RadNet Delivers Record Second Quarter 2025 Results, Driven by Growth in Advanced Imaging and Digital Health; Raises Full-Year Guidance
RadNet, a leading U.S. provider of high-quality, cost-effective outpatient diagnostic imaging services, has reported strong financial and operational performance for the second quarter of 2025, marked by record revenue and adjusted EBITDA. The company also raised its full-year guidance for revenue and adjusted EBITDA, reflecting its sustained growth momentum and confidence in continued positive trends.
RadNet operates a network of 405 owned and operated outpatient imaging centers across the United States, offering a wide range of diagnostic imaging services. The company’s performance in Q2 was bolstered by significant volume growth in advanced imaging modalities, expanded capacity, and rising contributions from its rapidly growing Digital Health segment.
Strong Quarterly Growth Across Segments
According to Dr. Howard Berger, President and Chief Executive Officer of RadNet, both the Imaging Center and Digital Health segments delivered robust growth, achieving record-breaking quarterly results.
Total company revenue for Q2 2025 increased by 8.4% year-over-year to $498.2 million, up $38.5 million from the second quarter of 2024. Adjusted EBITDA grew by 12.3% to $81.2 million, compared with $72.3 million in the prior-year quarter, raising the adjusted EBITDA margin to 16.3%, up from 15.7% a year earlier.
The company attributed the gains to several factors:
- Volume Growth: Both aggregate and same-center procedural volumes increased.
- Improved Reimbursement: Higher rates from commercial and capitated payors supported revenue growth.
- Shift to Advanced Imaging: Demand continued to move toward higher-value MRI, CT, and PET/CT procedures.
- Digital Health Expansion: Increased sales and licenses for AI-driven workflow software and imaging solutions.
Advanced Imaging Drives Performance
RadNet’s strategic focus on advanced imaging procedures, such as MRI, CT, and PET/CT, was a major driver of performance.
MRI volumes saw an aggregate increase of 9.0% and a same-center increase of 6.6% year-over-year in Q2 2025. The company credited this growth in part to investments in MRI software upgrades and revised operating protocols, which have shortened scan times and increased capacity.
CT volumes grew 8.1% in total and 5.9% on a same-center basis. RadNet expanded CT offerings on both coasts, including advanced procedures like Cardiac CT Angiography, enhanced by AI-assisted analytics.
PET/CT emerged as the fastest-growing modality, with total volume up 22.4% year-over-year and same-center volume up 16.2%. Growth was fueled by expanded diagnostic and screening capabilities for conditions such as prostate cancer, Alzheimer’s disease, and dementia, as well as the adoption of new tumor-specific radioactive tracers.
Role of TechLive™ and Digital Health Solutions
A key enabler of RadNet’s operational gains is TechLive™, a remote scanning technology recently cleared by the FDA. Developed within RadNet’s Digital Health division, TechLive™ allows technologists to operate MRI, CT, and other advanced imaging systems remotely.
This innovation addresses the ongoing shortage of trained imaging technologists by enabling:
- Remote control of advanced imaging equipment
- Extended operating hours
- Utilization of exam rooms that might otherwise be closed due to staffing gaps
Digital Health revenue in Q2 2025 reached $20.7 million, up 30.9% from the prior year, with adjusted EBITDA of $3.4 million (up 4.1%). The division benefited from increased adoption of AI-driven imaging solutions, including the nationwide rollout of the Enhanced Breast Cancer Detection program. Nearly 45% of RadNet’s screening mammography patients are opting for the program, which is offered for a $40 out-of-pocket fee.
Capacity Expansion to Meet Growing Demand
High demand and patient backlogs in several local markets prompted RadNet to continue expanding its capacity.
- One new facility opened in East Brunswick, New Jersey, during Q2 2025.
- Nine additional de novo facilities are expected to open by the end of 2025.
The expansion strategy is aimed at meeting growing demand for advanced imaging and improving patient access.
Technology and AI Integration
RadNet continues to invest heavily in AI and digital solutions to enhance imaging quality, workflow efficiency, and diagnostic capabilities. Recent initiatives include:
- Internal deployment of the TechLive™ remote scanning solution
- Implementation of DeepHealth Operations and Diagnostic suites
- Integration of newly acquired See-Mode ultrasound AI capabilities, designed to improve detection and analysis of vascular disease and other conditions
Financial Results in Detail
Second Quarter 2025
- Total Revenue: $498.2 million (+8.4% YoY)
- Adjusted EBITDA: $81.2 million (+12.3% YoY)
- Adjusted EBITDA Margin: 16.3% (up 57 basis points YoY)
- Digital Health Revenue: $20.7 million (+30.9% YoY)
- Digital Health Adjusted EBITDA: $3.4 million (+4.1% YoY)
On a GAAP basis, RadNet reported net income of $14.5 million for Q2 2025, compared with a net loss of $3.0 million in Q2 2024. Net income per diluted share was $0.19, compared to a loss per share of $(0.04) a year earlier.
Adjusted Earnings
Several unusual or one-time items impacted Q2 results, including:
- $2.0 million non-cash loss from interest rate swaps
- $496,000 in lease expenses for facilities under construction
- $123,000 lease abandonment charge
- $2.3 million in acquisition-related transaction costs
- $4.8 million in non-capitalized R&D expenses related to DeepHealth Cloud OS and generative AI
Excluding these items, adjusted earnings were $23.8 million, or $0.31 per diluted share, compared with $12.0 million, or $0.16 per share, in Q2 2024.
Volume Growth by Modality
Aggregate Volume Growth (Q2 2025 vs. Q2 2024):
- MRI: +9.0%
- CT: +8.1%
- PET/CT: +22.4%
- Routine Imaging: +3.5%
Same-Center Volume Growth:
- MRI: +6.6%
- CT: +5.9%
- PET/CT: +16.2%
- Routine Imaging: +1.4%
Six-Month Results (First Half 2025)
For the first half of 2025, RadNet reported:
- Total Revenue: $969.6 million (+8.8% YoY)
- Adjusted EBITDA: $127.6 million (-2.4% YoY)
The slight year-to-date decline in adjusted EBITDA was attributed primarily to the estimated $15 million EBITDA loss in Q1 2025 due to disruptions from California wildfires and severe winter weather.
Digital Health revenue for the six months reached $39.9 million (+31.0% YoY), with adjusted EBITDA of $7.1 million (+4.8% YoY).
Full-Year 2025 Guidance Raised
Citing strong second-quarter performance, ongoing positive trends, and confidence in the sustainability of growth drivers, RadNet revised its full-year 2025 guidance upwards for both revenue and adjusted EBITDA.
While specific updated guidance figures were not disclosed in the Q2 release, management indicated that results are expected to exceed both the original full-year expectations and the revised guidance announced after Q1.
