RadNet, Inc. (RDNT)

CIK: 0000790526. SIC: 8071 Services-Medical Laboratories. Latest 10-K as of: 2026-03-02.

SIC breadcrumb: Services > SIC Major Group 80 > SIC 8071 Services-Medical Laboratories

SEC company page: https://www.sec.gov/edgar/browse/?CIK=790526. Latest filing source: 0001628280-26-013337.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-02. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000790526.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000790526.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

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• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
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• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
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• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001628280-26-033607.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-05-11. Report date: 2026-03-31.

ITEM 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q (this "report") and with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K, as amended, for the fiscal year ended December 31, 2025 (the "Annual Report") filed with the U.S. Securities and Exchange Commission (the "SEC").

As used in this Quarterly Report on Form 10-Q, the terms "RadNet," "we," "us," and "our" refer to RadNet, Inc., a Delaware corporation, and where appropriate, our consolidated subsidiaries.

Forward-Looking Statements

This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect current views about future events and are based on our currently available financial, economic and competitive data and on current business plans. Actual events or results may differ materially depending on risks and uncertainties that may affect our operations, markets, services, prices and other factors.

In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “assumption” or the negative of these terms or other comparable terminology. Forward-looking statements in this report include, among others, statements we make regarding:

•expectations concerning domestic and global economic conditions, rates of inflation, or changes in interest rates;

•anticipated trends in our revenues, operating expenses or capital expenditures, and our financial guidance;

•expected timing and potential impact of regulatory changes affecting our business;

•expected future market acceptance for our products or services, and our competitive strengths in the markets we serve;

•our ability to successfully acquire and integrate new businesses, and achieve expected benefits, synergies or operating results from those acquisitions; and

•economics and cost savings anticipated to be derived from our investments in artificial intelligence and machine learning products and solutions.

Forward-looking statements are neither historical facts nor assurances of future performance. Because forward-looking statements relate to the future, they are inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and out of our control. Our actual results, level of activity, performance or achievements may be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Important factors that could cause our actual results to differ materially from those indicated or implied in our forward-looking statements include the factors included in “Risk Factors” in our Annual Report as supplemented by the information in Part II– Item 1A below. You should consider the inherent limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking statements.

Any forward-looking statement in this report is based on information currently available to us and speaks only as of the date of this report. We do not undertake any responsibility to release publicly any revisions to these forward-looking statements to take into account events or circumstances that occur after the date of this report or any unanticipated events which may cause actual results to differ from those expressed or implied by the forward-looking statements contained in this report, except as required by law.

Overview

Our operations comprise two segments for financial reporting purposes for this reporting period, Imaging Centers and Digital Health.

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Table of Contents

Within our Imaging Centers segment, we are a national provider of diagnostic imaging services in the United States. As of March 31, 2026, we operated directly or indirectly through joint ventures with hospitals, 435 centers located in Arizona, California, Delaware, Florida, Maryland, New Jersey, New York and Texas. Our centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, often reducing the cost and amount of care for patients. Internationally, our subsidiary The HLH Imaging Group Limited, provides teleradiology services for remote interpretation of images on behalf of providers within the framework of the United Kingdom's National Health Service.

We established a Digital Health business segment during our 2024 fiscal year, under the umbrella brand “DeepHealth”. The Digital Health segment combines our former Artificial Intelligence (“AI”) business with our workflow solutions, including those previously marketed under the eRAD brand. This includes providing AI-powered health informatics with the aim of empowering breakthroughs in care through imaging. It leverages advanced AI for operational efficiency and improved clinical outcomes in breast, chest, musculoskeletal, neuro, prostate and thyroid health. At the heart of the portfolio is a cloud-native operating system – DeepHealth OS – that unifies data across the clinical and operational workflow. By integrating AI, workflow orchestration, and data management into a single operating system, the Digital Health segment enables health systems to drive radiology workflow efficiency & productivity, help mitigate the impacts of staff shortages, and reduce diagnostic variability. The Digital Health segment provides these solutions to RadNet and to over 2,890 customers in the US and outside of the US.

The Digital Health segment’s solutions have been clinically validated and are already delivering measurable impact at scale. The company’s technology is deployed across 2,890+ customers worldwide, including thousands of screening sites in the United States and Europe, and is the most widely used solution for lung cancer screening in the United Kingdom. Clinical outcomes demonstrate strong performance, including a 21% increase in cancer detection rates in breast screening. Our end-to-end solutions are widely adopted in real-world settings, including RadNet and external customers, supporting more than 24 million scans worldwide.

As part of our continued strategic expansion in Digital Health, we recently completed four acquisitions: iCAD, Inc., a provider of AI-powered breast health solutions, See-Mode Technologies, a medical technology company focused on enhancing ultrasound-based diagnostics through artificial intelligence, CIMAR UK, a cloud-native provider of image exchange solutions, and Gleamer SAS, a Radiology AI company with a portfolio of AI solutions across X-Ray, MRI, CT, and Mammography. iCAD Inc. and SeeMode technologies are already fully integrated into the Digital Health segment, with SeeMode’s technology deployed in over 300 RadNet Imaging Services sites for improving efficiencies in Thyroid Ultrasounds across the network. CIMAR UK and Gleamer are currently being integrated into the business, with significant early momentum, including launching go-live of Gleamer X-Ray products in RadNet Services in California in April 2026, just a month post-acquisition.

Our Digital Health segment currently provides this comprehensive suite of solutions to RadNet and to over 2,890 customers in the United States, Europe and other countries around the world.

For further financial information about these segments, see Note 5, Segment Reporting, in the notes accompanying our financial statements included in this report.

Recent Developments

The following table presents the total number of imaging centers in operation, including both consolidated and non-consolidated centers, and our consolidated revenues for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

2026

2025

Centers in operation

435

401 

Net consolidated revenues (millions)

$

576 

$

471 

Our imaging services include MRI, CT, PET, nuclear medicine, mammography, ultrasound, X-ray, fluoroscopy and other related procedures. The vast majority of our centers offer multi-modality imaging services, a key point of differentiation from our competitors. The multi-modality offering provides a “one-stop” solution for our customers and referral sources. It also diversifies our revenue base, and reduces our exposure to changes in reimbursement rates for certain imaging modalities.

Our revenue is derived from a diverse mix of payors, including private payors and commercial insurance companies, managed care capitated payors, and government payors, such as Medicare and Medicaid. We believe our payor diversity

27

Table of Contents

mitigates our exposure to possible unfavorable reimbursement trends within any one payor class. Our total service fee revenue, net of contractual allowances and discounts, and implicit price concessions for the three months ended March 31, 2026 and 2025 received from our various payors is summarized in the following table (in thousands):

In Thousands

Three Months Ended

March 31,

2026

2025

Commercial insurance

$

315,869 

$

262,488 

Medicare

137,179 

108,199 

Medicaid

13,991 

11,690 

Workers' compensation/personal injury

12,304 

10,459 

Other payors

33,590 

27,691 

Management fee revenue

7,481 

6,279 

Other revenue

24,804 

12,543 

Revenue under capitation arrangements

30,413 

32,050 

Total service revenue

$

575,631 

$

471,399 

Our revenue is not always consistent across each quarter. We generally experience the lowest volumes of procedures and the lowest level of revenue during the first quarter of each year. This is primarily the result of two factors. First, our volumes and revenue are typically impacted by winter weather conditions in our northeastern operations. It is common for snowstorms and other inclement weather to result in patient appointment cancellations and, in some cases, imaging center closures. Second, in recent years, we have observed greater participation in high deductible health plans by patients. As these high deductibles reset in January for most of these patients, we have observed that patients utilize medical services less during the first quarter, when securing medical care will result in significant out-of-pocket expenditures.

Acquisitions

During the three months ended March 31, 2026, we completed the acquisition of certain assets of entities which engage directly in the practice of radiology or in associated businesses for an aggregate consideration of $67.3 million. These acquisitions include:

Regional Radiology Center: 13 imaging centers in Florida;

Northwest Radiology Network PC: 6 imaging centers in Indiana;

See Note 4, Business Combinations and Related Activity, in the notes accompanying our financial statements in this report for additional information, including the fair value determination of the acquired assets and assumed liabilities, associated with these acquisitions.

28

Table of Contents

Joint Venture Activity

At March 31, 2026, 150 of our imaging centers were operating as joint ventures with hospital and health system partners. On behalf of the joint ventures, we manage the day-to-day operations and perform most management and support services in exchange for a management fee. We charged management service fees from the centers underlying these joint ventures of approximately $6.6 million and $6.1 million for the three months ended March 31, 2026 and 2025, respectively.

For informa

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-03-02. Report date: 2025-12-31.

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand the results of operations and financial condition of RadNet, Inc. The MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and the accompanying notes included in this annual report on Form 10-K.

Overview

We are a national provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States. As of December 31, 2025, we operated directly or indirectly through hospital and health system joint ventures, 418 centers located in Arizona, California, Delaware, Florida, Maryland, Virginia, New Jersey, New York, and Texas. Internationally, our subsidiary, The HLH Imaging Group Limited fka Heart & Lung Imaging Limited, provides teleradiology services for remote interpretation of images on behalf of providers within the framework of the United Kingdom's National Health Service. Our operations comprise two segments for financial reporting purposes for this reporting period, Imaging Centers and Digital Health. For further financial information about these segments, see Note 5, Segment Reporting, in the notes accompanying our consolidated financial statements included in this report.

Our imaging centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, often reducing the cost and amount of care for patients.

In addition to our imaging business, we established a Digital Health business segment during our 2024 fiscal year, which combines our former AI businesses with our eRad, Inc. business. Our Digital Health segment develops and delivers AI-powered health informatics solutions to improve quality, efficiency, and diagnostic outcomes in diagnostic imaging and radiology. We are using AI to develop solutions to assist radiologists and other clinicians in interpreting images and improving radiologist efficiency and patient care. The portfolio of AI and software solutions is anchored by Enterprise Operations solutions (traditionally knowns as RIS), Enterprise Imaging solutions (traditionally known as PACS), and Clinical AI solutions, enabled by the DeepHealth OS, a cloud-native operating system that connects critical aspects of the radiology service line from scheduling and patient preparation to technologist workflow to interpretation and referral management. Our Clinical AI solutions currently cover the fields of diagnosis and screening in the domain of breast, prostate, lung, thyroid, and brain. Across our portfolio of AI solutions, we have 22 FDA clearances and 15 CE marks. Our Digital Health segment provides these solutions to RadNet and to over 2000 customers in the U.S. and outside of the U.S.

As part of our continued strategic expansion in Digital Health, we recently completed three acquisitions: iCAD, Inc., an AI-powered breast health solutions company; See-Mode Technologies, which enhances ultrasound-based diagnostics through artificial intelligence; and CIMAR (UK) Limited, which provides cloud-based medical image storage, PACS, and AI-enabled imaging workflow solutions. We are currently integrating these businesses into our Digital Health segment

The following table presents the total number of imaging centers in operation at year end, including both consolidated and non-consolidated centers, and our consolidated revenues for the years ended December 31, 2025, 2024 and 2023. Revenue from non-consolidated centers is not included in consolidated revenues. 

Years Ended December 31,

2025

2024

2023

Centers in operation

418 

398 

366 

Total consolidated revenue

$

2,040 

$

1,830 

$

1,617 

Our revenue is derived from a diverse mix of payors, including private payors and commercial insurance companies, managed care capitated payors, and government payors such as Medicare and Medicaid. We believe our payor diversity mitigates our exposure to possible unfavorable reimbursement trends within any one payor class. Our total revenue for the years ended December 31, 2025, 2024 and 2023 is summarized in the following table (in thousands):

36

In Thousands

2025

2024

2023

Commercial insurance

$

1,130,114 

$

1,018,327 

$

879,792 

Medicare

476,987 

410,072 

356,506 

Medicaid

51,736 

44,736 

42,302 

Workers' compensation/personal injury

44,700 

43,666 

46,406 

Other payors

118,599 

104,888 

87,675 

Management fee revenue

27,516 

24,676 

17,936 

Other revenue

65,021 

46,724 

32,580 

Revenue under capitation arrangements

125,537 

136,575 

153,433 

Total revenue

$

2,040,210 

$

1,829,664 

$

1,616,630 

 Our revenue is not always consistent across each quarter. We generally experience the lowest volumes of procedures and the lowest level of revenue during the first quarter of each year. This is primarily the result of two factors. First, our volumes and revenue are typically impacted by winter weather conditions in our northeastern operations. It is common for snowstorms and other inclement weather to result in patient appointment cancellations and, in some cases, imaging center closures. Second, in recent years, we have observed greater participation in high deductible health plans by patients. As these high deductibles reset in January for most of these patients, we have observed that patients utilize medical services less during the first quarter, when securing medical care will result in significant out-of-pocket expenditures.

Acquisitions, Equity Investments and Joint Venture Activity

The following discussion summarizes certain details concerning our acquisition or disposition of centers, our equity investments, and our joint venture transactions. See Note 4, Business Combinations and Related Activity and Note 2, Summary of Significant Accounting Policies, in the notes accompanying our consolidated financial statements included in this report for further information.

Acquisitions

Imaging Center Segment

Radiology Imaging Center Asset Acquisitions:

During the years ended 2025 and 2024, we completed the acquisition of certain assets of the following entities, which engage directly in the practice of radiology or associated businesses. The primary reason for these acquisitions was to strengthen our presence in many of our geographic markets. These acquisitions are reported as part of our Imaging Center segment. We made a fair value determination of the acquired assets and assumed liabilities and the following were recorded (in thousands):

2025:

37

Entity

Date Acquired

Total Consideration

Property & Equipment

Right of Use Assets

Goodwill

Intangible Assets

Other Assets

Right of Use Liabilities

Finance lease

HALO Centers LLC

1/2/2025

$

4,200 

587 

3,238 

3,563 

50 

— 

(3,238)

— 

Hillcroft Medical Clinic

3/7/2025

$

734 

278 

— 

406 

50 

— 

— 

— 

North County Radiology Oceanside LLC

4/1/2025

$

1,702 

238 

599 

1,307 

150 

7 

(599)

— 

Faculty Physicians and Surgeons of LLUSM (Palm Imaging)

5/1/2025

$

1,400 

648 

— 

702 

50 

— 

— 

— 

California MSK MSO, LLC (OSS Burbank)

5/1/2025

$

500 

330 

— 

70 

100 

— 

— 

— 

HALO Centers LLC (Indian Wells)

5/1/2025

$

7,850 

1,714 

2,439 

6,072 

50 

15 

(2,439)

— 

Kolb Radiology P.C.

7/1/2025

$

26,659 

6,887 

5,355 

22,396 

79 

155 

(6,125)

(2,088)

Schonholz and Drossman, LLP

9/1/2025

$

30,101 

2,921 

5,566 

26,790 

295 

95 

(5,566)

— 

Laser Assets, Inc.*

11/1/2025

$

29,058 

7,145 

4,529 

22,170 

134 

(32)

(4,889)

— 

Woodburn Nuclear Medicine, Ltd.*

11/1/2025

$

29,705 

1,658 

4,292 

27,902 

1,105 

— 

(5,252)

— 

River Radiology, PLLC*

11/3/2025

$

1,200 

798 

1,908 

244 

150 

8 

(1,908)

— 

Total

133,109

23,204

27,925

111,622

2,213

248

(30,015)

(2,088)

*Fair Value Determination is preliminary and subject to change

2024:

38

Entity

Date Acquired

Total Purchase Consideration

Property & Equipment

Right of Use Assets

Goodwill

Intangible Assets

Other

Right of Use Liabilities

Notes payable and other liabilities

Antelope Valley Outpatient Imaging

2/1/2024

3,530 

2,793 

563 

687 

50 

— 

(563)

— 

Grossman Imaging Center of CMH, LLC

3/31/2024

10,343

1,717

6,304

8,500

280

56

(6,514)

—

Providence Health System - Southern California

3/31/2024

7,369

1,378

3,441

5,991

—

—

(3,441)

—

Houston Medical Imaging, LLC

4/1/2024

22,703

15,826

7,929

11,584

1,660

90

(8,089)

(6,297)

U.S. Imaging, Inc.

6/1/2024

4,200

4,025

5,597

—

175

—

(5,597)

—

Global Imaging LLP

9/1/2024

2,900

1,266

—

1,584

50

—

—

—

Stanislaus Surgical Hospital, LLC

9/16/2024

3,000

503

1,468

2,382

100

15

(1,468)

—

Pink Perception, LLC

10/7/2024

4,000

494

407

3,306

200

—

(407)

—

AV Imaging PLLC

11/1/2024

1,000

287

—

663

50

—

—

—

Total

$

59,045 

$

28,289 

$

25,709 

$

34,697 

$

2,565 

$

161 

$

(26,079)

$

(6,297)

Digital Health Segment

See-Mode Technologies

On June 2, 2025, through our wholly owned subsidiary DH AI International Holdings, B.V, we acquired all of the equity interest in See-Mode Technologies (“See-Mode”), a medical technology company focused on using artificial intelligence to enhance ultrasound-based diagnostics.

See-Mode’s operations are included in our Digital Health segment for reporting purposes. The transaction was accounted for as the acquisition of a business with a total purchase consideration of approximately of $28.9 million, including: (i) cash of $17.9 million, (ii) a holdback of $2.0 million cash to be released 18 months after acquisition, and (iii) contingent consideration with a fair value of $9.0 million related to three performance milestones payable 50% in cash and 50% in shares of our common stock. We recorded $0.2 million in other net assets, $5.5 million in developed technology, $5.4 million in IPR&D, $20.0 million in goodwill, and $2.2 million in deferred tax liabilities in connection with this transaction.

In performing the purchase price allocation, we considered, among other factors, the intended future use of the acquired assets, the historical financial performance, and estimates of the future performance of the See-Mode business.

iCAD, Inc.

On July 17, 2025, we completed the acquisition of all of the outstanding equity interests of iCAD, Inc. (“iCAD”), a global leader in AI-powered breast health solutions. The acquisition integrates iCAD’s commercial, technology, and regulatory capabilities with those of DeepHealth, our wholly owned subsidiary within the Digital Health segment. The transaction strengthens DeepHealth’s position as an industry leader in AI-enabled breast cancer image interpretation and workflow optimization and expands its global market reach.

The transaction was accounted for as the acquisition of a business and was completed through an all-stock exchange, with total purchase consideration of approximately $110.7 million based on the fair value of our common stock issued to iCAD shareholders and the fair value of our options issued in exchange for outstanding iCAD options.

We allocated the purchase price to the assets acquired and liabilities assumed based on their estimated fair values, which resulted in the recognition of goodwill of approximately $36.6 million, primarily reflecting expected synergies from integrating iCAD’s technology portfolio, established customer relationships, and assembled workforce. In addition, we recorded identifiable intangible assets related to backlog, developed technology, customer relationships, and trade name totaling

39

approximately $38.3 million, consisting of $1.8 million, $0.7 million, $6.8 million, and $29.0 million, respectively, deferred tax asset, net of $20.6 million, Cash, deposits and others of $14.2 million, and property and equipment of $1.1 million.

In connection with the iCAD acquisition, the Company identified and measured the fair values of acquired intangible assets, including backlog, trade names, developed technology, in-process research and development (“IPR&D”), and customer relationships. The valuations were performed using the income approach, consistent with market participant assumptions. The income approach incorporated assumptions such as projected revenues, estimated customer attrition, royalty rates, and discount rates reflecting market participant expectations. IPR&D projects were determined to have no material fair value as of the acquisition date. The identified intangible assets were assigned estimated useful lives as follows: backlog — approximately 4 years; trade names — approximately 1 year; developed technology — approximately 7 years; and customer relationships — approximately 15 years.

In performing the purchase price allocation, we considered, among other factors, the intended future use of the acquired assets, the historical financial performance, and the expected future contributions of the iCAD business. As of December 31, 2025, the valuation of assets acquired and liabilities assumed is preliminary and subject to change, primarily with respect to the valuation of deferred taxes. The fair value determination will be updated as additional information becomes available during the measurement period.

CIMAR UK Limited

On November 10, 2025, the Company completed the acquisition of all outstanding shares of CIMAR (UK) Limited (“CIMAR”), a United Kingdom–based provider of medical image storage and cloud-based PACS solutions. The acquisition was accounted for as a business combination.

The total purchase consideration was approximately $37.0 million, consisting of $13.2 million in cash, $14.8 million in RadNet common stock issued after year end, a holdback of $3.2 million, and contingent consideration with a fair value of approximately $5.8 million as of the acquisition date, payable upon the achievement of specified recurring revenue targets.

The purchase consideration was preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values, resulting in the recognition of goodwill of approximately $20.1 million, which is primarily attributable to expected synergies from integrating CIMAR’s technology and operations with the Company’s Digital Health platform.

Identifiable intangible assets recognized totaled approximately $22.3 million, consisting primarily of customer relationships of approximately $19.7 million, National Health Service ("NHS") and International Organization for Standardization ("ISO") certifications of approximately $2.2 million, and trade names of approximately $0.5 million. In addition, the Company recorded current net liabilities of approximately $0.3 million. The Company also recognized deferred tax liabilities of approximately $5.7 million in connection with the acquisition..

The identifiable intangible assets were valued using income- and cost-based valuation methodologies in accordance with ASC 805. Customer relationships were valued using the multi-period excess earnings method, which considers projected revenues, customer attrition, contributory asset charges, and a market-based discount rate. Trade names were valued using the relief-from-royalty method, based on projected revenues, an estimated royalty rate, and a market-based discount rate. NHS and ISO certifications were valued using a cost approach based on estimated replacement cost. The estimated useful lives are approximately 21 years for customer relationships, 4 years for trade names, and 1 years for certifications.

As of December 31, 2025, the purchase price allocation is preliminary and subject to change during the measurement period, primarily related to refinements in the valuation of intangible assets, contingent consideration, deferred taxes, and other customary purchase accounting adjustments.

Kheiron Medical Technologies LTD

On October 14, 2024, we acquired all of the equity interest in Kheiron Medical Technologies LTD (“Kheiron”), which uses deep learning AI to help radiologists detect breast cancer.

Kheiron’s operations are included in our Digital Health segment for reporting purposes. The transaction was accounted for as the acquisition of a business with a total purchase consideration of approximately $2.3 million, including: i) cash of $0.4 million, ii) cash holdback of $0.5 million to be issued 18 months after acquisition, (iii) acquisition costs incurred by the seller of $0.4 million, and (iv) a settlement of a loan from RadNet of $1.0 million. We recorded $1.2 million in current assets, $2.6 million of IPR&D in intangible assets, and $1.5 million in current liabilities in connection with this transaction.

40

In performing the purchase price allocation, we considered, among other factors, the intended future use of acquired assets, analysis of historical financial performance and estimates of future performance of the Kheiron business.

Formation of majority owned subsidiaries

Tri Valley Imaging Group, LLC. On February 23, 2024, we formed Tri Valley Imaging Group, LLC ("TVIG"), a partnership with Providence Health System - Southern California ("PHS"). The operation offers multi-modality services out of seven locations in Southern California. On March 29, 2024, we contributed the operations of four centers to the enterprise and PHS contributed a business comprising of three centers, including $1.4 million of fixed assets and $6.0 million in goodwill. Simultaneously, PHS purchased from us an additional economic interest in TVIG for cash payment of $9.6 million. As a result of the transaction, we recognized a gain of $7.9 million to additional paid in capital and retained a 52% controlling economic interest in TVIG and PHS retained a $7.8 million or 48% noncontrolling economic interest in TVIG.

Ventura County Imaging Group. On March 31, 2024, Community Memorial Health System purchased an economic interest of Ventura County Imaging Group ("VGIC") for a consideration of $5.1 million. As a result of the transaction, we retained 47.5% controlling economic interest in VGIC.

Pacific Diagnostic Imaging Group, LLC. On March 21, 2025, we formed Pacific Diagnostic Imaging Group, LLC (“PDRG”), a Delaware limited liability company. On April 1, 2025, we entered into a partnership with Tri-City Healthcare District (“Tri-City”) by selling a 20% membership interest in PDRG for cash consideration of $337,500. We retained an 80% controlling interest in PDRG. The joint venture operates outpatient imaging centers in Southern California. The transaction did not result in a change of control, and no gain or loss was recognized.

Joint venture investment contributions

Santa Monica Imaging Group, LLC

On April 1, 2017, we formed in conjunction with Cedars-Sinai Medical Center the Santa Monica Imaging Group, LLC ("SMIG"), consisting of two multi-modality imaging centers located in Santa Monica, California with RadNet holding a 40% economic interest and Cedars-Sinai Medical Center holding a 60% economic interest. We account for our share of the venture under the equity method. On January 1, 2019, Cedars-Sinai Medical Center purchased an additional 5% economic interest in SMIG from us and, as a result, our economic interest in SMIG was reduced to 35%.

On September 1, 2023, we contributed an additional multi-modality imaging center and a newly constructed imaging center located in Beverly Hills, California valued at $27.2 million and purchased an additional economic interest in SMIG for cash payment of $11.3 million. Simultaneously, Cedars-Sinai Medical Center contributed five additional multi-modality imaging centers located in Santa Monica, California. As a result of the transaction, our economic interest in SMIG increased to 49%. We recorded a gain of $16.8 million, within gain on contribution of imaging centers into joint venture in our consolidated statement of operations representing the difference between the fair value and carrying value of the business contributed.

Arizona Diagnostic Radiology Group

During the years ended December 31, 2025 and 2024, we made additional equity contributions of $20.5 million and $1.4 million, respectively, to Arizona Diagnostic Radiology Group ("ADRG", our joint venture with Dignity Health).

On June 12, 2025, we executed a $17.0 million promissory note with Dignity Health, a related party and joint venture member of ADRG. Monthly principal payments of $0.9 million began July 1, 2025, with interest accruing at the Wall Street Journal Prime Rate plus 2%. Future distributions from ADRG to Dignity will be applied to the note balance until fully repaid. The note is expected to mature on December 1, 2026. As of December 31, 2025, we recorded the note balance of $11.4 million in Due from Affiliates on our Consolidated Balance Sheet.

On November 1, 2022 we contributed eight of our imaging centers to ADRG for $12.7 million and recorded a loss of $0.5 million which was calculated as the difference between the transaction price and carrying value of such imaging centers which included equipment and other assets and an allocation of goodwill to such imaging centers. We recorded $4.5 million of the transaction price as an offset due to affiliates while the remaining $8.3 million was recorded as investment in joint venture on our balance sheet. We accounted for the transaction as an adjustment to our equity investment for the value of the assets contributed. To maintain our 49% economic interest in ADRG, we received a distribution from the partnership of $4.5 million to reduce our overall investment to $8.3 million.

Results of Operations

41

The following table sets forth, for the periods indicated, the percentage that certain line items within the consolidated statements of operations bear to net revenue for the years 2025, 2024, and 2023.

Years Ended December 31,

2025

2024

2023

REVENUE

Service fee revenue

93.8 

%

92.5 

%

90.5 

%

Revenue under capitation arrangements

6.2 

%

7.5 

%

9.5 

%

Total service revenue

100.0 

%

100.0 

%

100.0 

%

OPERATING EXPENSES

Cost of operations, excluding depreciation and amortization

88.5 

%

86.4 

%

86.3 

%

Lease abandonment charges

0.4 

%

0.1 

%

0.3 

%

Depreciation and amortization

7.5 

%

7.5 

%

7.9 

%

Gain on contribution of imaging centers into joint venture

— 

%

— 

%

(1.0)

%

Loss on sale and disposal of equipment

0.5 

%

0.1 

%

0.1 

%

Severance costs

0.2 

%

0.1 

%

0.2 

%

Total operating expenses

97.0 

%

94.3 

%

93.9 

%

INCOME FROM OPERATIONS

3.0 

%

5.7 

%

6.1 

%

OTHER INCOME AND EXPENSES

Interest expense

3.4 

%

4.4 

%

4.0 

%

Equity in earnings of joint ventures

(0.7)

%

(0.8)

%

(0.4)

%

Non-cash change in fair value of interest rate swaps

0.3 

%

0.4 

%

0.5 

%

Debt restructuring and extinguishment expenses

— 

%

0.6 

%

— 

%

Other income

(1.6)

%

(1.4)

%

(0.4)

%

Total other expenses

1.5 

%

3.3 

%

3.8 

%

INCOME BEFORE INCOME TAXES

1.6 

%

2.5 

%

2.4 

%

Provision for income taxes

(0.7)

%

(0.3)

%

(0.5)

%

NET INCOME

0.8 

%

2.0 

%

1.8 

%

Net income attributable to noncontrolling interest

1.7 

%

2.0 

%

1.7 

%

NET (LOSS) INCOME ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS

(0.9)

%

0.2 

%

0.1 

%

Result Summary

The following table summarizes our consolidated revenue by segments:

42

In Thousands

Years Ended December 31,

2025

2024

2023

Operating Revenue

Imaging Center

$

1,988,193 

$

1,792,319 

$

1,415,513 

Digital Health

92,691 

65,706 

38,058 

Intersegment eliminations

(40,674)

(28,361)

(23,510)

Total service revenue

$

2,040,210 

$

1,829,664 

$

1,430,061 

Imaging Center Segment

Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024

Total Revenue                                                            

In Thousands

Years Ended December 31,

2025

2024

$ Increase/(Decrease)

% Change

Total Revenue

$1,988,193

$1,792,319

$195,874

10.9%

Our 10.9% increase in Imaging Center revenue compared to the same period last year was driven by higher fees per imaging procedure and increased procedure volumes. This is a function of procedural volume growth at our consolidated centers. This growth reflects both organic increases at existing centers and incremental volumes from centers acquired since the prior-year period.

The increase in revenue was largely attributable to the procedural volume growth, increased reimbursement from commercial and capitated payors and favorable changes in product mix, as advanced imaging represented a greater proportion of total procedures. A significant contributor to this shift was the increase in PET CT procedures related to prostate cancer and Alzheimer’s-related studies, which are included within advanced modality imaging procedures.

Operating Expenses

Total Imaging Center operating expenses for the year ended December 31, 2025 increased approximately $221.1 million, or 13.2%, from $1.67 billion for the year ended December 31, 2024 to $1.89 billion for the year ended December 31, 2025, primarily due to increase in procedures volumes. The following table sets forth our cost of operations and total operating expenses for the years ended December 31, 2025 and 2024 (in thousands):

43

Years Ended December 31,

2025

2024

Salaries and professional reading fees, excluding stock-based compensation

$

1,083,550 

$

984,280 

Stock-based compensation

44,674 

26,863 

Building and equipment rental

127,798 

121,514 

Medical supplies

126,126 

103,189 

Other operating expenses*

355,225 

303,952 

Cost of operations

1,737,373 

1,539,798 

Depreciation and amortization

136,297 

127,142 

Lease abandonment charges

8,563 

2,478 

Loss on sale and disposal of equipment

9,821 

2,257 

Severance costs

1,797 

1,095 

Total operating expenses

$

1,893,851 

$

1,672,770 

*Includes billing fees, office supplies, repairs and maintenance, insurance, business tax and license, outside services, telecommunications, utilities, marketing, travel and other expenses.

     Salaries and professional reading fees, excluding stock-based compensation and severance

In Thousands

Years Ended December 31,

2025

2024

$ Increase/(Decrease)

% Change

Salaries

$

775,640 

$

711,054 

$

64,586 

9.1%

Professional Fees

307,910 

273,226 

34,684 

12.7%

Salaries and Professional Fees

$

1,083,550 

$

984,280 

99,270 

10.1%

In response to higher procedure volumes, we increased staffing levels across clinical, administrative, and technical functions to support the influx of patients. This included permanent headcount growth as well as a significant number of temporary hires to keep our centers operating smoothly during the first quarter of 2025. Compensation-related expenses were further impacted by increased 401K match contributions and more vacation and paid time off taken during the period. We also continued to experience wage inflation across the board, driven by a competitive labor market and the October 2024 increase in California’s minimum wage for healthcare workers. Additionally, higher workers’ compensation insurance premiums contributed to the overall rise in staffing costs.

    Stock-based compensation

Stock-based compensation increased $17.8 million, or 66.3%, to approximately $44.7 million for the year ended December 31, 2025 compared to $26.9 million for the year ended December 31, 2024. The increase is primarily due to a greater number of shares granted and higher grant-date fair values compared to prior-year period.

44

    Building and equipment rental

In Thousands

Years Ended December 31,

2025

2024

$ Increase/(Decrease)

% Change

Building rent and common area maintenance

$

125,459 

$

118,467 

$

6,992 

5.9%

Equipment Rental

2,340 

3,047 

(707)

(23.2)%

Building & Equipment Rental

$127,798

$121,514

6,284 

5.2%

Building and equipment rental expense increased primarily as a result of additional centers from openings and acquisitions. Equipment lease expense represents an immaterial portion of total rental expense.

    Medical supplies

In Thousands

Years Ended December 31,

2025

2024

$ Increase/(Decrease)

% Change

Medical Supplies Expense

$126,126

$103,189

$22,937

22.2%

Consistent with the shift in our procedural mix toward more advanced imaging, medical supplies expense increased at a higher rate than revenue growth. The growth in PET/CT procedures, particularly for prostate cancer and suspected Alzheimer’s studies, drove higher utilization of high-cost isotope tracers, contributing to the increase. In addition, price increases for these tracers further elevated medical supplies expense compared to the prior year.

    Other operating expenses

In Thousands

Years Ended December 31,

2025

2024

$ Increase/(Decrease)

% Change

Other Operating Expenses

$355,225

$303,952

$51,273

16.9%

Other operating expenses, which include outside services, software licensing fees, repair and maintenance, and utilities, have increased $51.3 million, or 16.9%, to approximately $314.6 million for the year ended December 31, 2025 compared to $275.6 million for the year ended December 31, 2024. The increase was primarily attributable to higher professional fees associated with acquisition activity, increased contractor services, and higher equipment and maintenance costs. In addition, certain increases relate to intersegment software licensing fees from the Digital Health segment, which are eliminated in consolidation and therefore impact segment operating results but not consolidated operating income.

Additional segment operating and non-operating expenses:

In Thousands

Years Ended December 31,

2025

2024

$ Increase/(Decrease)

% Change

Depreciation and Amortization

$136,297

$127,142

$9,155

7.2%

Loss on disposal of equipment and other

$9,821

$2,257

$7,564

335.1%

Other income

($32,066)

($30,336)

($1,730)

5.7%

Debt restructuring and extinguishment expenses

$—

$11,292

($11,292)

(100.0)%

Severance

$1,797

$1,095

$702

64.1%

The increase in depreciation expense was due to higher depreciable asset base, mainly driven by our expanded locations.

The increase in loss on disposal of equipment was primarily driven by a higher volume of fixed asset disposals during the period. These disposals reflect a strategic initiative to replace legacy imaging units with newer AI-enabled and other advanced technologies intended to enhance operational efficiency, clinical capabilities, and long-term productivity.

45

Other income primarily consists of interest income earned on our cash and cash equivalents.

Lease abandonment charges

In Thousands

Years Ended December 31,

2025

2024

$ Increase/(Decrease)

% Change

Lease abandonment charges

$8,563

2,478 

$6,085

246 

%

We closely monitor patient levels at our imaging centers and occasionally divest or shut down centers to maximize utilization rates. We may abandon low utilization leases and divert the patients to nearby centers.

During year ended 2025, we experienced lower utilization at seven imaging centers. As a result, we abandoned the leases related to these locations at the end of 2025 and diverted the patients to our other sites in the area. We recorded a charge of approximately $8.6 million in December 2025 related to lease facilities abandonment. The lease abandonment charges include the impairment of associated right-of-use assets of $6.7 million and write off of related leasehold improvements of approximately $1.9 million.

Digital Health Segment

Our Digital Health segment develops and deploys clinical applications to enhance interpretation of medical images and improve patient outcomes with a current emphasis on breast, prostate, and lung cancer diagnostics. The breakdown of revenue and expenses of the segment for the years ended December 31, 2025 and 2024 are as follows:

In Thousands

Years Ended December 31,

2025

2024

$ change

Revenue

$

92,691 

$

65,706 

$

26,985 

Salaries and Wages

45,207 

26,569 

18,638 

Stock Compensation

9,927 

2,971 

6,956 

Other operating

32,683 

24,578 

8,105 

Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI

20,155 

14,995 

5,160 

Depreciation & Amort.

15,831 

10,696 

5,135 

Other operating (gain) loss

(163)

19 

(182)

Severance

1,348 

807 

541 

Total operating expenses

124,988 

80,635 

44,353 

Loss from operations

(32,297)

(14,929)

(17,368)

Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024

For the year ended December 31, 2025, Digital Health segment revenues increased $27.0 million or 41.1%, to $92.7 million, compared to $65.7 million for the year ended December 31, 2024. The growth was primarily driven by a 64.9% increase in AI-related revenue and a 29.0% increase in Enterprise Imaging revenue.

External revenue represented 55.3% of total segment revenue for 2025. During the year, the segment’s customer base expanded from 486 to 2,075, and procedure volumes increased from 19.1 million to 24.1 million, primarily reflecting the addition of iCAD.

Annual Recurring Revenue or ARR, at the end of 2025 was $75 million. The Company defines Annual Recurring Revenue ("ARR") as a key subscription economy metric representing the predictable, normalized annualized value of contracted recurring revenue generated from customers from active customer contracts. ARR includes subscription fees,

46

recurring support fees, and contracted usage charges and excludes one-time, non-recurring fees such as, implementation, hardware sales, professional services, consulting and one-off training. ARR is a non-GAAP measure and does not represent GAAP revenue recognized over time.

For the year ended December 31, 2025, results reflect steady organic growth prior to the acquisition and a sharp acceleration in the third quarter following the inclusion of iCAD, highlighting that recent performance was driven primarily by external expansion rather than internal volume increases.

Segment operating expenses increased year over year due to the addition of new costs resulting from acquisitions (iCAD, SeeMode, and CIMAR); investments in the personnel, increased stock-based compensation commensurate with the growing organization, and higher non-capitalized R&D costs, reflecting continued investment in scaling our platforms for broader deployment. We expect the segment to continue operating at a net loss in the near term as integration of iCAD, Inc., See-Mode Technologies, and CIMAR UK progresses.

Consolidated

Interest expense

In Thousands

Years Ended December 31,

Interest Expense

2025

2024

$ Increase/(Decrease)

% Change

Total Interest Expense

$69,913

$79,849

($9,936)

(12.4)%

Interest related to derivatives*

5,004

762

Interest related to amortization**

(3,014)

(2,276)

Adjusted Interest Expense***

$71,903

$78,335

$(6,433)

(8.2)%

*Includes payments from 2019 swaps, inclusive of amortization of other comprehensive income

**Includes noncash amortization of deferred loan costs and discount on issuance of debt

***Includes interest related to our term loans, revolving credit line, notes, and other

The decrease in interest expense was primarily due to the repricing transaction of our Barclays Revolving Credit Facility (as defined in the notes to our consolidated financial statements) in the fourth quarter of 2024, which resulted in lower interest rates compared to the same period in the prior year. This benefit was partially offset by the $100.0 million of incremental term loan borrowings under our existing Barclays Revolving Credit Facility in the second quarter of 2025. See Note 8, Credit Facilities and Notes Payable, included in the notes to our consolidated financial statements.

During the year ended December 31, 2025, interest rates were above the arranged rates in our 2019 Swaps for most of the year and we received $7.9 million in cash payments from our 2019 swap counterparties, which were reported as a component of interest expense. Also, the 2019 Swaps for $100 million of notional value matured in October 2023, and were not in effect in 2024. See the Derivative Instruments section of Note 2, Summary of Significant Accounting Policies, in the notes accompanying the consolidated financial statements included in this report and Item 7A — "Quantitative and Qualitative Disclosure About Market Risk" below for more details on our derivative transactions.

Non-cash change in fair value of interest rate hedge

In 2020, we determined that the cash flows from the 2019 swaps did not match the cash flows of our Barclays Term Loan and were therefore ineffective as cash flow hedges. Since that time, in accordance with accounting guidelines, all changes in fair value are being recognized in other income and expense.

The fair value of the 2019 swaps as of December 31, 2025 was a net asset of $0.0 million compared to a net asset of $7.1 million as of December 31, 2024, resulting in a loss $7.1 million during the year ended December 31, 2025. The decrease in fair value was primarily attributable to the expiration of the 2019 swaps during 2025, which reduced the remaining contractual term to zero.

Equity in earnings from unconsolidated joint ventures

For the year ended December 31, 2025 we recognized equity in earnings from unconsolidated joint ventures of $14.9 million versus $14.5 million for the year ended December 31, 2024, an increase of $0.4 million or 2.8%.

47

Net income attributable to noncontrolling interests

As of December 31, 2025, our consolidated subsidiaries operated 368 imaging centers of which 101 were not wholly-owned and thus a portion of their operating results were attributable to noncontrolling interests. At December 31, 2024, our consolidated subsidiaries included 345 centers of which 100 were not wholly-owned. As noncontrolling interests only represent a portion of our imaging center business, and excludes our Digital Health segment which generated losses of $30.3 million in 2025, we do not expect changes in net income attributable to noncontrolling interests to correlate with changes in consolidated operating income or pretax income.

For the year ended December 31, 2025, we recognized net income attributable to noncontrolling interests of $35.7 million versus $36.0 million for the year ended December 31, 2024, a decrease of $0.3 million.

Non-GAAP Financial Measures

We use both GAAP and non-GAAP metrics to measure our financial results. We believe that, in addition to GAAP metrics, non-GAAP metrics such as Adjusted EBITDA assist us in measuring our core operations from period to period.

Adjusted EBITDA

Our Adjusted EBITDA metric removes non-cash and non-recurring charges that occur in the affected period and provides a basis for measuring the Company’s core financial performance against other periods.

We define Adjusted EBITDA as earnings before interest, taxes, depreciation, and amortization, as adjusted to exclude losses or gains on the disposal of equipment, other income or loss, loss on debt extinguishment, bargain purchase gains, loss on de-consolidation of joint ventures, gain on contribution of imaging centers into joint ventures, and non-cash equity compensation.  Adjusted EBITDA includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries, and is adjusted for non-cash or one-time events that take place during the period.

Adjusted EBITDA is a non-GAAP financial measure used as an analytical indicator by us and the healthcare industry to assess business performance. Adjusted EBITDA should not be considered a measure of financial performance under GAAP, and Adjusted EBITDA should not be considered in isolation or as alternatives to net income, or other financial statement data presented in the consolidated financial statements as an indicator of financial performance. Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation and this metric, as presented, may not be comparable to other similarly titled measures of other companies.

The following is a reconciliation of the nearest comparable GAAP financial measure, net income, to Adjusted EBITDA for the years ended December 31, 2025, 2024, and 2023, respectively (in thousands):

48

Years Ended December 31,

2025

2024

2023

Net (Loss) Income Attributable To Radnet, Inc. Common Stockholders

$

(18,652)

$

2,793 

$

3,044 

Income taxes

14,862 

6,026 

8,473 

Interest expense

69,913 

79,849 

64,483 

Severance costs

3,145 

1,902 

3,778 

Depreciation and amortization

152,127 

137,838 

128,391 

Non-cash employee stock-based compensation

54,601 

29,833 

26,785 

Loss on sale and disposal of equipment and other

9,658 

2,276 

2,187 

Non-cash change in fair value of interest rate hedge

7,112 

8,006 

8,185 

Other (income) expenses

(32,066)

(24,916)

(6,354)

Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI

20,155 

14,995 

1,308 

Lease abandonment charges

8,563 

2,478 

5,146 

Gain on contribution of imaging centers into joint venture

— 

— 

(16,808)

Loss on extinguishment of debt and related expenses

— 

11,292 

— 

Non-cash change to contingent consideration

110 

1,974 

(4,075)

Acquisition related non-cash intangible adjustment

— 

— 

3,950 

Non-operational rent expenses

3,247 

4,233 

3,629 

Acquisition transaction costs

7,446 

880 

222 

Adjusted EBITDA - Radnet, Inc.

$300,221

$279,459

$232,344

NOTE

Adjusted EBITDA - Imaging Center Segment

284,710

264,901

225,846

Adjusted EBITDA - Digital Health Segment

$

15,511 

$

14,558 

$

6,498 

The following table is a reconciliation of GAAP net income for our Digital Health Segment to Adjusted EBITDA for the years ended December 31, 2025, 2024 and 2023 respectively.

Year Ended December 31,

2025

2024

2023

Segment net loss

$

(30,299)

$

(19,925)

$

(5,154)

Stock Compensation

9,927 

2,971 

2,211 

Depreciation & Amortization

15,831 

10,696 

8,250 

Other operating loss

(163)

19 

(4)

Other income

— 

5,419 

4,537 

Severance

1,348 

807 

1,805 

Income taxes

(2,011)

(424)

(1,906)

Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI

20,155 

14,995 

— 

Non-cash change to contingent consideration

710 

— 

(7,191)

Acquisition related to non-cash intangible adjustment

— 

— 

3,950 

Adjusted EBITDA - Digital Health Segment

$

15,511 

$

14,558 

$

6,498 

49

Liquidity and Capital Resources

The cash we generate from our core operations enables us to fund ongoing operations, our research and development for new products and technologies including our investment in AI, and acquisition or expansion of imaging centers. We expect to continue to generate positive cash flows from operations for the foreseeable future. In March 2024, we closed on a public offering of our common stock raising net proceeds, after deducting underwriting discounts, commissions, and expenses, of $230.2 million. Accordingly, we believe that our current sources of funds will provide us with adequate liquidity during the 12-month period following December 31, 2025, as well as in the long-term.

The following table summarizes key balance sheet data as of December 31, 2025 and December 31, 2024 and income statement data for the years ended December 31, 2025, 2024 and 2023 (in thousands):

Balance Sheet Data as of December 31,

2025

2024

Cash and cash equivalents

$

767,215 

$

740,020 

Accounts receivable

200,317 

185,821 

Working capital (exclusive of current operating lease liability)

507,298 

596,158 

Stockholders' equity

1,355,886 

1,133,410 

Income Statement data for the years ended December 31,

2025

2024

2023

Total revenue

$

2,040,210 

$

1,829,664 

$

1,616,630 

Net (loss) income attributable to RadNet, Inc. common stockholders

(18,652)

2,793 

3,044 

We operate in a capital intensive, high fixed-cost industry that requires significant amounts of capital to fund operations. In addition to ongoing operations, we invest in the purchase of imaging facilities, the acquisition of equipment, and the acquisition of technology to fund our growth. If economic or global business conditions slowed, we expect that we will be able to adjust the pace of our investment activities.

We continually evaluate our cash needs and may decide it is best to raise additional capital or seek alternative financing sources to fund the rapid growth of our business, including through draw-downs on existing or new debt facilities or financing funds. We expect to fund any future capital requirements primarily with cash flow from operations and borrowings, including borrowing from amounts available under our senior secured credit facilities or through new equity or debt issuances. We and our subsidiaries or affiliates may from time to time, in our sole discretion, purchase, repay, redeem, or retire any of our outstanding debt or equity securities in privately negotiated or open market transactions, by tender offer or otherwise.

Sources and Uses of Cash

The following table summarizes key components of our sources and uses of cash for the years ended December 31, 2025, 2024 and 2023, respectively, in thousands:

Cash Flow Data

2025

2024

2023

     Cash provided by operating activities

$

298,820 

$

233,023 

$

220,863 

     Cash used in investing activities

(343,865)

(233,070)

(201,470)

     Cash provided by financing activities

72,207 

397,950 

195,635 

Cash provided by operating activities for the year ended December 31, 2025 included $308.6 million of net income, adjusted for non-cash items such as depreciation and amortization, non-cash lease expense, stock-based compensation and deferred taxes, offset by a $9.8 million change in assets and liabilities. The $65.8 million increase in cash provided by operating activities for the year ended December 31, 2025 compared to December 31, 2024 was primarily driven by favorable changes in working capital.

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Cash used in investing activities for the year ended December 31, 2025 increased from the year ended December 31, 2024 by $110.8 million. Purchases of imaging centers and other acquisitions during the period was $133.4 million, a $89.8 million increase from the prior period. Cash payments for capital expenditures on property and equipment during the period was $213.3 million, a $25.2 million increase from the prior period.

Cash provided by financing activities for the year ended December 31, 2025 decreased by $325.7 million compared to the year ended December 31, 2024. Financing activity in 2024 included a public equity offering that generated $218.4 million in net proceeds and a refinancing of the Barclays Revolving Credit Facility that resulted in an additional $167.9 million of cash. In 2025, financing activity primarily consisted of a $100.0 million incremental term loan under the Barclays Credit Agreement, partially offset by repayment of term loans, notes, and lease payables of $27.8 million.

Based on current operating performance, cash on hand and available borrowing capacity, management believes the Company has sufficient liquidity to meet its short-term working capital needs and contractual obligations.

Over the long term, the Company expects to fund operations, capital expenditures and acquisitions through a combination of cash generated from operations, available credit facilities and access to capital markets, as appropriate.

Senior Credit Facilities:

We maintain secured credit facilities with Barclays Bank PLC and Truist Bank.

On April 18, 2024, we refinanced our Barclays Credit Facility, replacing the prior facility with an $875.0 million term loan and a $282.0 million revolving credit facility. The refinance transaction reduced our interest rates on the Barclays Term Loan and Revolving Credit Facility and extended the maturity date for the term loan to April 18, 2031, and for the revolving credit facility to April 18, 2029. The new term loan calls for quarterly principal payments of $2.2 million, compared to $1.8 million under the prior credit facility.

Included in our consolidated balance sheet at December 31, 2025 are $1,072.6 million of total term loan debt (net of unamortized discounts of $12.2 million) displayed below in thousands:

Face Value

Discount

Total Carrying

Value

Barclays Term Loans

$

961,119 

$

(11,759)

$

949,360 

Truist Term Loan

123,750 

(462)

123,288 

Total Term Loans

$

1,084,869 

$

(12,221)

$

1,072,648 

We had no outstanding balance under our $282.0 million Barclays Revolving Credit Facility as of December 31, 2025 and had reserved $9.0 million for certain letters of credit. The remaining $273.0 million of our Barclays Revolving Credit Facility was available to draw upon as of December 31, 2025. We also had no balance under our $50.0 million Truist Revolving Credit Facility as of December 31, 2025, and with no letters of credit reserved against the facility, the full amount was available to draw upon. For more information on our secured credit facilities see Note 8, Credit Facilities and Notes Payable, in the notes accompanying our consolidated financial statements in this report.

Contractual Commitments

Our future obligations for notes payable, lines of credit, and equipment and building operating leases for the next five years and thereafter include (dollars in thousands):

2025

2026

2027

2028

2029

Thereafter

Total

Notes payable

$

27,928 

$

129,447 

$

12,673 

$

10,003 

$

9,758 

$

912,331 

$

1,102,140 

Interest and fees on notes payable

67,908 

65,272 

70,382 

58,743 

58,142 

18,980 

339,427 

Operating leases (1)

113,443 

112,258 

110,435 

100,428 

97,619 

582,128 

1,116,310 

Total

$

209,279 

$

306,977 

$

193,490 

$

169,174 

$

165,519 

$

1,513,439 

$

2,557,877 

(1)Includes interest component of operating lease obligations.

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    We have service agreements with various vendors under which they have agreed to be responsible for the maintenance and repair of a majority of our equipment for a fee that is based on the type and age of the equipment. Under these agreements, we are committed to minimum payments of approximately $34.0 million in 2026.

Critical Accounting Policies

The SEC defines critical accounting estimates as those that are both most important to the portrayal of a company’s financial condition and results of operations and require management’s most difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. In Note 2 to our consolidated financial statements in this annual report on Form 10-K, we discuss our significant accounting policies, including those that do not require management to make difficult, subjective, or complex judgments or estimates. The critical areas involving management’s judgments and estimates are described below.

USE OF ESTIMATES - The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions affect various matters, including our reported amounts of assets and liabilities in our consolidated balance sheets at the dates of the financial statements, our disclosure of contingent assets and liabilities at the dates of the financial statements, and our reported amounts of revenues and expenses in our consolidated statements of operations during the reporting periods. These estimates involve judgments with respect to numerous factors that are difficult to predict and are beyond management’s control. As a result, actual amounts could materially differ from these estimates.

REVENUES – Our revenues generally relate to net patient fees that we receive from various payors and patients themselves under contracts in which our performance obligations are to provide diagnostic services to the patients. Revenues are recorded during the period when our obligations to provide diagnostic services are satisfied. Our performance obligations for diagnostic services are generally satisfied over a period of less than one day. The contractual relationships with patients, in most cases, also involve a third-party payor (Medicare, Medicaid, managed care health plans and commercial insurance companies, including plans offered through the health insurance exchanges) and the transaction prices for the services provided are dependent upon the terms provided by Medicare and Medicaid, or negotiated with managed care health plans and commercial insurance companies. The payment arrangements with third-party payors for the services we provide to the related patients typically specify payments at amounts less than our standard charges and generally provide for payments based upon predetermined rates per diagnostic services or discounted fee-for-service rates. Management continually reviews the contractual estimation process to consider and incorporate updates to laws and regulations and the frequent changes in managed care contractual terms resulting from contract renegotiations and renewals.

As it relates to the Group (as defined in Item 1 of this Form 10-K), this service fee revenue includes payments for both the professional medical interpretation revenue recognized by them as well as the payment for all other aspects related to our providing the imaging services, for which we earn management fees. As it relates to other centers, this service fee revenue is earned through providing the use of our diagnostic imaging equipment and the provision of technical services as well as providing administration services such as clerical and administrative personnel, bookkeeping and accounting services, billing and collection, provision of medical and office supplies, secretarial, reception and transcription services, maintenance of medical records, digital health support services, and advertising, marketing, and promotional activities.

Our revenues are based upon the estimated amounts we expect to be entitled to receive from patients and third-party payors. Estimates of contractual allowances under managed care and commercial insurance plans are based upon the payment terms specified in the related contractual agreements. Revenues related to uninsured patients and copayment and deductible amounts for patients who have health care coverage may have discounts applied (uninsured discounts and contractual discounts). We also record estimated implicit price concessions (based primarily on historical collection experience) related to uninsured accounts to record self-pay revenues at the estimated amounts we expect to collect.

Under capitation arrangements with various health plans, we earn a per-enrollee amount each month for making available diagnostic imaging services to all plan enrollees under the capitation arrangement. Revenue under capitation arrangements is recognized in the period in which we are obligated to provide services to plan enrollees under contracts with various health plans.

ACCOUNTS RECEIVABLE – Substantially all of our accounts receivable are due under fee-for-service contracts from third-party payors, such as insurance companies and government-sponsored healthcare programs, or directly from patients. Services are generally provided pursuant to one-year contracts with healthcare providers. We continuously monitor

52

collections from our payors and maintain an allowance for credit losses based upon specific payor collection issues that we have identified and our historical experience.

BUSINESS COMBINATIONS – When the qualifications for business combination accounting treatment are met, it requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations.

Recent Accounting Standards

See Note 3, Recent Accounting Standards, in the notes accompanying the consolidated financial statements included in this report for further information.

Additional Information

Additional information concerning RadNet, Inc., including our consolidated subsidiaries, for each of the years ended December 31, 2025, 2024, and 2023 is included in the consolidated financial statements and notes thereto in this report.