RadNet, Inc. Q4 FY2025 earnings call

Fourth quarter was the strongest in company history with record revenue and adjusted EBITDA. Digital health had strong growth. Imaging center benefited from growing diagnostic imaging demand and procedural volume shift. 2025 saw opening of 7 de novo facilities, expansion of joint venture partnerships, and acquisitions in imaging centers and digital health. Acquired ICAD, CMODE, CMAR, and later Gleamer. Digital health continues to build AI-powered solutions. Year end 2025 cash balance was $776 million and net debt to adjusted EBITDA leverage ratio was approximately 1.0.

Fourth quarter total company revenue increased 14.8% to $547.7 million and adjusted EBITDA increased 16.9% to $87.7 million. Digital health fourth quarter 2025 revenue increased 48.2% to $27.9 million, and digital health adjusted EBITDA increased 8.9% to $4.9 million. Imaging center revenue was driven by increased demand, with 14.1% aggregate and 9.6% same-center advanced imaging procedural volume growth in fourth quarter. Advanced imaging represented 28.6% of RadNet's procedural volume in fourth quarter, an increase of 178 basis points from last year's same quarter.

2026 imaging center revenue expected to grow 17-19% relative to 2025. EBITDA growth to exceed revenue growth, free cash flow expected to grow 29-41% from 2025 levels. Digital health 2026 revenue growth 45-55% from 2025. ARR for digital health anticipated to approach $140 million at end of 2026, with Gleamer contributing ~$30 million. 2026 expected at least 4 FDA clearances.

Forward-looking statements subject to risks like actual results differing from expectations, including patient referrals, tech recruitment, reimbursement, acquisition integration. Winter weather impact on first quarter. Labor cost increase impact. Uncertainty in digital health new business integration and profitability.

Q: Hey, good morning. Maybe I'll ask the AI question...

A: Thanks, Brian. Good morning...; Q: Good morning, guys, and congratulations. Got a couple of part question on Gleema and then just one on imaging...

A: Yeah, Mark, let me take that...; Q: Hi, good morning. First, I wanted to clarify this new ARR metric...

A: Sure. I'll give my answer...; Q: Okay, thanks for the question. I wanted to ask about the EBITDA guidance...

A: Sure, sure. So the Gleamer EBITDA loss is being absorbed...; Q: Thank you for taking our questions. Good morning. I understand there are many moving pieces and recent acquisitions...

A: Yeah, thanks, Yuan. Appreciate the question...; Q: Great. Good morning. Congrats on another good year and on the exciting acquisition. First question, just on Gleamer...

A: Kees, I'm going to let you handle that one...; Q: Hi, good morning. Thanks for taking the questions. Two quick ones. One, can you tell us what the cash paid out for those acquisitions in Indiana and Florida were in the first quarter...

A: Yeah, sure. And you'll see it laid out in our 10-K...