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Radnet Inc (RDNT)
NASDAQ:RDNT
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Radnet
(NASDAQ:RDNT)
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Rating:67Neutral
Price Target:
$72.00
▼(-5.15% Downside)
Radnet's overall stock score is driven by strong technical momentum and positive earnings call highlights, including record revenue and strategic acquisitions. However, profitability challenges and a negative P/E ratio weigh on the valuation score, limiting the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.
Strategic Acquisitions
These acquisitions enhance RadNet's competitive edge in AI imaging solutions, potentially boosting innovation and market share.
Cash Position and Leverage
Strong liquidity and low leverage provide financial flexibility for future investments and resilience against economic fluctuations.
Negative Factors
Profitability Challenges
Ongoing profitability issues could hinder reinvestment and growth, impacting long-term financial health and shareholder returns.
High Debt Levels
High debt levels can strain cash flow and limit financial flexibility, posing risks to long-term stability and growth initiatives.
Labor Cost Challenges
Rising labor costs and availability issues could pressure margins and operational efficiency, impacting profitability and service delivery.
Radnet (RDNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.84B
Dividend YieldN/A
Average Volume (3M)715.82K
Price to Earnings (P/E)1704.6
Beta (1Y)1.28
Revenue Growth11.33%
EPS Growth-232.27%
CountryUS
Employees11,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)0.31
Shares Outstanding76,916,060
10 Day Avg. Volume798,890
30 Day Avg. Volume715,822
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue2.91
Enterprise Value/Gross Profit9.61
Enterprise Value/Ebitda9.41
Forecast
1Y Price Target
$79.60Price Target Upside4.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Radnet Business Overview & Revenue Model
Company DescriptionRadNet, 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 MoneyRadNet generates revenue primarily through the provision of diagnostic imaging services. The company earns money by billing insurance companies, government health programs like Medicare and Medicaid, and patients for the imaging services rendered. Key revenue streams include payments for individual imaging procedures, technical fees, and professional interpretations of the images by radiologists. Additionally, RadNet benefits from strategic partnerships with healthcare providers and insurers, which helps to expand its patient base and increase service utilization. The company also engages in value-based care initiatives, allowing it to participate in shared savings programs that further enhance its revenue potential.
Radnet Earnings Call Summary
Earnings Call Date:Aug 10, 2025
(Q2-2025)
| Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong performance in the second quarter with record revenue and adjusted EBITDA, driven by growth in advanced imaging and digital health segments. Strategic acquisitions and the implementation of TechLive contributed to operational efficiency. Despite weather-related disruptions earlier in the year and ongoing labor cost challenges, the company's financial health remains robust with a strong cash position and low leverage.Q2-2025 Updates
Positive Updates
Record Quarterly Revenue and Adjusted EBITDA
RadNet achieved a record quarterly revenue of $498.2 million, an 8.4% increase from the previous year. Adjusted EBITDA also reached a record $81.2 million, a 12.3% increase from last year.
Advanced Imaging Growth
Advanced imaging procedures increased to 27.5% of total procedures, up from 26.5% last year, with MRI, CT, and PET/CT showing significant growth. PET/CT procedures grew 22.4% on an aggregate basis.
Successful Implementation of TechLive
TechLive significantly contributed to a 42% decrease in MRI room closures in New York, leading to increased capacity and efficiency.
Digital Health Segment Expansion
Digital Health segment revenue increased by 30.9% to $20.7 million, driven by AI and radiology software revenue growth.
Positive Cash Position and Low Leverage
RadNet ended the quarter with $833 million in cash and a net debt to adjusted EBITDA ratio of 0.96, indicating strong liquidity and financial health.
Acquisition of iCAD and See-Mode Technologies
The acquisitions are expected to expand RadNet's capabilities in AI-powered imaging solutions, particularly in breast cancer screening and ultrasound imaging.
Negative Updates
Weather-Related Disruptions
The first quarter of 2025 experienced significant disruptions due to California wildfires and severe winter weather in the Northeast, affecting initial performance.
Challenges with Labor Costs and Availability
The industry faces inflationary pressures and challenges in the availability of radiology technologists, affecting operational costs.
Company Guidance
In the second quarter of 2025, RadNet reported record revenue and adjusted EBITDA, highlighting a strong recovery from disruptions in the first quarter due to California wildfires and severe weather. Total company revenue reached $498.2 million, an 8.4% increase from the prior year, while Digital Health segment revenue soared by 30.9% to $20.7 million. The company's adjusted EBITDA rose by 12.3% to $81.2 million, bolstered by a 60-basis point margin expansion to 16.3%. RadNet's advanced imaging procedures, including MRI, CT, and PET/CT, experienced significant growth, with PET/CT increasing 22.4% on an aggregate basis. The implementation of TechLive, a remote screening technology, has expanded operational hours and reduced MRI room closures by 42% in New York. RadNet plans to connect all its advanced imaging equipment to TechLive by early 2026. Additionally, the acquisition of iCAD and See-Mode Technologies is expected to enhance revenue and operational efficiency, with See-Mode's technology already demonstrating a 30% reduction in scan time in ultrasound applications. With a strong cash balance of $833 million and a net debt to adjusted EBITDA ratio of 0.96, RadNet is poised to capitalize on acquisition opportunities, increase capacity, and further invest in strategic initiatives.Radnet Financial Statement Overview
Summary
Radnet shows strong revenue growth and operational efficiency, with substantial improvements in cash flow management. However, the company faces profitability challenges and maintains a high leverage ratio. Continued focus on improving net margins and managing debt levels will be crucial for sustained financial health.Income Statement
Radnet has demonstrated consistent revenue growth, with a notable increase from $1.07 billion in 2020 to $1.87 billion in TTM 2025. However, the net profit margin has declined, with a negative net income in TTM 2025, indicating profitability challenges. The EBITDA margin remains strong at 34.6% in TTM 2025, highlighting efficient operational performance amidst rising revenues.65
Positive
Balance Sheet
The company's debt-to-equity ratio is relatively high, suggesting significant leverage, which may pose a risk in unstable market conditions. However, Radnet's equity has strengthened over the years, with stockholders' equity rising to $898 million in TTM 2025. The return on equity has shown variability, with a negative ROE in TTM 2025 due to net losses.55
Neutral
Cash Flow
Radnet's operating cash flow remains robust, with $257 million in TTM 2025. The free cash flow has improved significantly compared to the past negative figures, reaching $126.8 million in TTM 2025, indicating better cash management and operational efficiency.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.91B | 1.83B | 1.62B | 1.43B | 1.32B | 1.07B |
| Gross Profit | 577.73M | 249.12M | 221.39M | 165.72M | 200.91M | 132.20M |
| EBITDA | 590.18M | 262.55M | 292.79M | 278.53M | 278.37M | 199.74M |
| Net Income | -14.92M | 2.79M | 3.04M | 10.65M | 24.73M | -14.84M |
Balance Sheet | ||||||
| Total Assets | 3.51B | 3.29B | 2.69B | 2.43B | 2.06B | 1.79B |
| Cash, Cash Equivalents and Short-Term Investments | 833.15M | 740.02M | 342.57M | 127.83M | 134.61M | 102.02M |
| Total Debt | 1.84B | 1.73B | 1.49B | 1.51B | 1.40B | 1.18B |
| Total Liabilities | 2.34B | 2.15B | 1.88B | 1.94B | 1.71B | 1.53B |
| Stockholders Equity | 932.31M | 902.31M | 630.70M | 333.00M | 228.90M | 165.74M |
Cash Flow | ||||||
| Free Cash Flow | 110.74M | 1.29M | 44.26M | -103.00M | -71.20M | 108.32M |
| Operating Cash Flow | 296.49M | 233.02M | 220.86M | 146.42M | 149.49M | 233.76M |
| Investing Cash Flow | -253.16M | -233.07M | -201.47M | -246.95M | -221.51M | -126.24M |
| Financing Cash Flow | 82.63M | 397.95M | 195.63M | 93.65M | 104.67M | -45.56M |
Radnet Technical Analysis
Positive
75.91
Price Trends
66.56
Positive
61.85
Positive
60.78
Positive
Market Momentum
2.56
Positive
63.34
Neutral
50.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDNT, the sentiment is Positive. The current price of 75.91 is above the 20-day moving average (MA) of 73.89, above the 50-day MA of 66.56, and above the 200-day MA of 60.78, indicating a bullish trend. The MACD of 2.56 indicates Positive momentum. The RSI at 63.34 is Neutral, neither overbought nor oversold. The STOCH value of 50.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $5.84B | 1,704.59 | -1.65% | ― | 11.33% | -232.27% | |
66 Neutral | 4.49B | 188.89 | 4.70% | ― | 2.40% | -40.03% | |
61 Neutral | 9.76B | 35.23 | 3.78% | 0.33% | 3.33% | 32.86% | |
53 Neutral | 10.14B | -9.88 | -40.71% | ― | 12.56% | -464.28% | |
51 Neutral | 1.23B | -1.13 | -52.72% | ― | -3.20% | -11471.95% | |
50 Neutral | 1.02B | -9.72 | -12.18% | ― | 9.70% | -30.94% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
RDNT
Radnet
75.91
6.52
9.40%
EXAS
Exact Sciences
53.57
-14.55
-21.36%
NEOG
Neogen
5.67
-11.14
-66.27%
RVTY
Revvity
84.06
-43.35
-34.02%
NEO
NeoGenomics
7.93
-6.82
-46.24%
SHC
Sotera Health
15.81
-0.89
-5.33%
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.