RadNet reported second-quarter revenue of $622.7 million, representing a 25.0% increase from $498.2 million in the prior-year period on August 9. The imaging network raised its full-year outlook for the second time in three months, but the results revealed a divergence between top-line growth and bottom-line profitability.
The company’s imaging centers shifted toward higher-margin procedures, with advanced imaging comprising 29.9% of procedural volume in the second quarter of 2026, up from 27.5% a year earlier. Advanced imaging volume itself rose 21.2% year-over-year. The Imaging Center segment achieved an adjusted EBITDA margin of 16.1%, a 17 basis point improvement from the second quarter of 2025. The Digital Health division expanded more rapidly, with revenue climbing 56.5% to $32.4 million in the quarter, while annual recurring revenue nearly doubled from $53.5 million to $105.5 million.
RadNet signed approximately $21 million in new business during the quarter and $37 million in the first half of the year. The company expanded hospital partnerships, with 157 of its 442 locations held in health system joint ventures, including a newly announced five-center venture with Trinity Health’s Saint Alphonsus Health System in Boise. Management raised full-year Imaging Center revenue guidance to $2.37 billion to $2.42 billion and adjusted EBITDA guidance to $345 million to $358 million.
However, profitability metrics deteriorated despite revenue growth. Net income declined to $7.5 million in the second quarter from $14.5 million a year earlier, and adjusted earnings per share fell to $0.29 from $0.34. Digital Health’s segment adjusted EBITDA dropped 27.2% to $2.5 million as the company invested heavily in sales, marketing, and implementation staff. On a six-month basis, RadNet posted a net loss of $25.9 million compared to a $23.5 million loss in the prior-year period.
The company cited one-time charges including $6.6 million in acquisition costs, a $3.4 million loss from debt refinancing, and $6.8 million of intangible amortization. RadNet raised cash interest expense guidance to $48 million to $53 million and diluted share count increased from 75.5 million to 78.7 million year-over-year. Hedge fund ownership fell from 30 funds to 22 funds between quarters, while short interest represented 14.56% of the float.
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