RadNet’s second quarter results saw a positive market reaction, reflecting management’s emphasis on advanced imaging adoption and technology-driven efficiency improvements. CEO Howard Berger highlighted that a rebound from first-quarter disruptions, alongside increased utilization of MRI and PET/CT procedures, contributed to strong revenue gains. Initiatives such as the implementation of TechLive, a remote scanning solution, and strategic price negotiations with commercial payers further supported the quarter’s performance. Berger also credited the company’s focus on advanced imaging for driving higher margins, noting, “Advanced imaging as a percentage of total procedures increased to 27.5%, from 26.5% in last year's same quarter.”
Is now the time to buy RDNT? Find out in our full research report (it’s free).
RadNet (RDNT) Q2 CY2025 Highlights:
- Revenue: $498.2 million vs analyst estimates of $490.4 million (8.4% year-on-year growth, 1.6% beat)
- Adjusted EPS: $0.31 vs analyst estimates of $0.16 (97.9% beat)
- Adjusted EBITDA: $81.25 million vs analyst estimates of $77.4 million (16.3% margin, 5% beat)
- Operating Margin: 6.2%, down from 7.6% in the same quarter last year
- Same-Store Sales rose 4.4% year on year (15.1% in the same quarter last year)
- Market Capitalization: $5.19 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From RadNet’s Q2 Earnings Call
- David Samuel MacDonald (Truist): Asked about incremental capacity and margin leverage from TechLive and See-Mode rollouts. CEO Howard Berger explained that New York locations saw a 40% improvement in capacity and highlighted the potential for significant margin improvement as new technologies are fully implemented.
- Brian Gil Tanquilut (Jefferies): Inquired about the impact of See-Mode’s AI on scan volumes and margins. Berger noted a 30% reduction in scan times and said, “Even very modest additional capacity… the math on the numbers is quite overwhelming,” pointing to improved profitability through higher throughput.
- John Wilson Ransom (Raymond James): Sought clarity on the margin unlock potential from full DeepHealth OS and remote tech deployment in core imaging. Berger estimated substantial savings from even a 10% reduction in call center time, given the $60 million annual cost base and high call volume.
- Andrew Mok (Barclays): Asked about the Medicare reimbursement benefit for 2026. Stolper cautioned that headline increases are offset by adjustments to procedure codes and geographic indices, resulting in a more modest $4 million to $5 million uplift for RadNet.
- Lawrence Scott Solow (CJS Securities): Queried the strategy for integrating iCAD’s sales force and product suite. Berger noted both brands are being integrated into a comprehensive breast health offering, with iCAD’s team largely retained and expected to drive external adoption.
Catalysts in Upcoming Quarters
In upcoming quarters, our analysts will monitor (1) the pace and effectiveness of TechLive and See-Mode technology rollouts across RadNet’s facility network, (2) integration progress and cross-selling synergies from the iCAD acquisition within breast health AI, and (3) execution of planned new imaging center openings to address market demand. Progress in expanding commercial payer coverage for AI-based screening and the realization of Medicare reimbursement updates will also be important to watch.
RadNet currently trades at $68.79, up from $53.34 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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