RadNet (RDNT) Surged Following the Quarterly Results

Core Insights - Baron Health Care Fund reported a 5.39% increase in Q3 2025, slightly outperforming the Russell 3000 Health Care Index which gained 5.05% [1] - The fund's performance was impacted by stock selection and negative effects from active sub-industry allocations and cash holdings during a rising market [1] Fund Performance - The Baron Health Care Fund's Institutional Shares rose 5.39% in Q3 2025 [1] - The Russell 3000 Index gained 8.18% during the same period [1] - Solid stock selection was offset by negative impacts from allocations and cash holdings [1] Company Highlight: RadNet, Inc. - RadNet, Inc. is the largest operator of outpatient diagnostic imaging services in the U.S. [3] - The company's stock closed at $77.82 on November 3, 2025, with a market capitalization of $6 billion [2] - RadNet's shares gained 14.36% over the last 52 weeks, despite a slight decline of 0.12% in the last month [2] Financial Performance of RadNet, Inc. - RadNet reported an 8.4% revenue growth and a 12.3% increase in EBITDA, exceeding consensus estimates by 2% and 6% respectively [3] - Total imaging volume grew by 4.9%, with same-store advanced imaging growth accelerating to 6.6% [3] - The Digital Health segment saw revenue increase by approximately 31% [3] Future Outlook for RadNet, Inc. - Management anticipates a 3.3% Medicare rate hike in 2026 and plans to expand MRI and ultrasound capacity through AI upgrades [3] - The company has a strong pipeline with 11 new sites planned for both 2025 and 2026 [3] - Long-term conviction in RadNet is supported by demographic trends and operational scale [3]