The revenue beat and raised guidance support the growth thesis, but the GAAP EPS miss and declining adjusted EPS warrant caution. Watch for Digital Health margin progression and integration of recent acquisitions; the raised FCF guidance suggests improving cash generation. The stock may trade on the revenue/guidance strength versus the EPS disappointment.
Price Chart
Executive Summary
RadNet reported Q2 2026 revenue of $622.7M (+25% YoY), beating consensus of $609.3M, but GAAP EPS of $0.10 missed the $0.20 estimate by 50%. The company raised full-year Imaging Center guidance for revenue, Adjusted EBITDA, and Free Cash Flow, while Digital Health ARR surged 97% YoY to $105.5M. The mixed results reflect strong top-line growth and a favorable mix shift toward advanced imaging, offset by GAAP earnings pressure from acquisition costs and Digital Health investments.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $622.7M (+25% YoY) vs consensus $609.3M (beat by 2.2%)
- GAAP diluted EPS $0.10 vs consensus $0.20 (miss of 50%)
- Adjusted EBITDA $99.7M (+22.7% YoY), a quarterly record
- Digital Health ARR $105.5M at June 30, 2026, up 97.2% YoY and 8.9% sequentially
- Imaging Center guidance raised: revenue $2,370-$2,420M, Adj. EBITDA $345-$358M, FCF $115-$125M
- Digital Health segment revenue $32.4M (+56.5% YoY) but Adj. EBITDA declined to $2.5M from $3.4M due to growth investments
- Advanced imaging mix improved to 29.9% of procedural volumes (up 238 bps YoY)
- Cash balance $726.3M; Net Debt to Adj. EBITDA ratio 1.8x
Financial Impact
Revenue beat by ~$13.4M (2.2%) and guidance raised by $15M at midpoint; GAAP EPS miss of $0.10 vs $0.20 consensus represents a $0.10 shortfall.
Risk Factors
- Digital Health segment investments may continue to pressure near-term margins and GAAP profitability
- Integration of $315.7M in acquisition spending during H1 2026 could dilute returns if synergies lag
- Debt increased to $1.33B (net of cash) from $1.06B at year-end 2025, raising interest expense risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3341500 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 10, 2026 7w ago | 8-K | $77.28 $71.97 | ▼ −6.87% | ▼ −5.96% | $69.93 (−9.51%) |
Aug 9, 2026 7w ago | Press Release | $77.28 $71.97 | ▼ −6.87% | ▼ −5.96% | $69.93 (−9.51%) |
Jun 25, 2026 14w ago | Press Release | $60.01 $60.98 | ▲ +1.62% | ▲ +1.09% | $69.93 (+16.53%) |
Jun 10, 2026 16w ago | 8-K | $58.20 $65.94 | ▲ +13.30% | ▲ +11.41% | $69.93 (+20.15%) |
Jun 3, 2026 17w ago | 8-K | $51.87 $68.75 | ▲ +32.54% | ▲ +33.54% | $69.93 (+34.82%) |
May 11, 2026 20w ago | 8-K | $55.90 $56.18 | ▲ +0.50% | ▲ +0.81% | $69.93 (+25.10%) |
May 10, 2026 20w ago | Press Release | $55.90 $56.18 | ▲ +0.50% | ▲ +0.81% | $69.93 (+25.10%) |
Apr 28, 2026 22w ago | Press Release | $57.89 $53.84 | ▼ −7.00% | ▼ −12.45% | $69.93 (+20.80%) |
Apr 20, 2026 23w ago | DEFA14A | $57.51 $54.17 | ▼ −5.81% | ▼ −10.72% | $69.93 (+21.60%) |
Mar 11, 2026 29w ago | Press Release | $59.78 $55.43 | ▼ −7.28% | ▼ −9.25% | $69.93 (+16.98%) |
US Market Status
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