RadNet (RDNT 5.66%) reported its Q2 2025 results on Aug. 11, 2025, posting record revenue of $498.2 million, up 8.4% year-over-year and record adjusted EBITDA (non-GAAP) of $81.2 million, up 12.3% YoY. Management raised full-year 2025 guidance for both revenue and adjusted EBITDA (non-GAAP) and highlighted margin improvement from tech-enabled productivity gains, recent acquisitions, and AI rollouts integrated across core and digital health operations.
RadNet advances AI-enabled productivity and margin expansion
Record quarterly adjusted EBITDA margin (non-GAAP) improved by 57 basis points year-over-year to 16.3%, propelled by rapid adoption of TechLive remote scanning and AI-driven workflow upgrades. The pilot program for TechLive in New York reduced MRI room closures by 42%, with more than 300 imaging systems now connected and company-wide integration on track for early 2026. Capital allocation continues to favor high-return investments in advanced imaging capacity and clinical workflow technologies.
"The most significant impact we are experiencing with TechLive is its ability to expand hours of operation by staffing exam rooms, which previously would have been closed. As an example, in a pilot deployment at 64 locations, inside of RadNet's New York area facilities, TechWise significantly contributed to a 42% decrease in MRI room closures during the second quarter of 2025 as compared with the same period of 2024. Currently, more than 300 of RadNet's MR, CT, PETCT, and ultrasound systems are connected with DeepHealth's TechLive solution and are targeting to substantially all of RadNet's advanced imaging equipment to be connected with TechLive in early 2026."
— Howard Berger, CEO
The successful scaling of remote scanning has rapidly unlocked latent capacity with limited capital investment, setting the stage for continued operating leverage and offering a defensible solution to industry-wide technologist shortages.
Acquisition strategy and integration accelerate digital health growth
RadNet reported digital health segment revenue of $20.7 million, up 30.9% year-over-year, anchored by the iCAD and C Mode acquisitions in July and June, respectively. These deals provide access to over 1,500 new health care provider locations (iCAD) following the July 17, 2025, acquisition completion. and introduce AI-powered ultrasound tools showing up to a 30% scan time reduction in early deployment after the June 2025 acquisition of C Mode Technology.
Digital health EBITDA grew 4.1% year-over-year despite infrastructure investment, and management signals meaningful external commercialization potential and organizational efficiencies from these integrations.
"On July 17, the previously announced acquisition of iCAD, a global leader in clinically proven AI-powered breast health solutions was completed. ICAD's profound breast health suite and RadNet DeepHealth AI-powered screening solutions together can materially expand and improve patient diagnosis and outcomes on a global basis to further enabling accuracy and early detection. With over 1,500 health care provider locations, facilitating over 8 million annual mammograms in 50 countries ICAD's installed base and strong sales, engineering, and marketing capabilities, will provide immediate broad, and valuable customer relationships and commercialization capabilities that can accelerate detailed objectives. On June 4th, the acquisition of C Mode Technology a global innovator in AI for ultrasound imaging was completed.
— Howard Berger, CEO
These strategic acquisitions enhance both RadNet’s proprietary workflow and provide a platform for external revenue streams, diversifying its growth drivers and fortifying competitive differentiation in AI-driven diagnostics.
RadNet balances core center expansion with disciplined capital management
Management continues to shift low-margin capitation contracts to higher-paying fee-for-service models, a trend observed over the last four to six quarters, while carefully calibrating investment between de novo center openings, M&A, and digital health.
"... we are targeting to build 11 facilities and we've opened two thus far. We've got nine that are, on the docket, for the second half of the year to open. And we have 11 projects in the works, for additional de novo facilities in 2026. So if you add those two together, you're talking about 22 additional centers on 405 current locations. So that's about a 5% increase in centers or additional potential capacity, to be filled going forward."
— Mark Stolper, CFO
This measured expansion paired with a solid capital base positions RadNet to capture growing demand while sustaining flexibility for future acquisitions and strategic investments.
Looking Ahead
Management raised 2025 imaging center revenue guidance by $15 million and adjusted EBITDA (non-GAAP) by $3 million. This now reflects sustained margin improvement (adjusted EBITDA margin increased to 16.3% in Q2 2025, non-GAAP) and successful AI scale-up. Full-year guidance for the digital health segment will be updated after Q3 2025 results to incorporate early contributions from iCAD and C Mode. Preliminary 2026 Medicare reimbursement proposals would result in a $4 million to $5 million revenue increase for 2026. This marks the first positive adjustment in Medicare reimbursement for 2026 after about five years of annual cuts, with a final rule expected in November 2025.
