What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-11 compared with 2025-11-10 · 224 added, 308 removed, 235 unchanged (69% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q (this "report") and with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K, as amended, for the fiscal year ended December 31, 2024 filed with the U.S.

Securities and Exchange Commission (the "SEC")(the "Annual Report").

Securities and Exchange Commission (the "SEC").

As used in this Quarterly Report on Form 10-Q, the terms "RadNet," "we," "us," and "our" refer to RadNet, Inc., a Delaware corporation, and where appropriate, our consolidated subsidiaries.

17 unchanged sentences

Any forward-looking statement in this report is based on information currently available to us and speaks only as of the date of this report.

may cause actual results to differ from those expressed or implied by the forward-looking statements contained in this report, except as required by law.

We are a national provider of diagnostic imaging services in the United States.

At September 30, 2025, we operated directly or indirectly through joint ventures with hospitals, 407 centers located in Arizona, California, Delaware, Florida, Maryland, New Jersey, New York and Texas.

We do not undertake any responsibility to release publicly any revisions to these forward-looking statements to take into account events or circumstances that occur after the date of this report or any unanticipated events which may cause actual results to differ from those expressed or implied by the forward-looking statements contained in this report, except as required by law.

Our operations comprise two segments for financial reporting purposes for this reporting period, Imaging Centers and Digital Health.

Within our Imaging Centers segment, we are a national provider of diagnostic imaging services in the United States.

As of March 31, 2026, we operated directly or indirectly through joint ventures with hospitals, 435 centers located in Arizona, California, Delaware, Florida, Maryland, New Jersey, New York and Texas.

Our centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, often reducing the cost and amount of care for patients.

Internationally, our subsidiary The HLH Imaging Group Limited, provides teleradiology services for remote interpretation of images on behalf of providers within the framework of the United Kingdom's National Health Service.

In addition to our imaging business, we have established a Digital Health business segment during our 2024 fiscal year, which combines our former Artificial Intelligence (“AI”) business segment with our eRad, Inc.

Our Digital Health segment develops and delivers AI-powered health informatics solutions to drive quality, efficiency, and outcomes in imaging and radiology.

The portfolio of software solutions is anchored by eRad, Inc.'s RIS/PACS, informatics designed specifically for outpatient radiology and DeepHealth OS, a cloud-native operating system that helps operate all aspects of the radiology service line from scheduling and patient preparation to technologist workflow to interpretation and referral management.

In addition, we are using AI to develop solutions that employ machine learning to assist radiologists and other clinicians in interpreting images and improving radiologist efficiency and patient care, initially in the fields of screening for breast, prostate, lung and colon cancers.

Our DeepHealth, Inc.

subsidiary has received clearance from the U.S.

Food and Drug Administration ("FDA") for use of its SaigeQ ”triage”/workflow products, the SaigeDX advanced diagnostic product and the Saige-Density breast density assessment software for screening breast mammography, which we have begun to roll out in certain markets as an Enhanced Breast Cancer Detection solution.

Our Aidence Holding B.V.

subsidiary is developing solutions for interpretation of chest and lung computed tomography ("CT") scans for lung cancer screening.

It has received the CE mark for its solution and has existing customers in seven European countries, with its largest concentration in the United Kingdom, and plans to submit an application for FDA clearance to sell in the United States.

Our Quantib B.V.

subsidiary is primarily focused on interpretation of prostate magnetic resonance imaging ("MRI") for widespread prostate cancer screening.

Quantib’s prostate MRI post-processing software has both FDA clearances and European CE marking.

Our Digital Health segment provides these solutions to RadNet and to over 400 customers in the United States, Europe, and Israel.

As part of our continued strategic expansion in Digital Health, we recently completed two acquisitions:

iCAD, Inc., a provider of AI-powered breast health solutions, and See-Mode Technologies, a medical technology company focused on enhancing ultrasound-based diagnostics through artificial intelligence.

We are currently in the process of integrating both businesses into our Digital Health segment.

Our operations comprise two segments for financial reporting purposes for this reporting period, Imaging Centers and Digital Health.

We established a Digital Health business segment during our 2024 fiscal year, under the umbrella brand “DeepHealth”.

The Digital Health segment combines our former Artificial Intelligence (“AI”) business with our workflow solutions, including those previously marketed under the eRAD brand.

This includes providing AI-powered health informatics with the aim of empowering breakthroughs in care through imaging.

It leverages advanced AI for operational efficiency and improved clinical outcomes in breast, chest, musculoskeletal, neuro, prostate and thyroid health.

At the heart of the portfolio is a cloud-native operating system – DeepHealth OS – that unifies data across the clinical and operational workflow.

By integrating AI, workflow orchestration, and data management into a single operating system, the Digital Health segment enables health systems to drive radiology workflow efficiency & productivity, help mitigate the impacts of staff shortages, and reduce diagnostic variability.

The Digital Health segment provides these solutions to RadNet and to over 2,890 customers in the US and outside of the US.

The Digital Health segment’s solutions have been clinically validated and are already delivering measurable impact at scale.

The company’s technology is deployed across 2,890+ customers worldwide, including thousands of screening sites in the United States and Europe, and is the most widely used solution for lung cancer screening in the United Kingdom.

Clinical outcomes demonstrate strong performance, including a 21% increase in cancer detection rates in breast screening.

Our end-to-end solutions are widely adopted in real-world settings, including RadNet and external customers, supporting more than 24 million scans worldwide.

As part of our continued strategic expansion in Digital Health, we recently completed four acquisitions:

iCAD, Inc., a provider of AI-powered breast health solutions, See-Mode Technologies, a medical technology company focused on enhancing ultrasound-based diagnostics through artificial intelligence, CIMAR UK, a cloud-native provider of image exchange solutions, and Gleamer SAS, a Radiology AI company with a portfolio of AI solutions across X-Ray, MRI, CT, and Mammography.

and SeeMode technologies are already fully integrated into the Digital Health segment, with SeeMode’s technology deployed in over 300 RadNet Imaging Services sites for improving efficiencies in Thyroid Ultrasounds across the network.

CIMAR UK and Gleamer are currently being integrated into the business, with significant early momentum, including launching go-live of Gleamer X-Ray products in RadNet Services in California in April 2026, just a month post-acquisition.

Our Digital Health segment currently provides this comprehensive suite of solutions to RadNet and to over 2,890 customers in the United States, Europe and other countries around the world.

For further financial information about these segments, see Note 5, Segment Reporting, in the notes accompanying our financial statements included in this report.

Recent Developments

The following table shows our imaging centers in operation and revenues for the nine months ended September 30, 2025 and 2024:

Nine Months Ended September 30,

The following table presents the total number of imaging centers in operation, including both consolidated and non-consolidated centers, and our consolidated revenues for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

Centers in operation 435 401

Net revenues (millions) $ 1,492 $ 1,353

Our imaging services include MRI, CT, positron emission tomography ("PET"), nuclear medicine, mammography, ultrasound, diagnostic radiology ("X-ray"), fluoroscopy and other related procedures.

Net consolidated revenues (millions) $ 576 $ 471

Our imaging services include MRI, CT, PET, nuclear medicine, mammography, ultrasound, X-ray, fluoroscopy and other related procedures.

The vast majority of our centers offer multi-modality imaging services, a key point of differentiation from our competitors.

2 unchanged sentences

Our revenue is derived from a diverse mix of payors, including private payors and commercial insurance companies, managed care capitated payors, and government payors, such as Medicare and Medicaid.

We believe our payor diversity mitigates our exposure to possible unfavorable reimbursement trends within any one payor class.

Our total service fee revenue, net of contractual allowances and discounts, and implicit price concessions for the three and nine months ended September 30, 2025 and 2024 received from our various payors is summarized in the following table (in thousands):

We believe our payor diversity

mitigates our exposure to possible unfavorable reimbursement trends within any one payor class.

Our total service fee revenue, net of contractual allowances and discounts, and implicit price concessions for the three months ended March 31, 2026 and 2025 received from our various payors is summarized in the following table (in thousands):

In Thousands Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Commercial insurance $ 315,869 $ 262,488

14 unchanged sentences

As these high deductibles reset in January for most of these patients, we have observed that patients utilize medical services less during the first quarter, when securing medical care will result in significant out-of-pocket expenditures.

During the nine months ended September 30, 2025, we completed the acquisition of certain assets of entities which engage directly in the practice of radiology or in associated businesses for an aggregate consideration of $73.1 million.

During the three months ended March 31, 2026, we completed the acquisition of certain assets of entities which engage directly in the practice of radiology or in associated businesses for an aggregate consideration of $67.3 million.

These acquisitions include:

HALO Centers LLC*:

1 imaging center in California;

Hillcroft Medical Clinic*:

1 imaging center in Sugar Land, Texas;

North County Radiology Oceanside LLC:

1 imaging center in California;

Faculty Physicians and Surgeons of LLUSM (Palm Imaging):

1 imaging center in California;

California MSK MSO, LLC (OSS Burbank):

1 imaging center in California;

HALO Centers LLC (Indian Wells):

1 imaging center in California

Kolb Radiology P.C.:

3 imaging centers in New York

Schonholz and Drossman, LLP:

1 imaging centers in New York

Regional Radiology Center:

13 imaging centers in Florida;

Northwest Radiology Network PC:

6 imaging centers in Indiana;

See Note 4, Business Combinations and Related Activity, in the notes accompanying our financial statements in this report for additional information, including the fair value determination of the acquired assets and assumed liabilities, associated with these acquisitions.

Joint Venture Activity

At September 30, 2025, 37% of our imaging centers were operating as joint ventures with large health care providers.

We manage the day-to-day operations for these joint ventures and perform most management services in exchange for a management fee.

We charged management service fees from the centers underlying these joint ventures of approximately $6.5 million and $5.9 million for the three months ended September 30, 2025 and 2024, respectively, and approximately $19.1 million and $17.8 million for the nine months ended September 30, 2025 and 2024, respectively.

At March 31, 2026, 150 of our imaging centers were operating as joint ventures with hospital and health system partners.

On behalf of the joint ventures, we manage the day-to-day operations and perform most management and support services in exchange for a management fee.

We charged management service fees from the centers underlying these joint ventures of approximately $6.6 million and $6.1 million for the three months ended March 31, 2026 and 2025, respectively.

For information on our investment in unconsolidated joint ventures, key balance sheet data and income statement data for the unconsolidated joint ventures, see Note 2, Significant Accounting Policies – Investment in Joint Ventures in the notes accompanying our financial statements included in this report.

6 unchanged sentences

generally accepted accounting principles ("GAAP"), which requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.

These estimates and assumptions affect various matters, including our reported amounts of assets and liabilities in our consolidated balance sheets at the dates of the financial statements;

our disclosure of contingent assets and liabilities at the dates of the financial statements;

and our reported amounts of revenues and expenses in our consolidated statements of operations during the reporting periods.

These estimates and assumptions affect various matters, including our reported amounts of assets and liabilities in our consolidated balance sheets at the dates of the financial statements, our disclosure of contingent assets and liabilities at the dates of the financial statements, and our reported amounts of revenues and expenses in our consolidated statements of operations during the reporting periods.

These estimates involve judgments with respect to numerous factors that are difficult to predict and are beyond management’s control.

8 unchanged sentences

Our service fee revenue is based upon our management's estimate of amounts we expect to be entitled to receive from patients and third-party payors.

Estimates of contractual allowances under Medicare, Medicaid, managed care and commercial insurance plans are based upon historical collection experience of the payments received from such payors in accordance with

the underlying contractual agreements.

Revenue related to uninsured patients and uninsured copayment and deductible amounts for patients who have health care coverage may have price concessions applied.

Revenue related to uninsured patients and uninsured copayment and deductible amounts

for patients who have health care coverage may have price concessions applied.

We also record estimated implicit price concessions (based primarily on historical collection experience) related to uninsured accounts to record self-pay revenue at the estimated amounts we expect to collect.

1 unchanged sentence

Revenue under capitation arrangements is recognized in the period in which we are obligated to provide services to plan enrollees under contracts with various health plans.

Our estimates and assumptions related to revenue recognition did not change materially for the quarter ended September 30, 2025.

Our estimates and assumptions related to revenue recognition did not change materially for the quarter ended March 31, 2026.

Accounts Receivable

Substantially all of our accounts receivable are due under fee-for-service contracts from third party payors, such as insurance companies and government-sponsored healthcare programs, or directly from patients.

The vast majority all of our accounts receivable are due under fee-for-service contracts from third party payors, such as insurance companies and government-sponsored healthcare programs, or directly from patients.

Services are generally provided pursuant to one-year contracts with healthcare providers.

1 unchanged sentence

We continuously monitor collections from our payors and maintain an allowance for bad debts based upon specific payor collection issues that we have identified and our historical experience.

Our estimates and assumptions for allowances on our account receivable did not change materially during the quarter ended September 30, 2025.

Our estimates and assumptions for allowances on our account receivable did not change materially during the quarter ended March 31, 2026.

Business Combination

6 unchanged sentences

Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations.

Goodwill and Indefinite Lived Intangibles

Goodwill at September 30, 2025 totaled $827.5 million.

Indefinite Lived Intangible Assets at September 30, 2025 were $18.5 million and are associated with the value of certain trade name intangibles and in process research and development ("IPR&D").

Goodwill, trade name intangibles and IPR&D are recorded as a result of business combinations.

When we determine the carrying value of goodwill for a reporting unit exceeds its fair value, an impairment charge would be recognized which should not exceed the total amount of goodwill allocated to that reporting unit.

We determined fair values for each of the reporting units using the market approach, when available and appropriate, or the income approach, or a combination of both.

We assess the valuation methodology based upon the relevance and availability of the data at the time we perform the valuation.

If multiple valuation methodologies are used, the results are weighted appropriately.

Our annual impairment test of goodwill, IPR&D and trade name noted no impairment as of October 1, 2024, and we have not identified any other indicators of impairment through September 30, 2025.

Recent Accounting Standards

4 unchanged sentences

In Thousands Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Operating Revenue

3 unchanged sentences

Total service revenue $ 575,631 $ 471,399

Operating income

Segment profit

Imaging Center $ 36,260 $ 15,648

Digital Health $ (11,141) $ (3,117)

Total Operating income $ 69,671 $ 69,342 $ 151,224 $ 183,450

Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024

Total Segment profit $ 25,119 $ 12,531

Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025

Imaging Center Segment

We have developed our medical imaging centers segment through a combination of organic growth, acquisitions and joint venture formations.

In the discussion below same center metrics are based on imaging centers that were in operation throughout the period of April 1, 2024 through September 30, 2025.

Excluded amounts relate to imaging centers that were acquired or divested between April 1, 2024 through September 30, 2025.

We have developed our Imaging Centers segment through a combination of organic same-center growth, new center buildouts, acquisitions and joint venture formations.

In the discussion below, "same center" metrics are based on imaging centers that we operate and were in operation throughout the period of January 1, 2025 through March 31, 2026, excluding amounts relating to imaging centers that were acquired or divested between January 1, 2025 through March 31, 2026, unless the procedural volumes of closed centers were relocated into centers that existed throughout such period.

The revenue analysis presented below includes intersegment revenue prior to elimination.

Total Revenue

In Thousands Three Months Ended September 30,

In Thousands Three Months Ended March 31,

Revenue 2026 2025 $ Increase % Change

2 unchanged sentences

Excluded $54,253 $28 — —

Our 9.6% increase in same center revenue over the same period last year was driven by increases in fees charged per imaging procedure and same center total procedure volume growth of 4.4%, inclusive of rises in routine and advanced modality imaging procedures of 2.7% and 9.1%, respectively.

The increase in revenue was largely attributable to product mix, as advanced imaging represented a greater portion of overall procedures.

Within advanced imaging, MRI increased by 11.1%, CT by 5.3%, and PET/CT by 14.9% on a same-store basis.

The Enhanced Breast Cancer Detection program, an AI-powered diagnostic solution, also contributed to revenue growth.

Including non-consolidated joint ventures where we are a minority owner, same center total procedure volume increased approximately 4.9%, inclusive of rises in routine and advanced modality imaging procedures of 3.1% and 9.1%, respectively.

We provide this additional information to reflect trends across all centers we operate or manage, consistent with how management evaluates overall business performance.

Our 8.9% increase in Imaging Center same-center revenue compared to the same period last year was driven by higher fees per imaging procedure and increased procedure volumes.

This is a function of procedural volume growth at our consolidated centers.

This growth reflects both organic increases at existing centers and incremental volumes from centers acquired since the prior-year period.

The increase in revenue was largely attributable to the procedural volume growth, increased reimbursement from commercial and capitated payors and favorable changes in product mix, as advanced imaging represented a greater proportion of total procedures.

A significant contributor to this shift was the increase in PET and CT procedures related to prostate cancer and Alzheimer’s-related studies, which are included within advanced modality imaging procedures.

Additionally, the increase in same center revenue was the result of net increases in reimbursement from commercial and capitated payors.

Operating Expenses

Total operating expenses for the three months ended September 30, 2025 increased approximately $53.5 million, or 13.1%, to $460.8 million for the three months ended September 30, 2025 from $407.2 million for the three months ended September 30, 2024.

The following table breaks down our cost of operations and total operating expenses for the three months ended September 30, 2025 and 2024 (in thousands):

Total operating expenses for the three months ended March 31, 2026 increased approximately $83.7 million, or 17.5%, to $563.0 million for the three months ended March 31, 2026 from $479.4 million for the three months ended March 31, 2025.

The following table breaks down our cost of operations and total operating expenses for the three months ended March 31, 2026 and 2025 (in thousands):

Three Months Ended

September 30,

Salaries and professional reading fees, excluding stock-based compensation $ 271,611 $ 243,067

Salaries, excluding stock-based compensation 223,742 193,587

Professional reading fees 95,850 77,104

Stock-based compensation 26,056 25,228

10 unchanged sentences

* Includes billing fees, office supplies, repairs and maintenance, insurance, business tax and license, outside services, telecom, utilities, marketing, travel and other expenses.

The discussion below provides additional information and analysis on changes in our various operating expenses for the three months ended September 30, 2025 and 2024 (in thousands):

Salaries and professional reading fees, excluding stock-based compensation and severance

In Thousands Three Months Ended September 30,

Salaries and Professional Fees 2025 2024 $ Increase/(Decrease) % Change

The discussion below provides additional information and analysis on changes in our various operating expenses for the three months ended March 31, 2026 and 2025 (in thousands):

Salaries, excluding stock-based compensation and severance

In Thousands Three Months Ended March 31,

Salaries, excluding stock-based compensation and severance

2026 2025 $ Increase % Change

Total $223,742 $193,587 $30,155 15.6%

1 unchanged sentence

Excluded $21,617 $96 — —

In response to higher procedure volumes, we increased staffing levels across clinical, administrative, and technical functions to support the influx of patients.

Compensation-related expenses were further impacted by increased 401K match contributions and more vacation and paid time off taken during the period.

We also continued to experience wage inflation across the board, driven by a competitive labor market and the October 2024 increase in California’s minimum wage for healthcare workers.

Additionally, higher workers’ compensation insurance premiums contributed to the overall rise in staffing costs.

Overall, the increase in compensation expenses remained generally in line with our same center revenue growth.

In response to higher procedure volumes, we increased staffing levels across clinical, administrative and technical functions to support patient demand.

These increases were partially offset by improved labor efficiency initiatives, workflow optimization technologies and operating leverage from higher procedural volumes, which contributed to salary expense growth remaining below the rate of same-center revenue growth.

Overall, the increase in compensation expense remained generally consistent with same-center revenue trends.

Professional reading fees

In Thousands Three Months Ended March 31,

Professional Fees 2026 2025 $ Increase % Change

Total $95,850 $77,104 $18,746 24.3%

Same Center $87,322 $77,105 $10,217 13.3%

Excluded $8,528 -$1 — —

The increase in same-center professional fees was primarily attributable to higher procedural volumes.

The increase in professional fees relative to the 8.9% increase in same-center sales was primarily driven by (i) a greater mix of advanced imaging procedures, for which professional fees generally represent a higher proportion of revenue, and (ii) disproportionately higher growth in California imaging centers staffed by BRMG radiologists, whose professional fees are consolidated within our financial results.

In many imaging centers outside of California, revenues are reported net of professional fees and, accordingly, the related professional fees are not consolidated within our financial results.

Stock-based compensation

Stock-based compensation for the three months ended September 30, 2025 increased approximately $2.6 million, or 61.4%, to $6.8 million from $4.2 million for the three months ended September 30, 2024.

The increase is primarily due to a greater number of shares granted and higher grant-date fair values compared to prior-year period.

Stock-based compensation for the three months ended March 31, 2026 increased approximately $0.8 million, or 3.3%, to $26.1 million from $25.2 million for the three months ended March 31, 2025.

Building and equipment rental

In Thousands Three Months Ended September 30,

Building & Equipment Rental 2025 2024 $ Increase/(Decrease) % Change

In Thousands Three Months Ended March 31,

Building & Equipment Rental 2026 2025 $ Increase % Change

Total $35,832 $30,924 $4,908 15.9%

3 unchanged sentences

Medical supplies

In Thousands Three Months Ended September 30,

Medical Supplies Expense 2025 2024 $ Increase/(Decrease) % Change

In Thousands Three Months Ended March 31,

Medical Supplies Expense 2026 2025 $ Increase % Change

Total $43,196 $29,725 $13,471 45.3%

2 unchanged sentences

Consistent with the shift in our procedural mix toward more advanced imaging, medical supplies expense increased at a higher rate than revenue growth.

The growth in PET/CT procedures, particularly for prostate cancer and suspected Alzheimer’s studies, drove higher utilization of high-cost isotope tracers, contributing to the increase.

The growth in PET and CT procedures, particularly for prostate cancer and suspected Alzheimer’s studies, drove higher utilization of high-cost isotope tracers, contributing to the increase.

In addition, price increases for these tracers further elevated medical supplies expense compared to the prior year.

Other operating expenses

In Thousands Three Months Ended September 30,

Other Operating Expenses 2025 2024 $ Increase/(Decrease) % Change

In Thousands Three Months Ended March 31,

Other Operating Expenses 2026 2025 $ Increase % Change

Total $95,882 $83,774 $12,108 14.5%

1 unchanged sentence

Excluded $7,806 $68 — —

Other operating expenses increased primarily due to a $7.3 million rise in outside services.

This increase was driven by expanded contact center support related to acquisitions and growing patient demand, as well as higher legal and consulting costs associated with transaction activities and operational initiatives.

The remaining increase was attributable to other operating expense categories.

The investments reflect our continued focus on technology-driven enhancements aimed at supporting long-term operational efficiency across the organization.

Other operating expenses, which include outside services, software licensing fees, including approximately $10.3 million of intersegment license fees paid to Digital Health, repair and maintenance, and utilities, have increased $12.1 million, or 14.5%, to approximately $95.9 million for the three months ended March 31, 2026 compared to $83.8 million for three months ended March 31, 2025.

The increase was primarily attributable to higher outside service costs associated with acquisition activity, increased contractor services, and higher equipment and maintenance costs.

In addition, certain increases relate to intersegment software licensing fees from the Digital Health segment, which are eliminated in consolidation and therefore impact segment operating results but not consolidated operating income.

Additional segment operating and non-operating expenses

In Thousands Three Months Ended September 30,

2025 2024 $ Increase/(Decrease) % Change

Depreciation and amortization $35,320 $32,032 $3,288 10.3%

Loss on disposal of equipment and other $1,009 $153 $856 559.5%

Non-cash change in fair value of interest rate hedge $2,371 $6,755 (4,384) (64.9)%

Other income ($8,992) ($8,233) (759) 9.2%

Severance $351 $271 80 29.5%

The increase in depreciation expense was the result of our higher depreciable asset base.

Other income for the three months ended September 30, 2025 included $8.9 million of money market interest income.

Other income for the three months ended September 30, 2024 included money market interest income of $9.6 million, partially offset by an impairment of non-marketable securities of $1.2 million.

In Thousands Three Months Ended September 30,

2025 2024 $ Increase/(Decrease) % Change

Interest income (8,923) (9,580) $657 (6.9)%

Debt restructuring and extinguishment expenses 0 147 $(147) (100.0)%

Other non-operating losses (income) (67) 1,200 $(1,267) (105.6)%

Total other income $(8,990) $(8,233) $(757) 9.2%

Interest expense

In Thousands Three Months Ended September 30,

Interest expense 2025 2024 $ Increase/(Decrease) % Change

Total interest expense $ 17,355 $ 19,427 $(2,072) (10.7) %

Interest related to derivatives* (2,247) (2,068)

Interest expense related to amortization** 771 795

Adjusted interest expense*** 18,831 20,700 (1,869) (9.0) %

*Includes payments from 2019 Swaps (as defined in the notes to our condensed consolidated financial statements) and Swaps amortization

**Includes noncash amortization of deferred loan costs and discount on issuance of debt

***Includes interest related to our term loans, revolving credit line, notes, and other

The decrease in interest expense was primarily due to the repricing transaction of our Barclays Revolving Credit Facility (as defined in the notes to our condensed consolidated financial statements) in the fourth quarter of 2024, which resulted in lower interest rates compared to the same period in the prior year.

This benefit was partially offset by the $100.0 million of incremental term loan borrowings under our existing Barclays Revolving Credit Facility in the second quarter of 2025.

See Note 6 Credit Facilities and Notes Payable included in the notes to our condensed consolidated financial statements.

During the three months ended September 30, 2025, interest rates were above the arranged rates in our 2019 Swaps for most of the year, and we received $2.5 million in cash payments from our 2019 Swaps counterparties, which was reported as a component of interest expense.

See the Derivative Instruments section of Note 2, Significant Accounting Policies, in the notes accompanying in our Annual Report and Part 1, Item 3 — "Quantitative and Qualitative Disclosure About Market Risk" below for more details on our derivative transactions.

Non-cash change in fair value of interest rate hedge

In 2020, we determined that the cash flows from the 2019 Swaps did not match the cash flows of our Barclays Term Loan (as defined in the notes to our condensed consolidated financial statements) and were therefore ineffective as cash flow hedges.

Since that time, in accordance with accounting guidelines, all changes in fair value are being recognized in other income and expense.

The fair value of the 2019 Swaps at September 30, 2025 was a net asset of $0.7 million compared to a net asset of $3.1 million at June 30, 2025, resulting in a loss of $2.4 million during the three months ended September 30, 2025.

This change in fair value was driven by market expectations of continued declines in interest rates over the remaining term of the 2019 Swaps.

Equity in earnings from unconsolidated joint ventures

For the three months ended September 30, 2025 and 2024, we recognized equity in earnings from unconsolidated joint ventures in the amount of $3.6 million and $3.6 million, respectively, remaining essentially flat year over year.

Net income attributable to noncontrolling interests

At September 30, 2025, our consolidated subsidiaries operated 356 imaging centers of which 101 were not wholly-owned and thus a portion of their operating results were attributable to noncontrolling interests.

At September 30, 2024, our consolidated subsidiaries included 345 centers of which 98 were not wholly-owned.

For the three months ended September 30, 2025, we recognized net income attributable to noncontrolling interests of $8.5 million versus $9.0 million for the three months ended September 30, 2024, respectively, remaining essentially flat year over year.

As noncontrolling interests only represent a portion of our imaging center business, and excludes our Digital Health segment, which generated losses of $9.9 million for the three months ended September 30, 2025, we do not expect changes in net income attributable to noncontrolling interests to correlate with changes in consolidated operating income or pretax income.

Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024

In the discussion below, same center metrics are based on imaging centers that were in operation throughout the period of January 1, 2024 through September 30, 2025.

Excluded amounts relate to imaging centers that were acquired or divested between January 1, 2024 through September 30, 2025.

Total Revenue

In Thousands Nine Months Ended September 30,

Revenue 2025 2024 $ Increase % Change

Total $1,457,236 $1,325,906 $131,330 9.9%

Same Center $1,345,377 $1,272,762 $72,615 5.7%

Excluded $111,859 $53,144 — —

Our 5.7% increase in same center revenue over the same period last year was driven by increases in fees charged per imaging procedure and same center total procedure volume growth of 1.6% inclusive of rises in advanced modality imaging procedures of 5.9%, and a 0.1% increase in routine modality imaging.

The increase in revenue was largely attributable to product mix, as advanced imaging was a greater portion of overall procedures.

Within advanced imaging, MR increased by 6.5%, CT by 4.3%, and PET/CT by 12.8% on a same-store basis.

The Enhanced Breast Cancer Detection (EBCD) program, an AI-powered diagnostic solution, also contributed to revenue growth.

Including non-consolidated joint ventures in which we hold a minority interest, same-center total procedure volume increased approximately 2.2%, inclusive of rises in routine and advanced modality imaging procedures of 0.7% and 6.4%, respectively.

We provide this information to present trends across all centers we operate or manage, consistent with how management evaluates overall business performance.

Operating Expenses

Total operating expenses for the nine months ended September 30, 2025 increased approximately $154.3 million, or 12.7%, to $1,370.4 million for the nine months ended September 30, 2025 from $1,216.1 million for the nine months ended September 30, 2024.

The following table breaks down our cost of operations and total operating expenses for the nine months ended September 30, 2025 and 2024 (in thousands):

Nine Months Ended September 30,

Salaries and professional reading fees, excluding stock-based compensation $ 800,451 $ 731,133

Stock-based compensation 38,092 19,614

Building and equipment rental 95,643 89,827

Medical supplies 90,990 75,146

Lease abandonment charges 8,330 —

Other operating expenses *

231,555 204,822

Cost of operations 1,265,061 1,120,542

Depreciation and amortization 100,799 94,095

Loss on sale and disposal of equipment 3,220 739

Severance costs 1,356 720

Total operating expenses $ 1,370,436 $ 1,216,096

* Includes billing fees, office supplies, repairs and maintenance, insurance, business tax and license, outside services, telecom, utilities, marketing, travel and other expenses.

Salaries and professional reading fees, excluding stock-based compensation and severance

In Thousands Nine Months Ended September 30,

Salaries and Professional Fees 2025 2024 $ Increase/(Decrease) % Change

Total $800,451 $731,133 $69,318 9.5%

Same Center $757,084 $706,136 $50,948 7.2%

Excluded $43,367 $24,997 — —

In response to higher procedure volumes, we increased staffing levels across clinical, administrative, and technical functions to support the influx of patients.

This included permanent headcount growth as well as a significant number of temporary hires to keep our centers operating smoothly during the first quarter of 2025.

Compensation-related expenses were further impacted by increased 401K match contributions and more vacation and paid time off taken during the period.

We also continued to experience wage inflation across the board, driven by a competitive labor market and the October 2024 increase in California’s minimum wage for healthcare workers.

Additionally, higher workers’ compensation insurance premiums contributed to the overall rise in staffing costs.

Stock-based compensation

Stock-based compensation for the nine months ended September 30, 2025 increased approximately $18.5 million, or 94.2%, to $38.1 million from $19.6 million for the nine months ended September 30, 2024.

The increase is primarily due to a greater number of shares granted and higher grant-date fair values compared to prior-year period.

Building and equipment rental

In Thousands Nine Months Ended September 30,

Building & Equipment Rental 2025 2024 $ Increase/(Decrease) % Change

In Thousands Three Months Ended March 31,

Depreciation and amortization 2026 2025 $ Increase % Change

Total $38,501 $32,539 $5,962 18.3%

1 unchanged sentence

Excluded $2,611 $17 — —

Building and equipment rental expense on a same-center basis increased slightly, primarily due to higher rent and common area maintenance charges.

Medical supplies

In Thousands Nine Months Ended September 30,

Medical Supplies Expense 2025 2024 $ Increase/(Decrease) % Change

The increase in depreciation expense was the result of our higher depreciable asset base.

In Thousands Three Months Ended March 31,

Severance 2026 2025 $ Increase % Change

Total $1,412 $696 $716 102.9%

1 unchanged sentence

Excluded $89 $— — —

Consistent with the shift in our procedural mix toward more advanced imaging, medical supplies expense increased at a higher rate than revenue growth.

The growth in PET/CT procedures, particularly for prostate cancer and suspected Alzheimer’s studies, drove higher utilization of high-cost isotope tracers, contributing to the increase.

In addition, price increases for these tracers further elevated medical supplies expense compared to the prior year.

Lease abandonment charges

We closely monitor patient levels at our imaging centers and occasionally divest or shut down centers to maximize utilization rates.

We may abandon low utilization leases and divert the patients to nearby centers.

During the nine months ended September 30, 2025, we closed several imaging centers with lower utilization and recognized lease abandonment charges of approximately $8.3 million in our Imaging Center segment.

Of these amounts, $6.5 million were related to right-of-use assets impairment and $1.9 million were related to the write-off of leasehold improvements for the nine months ended September 30, 2025.

Other operating expenses

In Thousands Nine Months Ended September 30,

Other Operating Expenses 2025 2024 $ Increase/(Decrease) % Change

Total $231,555 $204,822 $26,733 13.1%

Same Center $208,723 $196,253 $12,470 6.4%

Excluded Sites $22,832 $8,569 — —

Other operating expenses increased primarily due to a $16.9 million rise in outside services.

The remaining increase was attributable to other operating expense categories.

The investments reflect our continued focus on technology-driven enhancements aimed at supporting long-term operational efficiency across the organization.

Additional segment operating and non-operating expenses:

In Thousands Nine Months Ended September 30,

In Thousands Three Months Ended March 31,

2026 2025 $ Increase/(Decrease) % Change

Depreciation and amortization $100,799 $94,095 $6,704 7.1%

Loss on disposal of equipment and other $3,220 $739 $2,481 335.7%

Non-cash change in fair value of interest rate hedge $6,433 $7,429 $(996) (13.4)%

Other income ($5,057) ($7,716) 2,659 (34.5)%

Severance $1,356 $720 $636 88.3%

The increase in depreciation expense was the result of our higher depreciable asset base.

The fair value of the 2019 Swaps at September 30, 2025 was a net asset of $0.7 million compared to a net asset of $7.1 million at December 31, 2024, resulting in a loss of $6.4 million during the nine months ended September 30, 2025.

This change in fair value was driven by market expectations of continued declines in interest rates over the remaining term of the 2019 Swaps.

Other income for the nine months ended September 30, 2025 included money market interest income of $24.4 million.

Other income for the nine months ended September 30, 2024 included money market interest income of $22.7 million, partially offset by an impairment of non-marketable securities of $1.2 million and debt extinguishment and restructuring charges of $8.9 million, which related to refinancing of our Barclays credit facility.

See Note 6 Credit Facilities and Notes Payable included in the notes to our condensed consolidated financial statements.

In Thousands Nine Months Ended September 30,

2025 2024 $ Increase/(Decrease) % Change

Interest income (24,407) (22,681) $(1,726) 7.6%

Debt restructuring and extinguishment expenses 0 8,909 $(8,909) (100.0)%

Others (67) 1,019 $(1,086) (106.6)%

Total other income $(24,474) $(12,752) $(11,722) 91.9%

Interest income for the nine months ended September 30, 2025 increased approximately $1.7 million, or 7.6%, to $24.4 million from $22.7 million for the nine months ended September 30, 2024.

The increase is primarily due to higher average cash balance in our money market account for the nine months ended September 30, 2025

Interest expense

In Thousands Nine Months Ended September 30,

Interest Expense 2025 2024 $ Increase/(Decrease) % Change

Total Interest Expense $ 51,783 $ 61,776 $(9,993) (16.2) %

Interest expense related to derivatives* (4,305) 776

Interest expense related to amortization** 2,242 2,336

Adjusted Interest Expense*** 53,846 58,664 (4,818) (8.2) %

*Includes payments from 2019 Swaps and Swaps amortization

**Includes noncash amortization of deferred loan costs and discount on issuance of debt

***Includes interest related to our term loans, revolving credit line, notes, and other

This benefit was partially offset by the $100.0 million of incremental term loan borrowings under our existing Barclays Revolving Credit Facility in the second quarter of 2025.

See Note 6 Credit Facilities and Notes Payable included in the notes to our condensed consolidated financial statements.

During the nine months ended September 30, 2025, interest rates were above the arranged rates in our 2019 Swaps for most of the year and we received payment of $7.2 million in cash payments from our 2019 swap counterparties, which was reported as a component of interest expense.

See the Derivative Instruments section of Note 2, Significant Accounting Policies, in the notes accompanying in our annual report on Form 10-K for the fiscal year ended December 31, 2024 and Part 1, Item 3 — "Quantitative and Qualitative Disclosure About Market Risk" below for more details on our derivative transactions.

Equity in earnings from unconsolidated joint ventures

For the nine months ended September 30, 2025 we recognized equity in earnings from unconsolidated joint ventures in the amount of $10.5 million compared to $11.3 million for the prior period, a decrease of $0.8 million or 7.0%.

The decrease was mainly due to the decrease in earnings from Santa Monica Imaging Group, LLC and Greater Baltimore Diagnostic

Imaging compared to the nine months ended September 30, 2024.

Net income attributable to noncontrolling interests

At September 30, 2024, our consolidated subsidiaries included 345 centers of which 98 were not wholly-owned.

For the nine months ended September 30, 2025, we recognized net income attributable to noncontrolling interests of $25.2 million versus $27.2 million for the nine months ended September 30, 2024, a decrease of $1.8 million.

A decrease in earnings from Beach Imaging Group, LLC and West Valley Imaging was partially offset by increased earnings from Ventura County Imaging Group, LLC and Advanced Radiology at Capital Region, LLC.

As noncontrolling interests only represent a portion of our imaging center business, and excludes our Digital Health segment which generated losses of $23.1 million for the nine months ended September 30, 2025, we do not expect changes in net income attributable to noncontrolling interests to correlate with changes in consolidated operating income or pretax income.

Other income for the three months ended March 31, 2026 included $5.0 million of money market interest income.

Digital Health Segment

The breakdown of revenue and expenses of the Digital Health segment for the three and nine months ended September 30, 2025 and 2024 are as follows:

In Thousands Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 $ Change % Change 2025 2024 $ Change % Change

The breakdown of revenue and expenses of the Digital Health segment for the three months ended March 31, 2026 and 2025 are as follows:

In Thousands Three Months Ended March 31,

2026 2025 $ Change % Change

Statement of Operations

16 unchanged sentences

Segment net loss (14,884) (5,387) (9,497) 176.3 %

Revenues for the Digital Health segment increased significantly compared to the prior-year period, primarily reflecting the contribution from the iCAD acquisition and continued growth in our AI and informatics product lines.

For the three months ended September 30, 2025, external revenue represented 59% of total segment revenue, up from 54% in 2024, reflecting a 65% overall increase.

The quarter also saw the customer base expand from 477 to 2,042 and procedure volumes increase from 4.9 million to 6.6 million, mainly driven by the addition of iCAD.

For the nine months ended September 30, 2025, results reflect steady organic growth prior to the acquisition and a sharp acceleration in the third quarter following the inclusion of iCAD, highlighting that recent performance was driven primarily by external expansion rather than internal volume increases.

Segment operating expenses increased year over year due to higher engineering and executive headcount, increased stock-based compensation, and higher non-capitalized R&D costs, reflecting continued investment in scaling our platforms for broader deployment.

We expect the segment to continue operating at a net loss in the near term as integration of iCAD, Inc.

and See-Mode Technologies progresses.

Revenues for the Digital Health segment increased significantly compared to the prior-year period, reflecting a combination of strong growth in our Population Health AI and Enterprise Informatics portfolios, combined with the impact of inorganic growth from the acquisitions of iCAD, SeeMode, CIMAR.

For the three months ended March 31, 2026, Digital Health segment revenues increased $9.9 million or 51.5%, to $29.1 million, compared to $19.2 million for the three months ended March 31, 2025.

The growth was primarily driven by a 125% increase in AI-related revenue and a 17% increase in Enterprise Imaging revenue.

External revenue represented 65% of total segment revenue for three months ended March 31, 2026.

Compared to last year, the segment’s customer base expanded from 460+ to 2,890+, and procedure volumes supported by Digital Health solutions increased from $4.9 million to $10.5 million, primarily reflecting the addition of iCAD, Gleamer, and CIMAR.

Annual Recurring Revenue or ARR, as of March 31, 2026 was $96.9 million as compared with $49.8 million as of March 31, 2025.

The Company defines Annual Recurring Revenue ("ARR") as a key subscription economy metric representing the predictable, normalized annualized value of contracted recurring revenue generated from customers from active customer contracts.

ARR includes subscription fees, recurring support fees, and contracted usage charges and excludes one-time, non-recurring fees such as, implementation, hardware sales, professional services, consulting and one-off training.

ARR is a non-GAAP measure and does not represent GAAP revenue recognized over time.

Segment operating expenses increased year over year due to the addition of new costs resulting from acquisitions (iCAD, SeeMode, CIMAR and Gleamer);

investments in the personnel to build foundational capabilities and support the segment’s growth trajectory , investments in software and cloud costs, increased stock-based compensation commensurate with the growing organization, and higher non-capitalized R&D costs, reflecting continued investment in scaling our platforms for broader deployment.

We expect the segment to continue operating at a net loss in the near term as integration of iCAD, See-Mode, CIMAR, and Gleamer progresses.

The following discussion relates to consolidated interest expense and other items managed at the corporate level, which are not separately allocated to our reportable segments.

Interest expense

In Thousands Three Months Ended March 31,

Interest expense 2026 2025 $ Increase/(Decrease) % Change

Total interest expense $ 17,657 $ 17,239 $418 2.4 %

Interest related to derivatives* — (1,018)

Interest expense related to amortization** 779 728

Adjusted interest expense*** 16,878 17,529 (651) (3.7) %

*Includes payments from 2019 Swaps (as defined in the notes to our condensed consolidated financial statements) and Swaps amortization

**Includes noncash amortization of deferred loan costs and discount on issuance of debt

***Includes interest related to our term loans, revolving credit line, notes, and other

The decrease in interest expense was primarily driven by a lower average outstanding debt balance during the three months ended March 31, 2026, compared to the same period in the prior year.

In addition, our 2019 interest rate swap agreements matured in 2025.

As a result, there were no interest related to derivatives during the current period, whereas prior periods included the impact of such swap-related amounts.

Non-cash change in fair value of interest rate hedge

No non-cash change in fair value of interest rate hedge was recognized during the three months ended March 31, 2026, as our 2019 Swaps matured in 2025.

Equity in earnings from unconsolidated joint ventures

For the three months ended March 31, 2026 and 2025, we recognized equity in earnings from unconsolidated joint ventures in the amount of $3.8 million and $2.6 million, respectively.

The increase was primarily driven by improved income from Santa Monica Imaging Group LLC and lower losses from Arizona Diagnostic Radiology Group LLC.

Net income attributable to noncontrolling interests

At March 31, 2026, our consolidated subsidiaries operated 385 diagnostic imaging centers of which 100 were not wholly-owned.

At March 31, 2025, our consolidated subsidiaries included 347 imaging centers, of which 100 were not wholly-owned.

Thus, a portion of the operating results of our consolidated subsidiaries were attributable to noncontrolling interests.

For the three months ended March 31, 2026, we recognized net income attributable to noncontrolling interests of $8.7 million versus $8.2 million for the three months ended March 31, 2025, respectively, remaining essentially flat year over year.

As noncontrolling interests only represent a portion of our imaging center business, and excludes our Digital Health segment, which generated losses of $17.7 million for the three months ended March 31, 2026, we do not expect changes in net income attributable to noncontrolling interests to correlate with changes in consolidated operating income or pretax income.

Non-GAAP Financial Measures

2 unchanged sentences

We believe that, in addition to GAAP metrics, non-GAAP metrics such as Adjusted EBITDA assist us in measuring our core operations from period to period.

We also utilize systemwide measures and other supplemental operating metrics that include both consolidated and unconsolidated affiliates to provide further insight into the overall scale and performance of our diagnostic imaging centers.

Adjusted EBITDA

5 unchanged sentences

Adjusted EBITDA is not a measurement determined in accordance with GAAP and is therefore susceptible to varying methods of calculation and this metric, as presented, may not be comparable to other similarly titled measures of other companies.

The following is a reconciliation of the nearest comparable GAAP financial measure, net income, to Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024, respectively.

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

The following is a reconciliation of the nearest comparable GAAP financial measure, net income, to Adjusted EBITDA for the three months ended March 31, 2026 and 2025, respectively.

Three Months Ended March 31,

Net income (loss) attributable to RadNet, Inc.

18 unchanged sentences

Adjusted EBITDA - Digital Health Segment $ 1,303 $ 3,711

The following table is a reconciliation of GAAP net income for our Digital Health segment to Adjusted EBITDA for the three months ended September 30, 2025 and 2024, respectively.

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

The following table is a reconciliation of GAAP net income for our Digital Health segment to Adjusted EBITDA for the three months ended March 31, 2026 and 2025, respectively.

Three Months Ended March 31,

Segment net loss $ (14,884) $ (5,387)

1 unchanged sentence

Depreciation & Amortization 6,466 2,944

Other operating (income) loss 33 (5) (52) (4)

Other operating loss 23 3

Other expense 150 4

Severance 53 51

Interest 20 —

Income taxes (2,969) (732)

Non-Capitalized R&D - DeepHealth Cloud OS & Generative AI 4,560 3,562

Non-cash change to contingent consideration 2,564 —

Adjusted EBITDA - Digital Health Segment

$ 1,303 $ 3,711

Systemwide Operating Metrics

At March 31, 2026, 150 of our imaging centers were operating as joint ventures with hospital and health system partners, including 12 unconsolidated joint ventures operating 50 diagnostic imaging centers that represent partnerships with hospitals, or health systems and were formed for the purpose of owning and operating diagnostic imaging centers.

Professional services at the joint venture diagnostic imaging centers are performed by contracted radiology practices or a radiology practice that participates in the joint venture.

Our investment in these joint ventures is accounted for under the equity method, as we do not have a controlling financial interest in such ventures.

We evaluate our investment in joint ventures, including cost in excess of book value (equity method goodwill) for impairment whenever indicators of impairment exist.

We charged management service fees from the centers underlying these joint ventures of approximately $6.6 million and $6.1 million for the three months ended March 31, 2026 and 2025, respectively.

These management fees are expenses of the unconsolidated joint ventures and are recognized as service fee revenue.

These management fees are earned for providing to the unconsolidated joint venture centers, among other things, day-to-day operational oversight, revenue cycle, human resources, finance, accounting and information systems.

These joint ventures are considered related parties.

Amounts transacted between us and the entities are in the ordinary course of business and are disclosed on our balance sheet in the due from/to affiliate accounts.

Given the significance of these unconsolidated joint ventures to our business, in addition to our consolidated results, management evaluates performance on a systemwide basis that includes both our consolidated operations and the operations of our unconsolidated joint ventures.

We refer to metrics derived solely from entities we consolidate for financial reporting purposes as “consolidated,” and metrics that incorporate the results of our unconsolidated joint ventures as “Systemwide.”

Systemwide measures are non-GAAP financial measures and should not be considered substitutes for, or superior to, our consolidated GAAP results.

Because Systemwide measures combine amounts derived from our consolidated results with amounts derived from entities that are not consolidated, they do not represent our actual revenue or other GAAP financial measures.

Investors should not rely on Systemwide metrics in isolation and should review them only in conjunction with our consolidated financial statements and related notes as a supplement to understanding the overall scale and performance of our imaging network.

Management uses Systemwide measures, including Systemwide imaging center revenue, to assess the aggregate performance of our diagnostic imaging center network.

Because a significant portion of our imaging center network operates through unconsolidated joint ventures, consolidated revenue alone does not capture the full revenue-generating activity of our network, and we believe investors benefit from understanding Systemwide revenue as an indicator of the economic performance and growth trajectory management considers.

These metrics are intended to present the full scope of imaging center activity from which we derive economic benefit.

Systemwide revenue is equal to consolidated revenue plus 100% of the revenues of our unconsolidated joint ventures, without adjustment for our ownership percentage.

We believe these measures provide insight into the total scale of our diagnostic imaging center network and the aggregate revenues generated across all centers in which we hold an economic interest which is consistent with how management internally evaluates the business, allocates resources, and assesses operational performance.

We believe such measures facilitate a more complete understanding of trends in our business.

We believe these measures enable period-over-period comparisons of operating performance across the full network on a same-center and total-center basis, including volume, revenue, and growth rates.

The following table reconciles Systemwide imaging center revenue to total service revenue as reported under GAAP for the periods presented:

Three months ended March 31,

2026 2025 $ Increase/(Decrease) % Change

Total service revenue 575,631 471,399 104,232 22.1 %

Add Intersegment revenue 10,305 9,200 1,105 12.0 %

Digital Health revenue (29,121) (19,221) (9,900) 51.5 %

Consolidated imaging center revenue 556,815 461,378 95,437 20.7 %

Unconsolidated affiliates revenue (1) 73,330 66,274 7,056 10.6 %

Systemwide revenue 630,145 527,652 102,493 19.4 %

Three months ended March 31,

2026 2025 $ Increase/(Decrease) % Change

Consolidated imaging center revenue 556,815 461,378 95,437 20.7 %

Excluded Consolidated Imaging center revenue (54,253) (28) (54,225) 193660.7 %

Consolidated same-center revenue 502,562 461,350 41,212 8.9 %

Unconsolidated affiliates same-center revenue (2) 73,330 66,058 7,271 11.0 %

Systemwide same-center revenue 575,892 527,408 48,483 9.2 %

"Unconsolidated affiliates revenue” represents revenue generated by unconsolidated joint ventures that are accounted for under the equity method and therefore not included in our consolidated GAAP revenue.

“Unconsolidated affiliates same-center revenue” represents same-center revenue generated by unconsolidated joint ventures included in Systemwide measures and not included in consolidated GAAP revenue.

The following tables present our systemwide procedural volumes by modality and systemwide same-center procedural volumes by modality for the three months ended March 31, 2026 and 2025, including the percentage change compared to the prior year period.

Management believes these metrics provide useful supplemental information regarding trends in procedural demand and utilization across our imaging network, including consolidated and unconsolidated joint ventures.

SYSTEMWIDE PROCEDURAL VOLUMES BY MODALITY

Three Months Ended

2026 2025 % Change

MR 538,043 447,330 20.3 %

CT 319,201 271,170 17.7 %

PET/CT 27,572 20,389 35.2 %

Nuclear Medicine 10,395 9,577 8.5 %

Ultrasound 718,006 656,427 9.4 %

Mammography 504,761 476,378 6.0 %

X-ray and Other 902,977 861,702 4.8 %

3,020,955 2,742,973 10.1 %

SYSTEMWIDE SAME-CENTER PROCEDURAL VOLUMES BY MODALITY

Three Months Ended

2026 2025 % Change

MR 491,958 447,330 10.0 %

CT 284,014 271,152 4.7 %

PET/CT 23,394 20,389 14.7 %

Nuclear Medicine 8,461 9,577 (11.7) %

Ultrasound 670,331 656,325 2.1 %

Mammography 474,740 476,378 (0.3) %

X-ray and Other 853,793 860,472 (0.8) %

2,806,691 2,741,623 2.4 %

Liquidity and Capital Resources

1 unchanged sentence

Our principal capital requirements are for the development of new diagnostic imaging centers, the acquisition of existing diagnostic imaging centers and the acquisition of new diagnostic imaging equipment.

On a continuing basis, we evaluate various transactions to increase shareholder value and enhance our business results, including acquisitions, divestitures

and joint ventures.

On a continuing basis, we evaluate various transactions to increase shareholder value and enhance our business results, including acquisitions, divestitures and joint ventures.

We expect to fund any future acquisitions primarily with cash flow from operations and borrowings, including borrowing available under our secured credit facilities or through new equity or debt issuances.

We and our subsidiaries or affiliates may from time to time, in our sole discretion, purchase, repay, redeem or retire any of our outstanding debt or equity securities in privately negotiated or open market transactions, by tender offer or otherwise.

The following table summarizes key balance sheet data related to our liquidity as of September 30, 2025 and December 31, 2024 and income statement data for the nine months ended September 30, 2025 and 2024 (in thousands):

The following table summarizes key balance sheet data related to our liquidity as of March 31, 2026 and December 31, 2025 and income statement data for the three months ended March 31, 2026 and 2025 (in thousands):

Balance Sheet Data:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Cash and cash equivalents $ 455,339 $ 767,215

2 unchanged sentences

Stockholders' equity 1,352,712 1,355,886

Income statement data for the nine months ended September 30,

Income statement data for the three months ended March 31,

Total net revenue $ 575,631 $ 471,399

2 unchanged sentences

Sources and Uses of Cash

The following table summarizes key components of our sources and uses of cash for the nine months ended September 30, 2025 and 2024 (in thousands):

Cash Flow Data September 30, 2025 September 30, 2024

Cash provided by (used in) operating activities $ 214,656 $ 190,494

Cash provided by (used in) investing activities (229,925) (184,257)

Cash provided by (used in) financing activities 79,602 400,069

Cash provided by operating activities for the nine months ended September 30, 2025 increased by $24.2 million compared to September 30, 2024 primarily driven by a $4.0 million change in assets and liabilities, primarily due to the timing of payments for accounts payable and accrued expenses.

Cash used in investing activities for the three months ended September 30, 2025 increased $45.7 million compared to the nine months ended September 30, 2024.

The increase was primarily due to a $28.7 million increase in purchases of imaging facilities and other acquisitions, $2.7 million increase in equity contributions to and purchases of interests in joint ventures, and a $17.1 million increase in capital expenditures for property and equipment.

Cash provided by financing activities for the nine months ended September 30, 2025 decreased by $320.5 million compared to the three months ended March 31, 2024.

Financing activity in 2024 included a public equity offering that generated $218.4 million in net proceeds and a refinancing of the Barclays Revolving Credit Facility that resulted in an additional $167.9 million of cash.

In 2025, financing activity primarily consisted of a $100.0 million incremental term loan under the Barclays Credit Agreement, partially offset by repayment of repayments of term loans, notes, and lease payables of $20.7 million.

The following table summarizes key components of our sources and uses of cash for the three months ended March 31, 2026 and 2025 (in thousands):

Cash Flow Data March 31, 2026 March 31, 2025

Cash provided by operating activities $ 78,972 $ 41,481

Cash used in investing activities (370,973) (56,751)

Cash used in financing activities (17,504) (7,510)

Cash provided by operating activities for the three months ended March 31, 2026 increased by $37.5 million compared to March 31, 2025 primarily driven by a $25.8 million change in assets and liabilities, primarily due to the timing of payments for accounts payable and accrued expenses.

Cash used in investing activities for the three months ended March 31, 2026 increased $314.2 million compared to the three months ended March 31, 2025.

The increase was primarily due to a $300.4 million increase in purchases of imaging facilities and other acquisitions, mainly related to the acquisition of Gleamer, a digital health business, as well as imaging facilities.

Cash used by financing activities for the three months ended March 31, 2026 increased by $10.0 million compared to the three months ended March 31, 2025, as well as the repayment of notes payable assumed in connection with acquisitions.

Secured Credit Facilities

9 unchanged sentences

On April 18, 2024, we refinanced our Barclays Revolving Credit Facility, replacing the prior facility with an $875.0 million term loan and a $282.0 million revolving credit facility.

The refinance transaction reduced our interest rates on the Barclays Term Loan and revolving credit facility and extended the maturity date for the term loan to April 18, 2031 and for the revolving credit facility to April 18, 2029.

The refinance transaction reduced our interest rates on the

Barclays Term Loan and revolving credit facility and extended the maturity date for the term loan to April 18, 2031 and for the revolving credit facility to April 18, 2029.

The new term loan calls for quarterly principal payments of $2.2 million, compared to $1.8 million under the prior credit facility.

Our condensed consolidated balance sheets at September 30, 2025 include $1,090.1 million of total term loan debt (exclusive of unamortized discounts of $12.8 million) in thousands:

Our condensed consolidated balance sheets at March 31, 2026 include $1,079.6 million of total term loan debt (exclusive of unamortized discounts of $11.6 million) in thousands:

Face Value Discount Total Carrying

2 unchanged sentences

Total Term Loans $ 1,079,617 $ (11,595) $ 1,068,022

At September 30, 2025, we had no borrowings under our Barclays or Truist revolving credit facilities.

At March 31, 2026, we had no borrowings under our Barclays or Truist revolving credit facilities.

After reserves for outstanding letters of credit of $8.6 million, we had $273.4 million available for borrowing under our Barclays Revolving Credit Facility and $50.0 million available under our Truist revolving credit facility.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis