RadNet, Inc. (NASDAQ:RDNT) shares climbed 5.8% on Monday after the outpatient diagnostic imaging provider reported record third-quarter revenue that surpassed Wall Street expectations, offsetting a small miss on earnings per share.
The company posted revenue of $522.9 million for the quarter, well above the $494.48 million analyst consensus and up 13.4% year over year from $461.1 million. However, adjusted EPS came in at $0.20, slightly below the $0.23 forecast.
RadNet’s strong top-line growth was fueled by a surge in procedural volume, particularly in advanced imaging services. Aggregate advanced imaging volumes rose 13.0% year over year, while same-center advanced imaging volumes increased 9.9%. The company also continued to shift its mix toward higher-margin procedures, with advanced imaging rising to 28.2% of total volume, up from 26.7% a year earlier.
“The business continues to demonstrate strong growth and record results in each of the Imaging Center and Digital Health reportable operating segments,” said Dr. Howard Berger, President and CEO of RadNet. “Total Company Revenue grew 13.4% and Adjusted EBITDA grew 15.2% as compared with last year’s third quarter, resulting in Adjusted EBITDA margin expansion of 26 basis points.”
RadNet’s Digital Health segment delivered standout performance, with revenue jumping 51.6% to $24.8 million, compared with $16.4 million in the third quarter of 2024.
On the back of this robust performance, the company raised its full-year 2025 guidance. The Imaging Center revenue forecast was increased to $1.9–$1.93 billion, up from $1.85–$1.9 billion, while adjusted EBITDA guidance was revised to $276–$284 million, from the prior range of $271–$279 million.
As of September 30, RadNet reported a strong balance sheet with $804.7 million in cash and a net debt-to-adjusted EBITDA ratio of approximately 1.0x, underscoring the company’s financial stability as it continues to expand its imaging and digital health operations.