative
73.27
Negative
88.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDNT, the sentiment is Positive. The current price of 61.57 is below the 20-day moving average (MA) of 65.91, below the 50-day MA of 62.05, and below the 200-day MA of 66.29, indicating a bullish trend. The MACD of 3.70 indicates Negative momentum. The RSI at 73.27 is Negative, neither overbought nor oversold. The STOCH value of 88.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDNT.
Radnet Risk Analysis
Radnet disclosed 44 risk factors in its most recent earnings report. Radnet reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Radnet Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $12.91B | 56.13 | 3.27% | 0.25% | 4.05% | -10.40% | |
68 Neutral | $5.45B | 32.95 | 26.75% | ― | 8.15% | 576.89% | |
67 Neutral | $6.01B | -288.74 | -1.95% | ― | 18.92% | -37.55% | |
60 Neutral | $2.12B | -8.28 | -6.31% | ― | 11.19% | 50.58% | |
59 Neutral | $2.51B | -345.18 | -0.37% | ― | -2.71% | 99.28% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
RDNT
Radnet
76.95
8.54
12.48%
NEOG
Neogen
11.46
5.92
106.86%
RVTY
Revvity
117.88
27.20
30.00%
NEO
NeoGenomics
16.42
10.18
163.14%
SHC
Sotera Health
18.89
3.17
20.17%
Radnet Corporate Events
Business Operations and StrategyPrivate Placements and Financing
RadNet Expands Term Loan to Support Growth Strategy
Positive
Jun 10, 2026
On June 10, 2026, RadNet, Inc., a major outpatient diagnostic imaging operator and radiology digital health provider, obtained a $250 million incremental term loan under an amended first-lien credit agreement that aligns with the April 18, 2031 ma...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
RadNet Stockholders Approve All Proposals at 2026 Meeting
Positive
Jun 4, 2026
At its 2026 Annual Meeting of Stockholders held on June 2, 2026, RadNet, Inc. reported a quorum with about 93.6% of eligible shares represented and secured stockholder approval for all four items on the agenda. Stockholders elected six directors t...
Business Operations and StrategyPrivate Placements and Financing
RadNet Plans $200 Million Incremental Term Loan Financing
Positive
Jun 3, 2026
On June 3, 2026, RadNet, Inc., a national operator of outpatient imaging centers and radiology digital health platforms, announced plans to secure a $200 million incremental term loan through an amendment to its existing first-lien credit and guar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.