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Item 2. Management’s Discussion and Analysis

2026-08-10 compared with 2026-05-11 · 314 added, 138 removed, 321 unchanged (58% of the section changed)

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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.

As of June 30, 2026, we operated directly, or indirectly through joint ventures with hospitals and health system partners, 442 centers located in Arizona, California, Delaware, Florida, Idaho, Indiana, Maryland, New Jersey, New York, Texas, and Virginia.

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.

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.

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

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 aimed at empowering breakthroughs in care through imaging.

It leverages advanced AI to improve operational efficiency and 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 clinical and operational workflows.

By integrating AI, workflow orchestration and data management into a single operating system, the Digital Health segment enables health systems to better automate radiology, guide patient journeys, stage-shift disease and advance acute care.

The Digital Health segment provides these solutions to RadNet and to 2,983 customers in the United States and internationally.

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.

Our technology is deployed worldwide, including at 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.

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

As part of our continued strategic expansion in Digital Health, in 2025 we completed three acquisitions:

(“iCAD”), a provider of AI-powered breast health solutions;

See-Mode Technologies Pte.

(“See-Mode”), a medical technology company focused on enhancing ultrasound-based diagnostics through artificial intelligence;

and CIMAR (UK) Limited (“CIMAR”), a cloud-native provider of image-exchange solutions.

In the first quarter of 2026, we acquired Gleamer SAS (“Gleamer”), a radiology AI company with a portfolio of AI solutions across X-ray, magnetic resonance imaging (“MRI”), computed tomography (“CT”), and mammography.

iCAD and See-Mode are already fully integrated into the Digital Health segment, with See-Mode’s technology deployed at 345 RadNet imaging services centers to improve the efficiency of thyroid ultrasound exams across the network.

The CIMAR integration has also been completed, including the expansion of solution deployment for HLH Imaging, RadNet’s subsidiary in the United Kingdom.

We expect to complete the integration of Gleamer in the third quarter of 2026.

Gleamer products have already been deployed at RadNet imaging centers in California, Arizona, Maryland, New York and Florida, and we expect them to be rolled out across most RadNet centers by the end of 2026.

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 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,

Six Months Ended June 30,

Centers in operation 442 405

Net consolidated revenues (millions) $ 1,198 $ 970

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

Our imaging services include MRI, CT, positron emission tomography (“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.

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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 months ended March 31, 2026 and 2025 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 and six months ended June 30, 2026 and 2025 received from our various payors is summarized in the following table (in thousands):

In Thousands Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Commercial insurance $ 339,401 $ 278,902 $ 655,367 $ 541,410

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Second, in recent years, we have observed greater participation in high deductible health plans by patients.

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 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.

Because these deductibles reset in January for most of these patients, a patient's out-of-pocket cost for a given procedure is generally highest during the first quarter and declines over the course of the year as the deductible is satisfied.

As a significant portion of our outpatient imaging procedures are elective or schedulable, we have observed that patients defer these procedures to later quarters.

Imaging Centers Acquisitions

During the six months ended June 30, 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 $86.0 million.

These acquisitions include:

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6 imaging centers in Indiana;

Intermountain Medical Imaging:

5 Centers in Idaho

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

At June 30, 2026, 157 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.

We charged management service fees from the centers underlying these joint ventures of approximately $7.9 million and $6.5 million for the three months ended June 30, 2026 and 2025, respectively, and $15.3 million and $12.6 million for the six months ended June 30, 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.

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The SEC defines critical accounting estimates as those that (a) are most important to the portrayal of a company’s financial condition and results of operations and (b) require management’s most difficult, subjective or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods.

In Note 2 of the notes accompanying our financial statements included in this report and in our Annual Report, we discuss our significant accounting policies, including those that do not require management to make difficult, subjective or complex judgments or estimates.

In Note 2 , Significant Accounting Policies, in the notes accompanying our financial statements included in this report and in our Annual Report, we discuss our significant accounting policies, including those that do not require management to make difficult, subjective or complex judgments or estimates.

The most significant areas involving management’s judgments and estimates are described below.

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As a result, actual amounts could materially differ from these estimates.

Our revenues generally relate to net patient fees received from various payors and patients themselves under contracts in which our performance obligations are to provide diagnostic services to the patients.

Our revenues generally relate to net patient fees received from various payors and patients themselves under contracts of which our performance obligations are to provide diagnostic services to the patients.

Revenue is recorded during the period our obligations to provide diagnostic services are satisfied, which is generally over a period of less than one day.

The contractual relationships with patients, in most cases, also involve a third-party payor (Medicare, Medicaid, managed care health plans and commercial insurance companies, including plans offered through the health insurance exchanges) and the transaction prices for the services provided are dependent upon the terms provided by (Medicare and Medicaid) or negotiated with (managed care health plans and commercial insurance companies) the third-party payors.

The contractual relationships with patients, in most cases, also involve a third-party payor (Medicare, Medicaid, managed care health plans and commercial insurance companies, including plans offered through the health insurance exchanges) and the transaction prices for the services provided are dependent upon the terms provided by (in cases of Medicare and Medicaid) or negotiated with (in cases of managed care health plans and commercial insurance companies) the third-party payors.

The payment arrangements with third-party payors for the services we provide to the related patients typically specify payments at amounts less than our standard charges and generally provide for payments based upon predetermined rates per diagnostic services or discounted fee-for-service rates.

Management continually reviews the contractual estimation process to consider and incorporate updates to laws and regulations, changes in business and economic conditions, and the frequent changes in managed care contractual terms resulting from contract re-negotiations and renewals.

As it relates to the Consolidated Medical Group (as defined in Note 1 of the notes accompanying our financial statements included in this report), this service fee revenue includes payments for both the professional medical interpretation revenue recognized by them as well as the payment for all other aspects related to our providing the imaging services, for which we earn management fees.

As it relates to others centers, this service fee revenue is earned through providing the use of our diagnostic imaging equipment and the provision of technical services as well as providing administration services such as clerical and administrative personnel, bookkeeping and accounting services, billing and collection, provision of medical and office supplies, secretarial, reception and transcription services, maintenance of medical records, and advertising, marketing and promotional activities.

As it relates to the Consolidated Medical Group (as defined in Note 1, Nature of Business and Basis of Presentation, of the notes accompanying our financial statements included in this report), this service fee revenue includes payments for both the professional medical interpretation revenue recognized by our Consolidated Medical Group as well as the payment for all other aspects related to the technical and administrative imaging services that we provide, for which we earn management fees.

As it relates to other centers, this service fee revenue is earned through providing the use of our diagnostic imaging equipment and the provision of technical services as well as providing administration services such as clerical and administrative personnel, bookkeeping and accounting services, billing and collection, provision of medical and office supplies, secretarial, reception and transcription services, maintenance of medical records, and advertising, marketing and promotional activities.

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.

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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 March 31, 2026.

Our estimates and assumptions related to revenue recognition did not change materially for the quarter ended June 30, 2026.

Accounts Receivable

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.

The vast majority 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.

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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 March 31, 2026.

Our estimates and assumptions for allowances on our account receivable did not change materially during the quarter ended June 30, 2026.

Business Combination

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The following table summarizes our consolidated results of operations and other financial information:

In Thousands Three Months Ended

In Thousands Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Operating Revenue

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Total Segment profit $ 86,774 $ 69,022 $ 111,893 $ 81,553

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

Imaging Center Segment

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.

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

Imaging Centers Segment

We have developed our Imaging Centers segment through a combination of organic same center growth, new center build-outs, 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 April 1, 2025 through June 30, 2026, excluding amounts relating to imaging centers that were acquired or divested between April 1, 2025 through June 30, 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 March 31,

In Thousands Three Months Ended June 30,

Revenue 2026 2025 $ Increase % Change

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Our 11.1% 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.

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

The increase in Imaging Center same center total 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.

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Operating Expenses

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):

Total operating expenses for the three months ended June 30, 2026 increased approximately $98.5 million, or 21.9%, to $547.7 million for the three months ended June 30, 2026 from $449.2 million for the three months ended June 30, 2025.

The following table breaks down our cost of operations and total operating expenses for the three months ended June 30, 2026 and 2025 (in thousands):

Three Months Ended

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

Salaries, excluding stock-based compensation and severance 226,298 188,766

Professional reading fees 93,266 69,381

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* 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 March 31, 2026 and 2025 (in thousands):

The discussion below provides additional information and analysis on changes in our various operating expenses for the three months ended June 30, 2026 and 2025 (in thousands):

Salaries, excluding stock-based compensation and severance

In Thousands Three Months Ended March 31,

In Thousands Three Months Ended June 30,

Salaries, excluding stock-based compensation and severance

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Excluded $28,388 $3,402 — —

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.

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

Same center salary expense increased 6.8%, compared with an 11.1% increase in same center revenue.

The lower rate of salary expense growth reflects improved labor efficiency, workflow optimization technologies, including early benefits from the deployment of DeepHealth technology, and operating leverage from higher procedural volumes.

Professional reading fees

In Thousands Three Months Ended March 31,

In Thousands Three Months Ended June 30,

Professional Fees 2026 2025 $ Increase % Change

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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.

Professional fees increased at a higher rate than the 11.1% increase in same center revenue, primarily due to (i) a greater mix of advanced imaging procedures, for which professional fees generally represent a higher proportion of revenue, and (ii) disproportionately higher growth at imaging centers in California and New York staffed by radiologists affiliated with BRMG and Lenox Hill Radiology, respectively, whose professional fees are consolidated within our financial results.

At many imaging centers outside California and New York, revenue is 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 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.

Stock-based compensation for the three months ended June 30, 2026 increased approximately $1.7 million, or 27.4%, to $7.8 million from $6.1 million for the three months ended June 30, 2025.

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 Three Months Ended March 31,

In Thousands Three Months Ended June 30,

Building & Equipment Rental 2026 2025 $ Increase % Change

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Medical supplies

In Thousands Three Months Ended March 31,

In Thousands Three Months Ended June 30,

Medical Supplies Expense 2026 2025 $ Increase % Change

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Other operating expenses

In Thousands Three Months Ended March 31,

In Thousands Three Months Ended June 30,

Other Operating Expenses 2026 2025 $ Increase % Change

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Excluded $10,471 $441 — —

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.

Other operating expenses, which include outside services, software licensing fees, including approximately $11.5 million of intersegment license fees paid to Digital Health, repair and maintenance, and utilities, have increased $12.4 million, or 14.4%, to approximately $99.0 million for the three months ended June 30, 2026 compared to $86.6 million for three months ended June 30, 2025.

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

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Additional segment operating and non-operating expenses

In Thousands Three Months Ended March 31,

In Thousands Three Months Ended June 30,

Depreciation and amortization 2026 2025 $ Increase % Change

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

In Thousands Three Months Ended March 31,

In Thousands Three Months Ended June 30,

Severance 2026 2025 $ Increase % Change

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Excluded $171 $— — —

In Thousands Three Months Ended March 31,

In Thousands Three Months Ended June 30,

2026 2025 $ Increase/(Decrease) % Change

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

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

Other income, net ($820) ($7,767) 6,947 (89.4)%

Other income for the three months ended June 30, 2026 included $4.2 million of money market interest income, partially offset by $3.4 million of debt restructuring and extinguishment.

Other income for the three months ended June 30, 2025 included $7.8 million of money market interest income.

Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

In the discussion below, same center metrics are based on imaging centers that were in operation throughout the period of January 1, 2025 through June 30, 2026.

Excluded amounts relate to imaging centers that were acquired or divested between January 1, 2025 through June 30, 2026.

Imaging Center Revenue

In Thousands Six Months Ended June 30,

Revenue 2026 2025 $ Increase % Change

Total $1,158,807 $948,593 $210,214 22.2%

Same Center $1,039,813 $946,001 $93,812 9.9%

Excluded $118,994 $2,592 — —

Our 9.9% 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 existing consolidated centers.

The increase in Imaging Center same center 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.

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 six months ended June 30, 2026 increased approximately $182.3 million, or 19.6%, to $1,110.9 million for the six months ended June 30, 2026 from $928.6 million for the six months ended June 30, 2025.

The following table breaks down our cost of operations and total operating expenses for the six months ended June 30, 2026 and 2025 (in thousands):

Six Months Ended June 30,

Salaries, excluding stock-based compensation $ 450,040 $ 382,355

Professional reading fees 189,116 146,485

Stock-based compensation 33,818 31,319

Building and equipment rental 73,013 62,930

Medical supplies 87,414 60,922

Lease abandonment charges 1,306 5,511

Other operating expenses *

195,084 170,367

Cost of operations 1,029,791 859,889

Depreciation and amortization 75,590 65,480

Loss on sale and disposal of equipment 3,736 2,211

Severance costs 1,804 1,005

Total operating expenses $ 1,110,921 $ 928,585

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

Salaries, excluding stock-based compensation and severance

In Thousands Six Months Ended June 30,

Salaries, excluding stock-based compensation and severance

2026 2025 $ Increase/(Decrease) % Change

Total $450,040 $382,355 $67,685 17.7%

Same Center $396,274 $375,971 $20,303 5.4%

Excluded $53,766 $6,384 — —

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

Same center salary expense increased 5.4%, compared with a 9.9% increase in same center revenue.

Professional reading fees

In Thousands Six Months Ended June 30,

Professional Fees 2026 2025 $ Increase % Change

Total $189,116 $146,485 $42,631 29.1%

Same Center $170,051 $146,026 $24,025 16.5%

Excluded $19,065 $459 — —

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

Same center professional fees of 16.5% increased at a higher rate than the 9.9% increase in same center revenue, primarily due to (i) a greater mix of advanced imaging procedures, for which professional fees generally represent a higher proportion of revenue, and (ii) disproportionately higher growth at imaging centers in California and New York staffed by radiologists affiliated with Beverly Radiology Medical Group III (“BRMG”) and Lenox Hill Radiology and Medical Imaging Associates, P.C.

(“Lenox Hill Radiology”), respectively, whose professional fees are consolidated within our financial results.

Stock-based compensation

Stock-based compensation for the six months ended June 30, 2026 increased approximately $2.5 million, or 8.0%, to $33.8 million from $31.3 million for the six months ended June 30, 2025.

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 Six Months Ended June 30,

Building & Equipment Rental 2026 2025 $ Increase/(Decrease) % Change

Total $73,013 $62,930 $10,083 16.0%

Same Center $62,880 $61,892 $988 1.6%

Excluded $10,133 $1,038 — —

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 Six Months Ended June 30,

Medical Supplies Expense 2026 2025 $ Increase/(Decrease) % Change

Total $87,414 $60,922 $26,492 43.5%

Same Center $66,859 $60,795 $6,064 10.0%

Excluded $20,555 $127 — —

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 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 Six Months Ended June 30,

Other Operating Expenses 2026 2025 $ Increase/(Decrease) % Change

Total $195,084 $170,367 $24,717 14.5%

Same Center $176,118 $169,516 $6,602 3.9%

Excluded $18,966 $851 — —

Other operating expenses, which include outside services, software licensing fees, including approximately $22.0 million of intersegment license fees paid to Digital Health, repair and maintenance, and utilities, have increased $24.7 million, or 14.5%, to approximately $195.1 million for the six months ended June 30, 2026 compared to $170.4 million for six months ended June 30, 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 Six Months Ended June 30,

Depreciation and amortization 2026 2025 $ Increase % Change

Total $75,590 $65,480 $10,110 15.4%

Same Center $69,142 $65,190 $3,952 6.1%

Excluded $6,448 $290

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

In Thousands Six Months Ended June 30,

Severance 2026 2025 $ Increase % Change

Total $1,804 $1,005 $799 79.5%

Same Center $1,543 $1,005 $538 53.5%

Excluded $261 $—

In Thousands Six Months Ended June 30,

2026 2025 $ Increase/(Decrease) % Change

Other income, net $(5,875) $(15,485) $9,610 (62.1)%

Other income for the six months ended June 30, 2026 included $9.2 million of money market interest income, partially offset by $3.4 million of debt restructuring and extinguishment.

Other income for the six months ended June 30, 2025 included $15.5 million of money market interest income.

Digital Health Segment

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

The breakdown of revenue and expenses of the Digital Health segment for the three and six months ended June 30, 2026 and 2025 are as follows:

In Thousands Three Months Ended June 30, Six Months Ended June 30,

2026 2025 $ Change % Change 2026 2025 $ Change % Change

Statement of Operations

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Other expense 199 4 195 4875.0 % 370 8 362 4525.0 %

170 5 165 3300.0 %

Loss before taxes (14,836) (7,120) (7,716) 108.4 % (32,689) (13,239) (19,450) 146.9 %

(17,853) (6,119) (11,734) 191.8 %

Income taxes $ (3,325) $ (2,249) $ (1,076) 47.8 % $ (6,294) $ (2,981) $ (3,313) 111.1 %

Segment net loss (11,511) (4,871) (6,640) 136.3 % (26,395) (10,258) (16,137) 157.3 %

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.

Revenues for the Digital Health segment increased significantly for both the three and six months ended June 30, 2026 compared with the corresponding prior-year periods.

The increases reflected strong organic growth across our Clinical AI and Enterprise Informatics portfolios, as well as inorganic growth resulting from the acquisitions of Gleamer, iCAD, See-Mode and CIMAR.

For the three months ended June 30, 2026, Digital Health segment revenues increased $11.7 million, or 56.5%, to $32.4 million, compared with $20.7 million for the three months ended June 30, 2025.

The increase was primarily driven by a 135.9% increase in Clinical AI-related revenue and a 17.3% increase in Enterprise Informatics revenue.

For the six months ended June 30, 2026, Digital Health segment revenues increased $21.6 million, or 54.1%, to $61.5 million, compared with $39.9 million for the six months ended June 30, 2025.

The increase was primarily driven by a 130.3% increase in Clinical-related revenue and a 17% increase in Enterprise Informatics revenue.

External revenue represented 64.5% and 64.3% of total segment revenue for the three and six months ended June 30, 2026, respectively, compared with 53.1% and 52.7% for the corresponding prior-year periods.

As of June 30, 2026, the segment’s customer base had expanded to 2,983 customers, compared with 463 as of June 30, 2025.

Procedure volumes supported by Digital Health solutions increased from 5.3 million to 17.3 million for the three months ended June 30, 2026 and from 10.2 million to 27.7 million for the six months ended June 30, 2026, in each case compared with the corresponding prior-year period.

These increases primarily reflected organic growth and the additions of iCAD, See-Mode, Gleamer and CIMAR.

Digital Health segment operating expenses increased for both the three and six months ended June 30, 2026 compared with the corresponding prior-year periods.

The increases primarily reflected additional costs associated with the acquisitions of iCAD, See-Mode, CIMAR and Gleamer;

investments in personnel to establish foundational capabilities and support the segment’s growth;

increased software and cloud-computing costs;

higher stock-based compensation expense associated with the expansion of the organization;

and higher non-capitalized research and development 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 we continue integrating iCAD, See-Mode, CIMAR and Gleamer and investing in the segment’s growth.

Annual Recurring Revenue

We use Annual Recurring Revenue (“ARR”) as a key operating metric and supplemental performance indicator to evaluate the scale, growth, stability and health of the recurring component of our Digital Health business.

Management uses ARR to monitor the growth and trajectory of our recurring business, measure the progress of our business initiatives and assess the effectiveness of our strategies over time.

We believe ARR provides investors with additional insight into the annual run rate of our recurring business and highlights trends that may be less apparent from our financial statements due to the timing and pattern of revenue recognition.

We define ARR as the normalized annualized value of contracted recurring revenue attributable to active customer contracts as of the measurement date.

ARR was $105.5 million as of June 30, 2026, compared with $53.5 million as of June 30, 2025.

The increase primarily reflected ARR added through the acquisitions of Gleamer, iCAD, and CIMAR, together with organic growth from new and existing customers.

ARR is determined from the contractual terms of active customer arrangements and is not calculated by reference to revenue recognized or unearned under GAAP, deferred revenue or any other GAAP financial measure.

ARR does not necessarily reflect the timing or pattern of revenue recognition in accordance with GAAP and has no direct relationship to revenue recognized in accordance with ASC 606.

Accordingly, ARR is a supplemental operating metric that is not prepared in accordance with GAAP, and no reconciliation to a GAAP financial measure is provided.

ARR should be viewed independently of GAAP revenue and deferred revenue and is not intended to be combined with, or to replace, either measure.

ARR is not a forecast, guarantee or prediction of future revenue, and active customer contracts included in ARR may not be renewed.

Actual revenue recognized under GAAP may differ materially from ARR as a result of contract commencement and termination dates, implementation schedules, cancellations, non-renewals, changes in customer usage, contract modifications, pricing adjustments and other factors.

ARR does not have a standardized meaning or calculation methodology, and our calculation of ARR may differ from similarly titled measures presented by other companies.

Consolidated Expense

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

In Thousands Three Months Ended June 30, Six Months Ended June 30,

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

Total interest expense $ 18,153 $ 17,189 $964 5.6 % $ 35,810 $ 34,428 $1,382 4.0 %

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***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.

The decrease in adjusted interest expense was primarily driven by lower SOFR-based interest rates during the three and six months ended June 30, 2026 compared with the corresponding prior-year periods, including the impact of the 0.25% reduction in the applicable margin resulting from the June 2026 repricing of our term loan.

These benefits were partially offset by higher average outstanding debt balances during the 2026 periods, including the $250.0 million incremental term loan funded on June 10, 2026.

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.

As a result, there were no interest related to the 2026 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.

No non-cash change in fair value of interest rate hedge was recognized during the three and six months ended June 30, 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.

For the three months ended June 30, 2026 and 2025, we recognized equity in earnings from unconsolidated joint ventures in the amount of $4.7 million and $4.4 million, respectively.

The increase was primarily driven by lower losses from Arizona Diagnostic Radiology Group, LLC and improved income from Franklin Imaging, LLC and Montgomery Community Magnetic Imaging Center, LLC, partially offset by lower income from Santa Monica Imaging Group, LLC.

For the six months ended June 30, 2026 and 2025, we recognized equity in earnings from unconsolidated joint ventures in the amount of $8.5 million and $7.0 million, respectively.

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

At June 30, 2026, our consolidated subsidiaries operated 392 diagnostic imaging centers of which 107 were not wholly-owned.

At June 30, 2025, our consolidated subsidiaries included 353 imaging centers, of which 103 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.

For the three months ended June 30, 2026, we recognized net income attributable to noncontrolling interests of $12.7 million versus $8.6 million for the three months ended June 30, 2025, respectively.

The increases were primarily driven by improved performance at The New Jersey Imaging Network, LLC and our California majority-owned joint ventures, together with the addition of Intermountain Medical Imaging, LLC, which had no comparable prior year results.

For the six months ended June 30, 2026, we recognized net income attributable to noncontrolling interests of $21.5 million versus $16.8 million for the six months ended June 30, 2025, respectively.

As noncontrolling interests only represent a portion of our imaging center business, and excludes our Digital Health segment, which generated operating losses of $14.6 million and $32.3 million for the three and six months ended June 30, 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

We use both U.S.

generally accepted accounting principles ("GAAP") and non-GAAP metrics to measure our financial results.

We use both GAAP and non-GAAP metrics to measure our financial results.

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.

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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 months ended March 31, 2026 and 2025, respectively.

Three Months Ended March 31,

The following is a reconciliation of the nearest comparable GAAP financial measure, net income, to Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025, respectively.

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net income (loss) attributable to RadNet, Inc.

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Lease abandonment charges 1,306 123 1,306 5,511

Loss (gain) on extinguishment of debt and related expenses 3,368 — 3,368 —

Non-cash change to contingent consideration (3,157) — (393) —

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Adjusted EBITDA - Digital Health Segment $ 2,478 $ 3,403 $ 3,781 $ 7,114

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,

The following table is a reconciliation of GAAP net income for our Digital Health segment to Adjusted EBITDA for the three months ended June 30, 2026 and 2025, respectively.

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Segment net loss $ (11,511) $ (4,871) $ (26,395) $ (10,258)

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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.

At June 30, 2026, 157 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.

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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.

We charged management service fees from the centers underlying these joint ventures of approximately $7.9 million and $6.5 million for the three months ended June 30, 2026 and 2025 and $15.3 million and $12.6 million for the six months ended June 30, 2026 and 2025, respectively.

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

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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.

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

Investors should not rely on Systemwide measures in isolation and should review them only in conjunction with our consolidated financial statements and related notes as supplemental information regarding the overall scale and performance of our diagnostic imaging center network (the “Network”).

Management uses Systemwide revenue to assess the performance and growth of the Network.

Because a significant portion of the Network operates through unconsolidated joint ventures, consolidated revenue alone does not reflect the full revenue-generating activity of the Network that management considers when evaluating the business.

Systemwide revenue is calculated as consolidated imaging center revenue, plus 100% of the revenue of our unconsolidated joint ventures, without adjustment for our ownership percentage.

Management also uses Systemwide procedural volumes by modality, which are important operating measures to evaluate patient demand, utilization trends and the composition of services provided across the Network.

Changes in procedural volumes, including changes in the mix between advanced and routine imaging modalities, may affect revenue, reimbursement, staffing requirements, medical supply costs and professional reading fees.

Accordingly, management reviews procedural volumes by modality together with revenue and other financial measures when assessing operational performance and allocation of resources.

Systemwide procedural volumes by modality is calculated as procedural volumes by modality occurred at consolidated imaging centers, plus 100% of the procedural volumes by modality occurred at our unconsolidated joint ventures, without adjustment for our ownership percentage.

We believe Systemwide revenue, together with Systemwide procedural volumes by modality, provide investors with additional insight into the scale, growth and operating activity of the Network, including both consolidated centers and centers operated through unconsolidated joint ventures.

Systemwide Aggregate Revenue and Procedural Volumes by Modality

The tables presented below set forth the Systemwide aggregate revenue and procedural volumes by modality for both consolidated centers and centers operated through unconsolidated joint ventures at 100% basis without adjustment for our ownership percentage, and included the effects of acquisitions, dispositions, new center development, joint venture formations, and other changes in the composition of the Network for the three- and six-months ended June 30, 2025 and 2026, which are consistent with the information and periods over which management reviews to evaluate the aggregate performance and growth of the Network.

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,

Three months ended June 30,

2026 2025 $ Increase/(Decrease) % Change

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Systemwide revenue $ 678,789 $ 559,654 119,135 21.3 %

Three months ended March 31,

Six months ended June 30,

2026 2025 $ Increase/(Decrease) % Change

Total service revenue $ 1,198,351 $ 969,629 228,722 23.6 %

Add Intersegment revenue 22,003 18,912 3,091 16.3 %

Digital Health revenue (61,547) (39,947) (21,600) 54.1 %

Consolidated imaging center revenue 1,158,807 948,594 210,213 22.2 %

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 (1) 150,299 138,711 11,588 8.4 %

Systemwide revenue $ 1,309,106 $ 1,087,305 221,801 20.4 %

“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.

The following tables present our systemwide procedural volumes by modality:

SYSTEMWIDE PROCEDURAL VOLUMES BY MODALITY

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3,262,013 2,923,663 11.6 %

SYSTEMWIDE PROCEDURAL VOLUMES BY MODALITY

Six months ended June 30,

2026 2025 % Change

MR 1,131,186 937,629 20.6 %

CT 671,935 562,990 19.4 %

PET/CT 56,599 42,544 33.0 %

Nuclear Medicine 20,855 18,954 10.0 %

Ultrasound 1,494,547 1,358,344 10.0 %

Mammography 1,042,493 984,378 5.9 %

X-ray and Other 1,865,353 1,761,797 5.9 %

6,282,968 5,666,636 10.9 %

Systemwide Same Center Revenue and Procedural Volumes by Modality

The tables presented below set forth the Systemwide same center revenue and procedural volumes by modality for both consolidated centers and centers operated through unconsolidated joint ventures at 100% basis without adjustment for our ownership percentage, but excluded the effects of acquisitions, dispositions, new center development, joint venture formations, and other changes in the composition of the Network for the three months ended June 30, 2026 and 2025.

Management reviews these measures to evaluate organic growth and operating trends within the established imaging center network.

Management evaluates Systemwide same center revenue and procedural volumes by modality on a quarterly basis, rather than year-to-date basis, because of the rapid pace at which we have expanded the Network.

The population of imaging centers included in a year-to-date Systemwide same center calculations may differ modestly from the population included in the most recently completed quarter.

Thus, management believes year-to-date results may be less indicative of the underlying patient demand, utilization and revenue trends of the current same center network and the quarterly results provide a more timely view thereof.

Furthermore, management compares the most recently completed quarter with the corresponding prior-year quarter in order to account for seasonal and other quarter-specific variations.

Accordingly, the Systemwide same center information presented below is limited to the three months ended June 30, 2026 and 2025 and is consistent with the information management reviews to manage the business.

These quarterly measures should be considered together with the three- and six-month Systemwide aggregate measures presented above, which provide information regarding the overall scale and growth of the Network.

The following table reconciles Systemwide same center imaging center revenue to consolidated imaging center revenue for the periods presented:

Three months ended June 30,

2026 2025 $ Increase/(Decrease) % Change

Consolidated imaging center revenue $ 601,819 $ 487,216 114,603 23.5 %

Excluded Consolidated Imaging center revenue (62,763) (1,803) (60,960) 3381.0 %

Consolidated same center revenue 539,056 485,413 53,643 11.1 %

Unconsolidated affiliates same center revenue (2) 76,970 72,183 4,787 6.6 %

Systemwide same center revenue $ 616,026 $ 557,596 58,430 10.5 %

“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 same center procedural volumes by modality:

SYSTEMWIDE SAME CENTER PROCEDURAL VOLUMES BY MODALITY

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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 March 31, 2026 and December 31, 2025 and income statement data for the three months ended March 31, 2026 and 2025 (in thousands):

The following table summarizes key balance sheet data related to our liquidity as of June 30, 2026 and December 31, 2025 and income statement data for the six months ended June 30, 2026 and 2025 (in thousands):

Balance Sheet Data:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 726,272 $ 767,215

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Working capital (exclusive of current operating lease liabilities) 407,491 507,298

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

Income statement data for the three months ended March 31,

Total equity 1,394,051 1,355,886

Income statement data for the six months ended June 30,

Total net revenue $ 1,198,351 $ 969,629

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Sources and Uses of Cash

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

The following table summarizes key components of our sources and uses of cash for the six months ended June 30, 2026 and 2025 (in thousands):

Cash Flow Data June 30, 2026 June 30, 2025

Cash provided by operating activities $ 173,071 $ 161,829

Cash used in investing activities (434,527) (154,201)

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.

Cash provided by financing activities 222,715 84,918

Cash provided by operating activities for the six months ended June 30, 2026 increased by $11.2 million compared with the six months ended June 30, 2025.

The increase was primarily attributable to a $2.2 million improvement in net income and a $14.3 million net increase in noncash adjustments, principally depreciation and amortization and stock-based compensation, partially offset by a $5.3 million unfavorable change in operating assets and liabilities, driven primarily by changes in other current assets and accounts receivable and partially offset by a favorable change in accounts payable, accrued expenses and other.

Cash used in investing activities for the six months ended June 30, 2026 increased $280.3 million compared to the six months ended June 30, 2025.

The increase was primarily due to a $283.7 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.

Cash provided by financing activities for the six months ended June 30, 2026 increased by $137.8 million compared with the six months ended June 30, 2025.

The increase was primarily attributable to higher incremental term loan borrowings in 2026, partially offset by the repayment of notes payable assumed in connection with acquisitions.

Financing activities in 2026 primarily consisted of $248.9 million of net proceeds from the $250.0 million incremental term loan issued under the Third Amendment (as defined below) to the Third Amended and Restated First Lien Credit and Guaranty Agreement (the “Barclays Credit Agreement”), with Barclays Bank Plc (“Barclays”) and the lenders and financial institutions named therein.

Financing activities in 2025 primarily consisted of $99.0 million of net proceeds from the $100.0 million incremental term loan issued under the Second Amendment to the Barclays Credit Agreement.

Secured Credit Facilities

We maintain secured credit facilities with Barclays and with Truist Bank.

We maintain secured credit facilities with Barclays and with Truist Bank (“Truist”).

On June 10, 2026, we entered into Incremental Amendment No.

3 to the Barclays Credit Agreement (the “Third Amendment”).

Pursuant to the Third Amendment, certain term lenders under the Barclays Credit Agreement funded an incremental term loan in the aggregate principal amount of $250.0 million, which was added to and forms a part of the existing term loan (together with the incremental term loan, (the “term loan”) under the Barclays Credit Agreement of approximately $958.7 million.

The interest rate applicable to the term loan was reduced by 0.25% to, at RadNet’s election, either Term SOFR (as defined in the Barclays Credit Agreement) plus 2.00% or the Alternate Base Rate (as defined in the Barclays Credit Agreement) plus 1.00%.

In addition, the interest rate applicable to the existing $282 million revolving credit facility was reduced by 0.25%.

On June 11, 2025, we entered into Incremental Amendment No.

2 to the Barclays Credit Agreement, pursuant to which Barclays, as lender, provided an additional $100.0 million of incremental term loan borrowings under our existing senior secured term loan facility, all other terms remained the same.

$1.0 million recognized as discount and deferred finance cost.

We recognized $1.0 million as discount and deferred finance cost.

Amounts capitalized will be amortized over the remaining terms of the respective credit facilities under the Barclays Credit Agreement.

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On November 26, 2024, we entered into Amendment No.

1 to the Barclays Credit Agreement (the “First Amendment”) with the Barclays Bank Plc and the lenders and financial institutions named therein.

Pursuant to the First Amendment, the interest rates on the term loans and revolving credit facility provided under the Restated Credit Agreement have been reduced by 0.25%.

1 to the Barclays Credit Agreement (the “First Amendment”) with the Barclays and the lenders and financial institutions named therein.

Pursuant to the First Amendment, the interest rates on the term loans and revolving credit facility provided under the Barclays Credit Agreement have been reduced by 0.25%.

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 March 31, 2026 include $1,079.6 million of total term loan debt (exclusive of unamortized discounts of $11.6 million) in thousands:

Our condensed consolidated balance sheets at June 30, 2026 include $1,323.7 million of total term loan debt (exclusive of unamortized discounts of $11.6 million) in thousands:

Face Value Discount Total Carrying

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Total Term Loans $ 1,323,729 $ (11,613) $ 1,312,116

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

At June 30, 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.

Please see Note 6, Credit Facilities and Notes Payable in the notes accompanying our financial statements included in this report for more information on our secured credit facilities.

Please see Note 6, Credit Facilities, Notes Payable, and Finance Lease in the notes accompanying our financial statements included in this report for more information on our secured credit facilities.

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