RadNet (RDNT) Posts Record Revenue But Profit Growth Lags
RadNet reported a record $622.7 million in revenue for the second quarter of 2026, marking a 25.0% increase from the previous year's $498.2 million. Management raised their full-year guidance for Imaging Center revenue to $2.37 billion to $2.42 billion and adjusted EBITDA to $345 million to $358 million. However, profit growth lagged behind sales, with total net income falling to $7.5 million in Q2 2026 from $14.5 million a year earlier.
The Digital Health segment experienced even faster growth, with revenue rising 56.5% to $32.4 million and annual recurring revenue nearly doubling to $105.5 million. Despite these positive numbers, overall profitability remained weak, with adjusted earnings per share dropping to $0.29 from $0.34. RadNet is trying to capitalize on the shift towards more expensive advanced imaging scans, which now make up 29.9% of total procedural volume.
The company is also expanding through hospital partnerships, with 157 of its 442 locations now held in health system joint ventures. However, the market remains skeptical about the growth story translating into the bottom line, as evidenced by the falling hedge fund ownership and a sizable short interest.
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