Q2 2026 RadNet Inc Earnings Call Transcript
Key Points
- Record quarterly revenue and adjusted EBITDA, with total revenue up 25% and adjusted EBITDA up 22.7% year-over-year.
- Strong growth in advanced imaging volumes, with same-center MRI, CT, and PET CT volumes increasing 4%, 8.6%, and 8.8%, respectively.
- Digital Health segment revenue surged 56.5% year-over-year, driven by a 136% increase in AI revenue and strong ARR growth of 97%.
- FDA clearance for DeepHealth breast ultrasound AI, which improves cancer detection sensitivity by 8% and reduces interpretation time by 37%, opening new reimbursement opportunities.
- Increased full-year 2026 guidance for imaging center revenue, adjusted EBITDA, and free cash flow, reflecting confidence in continued strong performance.
- Digital Health adjusted EBITDA declined year-over-year due to deliberate investments in commercial team and integration costs from acquisitions like Gleamer.
- Continued pressure on salaries, particularly for technologists and radiologists, impacting margins despite operational efficiencies.
- Integration of recent acquisitions (e.g., Florida centers) has incurred additional costs and temporarily diluted margins.
- Proposed Medicare physician fee schedule conversion factor decrease of 1.68% could negatively impact revenue, though partially offset by RVU increases.
- Site neutrality provision in HOPPS proposal may reduce hospital reimbursement for certain procedures, potentially increasing competition or shifting dynamics in the market.
Please note, this event is being recorded. I would now like to turn the conference over to Mark Stolper, Executive Vice President and Chief Financial Officer. Please go ahead.
Thank you. Good morning, everyone, and thank you for joining Dr. Howard Berger and me today to discuss RadNet's second-quarter 2026 financial results. On this call, we have also invited Kees Westdorp, President and CEO of Digital Health, and Sham Sokka, Chief Operating and Technology Officer of Digital Health, who will share additional information about the progress of the Digital Health operating segment. Before we begin today, we would like to remind everyone of the safe harbor statement under the Private Securities Litigation Reform Act of 1995. This presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995.
Specifically, statements concerning anticipated future financial and operating performance, RadNet's ability to continue to
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