Core Thesis - RadNet, Inc. is facing significant challenges as its core business and newly rebranded Digital Health segment show a disconnect between market hype and actual performance [2][5]. Financial Performance - RadNet's share price was $71.22 as of December 16th, with a trailing P/E ratio of 386.89 [1]. - The company generated approximately $1.5 billion in revenue during the first nine months of 2025, with less than 5% ($65 million) coming from the Digital Health segment [3]. - Revenue growth metrics are inflated due to consolidations of neighboring centers, with reported same-center sales growth of 6%–10% masking underlying stagnation [4]. Digital Health Segment - The Digital Health segment's growth is primarily driven by intercompany sales to RadNet's own imaging centers, with minimal external adoption and only one notable outside customer [3]. - Despite marketing AI-powered tools as transformative, external traction among corporate clients has been limited [3]. Financial Health and Reporting Issues - Adjusted EBITDA margins suggest profitability improvements, but corrected figures indicate that margins are actually contracting, revealing financial fragility [4]. - Inconsistencies in financial filings, including conflicting counts of operational centers and divergent revenue figures, highlight chaotic bookkeeping and opaque reporting practices [4]. Insider Activity and Market Sentiment - Insider selling has totaled over 780,000 shares worth $50.9 million in the past two years, raising concerns about the motivations of those closest to the company [5]. - The imaging center business is under persistent reimbursement pressure from Medicare and commercial payers, limiting sustainable growth [5]. - The stock is perceived to be trading well above intrinsic value, driven more by hype than by operational execution or durable revenue streams [5].