RadNet Reports First Quarter Financial Results and Revises Upwards 2025 Financial Guidance Ranges for Revenue and Adjusted EBITDA¹

Core Viewpoint - RadNet, Inc. reported its financial results for the first quarter of 2025, highlighting a revenue increase despite challenges from severe weather and wildfires, and announced an acquisition of iCAD to enhance its AI-powered cancer detection capabilities [1][4][3]. Financial Performance - Total Company Revenue for Q1 2025 was $471.4 million, a 9.2% increase from $431.7 million in Q1 2024 [4][6]. - Adjusted EBITDA for Q1 2025 was $46.4 million, down 20.6% from $58.5 million in Q1 2024 [4][6]. - The Digital Health segment saw a revenue increase of 31.1%, reaching $19.2 million in Q1 2025 compared to $14.7 million in Q1 2024 [4][7]. Operational Highlights - Procedural volumes increased by 3.6% overall, with advanced imaging growing 1.26% year-over-year [4][10]. - PET/CT procedural volume surged nearly 23% compared to the same quarter last year, driven by growth in prostate and brain imaging [2][4]. - The company implemented TechLive™ remote scanning capabilities, enabling approximately 255 MRIs, and began testing this technology on ultrasound systems [2]. Acquisition and Strategic Initiatives - RadNet signed a definitive agreement to acquire iCAD, which will enhance its Digital Health division and support over eight million annual mammograms globally [3][4]. - The acquisition is expected to strengthen RadNet's position in AI-powered breast cancer screening and improve population health initiatives [3]. Revised Guidance - RadNet revised its full-year 2025 guidance, increasing the revenue range to $1,835 - $1,885 million and Adjusted EBITDA to $268 - $276 million [12][11]. Balance Sheet and Cash Flow - As of March 31, 2025, RadNet had a cash balance of $717 million and a leverage ratio of Net Debt to Adjusted EBITDA slightly above 1.0x [5]. - The company reported a net loss of $37.9 million for Q1 2025, compared to a net loss of $2.8 million in Q1 2024 [8][42]. Market Position - RadNet operates a network of 401 outpatient imaging centers across several states, making it a leading provider in the diagnostic imaging industry [16]. - The company employs over 11,000 individuals, including contracted radiologists and technologists [16].