Start here if you're new
what it is
RadNet runs scan centers and software that help doctors spot disease earlier.
how it gets paid
Last year Radnet made $2.0B in revenue. MRI & CT was the main engine at $0.68B, or 34% of sales.
why it's growing
Revenue grew about 11.5% last year on a ~$2.0B base. Ignore headline “+185% vs. prior year” revenue tags paired with this scale—that percent does not reconcile with reported FY growth and is treated here as bad feed math.
what just happened
One headline period printed ~$1.5B revenue with EPS at -$0.24—that is not the full ~$2.0B fiscal year; use the annual bridge below for mix.
At a glance
B+ balance sheet — decent shape, but not bulletproof
15/100 earnings predictability — expect surprises
2.6% return on capital — nothing to write home about
$0.14 fy2024 eps est
$2B fy2026 rev est
xvary composite: 62/100 — average
What they do
RadNet runs scan centers and software that help doctors spot disease earlier.
You are not buying a scan. You are buying a local appointment when the doctor says now. RadNet has 398 centers across 7 states, and that makes switching a hassle. Its AI unit also targets breast, lung, and prostate images, so the software side rides the same patient flow.
How they make money
$2.0B
annual revenue · their business grew +11.5% last year
MRI & CT
$0.68B
+11.5%
Mammography
$0.36B
+11.5%
PET & nuclear medicine
$0.28B
+11.5%
Ultrasound, X-ray & fluoroscopy
$0.48B
+11.5%
Digital Health / AI
$0.20B
+46%-56%
The products that matter
runs outpatient scan centers
Imaging Services
$1.84B · 92% of revenue
it's the core business: $1.84B of a $2.0B company, growing 11.5%. this is what pays the bills while the software thesis tries to grow up.
92% of revenue
ai diagnostic software
Digital Health (DeepHealth)
$160M · 8% of revenue
this is the part the market cares about. at $160M today, it is still small, but management is pointing to 45%–55% growth in 2026. if that slips, the multiple looks very different.
45%–55% target
network and equipment base
Imaging Center Network
418 centers · 2,703 devices
the physical footprint is the real barrier to entry. it gives RadNet local density and operating scale, even if it does not magically create software margins.
scale moat
Key numbers
$2.0B
annual revenue
That is a $2.0B machine with a 3.0% margin, so every sliver of extra volume matters.
3.0%
operating margin
You keep about $3 on every $100 of sales. The rest goes to running the machine.
$1.8B
long-term debt
A $1.8B debt stack is 27% of capital, so interest costs still have a seat at the table.
2.6%
return on capital
At 2.6%, the business earns very little for the money tied up in it.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 2 — safer than 80% of stocks
- price stability 30 / 100
- long-term debt $1.8B (27% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for RDNT right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue hit $1.5B, but EPS still landed at -$0.24.
The +185% vs. prior year revenue callout is inconsistent with ~11.5% FY growth at ~$2.0B—dropped as a data error. The real tension is thin operating profit on imaging volume.
$1.5B
revenue
-$0.24
eps
~+11.5%
FY rev growth (reported)
revenue surge
The -$0.24 EPS on a large revenue print mattered because RadNet is still converting volume into thin bottom-line room—without trusting the bogus +185% vs. prior year tag.
source: company earnings report, 2026
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What could go wrong
the #1 risk is Digital Health growth failing to justify a 97x forward P/E. this stock is not priced for "pretty good." it is priced for the 8% software segment to become much more important, much faster.
med
the multiple is doing a lot of work
97x forward earnings is a software-stock multiple sitting on top of a healthcare services business. the current snapshot also references a DCF that shows 104% overvaluation. even if that exact figure moves around, the message is the same: expectations are stretched.
if Digital Health stops looking like a margin-transforming segment, the market will likely value the company more on its $1.84B imaging base and less on its $160M software business.
med
Digital Health is still only 8% of revenue
management is guiding to 45%–55% growth for Digital Health in 2026. that's strong. it also has to stay strong, because this is the part of the business investors are treating like the future.
a miss here would not just trim one segment. it would hit the part of the story carrying the premium valuation.
med
acquisitions add scale and complexity
Gleamer and Radiology Regional, with roughly $100M in revenue, push growth forward. they also create integration risk at the exact moment the market wants clean execution.
if acquired assets take longer to fold in, the path to the $2.4B 2026 revenue target gets messier and the narrative gets less forgiving.
med
the physical network is still the operating core
418 centers and 2,703 devices are the moat, but they also mean a large fixed operating footprint. if the services business disappoints, there is no tiny-asset software model here to hide behind.
with 92% of revenue coming from Imaging Services, the old-economy part of the business still has final say over the income statement.
the combined risk picture is simple: 8% of revenue is being asked to justify a software-style valuation, while 92% of revenue still comes from imaging centers. that gap is where the downside lives.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next report
Q1 2026 earnings on may 11, 2026
consensus EPS is -$0.09. the real question is whether Digital Health still tracks the 45%–55% growth target management just put in front of the market.
segment mix
does 8% start becoming a real number
if Digital Health stays stuck near 8% of revenue, the software thesis stays mostly theoretical. you want to see the mix change, not just hear about it.
profitability
the $198.8M adjusted ebitda target
this is the operating number management is effectively asking you to underwrite for 2026. if it drifts, valuation discipline comes back fast.
integration
Gleamer and Radiology Regional execution
the acquisitions help support the 2026 growth story. they also add moving parts. in a stock this expensive, integration mistakes do not get a grace period.
Analyst rankings
earnings predictability
15 / 100
low score. in human-speak, analysts do not view this as a clean, steady earnings story.
risk rank
2
safer than 80% of stocks on this measure, which tells you the balance sheet is not the main problem. the valuation is.
price stability
30 / 100
the shares have not behaved like a defensive healthcare name. expectations move this stock around.
source: institutional data
Institutional activity
institutional ownership data for RDNT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$70
current price
n/a
target midpoint · n/a from current
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