RadNet Q1 2025 Results: Revenue Up, Weather Impact Felt, iCAD Deal Announced, 2025 Guidance Raised

RadNet, Inc. (NASDAQ: RDNT) reported first quarter 2025 financial results, highlighting strong year-over-year revenue growth despite significant weather-related disruptions, and announced an upward revision to full-year 2025 guidance.
Key Financial Highlights:
• Revenue: $471.4 million in Q1 2025, up 9.2% from $431.7 million in Q1 2024.
• Digital Health Revenue: $19.2 million, up 31.1% year-over-year.
• Adjusted EBITDA: $46.4 million, down 20.6% from $58.5 million due to weather-related impacts in California and the Northeast.
• Net Loss: $(37.9) million, or $(0.51) per share, compared to a $(2.8) million loss or $(0.04) per share in Q1 2024.
• Adjusted EPS: $(0.35), versus $0.07 in Q1 2024.
Operational Impacts:
• Q1 was hit by wildfires in Southern California and severe winter storms, negatively impacting revenue by ~$22 million and EBITDA by ~$15 million.
• March and April showed recovery, supporting higher confidence in FY2025 performance.
Volume Metrics:
• Total procedural volume rose 3.6%.
• MRI volume grew 8.4%, CT volume 8.3%, and PET/CT volume surged 22.9% year-over-year.
• Same-center procedural volume was down 0.3%, with same-center PET/CT up 12.2%.
Digital Health Segment:
• Adjusted EBITDA improved slightly to $3.7 million.
• Non-capitalized R&D spending totaled $3.6 million related to AI platforms like DeepHealth Cloud OS and generative AI.
Revised 2025 Guidance:
• Imaging Center Revenue: Now $1.835–$1.885 billion (up from $1.825–$1.875 billion).
• Adjusted EBITDA: $268–$276 million (previously $265–$273 million).
• Digital Health Revenue and EBITDA: Guidance unchanged at $80–$90 million and $15–$17 million, respectively.
iCAD Acquisition:
RadNet signed a definitive agreement to acquire iCAD, Inc. on April 15, 2025, expanding its AI-powered breast cancer detection capabilities. iCAD brings over 1,500 healthcare provider locations and supports more than 8 million annual mammograms globally.
Balance Sheet:
• Cash balance of $717 million.
• Net debt to adjusted EBITDA slightly above 1.0x, indicating solid financial flexibility.
CEO Statement:
Dr. Howard Berger emphasized the resilience of RadNet’s business, continued investment in AI tools, and confidence in future growth, especially with the pending iCAD acquisition.
The company also reiterated its strong capital position, minimal debt concerns, and focus on AI-driven population health solutions.

RadNet to Acquire iCAD in Strategic AI-Powered Breast Cancer Detection Merger

RadNet, Inc. has entered into a definitive agreement to acquire iCAD, Inc. in an all-stock transaction valued at approximately $103 million. The deal, unanimously approved by both companies’ boards, aims to expand RadNet’s AI-driven capabilities in breast cancer screening by integrating iCAD’s ProFound Breast Health Suite and global provider network into RadNet’s DeepHealth portfolio.

Under the agreement, iCAD shareholders will receive 0.0677 shares of RadNet common stock for each share of iCAD. Based on RadNet’s closing price on April 14, 2025, the transaction represents a 98% premium over iCAD’s stock price.

RadNet expects the acquisition to add more than 1,500 provider locations across over 50 countries to its AI footprint and enhance its commercialization reach through iCAD’s engineering and sales teams. The move is part of RadNet’s broader strategy to lead global efforts in AI-powered cancer screening, with a particular focus on earlier and more accurate breast cancer detection.

iCAD CEO Dana Brown said the merger will accelerate access to next-generation screening tools and streamline innovation cycles, ultimately improving clinical outcomes. Following completion, iCAD’s technologies and team will be fully integrated into RadNet’s DeepHealth division.

The transaction is anticipated to close in the second or third quarter of 2025, subject to shareholder approval and other customary conditions.

RadNet reported record revenue of $477.1 million for the fourth quarter of 2024, a 13.5% increase from the previous year. Adjusted EBITDA also reached a quarterly high of $75 million, up 14%. The company's Digital Health segment saw significant growth, with revenue rising 28.1% to $18.9 million and Adjusted EBITDA increasing 61.6% to $4.5 million. Adjusted earnings per share for the quarter were $0.22, compared to $0.15 in Q4 2023. Procedural volumes increased overall by 8%, with MRI, CT, and PET/CT seeing double-digit growth.

For the full year, RadNet achieved revenue of $1.83 billion, a 13.2% increase from 2023, with Adjusted EBITDA growing 20.3% to $279.5 million. The company expanded its health system joint ventures, opening nine new centers and increasing partnered locations from 130 to 153. Investments in AI and Digital Health solutions, including DeepHealth OS and SmartMammo, are expected to improve efficiency and address labor shortages.

RadNet improved its financial position, raising $230 million in a stock offering and refinancing debt to lower costs and extend maturities. By year-end, its net debt to Adjusted EBITDA ratio fell below 1.0x, with a cash balance of $740 million.

Looking ahead, RadNet's 2025 guidance projects revenue between $1.825 billion and $1.875 billion and Adjusted EBITDA between $265 million and $273 million. The Digital Health segment is expected to generate $80 million to $90 million in revenue. Early 2025 results were impacted by severe winter weather and wildfires, causing a downward revision to Q1 forecasts.

RadNet remains focused on operational efficiency, expanding joint ventures, and implementing AI-driven automation to counter rising labor costs. Future growth will also be driven by new sales and licensing revenue from AI-powered diagnostic tools in mammography, lung, prostate, and brain imaging.