Radnet (RDNT)
NASDAQ:RDNT
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Radnet
(NASDAQ:RDNT)
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Rating:62Neutral
Price Target:
$58.00
▲(3.74% Upside)
Action:ReiteratedDate: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
Improved Cash Generation
RadNet's material improvement in operating cash flow and a meaningful rise in free cash flow provide durable internal funding for reinvestment, de‑leveraging, and M&A. Strong cash conversion supports multi‑year strategic initiatives and cushions margin volatility vs. peers.
Negative Factors
High Absolute Debt and Elevated Leverage
Large absolute debt and still‑elevated leverage constrain financial flexibility, increase fixed obligations, and limit shock absorption. Near-term pro forma leverage will rise with M&A, tightening capacity for opportunistic investments or cushioning during volume or reimbursement shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Cash Generation
RadNet's material improvement in operating cash flow and a meaningful rise in free cash flow provide durable internal funding for reinvestment, de‑leveraging, and M&A. Strong cash conversion supports multi‑year strategic initiatives and cushions margin volatility vs. peers.
Read all positive factors
Radnet (RDNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.34B
Dividend YieldN/A
Average Volume (3M)890.51K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth11.09%
EPS Growth-165.89%
CountryUS
Employees11,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)0.23
Shares Outstanding77,612,120
10 Day Avg. Volume673,996
30 Day Avg. Volume890,506
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 Cap1.25
Enterprise Value/Revenue2.66
Enterprise Value/Gross Profit23.76
Enterprise Value/Ebitda21.39
Forecast
1Y Price Target
$89.00Price Target Upside59.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.64
Revenue Forecast (FY)$2.43B
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, ...
How the Company Makes Money
RadNet primarily makes money by providing diagnostic imaging procedures at its outpatient imaging centers and billing for those services. Revenue is generated on a per-procedure basis and depends on modality mix (e.g., MRI and CT typically represe...
Radnet Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive picture: RadNet delivered a record quarter with strong revenue and adjusted EBITDA growth, materially accelerated Digital Health revenue and ARR, completed a transformative strategic acquisition (Gleamer) that meaningfully expands AI capabilities and global reach, and maintained strong liquidity and low receivables. Notable headwinds include integration-related EBITDA drag from acquisitions, embedded labor cost inflation (~$30M), short-term weather impacts to Q1, and a near-term rise in leverage to fund strategic M&A. Management provided guidance that anticipates continued top-line and margin growth, and positioned Digital Health for significant ARR expansion. Overall, the positive operational and strategic developments outweigh the near-term costs and execution risks.Positive Updates
Record Quarterly Revenue and Adjusted EBITDA
Q4 2025 total company revenue rose 14.8% year-over-year to $547.7M, and adjusted EBITDA increased 16.9% year-over-year to $87.7M — both quarterly records for RadNet.
Negative Updates
Short-Term EPS and Q4 EPS Flatness
Adjusted earnings per share for Q4 2025 were effectively flat at $0.23 vs. $0.24 in Q4 2024, indicating limited near-term EPS leverage despite strong revenue and EBITDA growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly Revenue and Adjusted EBITDA
Q4 2025 total company revenue rose 14.8% year-over-year to $547.7M, and adjusted EBITDA increased 16.9% year-over-year to $87.7M — both quarterly records for RadNet.
Read all positive updates
Company Guidance
RadNet’s 2026 guidance calls for Imaging Center revenue growth of 17%–19% (with EBITDA growth outpacing revenue and margin expansion), embedded same‑center labor cost inflation of about 4% (≈$30M headwind), free cash flow growth of 29%–41% versus 2025, and a Q1 weather headwind; Digital Health revenue is guided to grow 45%–55% in 2026, Digital Health ARR was $75.4M at 12/31/25 and is expected to approach ~$140M by year‑end 2026 (including roughly $30M ARR from Gleamer and ~ $7M ARR annualization from iCAD), the proportion of Digital Health revenue coming from RadNet’s Imaging Centers is expected to fall from 45% in 2025 to ~33% in 2026, the company expects a minimum of four FDA clearances in 2026, management disclosed an embedded ~ $5M EBITDA drag from Gleamer in 2026 (with ~ $7M run‑rate synergies and a path to positive adjusted EBITDA by mid‑2027), year‑end 2025 cash was roughly $767–776M with net debt/adjusted‑EBITDA ≈1.0 (pro forma leverage after recent 2026 deals ~1.6–1.8x).Radnet Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
54
Neutral
Cash Flow
67
Positive
| 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
Negative
55.91
Price Trends
65.08
Negative
70.47
Negative
69.38
Negative
Market Momentum
-3.13
Positive
36.34
Neutral
30.32
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 55.91 is below the 20-day moving average (MA) of 59.10, below the 50-day MA of 65.08, and below the 200-day MA of 69.38, indicating a bearish trend. The MACD of -3.13 indicates Positive momentum. The RSI at 36.34 is Neutral, neither overbought nor oversold. The STOCH value of 30.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $10.11B | 27.94 | 3.24% | 0.29% | 3.37% | -18.80% | |
62 Neutral | $4.34B | ― | -1.88% | ― | 11.09% | -165.89% | |
58 Neutral | $4.33B | 64.26 | 14.98% | ― | 2.67% | -21.96% | |
55 Neutral | $2.25B | -20.21 | -26.92% | ― | -2.77% | -4327.53% | |
52 Neutral | $1.07B | -2.79 | -12.64% | ― | 10.10% | -44.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
RDNT
Radnet
55.91
2.32
4.33%
NEOG
Neogen
10.34
5.32
105.98%
RVTY
Revvity
90.40
-10.65
-10.54%
NEO
NeoGenomics
8.22
-0.90
-9.87%
SHC
Sotera Health
15.24
3.92
34.63%
Radnet Corporate Events
Business Operations and StrategyM&A Transactions
RadNet Acquires Gleamer to Expand Global Radiology AI
Positive
Mar 2, 2026
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 cont...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
RadNet Registers Cimar Acquisition Shares for Resale
Positive
Jan 30, 2026
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...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
RadNet announces major executive leadership promotions and realignment
Positive
Jan 9, 2026
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 officer...
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.