RadNet(RDNT) - 2025 Q3 - Quarterly Results

Revenue Growth - Total Company Revenue increased by 13.4% to $522.9 million in Q3 2025 from $461.1 million in Q3 2024[4] - Digital Health Revenue surged by 51.6% to $24.8 million in Q3 2025 from $16.4 million in Q3 2024[4] - For the first nine months of 2025, Total Company Revenue reached $1,492.5 million, a 10.3% increase from the same period in 2024[13] - Digital Health Revenue for the first nine months of 2025 was $64.8 million, reflecting a 38.2% increase compared to the first nine months of 2024[14] - Total service revenue for Q3 2025 was $522.9 million, a 13.4% increase from $461.1 million in Q3 2024[33] Earnings Performance - Adjusted EBITDA grew by 15.2% to $84.9 million in Q3 2025 compared to $73.7 million in Q3 2024, with an Adjusted EBITDA margin increase of 26 basis points to 16.2%[4] - Total Company Adjusted Diluted Earnings Per Share was $0.20 for Q3 2025, up from $0.18 in Q3 2024[4] - The company reported a basic net income per share of $0.07 for Q3 2025, compared to $0.04 for Q3 2024, a 75.0% increase[33] - The adjusted diluted net income per share attributable to common stockholders was $0.20 for Q3 2025, compared to $0.18 for Q3 2024, reflecting an increase of approximately 11.1%[45] Cash and Assets - Cash balance as of September 30, 2025, was $804.7 million, with a Net Debt to Adjusted EBITDA ratio of approximately 1.0x[4] - Cash and cash equivalents increased to $804.7 million as of September 30, 2025, up from $740.0 million at the end of 2024, representing an 8.7% growth[31] - Total assets reached $3.67 billion as of September 30, 2025, compared to $3.29 billion at the end of 2024, indicating an increase of 11.5%[31] - Total cash and cash equivalents at the end of the period were $804,716,000, compared to $748,916,000 at the end of the previous year, indicating a growth of about 7.5%[35] Operational Metrics - Aggregate advanced imaging procedural volumes rose by 13.0%, while same-center advanced imaging procedural volumes increased by 9.9% compared to Q3 2024[5] - MRI volume increased by 14.8%, CT volume by 9.4%, and PET/CT volume by 21.1% in Q3 2025 compared to the same quarter last year[12] - MRI procedures increased to 512,861 in Q3 2025 from 446,596 in Q3 2024, marking an increase of approximately 14.8%[43] - The percentage of payments by commercial insurance was 57.3% in Q3 2025, compared to 55.3% in Q3 2024, indicating a growth in reliance on commercial insurance[38] Expenses and Liabilities - Operating expenses for Q3 2025 were $495.5 million, up from $427.2 million in Q3 2024, marking a 16.0% rise[33] - Long-term operating lease liability increased to $690.9 million as of September 30, 2025, from $656.0 million at the end of 2024, a growth of 5.2%[31] - Total liabilities increased to $2.35 billion as of September 30, 2025, compared to $2.15 billion at the end of 2024, representing a 9.3% increase[31] Research and Development - Non-capitalized R&D expenses for DeepHealth Cloud OS & Generative AI amounted to $13,835,000 for the nine months ended September 30, 2025, up from $9,977,000 in 2024, reflecting a growth of approximately 38.5%[37] Other Financial Metrics - The company experienced a decrease in revenue under capitation arrangements, which fell to $31.4 million in Q3 2025 from $33.6 million in Q3 2024, a decline of 6.3%[33] - Net income for the nine months ended September 30, 2025, was $7,186,000, a decrease from $24,611,000 in 2024, reflecting a decline of approximately 70.8%[35] - Adjusted EBITDA for the nine months ended September 30, 2025, was $212,514,000, compared to $204,451,000 in 2024, showing an increase of about 3.1%[37] - Cash flows from operating activities for the nine months ended September 30, 2025, were $214,656,000, up from $190,494,000 in 2024, representing an increase of approximately 12.6%[35] - Cash paid for interest during the period was $53,679,000, a decrease from $57,227,000 in 2024, showing a reduction of about 6.7%[35] - The company reported a loss on sale and disposal of equipment of $3,168,000 for the nine months ended September 30, 2025, compared to $735,000 in 2024, indicating a significant increase in losses[35] Guidance and Outlook - RadNet revised its full-year 2025 guidance upwards for Imaging Center Revenue and Adjusted EBITDA, as well as for Digital Health Revenue[6]