RadNet reports mixed Q3 results; updates FY25 outlook

* RadNet press release [https://seekingalpha.com/pr/20299764-radnet-reports-third-quarter-financial-results-with-record-quarterly-revenue-and-adjusted] (RDNT [https://seekingalpha.com/symbol/RDNT]): Q3 Non-GAAP EPS of $0.20 misses by $0.03.
* Revenue of $522.9M (+13.4% Y/Y) beats by $28.88M.
* _Revenue from the Digital Health reportable segment (inclusive of intersegment revenue) increased 51.6% to $24.8 million in the third quarter of 2025 from $16.4 million in the third quarter of 2024._
* _Total Company Adjusted EBITDA __was $84.9 million in the third quarter of 2025 as compared with $73.7 million in the third quarter of 2024, an increase of 15.2%._
* _As of September 30, 2025, we had a cash balance of $804.7 million and Net Debt to Adjusted EBITDA __ratio of approximately 1.0x_
* _RadNet revises full-year 2025 guidance levels to increase Imaging Center Revenue and Adjusted EBITDA __ranges and Digital Health Revenue ranges_
*
GUIDANCE UPDATE

RADNET AMENDS ITS PREVIOUSLY ANNOUNCED GUIDANCE LEVELS AS FOLLOWS:

Imaging Center Segment

Original Guidance Range
Revised Guidance Range After Q1 Results
Revised Guidance Range After Q2 Results
Revised Guidance Range After Q3 Results

Total Net Revenue
$1,825 - $1,875 million
$1,835 - $1,885 million
$1,850 - $1,900 million
$1,900 - $1,930 million

Adjusted EBITDA(1)
$265 - $273 million
$268 - $276 million
$271 - $279 million
$276 - $284 million

Capital Expenditures(a)
$140 - $150 million
$145 - $155 million
$152 - $162 million
$157 - $167 million

Cash Interest Expense(b)
$35 - $40 million
$35 - $40 million
$35 - $40 million
$31 - $36 million

Free Cash Flow(2)
$70 - $80 million
$70 - $80 million
$70 - $80 million
$70 - $80 million

Click to enlarge
(a) Net of proceeds from the sale of equipment and New Jersey Imaging Network capital expenditures.(b) Net of payments received from counterparties on interest rate swaps and interest income from our cash balance recorded in Other Income.

Digital Health Segment

OriginalGuidance Range
RevisedGuidance Range AfterQ1 Results
RevisedGuidance Range AfterQ2 Results
RevisedGuidance Range AfterQ3 Results

Total Net Revenue (inclusive of intersegment revenue)

$80 - $90 million
$80 - $90 million
$80 - $90 million
$85 - $95 million

Adjusted EBITDA(1) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI

$15 - $17 million
$15 - $17 million
$15 - $17 million
$15 - $17 million

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

$16 - $18 million
$16 - $18 million
$17 - $19 million
$18 - $20 million

Capital Expenditures

$3 - $5 million
$3 - $5 million
$2 - $4 million
$3 - $5 million

Free Cash Flow(2) Before Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI

$11 - $13 million
$11 - $13 million
$11 - $13 million
$10 - $12 million

Free Cash Flow(2) After Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI

$(5) - $(8) million
$(5) - $(8) million
$(5) - $(8) million
$(6) - $(9) million

Click to enlarge

MORE ON RADNET

* RadNet, Inc. (RDNT) Presents At Morgan Stanley 23rd Annual Global Healthcare Conference Transcript [https://seekingalpha.com/article/4821353-radnet-inc-rdnt-presents-at-morgan-stanley-23rd-annual-global-healthcare-conference]
* RadNet: Bloated Capital Base Not Pulling Its Economic Weight (Rating Downgrade) [https://seekingalpha.com/article/4814432-radnet-bloated-capital-base-not-pulling-its-economic-weight-rating-downgrade]
* RadNet Q3 2025 Earnings Preview [https://seekingalpha.com/news/4518783-radnet-q3-2025-earnings-preview]
* Seeking Alpha’s Quant Rating on RadNet [https://seekingalpha.com/symbol/RDNT/ratings/quant-ratings]
* Historical earnings data for RadNet [https://seekingalpha.com/symbol/RDNT/earnings]