RadNet Raises 2026 Guidance After Q1 Revenue Jumps 22%

RadNet Inc. (NASDAQ: RDNT) raised its full-year guidance for its imaging center business after reporting a 22.1% surge in first-quarter revenue, driven by a strong rebound in procedure volumes after a slow start to the year.

"After being impacted by severe winter weather conditions in the Northeast during January and February...our business strongly rebounded in March, resulting in a Total Company Revenue increase of 22.1% and a Total Company Adjusted EBITDA increase of 36.3% from last year’s first quarter," Dr. Howard Berger, President and Chief Executive Officer of RadNet, said in a statement.

The diagnostic imaging company reported total revenue of $575.6 million for the quarter ended March 31, with adjusted EBITDA rising 36.3% to $63.3 million. The performance was aided by a 19.7% aggregate increase in advanced imaging procedures like MRI, CT, and PET/CT scans compared to the first quarter of 2025.

The company now expects 2026 revenue for its Imaging Center segment to be between $2.355 billion and $2.405 billion, up from a previous range of $2.325 billion to $2.375 billion. The guidance for Adjusted EBITDA was also lifted to a range of $340 million to $353 million.

Digital Health and AI Expansion

RadNet's Digital Health division also continued to gain momentum, with revenue increasing 51.5% to $29.1 million in the quarter. The company highlighted its March acquisition of Gleamer SAS, a French developer of AI solutions for radiology. RadNet estimates that by the end of the year, over 70% of its studies could be processed through clinical AI, which it expects will enhance patient care and workflow productivity.

Revised 2026 Guidance

Imaging Center Segment	Original Guidance	Revised Guidance
Total Net Revenue	$2,325 - $2,375 million	$2,355 - $2,405 million
Adjusted EBITDA	$335 - $348 million	$340 - $353 million
Free Cash Flow	$105 - $115 million	$112 - $122 million

The updated guidance reflects strong operating trends that have continued into the second quarter. The company's performance stands in contrast to some peers in the diagnostics space, such as NeoGenomics, which reported more modest growth.

The guidance increase and strong quarterly performance suggest RadNet's investments in advanced imaging and AI are paying off. Investors will be watching the upcoming quarters to see if the company can maintain its growth trajectory and leverage its technology acquisitions to improve margins.

This article is for informational purposes only and does not constitute investment advice.