RadNet (RDNT) Posts Record Revenue But Profit Growth Lags

On August 9, RadNet (NASDAQ: RDNT ) posted second-quarter revenue of $622.7 million, a 25.0% jump from $498.2 million a year earlier, and raised its full-year outlook for the second time in three months. The imaging network also grew profit at a slower clip than sales, and a six-month net loss widened even as the headline numbers hit records. The gap between the top-line story and the bottom-line story is where this quarter gets interesting.

RadNet's imaging centers are doing more of the expensive scans that pay better. Advanced imaging, which covers MRI, CT and PET/CT, climbed to 29.9% of total procedural volume in the second quarter of 2026, up 238 basis points from 27.5% a year earlier, and aggregate advanced imaging volume rose 21.2% year over year. That mix shift helped push the Imaging Center segment's adjusted EBITDA margin to 16.1%, a 17 basis point improvement from the second quarter of 2025. The Digital Health arm is growing even faster. Its revenue rose 56.5% to $32.4 million in the quarter, and annual recurring revenue nearly doubled, climbing from $53.5 million at June 30, 2025 to $105.5 million at June 30, with external customers now making up roughly 63% of that segment's revenue.

New signed business totaled about $21 million in the quarter and $37 million for the first half of the year. RadNet is also leaning on hospital partnerships to expand, with 157 of its 442 locations now held in health system joint ventures, including a new five-center venture with Trinity Health's Saint Alphonsus Health System in Boise announced during the quarter. Management responded to the momentum by raising full-year Imaging Center revenue guidance to $2.37 billion to $2.42 billion and adjusted EBITDA guidance to $345 million to $358 million, both increases from the ranges set just after the first quarter.

The record-setting language in RadNet's release covers up a rougher profit picture. Total company net income fell to $7.5 million in the second quarter of 2026 from $14.5 million a year earlier, and adjusted earnings per share slipped to $0.29 from $0.34, even as revenue grew by a quarter. Digital Health's own profitability moved the wrong direction too, with segment adjusted EBITDA dropping 27.2% to $2.5 million as the company poured money into sales, marketing and implementation staff to chase that ARR growth. Zoom out to the first six months of the year, and the picture gets worse: RadNet posted a net loss of $25.9 million, wider than the $23.5 million loss in the same period of 2025.