RadNet lifts FY outlook as digital health revenue soars 52%

RadNet (NASDAQ:RDNT) posted total company revenue of $575.6 million for the first quarter ended March 31, 2026, a 22.1% increase compared to the $471.4 million reported in the prior-year period.

The results were driven by a 19.7% increase in aggregate advanced imaging procedures—comprising MRI, CT, and PET/CT—and a robust 8.2% rise in same-center advanced volumes.

Total company adjusted EBITDA rose 36.3% to $63.3 million, overcoming an estimated $9 million weather-related headwind earlier in the quarter.

The company’s Digital Health segment emerged as a primary growth engine, with revenue jumping 51.5% to $29.1 million.

Annual Recurring Revenue (ARR) nearly doubled year-over-year, reaching $96.9 million as of March 31, 2026.

While the segment's adjusted EBITDA decreased to $1.3 million due to aggressive infrastructure and sales pipeline investments, management highlighted the strategic importance of its DeepHealth AI platform, which is now being deployed across its 435-center network to enhance interpretive accuracy and operational efficiency.

During the quarter, RadNet significantly expanded its technological and geographic footprint.

The company completed the acquisition of Gleamer SAS in France, adding a broad portfolio of clinical AI solutions for bone and chest imaging.

Furthermore, a new joint venture with Saint Alphonsus Health System in Idaho is set to deploy RadNet’s full AI stack, signaling a move toward broader health system partnerships.

Based on strong operating trends continuing through early May, RadNet has revised its full-year 2026 guidance upward for its Imaging Center segment.

The company now anticipates higher annual revenue, adjusted EBITDA, and free cash flow than previously forecast.

Guidance for the Digital Health division remains reaffirmed, reflecting a steady path toward its year-end goals.