Radnet (RDNT) AI Stock Analysis

• Market Cap: $5.54B
• Dividend Yield: N/A
• Average Volume (3M): 673.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 11.09%
• EPS Growth: -165.89%
• Country: US
• Employees: 11,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 0.20
• Shares Outstanding: 77,282,455
• 10 Day Avg. Volume: 596,427
• 30 Day Avg. Volume: 673,638
• PEG Ratio: -90.19
• Price to Book (P/B): 5.65
• Price to Sales (P/S): 2.79
• P/FCF Ratio: 113.47
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 3.30
• Enterprise Value/Gross Profit: 28.89
• Enterprise Value/Ebitda: 27.14
• 1Y Price Target: $90.17
• Price Target Upside: 27.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $83.00 ▲(17.38% Upside)

The score is driven primarily by moderate financial performance with strong cash flow but ongoing profitability and leverage concerns. The latest earnings call was notably positive with record results and raised guidance, while technicals are mixed and valuation is pressured by loss-making earnings and no dividend support.

Positive Factors

Free cash flow & liquidity

RadNet’s material free cash flow improvement and strong operating cash conversion provide durable financial flexibility. Sustained cash generation supports debt servicing, organic investment, M&A funding and cushions reimbursement volatility, reducing execution risk over the next several quarters.

Advanced imaging & digital health growth

Robust, multi-channel growth in advanced imaging and a rapidly expanding digital health/AI franchise diversify revenue into higher-value services. These secular demand drivers can sustain margin expansion and same-center volume growth, improving long-term revenue mix and pricing leverage.

Strategic network expansion (acquisition)

The Radiology Regional acquisition immediately scales RadNet’s outpatient footprint and referral reach, adding sizable projected revenue. Incremental scale can yield operational synergies, better payer negotiating leverage and more efficient utilization across centers over multiple quarters.

Negative Factors

High leverage

Elevated leverage (D/E ~1.75) constrains financial flexibility and increases sensitivity to rate or revenue shocks. Debt servicing needs limit capital allocation options, raise refinancing risk, and reduce buffer against reimbursement cuts or slower-than-expected integration benefits from acquisitions.

Profitability weakness

Persistent negative net margin and deteriorating gross/EBITDA margins signal structural cost or pricing pressure. Until RadNet reverses margin trends through higher reimbursement mixes or structural cost reforms, returns to equity remain impaired and free cash flow conversion may be inconsistent.

Reimbursement & operational headwinds

Sustained reimbursement pressure (>$35M Medicare cuts over four years), slow commercial adoption of new screening programs and ongoing technologist shortages create durable revenue and capacity constraints. These structural headwinds can limit utilization, pricing and margin recovery over months ahead.

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

Moderate revenue growth and strong free cash flow improvement support the score, but overall profitability remains weak (negative net margin) and leverage is elevated (high debt-to-equity), creating meaningful financial risk.

Income Statement

Radnet's income statement shows moderate revenue growth with a 3.24% increase in TTM, but profitability is a concern with a negative net profit margin of -0.65%. The gross profit margin has decreased from previous years, indicating rising costs or pricing pressures. EBIT and EBITDA margins have also declined, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.75, indicating significant leverage, though it has improved from prior years. Return on equity is negative, suggesting inefficiencies in generating returns for shareholders. The equity ratio is relatively stable, but the high leverage poses risks.

Cash Flow

Cash flow analysis shows strong free cash flow growth of 95.27% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio suggests that cash flow is not fully translating into profitability. Overall, cash flow management appears robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.97B	1.83B	1.62B	1.43B	1.32B	1.07B
Gross Profit	225.22M	249.12M	221.39M	165.72M	191.80M	105.94M
EBITDA	239.79M	262.55M	292.79M	278.53M	278.37M	199.74M
Net Income	-12.71M	2.79M	3.04M	10.65M	24.73M	-14.84M
Balance Sheet
Total Assets	3.67B	3.29B	2.69B	2.43B	2.06B	1.79B
Cash, Cash Equivalents and Short-Term Investments	804.72M	740.02M	342.57M	127.83M	134.61M	102.02M
Total Debt	1.85B	1.73B	1.49B	1.51B	1.40B	1.18B
Total Liabilities	2.35B	2.15B	1.88B	1.94B	1.71B	1.53B
Stockholders Equity	1.06B	902.31M	630.70M	333.00M	228.90M	165.74M
Cash Flow
Free Cash Flow	52.06M	44.95M	44.26M	-103.00M	-71.20M	108.32M
Operating Cash Flow	257.19M	233.02M	220.86M	146.42M	149.49M	233.76M
Investing Cash Flow	-278.74M	-233.07M	-201.47M	-246.95M	-221.51M	-126.24M
Financing Cash Flow	77.48M	397.95M	195.63M	93.65M	104.67M	-45.56M

Radnet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 70.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 70.71 is below the 20-day moving average (MA) of 73.68, below the 50-day MA of 75.79, and above the 200-day MA of 67.14, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 52.62 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	70 Outperform	$19.51B	-19.24	-34.54%	―	14.47%	-353.69%
RVTY	69 Neutral	$12.60B	55.57	3.04%	0.29%	3.37%	-18.80%
SHC	67 Neutral	$5.19B	94.92	10.86%	―	2.67%	-21.96%
RDNT	62 Neutral	$5.54B	-397.69	-1.30%	―	11.09%	-165.89%
NEOG	56 Neutral	$2.25B	-3.68	-25.25%	―	-2.77%	-4327.53%
NEO	55 Neutral	$1.60B	-13.97	-12.99%	―	10.10%	-44.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Radnet Corporate Events

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.

RadNet Registers Shares for Resale with SEC

On October 21, 2025, RadNet, Inc. filed a prospectus supplement with the SEC to register for resale up to 59,444 shares of its common stock. This move involves the opinion of Reed Smith LLP on the legality of the securities, potentially impacting the company’s market operations by providing liquidity options for selling stockholders.

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.