Core Insights - RadNet, Inc. has completed the acquisition of See-Mode Technologies, enhancing its capabilities in AI for ultrasound imaging, particularly for thyroid and breast applications [1][5] - The integration of See-Mode's technology is expected to improve diagnostic accuracy and clinical workflows, with standardized reporting for ultrasound imaging [1][5] - The acquisition positions RadNet as a leader in AI innovation within the ultrasound sector, aiming to expand efficiencies across various clinical areas [5][10] Company Overview - RadNet is a leading provider of diagnostic imaging services in the U.S., operating over 401 outpatient imaging centers and employing more than 11,000 staff [9] - DeepHealth, a subsidiary of RadNet, focuses on AI-powered health informatics to enhance imaging care and operational efficiency [10] - See-Mode specializes in AI solutions for ultrasound imaging, with regulatory approvals in multiple countries, including the U.S., Canada, and Australia [12] Market Context - Thyroid cancer is one of the fastest-growing cancer diagnoses globally, with approximately 20 million ultrasound exams performed annually in the U.S. for thyroid and breast conditions combined [2] - The deployment of See-Mode's FDA-approved thyroid ultrasound AI has shown a 30% reduction in scan time, indicating significant potential for improved workflow efficiency [2] - The existing reimbursement code for thyroid ultrasounds may enhance revenue opportunities for RadNet, with plans to extend these efficiencies to breast screening and other areas [2][5]

Investment Rating - The report assigns an "Outperform" rating to the company for the first time, with a target price range of HKD 20.76 to 25.62, indicating a potential upside of 10.1% to 35.8% compared to the current stock price of HKD 18.86 [4][6]. Core Insights - The company is a leading player in the domestic medical imaging service sector, leveraging AI to enhance the value of imaging data. Despite facing revenue pressure in 2024, the long-term growth potential remains strong due to the expected expansion of third-party imaging services and the overall market growth [2][4][55]. - The company operates 106 imaging centers across 16 provinces in China, providing a comprehensive range of services that include imaging center services, imaging solution services, and cloud services [3][20][26]. - The medical imaging service market in China is projected to grow significantly, with a CAGR exceeding 30% from 2023 to 2030, driven by increasing demand and supportive policies for independent imaging centers [2][37]. Summary by Sections Financial Performance - In 2024, the company is expected to generate revenue of HKD 761 million, a decline of 18.1% year-on-year, with a net profit of -HKD 46 million, marking a shift from profit to loss [4][9][85]. - The gross margin for 2024 is projected at 36.5%, an increase of 0.7 percentage points, attributed to higher-margin differentiated imaging solutions and improved cost control [11][82]. Business Model and Strategy - The company has established a three-part service capability: imaging center services, imaging solution services, and cloud services, aiming to create a multi-layered, full-cycle medical imaging ecosystem [3][26][68]. - The company plans to expand its international business and has formed a joint venture to explore medical technology supply chain platforms [68][75]. Market Potential - The third-party medical imaging service market in China is still in its early stages, with a penetration rate of only about 1% as of 2023, compared to the more mature U.S. market [2][37][42]. - The report highlights the significant growth potential for third-party imaging centers, with the market expected to reach HKD 186 billion by 2030 [2][37]. Future Projections - Revenue forecasts for 2025 to 2027 are HKD 997 million, HKD 1.227 billion, and HKD 1.477 billion, respectively, with expected growth rates of 31.1%, 23.1%, and 20.3% [4][85]. - The company anticipates returning to profitability in 2025, with net profits projected at HKD 49 million, HKD 81 million, and HKD 113 million for the following years [4][85].

Core Insights - iCAD, Inc. reported its financial results for Q1 2025, highlighting a total annual recurring revenue (TARR) of $10.7 million, an increase of 18% year over year, driven by the adoption of cloud-based solutions and the ProFound Breast Health Suite [2][7][5] - The company announced a transformational agreement to be acquired by RadNet, which is expected to enhance innovation and broaden access to its AI-powered solutions across over 1,500 healthcare provider locations globally [3][17] Financial Performance - Total revenue for Q1 2025 was $4.9 million, approximately flat compared to Q1 2024, with product revenue increasing by 4.6% to $3.2 million, while services revenue decreased by 12% to $1.6 million [5][6][25] - Gross profit margin improved to 86% in Q1 2025 from 83% in Q1 2024, attributed to higher-margin cloud revenues [2][8] - Operating expenses decreased by 4% to $5.3 million in Q1 2025 compared to $5.6 million in Q1 2024 [8] Loss Metrics - The GAAP net loss for Q1 2025 was $0.8 million, or $0.03 per diluted share, an improvement from a net loss of $1.2 million, or $0.05 per diluted share, in Q1 2024 [9][25] - Non-GAAP adjusted net loss for Q1 2025 was $0.5 million, or $0.02 per diluted share, compared to a non-GAAP adjusted net loss of $1.2 million, or $0.05 per diluted share, in Q1 2024 [10][39] Cash Position - As of March 31, 2025, cash and cash equivalents were $20.0 million, indicating sufficient resources to fund planned operations for at least the next 12 months without the need for additional funding [12][26] Annual Recurring Revenue (ARR) Growth - Total ARR reached $10.7 million, with a significant increase of $4.1 million since the start of subscription sales, reflecting a 61% growth [4][7] - The breakdown of ARR includes $6.2 million from maintenance services, $3.5 million from subscriptions, and $1.1 million from cloud services [4][38]

PART I – FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) RadNet reported Q1 2025 service revenue of $471.4 million, a net loss of $29.7 million, and total assets of $3.34 billion, with increased operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20at%20March%2031%2C%202025%20and%20December%2031%2C%202024) Total assets increased to **$3.34 billion**, driven by property and goodwill, while cash and equivalents slightly decreased to **$717.3 million** Condensed Consolidated Balance Sheet Highlights | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $717,323 | $740,020 | | Accounts receivable | $200,127 | $185,821 | | Goodwill | $717,480 | $710,663 | | **Total assets** | **$3,336,264** | **$3,286,690** | | Total current liabilities | $505,399 | $479,712 | | Total long-term liabilities | $1,694,348 | $1,673,568 | | **Total liabilities** | **$2,199,747** | **$2,153,280** | | **Total equity** | **$1,136,517** | **$1,133,410** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) Q1 2025 service revenue grew to **$471.4 million**, but a **17.9%** rise in operating expenses led to a **$24.1 million** operating loss and a **$37.9 million** net loss Q1 2025 vs Q1 2024 Statement of Operations | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Total service revenue | $471,399 | $431,707 | | Total operating expenses | $495,500 | $420,368 | | (Loss) Income from operations | ($24,101) | $11,339 | | Net (loss) income | ($29,737) | $5,410 | | Net loss attributable to RadNet, Inc. | ($37,926) | ($2,779) | | Basic and diluted net loss per share | ($0.51) | ($0.04) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) Operating cash flow significantly increased to **$41.5 million**, while investing activities used **$56.8 million**, resulting in a **$22.7 million** cash decrease Q1 2025 vs Q1 2024 Cash Flow Summary | Cash Flow Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $41,481 | $17,088 | | Net cash used in investing activities | ($56,751) | ($60,938) | | Net cash (used in) provided by financing activities | ($7,510) | $228,296 | | **Net (decrease) increase in cash** | **($22,697)** | **$184,410** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail RadNet's **401** imaging centers, revenue recognition, segment performance, credit facilities, and the subsequent iCAD acquisition agreement - RadNet is a national provider of outpatient diagnostic imaging services, operating **401** centers as of March 31, 2025[27](index=27&type=chunk) - During Q1 2025, the company acquired assets from HALO Centers LLC and Hillcroft Medical Clinic for a total consideration of **$4.9 million**, adding to its Imaging Center segment[83](index=83&type=chunk)[84](index=84&type=chunk) - Subsequent to the quarter's end, on April 15, 2025, RadNet entered into a definitive agreement to acquire iCAD, Inc., a provider of AI-powered breast health solutions[124](index=124&type=chunk) Revenue by Payor | Payor | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Commercial insurance | $262,488 | $240,629 | | Medicare | $108,199 | $93,525 | | Revenue under capitation arrangements | $32,050 | $34,518 | | Other | $58,128 | $57,035 | | **Total service revenue** | **$471,399** | **$431,707** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue grew **9.2%** from same-center and acquisitions, but higher operating costs and a **$5.4 million** charge reduced Adjusted EBITDA to **$46.4 million** [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Imaging Center revenue grew **8.4%** with **1.2%** same-center growth, but operating expenses rose **16.8%** due to higher costs and a **$5.4 million** lease abandonment charge Imaging Center Revenue | Revenue Type | Q1 2025 (in thousands) | Q1 2024 (in thousands) | $ Increase (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total | $452,178 | $417,046 | $35,132 | 8.4% | | Same Center | $411,528 | $406,451 | $5,077 | 1.2% | - Same-center revenue growth was driven by a **2.2%** increase in average fees per procedure, as advanced modality imaging volume grew **3.0%**, while routine imaging volume declined **2.2%** due to severe weather[154](index=154&type=chunk) - Medical supplies expense increased **35.4%** (**20.4%** on a same-center basis), driven by higher utilization of high-cost isotope tracers for PET/CT procedures and price increases for these tracers[161](index=161&type=chunk) - The Digital Health segment's revenue increased **31.1%** to **$19.2 million**, while its operating loss grew to **$6.1 million** from **$3.0 million** year-over-year due to investments in product development and commercial support[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) [Non-GAAP Financial Measures](index=36&type=section&id=Non-GAAP%20Financial%20Measures) Consolidated Adjusted EBITDA decreased to **$46.4 million** in Q1 2025, primarily due to a decline in the Imaging Center segment's contribution Reconciliation of Net Loss to Adjusted EBITDA | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net loss attributable to RadNet, Inc. | ($37,926) | ($2,779) | | Adjustments (Interest, Taxes, D&A, etc.) | $84,325 | $61,241 | | **Adjusted EBITDA - Total Company** | **$46,399** | **$58,462** | | Adjusted EBITDA - Imaging Center | $42,688 | $54,942 | | Adjusted EBITDA - Digital Health Segment | $3,711 | $3,520 | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) RadNet maintains strong liquidity with **$717.3 million** cash, **$41.5 million** operating cash flow, and **$324.4 million** available credit - Cash provided by operating activities increased to **$41.5 million** for Q1 2025 from **$17.1 million** in Q1 2024[194](index=194&type=chunk) - Cash used in financing activities was **$7.5 million** in Q1 2025, compared to cash provided of **$228.3 million** in Q1 2024, which was boosted by a **$218.4 million** common stock offering[196](index=196&type=chunk) - As of March 31, 2025, the company had total term loan debt of **$1.0 billion** and total available borrowing capacity of **$324.4 million** under its revolving credit facilities[199](index=199&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations and variable-rate debt, with a **1%** SOFR increase potentially raising interest expense by approximately **$6.0 million** annually - The company is exposed to foreign exchange risk from operations in the Pound Sterling, Euro, Canadian Dollar, Hungarian Forint, and Indian Rupee. A hypothetical **1%** decline in these exchange rates would increase annual operating expenses by about **$0.4 million**[201](index=201&type=chunk)[202](index=202&type=chunk) - The company has **$468.4 million** in variable-rate debt under the Barclays Term Loan unprotected by swaps. A hypothetical **1%** increase in SOFR would increase annual interest expense by **$4.7 million** on this portion[205](index=205&type=chunk) - The company has **$132.2 million** in variable-rate debt under the Truist term loan. A hypothetical **1%** increase in SOFR would increase annual interest expense by approximately **$1.3 million**[206](index=206&type=chunk) [Controls and Procedures](index=40&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[207](index=207&type=chunk) - There were no material changes to the company's internal control over financial reporting during the first quarter of 2025[208](index=208&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, not expecting a material adverse impact on its financial condition or operations - The company does not expect current legal proceedings to have a material adverse impact on its business, financial condition, or operations[210](index=210&type=chunk) [Risk Factors](index=41&type=section&id=ITEM%201A.%20Risk%20Factors) This section refers to the comprehensive risk factors detailed in the company's Annual Report on Form 10-K - For information about business risks and uncertainties, the report refers to the risk factors described in the company's Annual Report[211](index=211&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - None[212](index=212&type=chunk) [Other Information](index=41&type=section&id=ITEM%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the first quarter of 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the fiscal quarter ended March 31, 2025[215](index=215&type=chunk) [Exhibits](index=42&type=section&id=ITEM%206.%20Exhibits) The report includes filed exhibits such as CEO and CFO certifications and financial statements in Inline XBRL format - Exhibits filed with the report include Sarbanes-Oxley certifications and financial data in Inline XBRL format[216](index=216&type=chunk)

Financial Data and Key Metrics Changes - For Q1 2025, RadNet reported total revenue of $471.4 million, an increase of $39.7 million or 9.2% compared to Q1 2024, while adjusted EBITDA decreased by $12.1 million or 20.6% [21][22] - Adjusting for the estimated $22 million impact from severe weather and wildfires, revenue would have increased by 14.3% year-over-year, and adjusted EBITDA would have increased by 5% [22] - The company ended Q1 2025 with a cash balance of $717 million and a net debt to adjusted EBITDA ratio of slightly more than one [17][25] Business Line Data and Key Metrics Changes - The Digital Health segment reported revenue of $19.2 million, a 31.1% increase year-over-year, with adjusted EBITDA increasing by 5.4% [22][23] - AI revenue within Digital Health grew by 33.3%, driven by improved adoption of the EBCD program [23][24] - Aggregate PET CT volumes increased by 22.9%, indicating strong growth in advanced imaging despite adverse weather conditions [9][42] Market Data and Key Metrics Changes - The company noted a gradual shift towards advanced imaging, with 26.9% of procedural volume coming from advanced imaging in Q1 2025, compared to 25.7% in Q1 2024 [8] - The company continues to expand its Hospital and Health System joint venture business, with 154 centers currently held within system partnerships [16] Company Strategy and Development Direction - RadNet is focused on enhancing its digital health initiatives, including the TechLive remote technologist solution and the EVCD AI-powered breast cancer screening program [10][12] - The acquisition of iCAD Inc. is expected to enhance RadNet's capabilities in AI-powered breast health solutions, positioning the company for leadership in this area [14][15] - The company plans to open 11 new centers by the end of 2025 and an additional 11 in 2026, indicating a commitment to expanding its operational footprint [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of business operations following the adverse weather conditions in early 2025, with strong procedural and revenue growth trends observed in March, April, and May [8][21] - The management anticipates continued growth in advanced imaging and routine imaging, driven by technological advancements and increased demand [41][44] - The company expects to see improved margins due to the growth of advanced imaging and the implementation of AI tools [72] Other Important Information - The company has an active pipeline of acquisitions for both its core Imaging Center division and Digital Health division [18] - RadNet's liquidity position remains strong, with full availability of a $282 million revolving credit facility [24] Q&A Session Summary Question: What are the growth prospects for advanced imaging in the next three to five years? - Management expects growth in advanced imaging to continue, driven by AI tools and new equipment investments [40][41] Question: Can you provide insights on the M&A pipeline? - The pipeline is robust, with ongoing discussions with hospitals recognizing the value of RadNet's radiology solutions [45][46] Question: What is the current status of technologist hiring trends? - There are improvements in hiring trends, and the company remains comfortable with the projected $45 million increase in labor costs [52][58] Question: How did revenue perform against internal expectations? - Revenue was strong and aligned with internal guidance, with a notable recovery in March following weather impacts [65][66] Question: What is driving the expected increase in EBITDA margins? - The growth of advanced imaging and the implementation of AI programs are primary drivers for improved margins [72][73] Question: What is the outlook for Medicare reimbursement? - The outlook for Medicare reimbursement is stable, with expectations for potential increases in the coming years [81][82]

Financial Data and Key Metrics Changes - For Q1 2025, RadNet reported total revenue of $471.4 million, an increase of $39.7 million or 9.2% compared to Q1 2024. Adjusted EBITDA was $46.4 million, a decrease of $12.1 million or 20.6% year-over-year [21][22] - Adjusting for the estimated $22 million impact from severe weather and wildfires, revenue would have increased by 14.3% year-over-year. Adjusted EBITDA, accounting for a $15 million impact, would have increased by 5% [22] - The company ended Q1 2025 with a cash balance of $717 million and a net debt to adjusted EBITDA ratio of slightly more than one [17][24] Business Line Data and Key Metrics Changes - The Digital Health segment reported revenue of $19.2 million, a 31.1% increase year-over-year, with adjusted EBITDA of $3.7 million, up 5.4% [22][23] - AI revenue within Digital Health grew by 33.3%, driven by improved adoption of the EBCD program [23] - PET CT volumes increased by 22.9%, attributed to the growth of newer prostate and brain procedures [8] Market Data and Key Metrics Changes - The company experienced a gradual shift towards advanced imaging, with 26.9% of procedural volume coming from advanced imaging in Q1 2025, compared to 25.7% in Q1 2024 [7] - The adoption rate of the EBCD program reached over 40% nationally, indicating strong market acceptance [12] Company Strategy and Development Direction - RadNet is focused on expanding its digital health initiatives, including the TechLive remote technologist solution and the EBCD AI-powered breast cancer screening program [10][12] - The company announced the acquisition of iCAD Inc, aiming to enhance its AI-powered breast health solutions and expand its market presence [14][15] - RadNet plans to open 11 new centers by the end of 2025 and has a robust pipeline for joint ventures and acquisitions [16][18] Management's Comments on Operating Environment and Future Outlook - Management noted that the severe weather conditions in early 2025 negatively impacted performance but expressed confidence in recovery and strong growth trends in subsequent months [6][9] - The company anticipates continued growth in advanced imaging and routine imaging, driven by technological advancements and increased demand [41][43] - Management expects to see improved margins due to the growth of advanced imaging and the implementation of AI tools [75] Other Important Information - The company has an active pipeline of acquisitions and is evaluating opportunities to advance its strategic objectives [18] - RadNet's liquidity position remains strong, with full availability of a $282 million revolving credit facility [23] Q&A Session Summary Question: What is the outlook for growth in advanced imaging over the next few years? - Management expects growth in advanced imaging to continue, driven by AI tools and new equipment investments [39][41] Question: Can you provide insights on the M&A pipeline? - The pipeline is robust, with ongoing discussions with hospitals recognizing the value of RadNet's radiology solutions [44][46] Question: What are the trends in technologist hiring? - There are improvements in hiring trends, and the company remains comfortable with the projected $45 million increase in labor costs [52][58] Question: How did revenue perform against internal expectations? - Revenue was strong and aligned with internal guidance, with a bounce back in March after weather-related impacts [66][67] Question: What is driving the expected increase in EBITDA margins? - Growth in advanced imaging and the implementation of AI programs are primary drivers for improved margins [75] Question: What is the status of stock-based compensation? - The increase in stock-based compensation is due to vesting from past years and new hires, but it is expected to decrease in subsequent quarters [76]

RadNet Q1 2025 Financial Results and Revised Guidance [Executive Summary and Highlights](index=1&type=section&id=Executive%20Summary%20and%20Highlights) RadNet's Q1 2025 revenue grew 9.2% to $471.4 million, but Adjusted EBITDA fell 20.6% due to weather, prompting revised 2025 guidance and the iCAD acquisition Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Company Revenue | $471.4 million | $431.7 million | +9.2% | | Total Company Adjusted EBITDA | $46.4 million | $58.5 million | -20.6% | | Digital Health Revenue | $19.2 million | $14.7 million | +31.1% | | Adjusted Diluted EPS | $(0.35) | $0.07 | - | - First quarter results were negatively impacted by approximately **$22 million** in Revenue and **$15 million** in Adjusted EBITDA due to Southern California wildfires and severe winter weather conditions[3](index=3&type=chunk)[4](index=4&type=chunk) - On April 15, 2025, RadNet announced a definitive agreement to acquire **iCAD, Inc.** to accelerate AI-powered early detection and diagnosis of breast cancer[4](index=4&type=chunk)[6](index=6&type=chunk) - The company revised its **full-year 2025 guidance**, increasing its outlook for both **Revenue and Adjusted EBITDA**[1](index=1&type=chunk)[4](index=4&type=chunk) [Operational and Strategic Developments](index=2&type=section&id=Operational%20and%20Strategic%20Developments) RadNet expanded TechLive to 255 MRI systems, achieved over 40% EBCD AI adoption, saw strong PET/CT volume growth, and plans to acquire iCAD, maintaining a strong balance sheet - The TechLive remote scanning capability has been implemented on approximately **255 MRI systems**, with testing now extending to ultrasound systems[5](index=5&type=chunk) - The EBCD AI-powered breast cancer diagnostic program has reached a blended adoption rate of **over 40%** nationwide, and the company is progressing in discussions with payors for reimbursement[5](index=5&type=chunk) - Advanced imaging procedural volume grew, with **PET/CT volume** increasing by almost **23%** compared to the same quarter last year, driven by prostate and brain imaging[5](index=5&type=chunk) - The acquisition of **iCAD** is expected to add **over 1,500 healthcare provider locations** and accelerate RadNet's global leadership in AI-powered breast cancer screening[6](index=6&type=chunk) - RadNet ended the quarter with a strong balance sheet, featuring a cash balance of **$717 million** and a Net Debt to Adjusted EBITDA leverage ratio **slightly above 1.0x**[6](index=6&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) Q1 2025 Total Revenue grew 9.2% to $471.4 million, but Adjusted EBITDA fell 20.6% to $46.4 million, resulting in a $37.9 million net loss due to one-time charges Q1 2025 Performance vs. Q1 2024 | Metric | Q1 2025 (Million USD) | Q1 2024 (Million USD) | Change | | :--- | :--- | :--- | :--- | | Total Company Revenue | $471.4M | $431.7M | +9.2% | | Total Company Adjusted EBITDA | $46.4M | $58.5M | -20.6% | | Total Company Net Loss | $(37.9)M | $(2.8)M | - | | Net Loss Per Share | $(0.51) | $(0.04) | - | Q1 2025 Digital Health Segment Performance | Metric | Q1 2025 (Million USD) | Q1 2024 (Million USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | $19.2M | $14.7M | +31.1% | | Adjusted EBITDA | $3.7M | $3.5M | +5.4% | - Adjusted Diluted Loss Per Share was **$(0.35)** for Q1 2025 after accounting for one-time items such as **$5.4 million** in lease abandonment charges and **$3.6 million** in non-capitalized R&D expenses[10](index=10&type=chunk) Q1 2025 Procedural Volume Growth vs. Q1 2024 | Volume Type | Aggregate Growth | Same-Center Growth | | :--- | :--- | :--- | | MRI | +8.4% | +3.4% | | CT | +8.3% | +3.0% | | PET/CT | +22.9% | +12.2% | | Overall | +3.6% | -0.3% | [2025 Revised Guidance](index=3&type=section&id=2025%20Revised%20Guidance) RadNet increased its full-year 2025 guidance for the Imaging Center segment's Revenue and Adjusted EBITDA, while Digital Health guidance remains unchanged Revised 2025 Guidance - Imaging Center Segment | Metric | Original Guidance Range (Million USD) | Revised Guidance Range (Million USD) | | :--- | :--- | :--- | | Total Net Revenue | $1,825 - $1,875 million | $1,835 - $1,885 million | | Adjusted EBITDA | $265 - $273 million | $268 - $276 million | | Capital Expenditures | $140 - $150 million | $145 - $155 million | 2025 Guidance (Unchanged) - Digital Health Segment | Metric | Guidance Range (Million USD) | | :--- | :--- | | Total Net Revenue | $80 - $90 million | | Adjusted EBITDA Before Non-Capitalized R&D | $15 - $17 million | [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents unaudited condensed consolidated financial statements for Q1 2025, including the Balance Sheet, Statement of Operations, and Statement of Cash Flows [Condensed Consolidated Balance Sheets](index=8&type=section&id=RADNET%2C%20INC.%20AND%20SUBSIDIARIES%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, RadNet's total assets were $3.336 billion, with total liabilities at $2.200 billion and cash at $717.3 million Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash equivalents | $717,323 | $740,020 | | Total current assets | $1,015,861 | $1,019,252 | | Total Assets | $3,336,264 | $3,286,690 | | Total current liabilities | $505,399 | $479,712 | | Total liabilities | $2,199,747 | $2,153,280 | | Total Equity | $1,136,517 | $1,133,410 | [Condensed Consolidated Statement of Operations](index=9&type=section&id=RADNET%2C%20INC.%20AND%20SUBSIDIARIES%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20OPERATIONS) Q1 2025 total service revenue was $471.4 million, but higher expenses led to a $24.1 million loss from operations and a $37.9 million net loss Statement of Operations Highlights (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total service revenue | $471,399 | $431,707 | | Income (Loss) from Operations | $(24,101) | $11,339 | | Net Income (Loss) | $(29,737) | $5,410 | | Net Loss Attributable to RadNet, Inc. | $(37,926) | $(2,779) | | Diluted Net Loss Per Share | $(0.51) | $(0.04) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=RADNET%2C%20INC.%20AND%20SUBSIDIARIES%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASHFLOWS) Q1 2025 net cash from operations was $41.5 million, with $56.8 million used in investing and $7.5 million in financing, resulting in a $22.7 million cash decrease Cash Flow Highlights (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $41,481 | $17,088 | | Net cash used in investing activities | $(56,751) | $(60,938) | | Net cash (used in) provided by financing activities | $(7,510) | $228,296 | | Net (Decrease) Increase in Cash | $(22,697) | $184,410 | | Cash and Cash Equivalents, end of period | $717,323 | $526,980 | [Supplementary Data and Non-GAAP Reconciliations](index=11&type=section&id=Supplementary%20Data%20and%20Non-GAAP%20Reconciliations) This section provides supplementary operating data, including payor and procedural volumes, and reconciles GAAP Net Loss to Adjusted EBITDA ($46.4M) and Adjusted Diluted Loss Per Share ($(0.35)) [Reconciliation to Adjusted EBITDA](index=11&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20INCOME%20ATTRIBUTABLE%20TO%20RADNET%2C%20INC.%20COMMON%20SHAREHOLDERS%20TO%20ADJUSTED%20EBITDA) Reconciliation from GAAP Net Loss to Adjusted EBITDA for Q1 2025 shows a total of $46.4 million, with $42.7 million from Imaging Center and $3.7 million from Digital Health Adjusted EBITDA Reconciliation (in thousands) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributable to Radnet, Inc. | $(37,926) | $(2,779) | | Plus: Interest, Taxes, D&A, etc. | $84,325 | $59,487 | | **Adjusted EBITDA - Radnet, Inc.** | **$46,399** | **$58,462** | | Adjusted EBITDA - Imaging Center | $42,688 | $54,942 | | Adjusted EBITDA - Digital Health | $3,711 | $3,520 | [Payments and Procedures Data](index=12&type=section&id=Payments%20and%20Procedures%20Data) In Q1 2025, commercial insurance was the largest payor at 58.0%, with MRI leading modalities, and total procedural volume increased 3.6% year-over-year Payments by Payor Class - Q1 2025 | Payor Class | Percentage | | :--- | :--- | | Commercial Insurance | 58.0% | | Medicare | 23.0% | | Capitation | 6.8% | | Other | 12.2% | Procedures by Modality | Modality | Q1 2025 (count) | Q1 2024 (count) | Change | | :--- | :--- | :--- | :--- | | MRI | 447,330 | 412,821 | +8.4% | | CT | 271,170 | 250,365 | +8.3% | | PET/CT | 20,389 | 16,594 | +22.9% | | Total | 2,742,973 | 2,646,951 | +3.6% | [Reconciliation to Adjusted Earnings Per Share](index=13&type=section&id=SCHEDULE%20OF%20ADJUSTED%20EARNINGS%20AND%20EARNINGS%20PER%20SHARE) After adjustments for non-recurring items, Q1 2025 Adjusted Net Loss was $26.2 million, resulting in an Adjusted Diluted Loss Per Share of $(0.35) Adjusted EPS Reconciliation (in thousands) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (Loss) Income Attributable to RadNet | $(37,926) | $(2,779) | | Total Adjustments (pre-tax) | $13,070 | $5,096 | | **Adjusted Net Loss / Income** | **$(26,196)** | **$4,992** | | **Adjusted Diluted (Loss) / Earnings Per Share** | **$(0.35)** | **$0.07** | [Company Information and Disclosures](index=4&type=section&id=Company%20Information%20and%20Disclosures) This section provides Q1 2025 earnings call details, RadNet's operational overview, and important legal disclosures regarding the iCAD transaction, forward-looking statements, and non-GAAP measures - RadNet will host a conference call on **May 12, 2025**, at **10:30 a.m. Eastern Time** to discuss the first quarter results[16](index=16&type=chunk)[17](index=17&type=chunk) - RadNet is a leading national provider of diagnostic imaging services with a network of **401 owned/operated outpatient centers** and **over 11,000 employees**[18](index=18&type=chunk) - Important information regarding the proposed merger with **iCAD, Inc.** has been filed with the SEC in a **Form S-4 registration statement**, which investors are urged to read[20](index=20&type=chunk) - The press release contains **forward-looking statements** that are subject to **risks and uncertainties**, including those related to the iCAD merger, economic conditions, and healthcare reform[22](index=22&type=chunk)[23](index=23&type=chunk) - The company uses **non-GAAP financial measures** like **Adjusted EBITDA** and **Adjusted Earnings Per Share** to assist in measuring cash-based performance, and provides reconciliations to the most comparable GAAP measures[26](index=26&type=chunk)

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].

Company Overview - RadNet, Inc. is a leading national provider of freestanding, fixed-site diagnostic imaging services in the United States, based on the number of locations and annual imaging revenue [3] - The company operates a network of 398 owned and/or operated outpatient imaging centers across various states including Arizona, California, Delaware, Florida, Maryland, New Jersey, New York, and Texas [3] - RadNet employs over 11,000 individuals, including full-time and per diem employees, technologists, and contracted radiologists [3] Upcoming Event - Mark Stolper, Executive Vice President and Chief Financial Officer of RadNet, will present at the Bank of America Securities 2025 Healthcare Conference [1] - The presentation is scheduled for May 13, 2025, at 5:00 p.m. Pacific Time, located at Encore Hotel, Las Vegas, NV [2] - Simultaneous and archived webcasts of the presentation will be available online [2]

Group 1 - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1] - Playa Hotels & Resorts N.V. is proposed to be acquired by Hyatt Hotels Corporation for $13.50 per share in cash, with the tender offer expiring on May 23, 2025 [1] - The AZEK Company Inc. is set to merge with James Hardie Industries plc, where AZEK shareholders will receive $26.45 in cash and 1.0340 ordinary shares of James Hardie per AZEK share [2] - 180 Degree Capital Corp. is merging with Mount Logan Capital Inc., with an estimated post-merger shareholder ownership of approximately 40% for current 180 Degree Capital shareholders [2] - iCAD, Inc. will merge with RadNet, Inc., where iCAD stockholders will receive 0.0677 shares of RadNet common stock for each share of iCAD common stock held [2] Group 2 - Monteverde & Associates PC operates from the Empire State Building and has a successful track record in litigating and recovering money for shareholders [3] - The firm emphasizes that no company, director, or officer is above the law, encouraging shareholders with concerns to seek additional information [4]