RadNet (RDNT) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool Mon, May 11, 2026 at 11:47 PM GMT+7 55 min read RDNT Image source: The Motley Fool. President and Chief Executive Officer — Howard G. Berger Executive Vice President and Chief Financial Officer — Mark D. Stolper President and Chief Executive Officer, Digital Health — Kaes Westorpe Chief Operating and Technical Officer, Digital Health — Shyam Soka Mark D. Stolper: Thank you. Good morning, and thank you for joining Howard G. Berger and me today to discuss RadNet, Inc. s first quarter 2026 financial results. On this call, we have also invited Kaes Westorpe, President and CEO of Digital Health, and Shyam Soka, Chief Operating and Technical Officer of Digital Health, who will share additional information about the progress of the Digital Health operating segment. Before we begin today, we would like to remind everyone of the safe harbor statement under the Private Securities Litigation Reform Act of 1995. This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning anticipated future financial and operating performance, RadNet, Inc. s ability to grow the business by generating patient referrals and contracts with radiology practices, recruiting and retaining technologists, receiving third-party reimbursement for diagnostic imaging services, successfully integrating acquired operations, generating revenue and adjusted EBITDA for the acquired operations as estimated, among others, are forward-looking statements within the meaning of the safe harbor. Forward-looking statements are based on management s current preliminary expectations and are subject to risks and uncertainties which may cause RadNet, Inc. s actual results to differ materially from the statements contained herein. These risks and uncertainties include those set forth in RadNet, Inc. s reports filed with the SEC from time to time, including RadNet, Inc. s Annual Report on Form 10-K for the year ended 12/31/2025. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date it is made. RadNet, Inc. undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date they were made or to reflect the occurrence of unanticipated events. And with that, I would like to turn the call over to Howard G. Berger. Howard G. Berger: Thank you, Mark. Good morning, everyone, and thank you for joining us today. On today s call, Mark, Kaes, Shyam, and I plan to provide you with highlights from our first quarter 2026 results, give you more insight into the factors which affected this performance, and discuss our future strategy. After our prepared remarks, we will open the call to your questions. I would like to thank all of you for your interest in the company and for dedicating a portion of your day to participate in our conference call this morning. With that, let us begin. I am extremely pleased with the performance of the first quarter. Revenue and adjusted EBITDA were first quarter records despite being negatively impacted by an estimated $13 million of revenue and $9 million of adjusted EBITDA from severe weather conditions in January and February on the East Coast. As compared with last year s first quarter, revenue increased 22.1% and adjusted EBITDA increased 36.3%, resulting in adjusted EBITDA margin improvement of 115 basis points. As you may recall, last year s first quarter was similarly impacted by weather, and we had additional impact from the Southern California wildfires. Adjusted for the weather impact on this year s first quarter, and the weather and wildfire impacts in last year s first quarter, our margin improved by 52 basis points. There were a number of items in the quarter worth noting. First, we continue to see a shift towards advanced imaging. During this year s first quarter, 29.3% of our procedural volume was from advanced imaging, compared with 26.9% in last year s first quarter, a difference of 235 basis points. This is both a function of overall industry trends as well as the significant capital investments RadNet, Inc. has made in advanced imaging equipment that is driving faster throughput and increased capacity. Additionally, the implementation of TechLive DeepHealth s remote scanning solution for technologists has significantly benefited RadNet, Inc. s MRI utilization by substantially decreasing exam room closure hours. PET/CT procedure growth continues to be driven by studies to identify and stage prostate cancer and to detect brain plaques correlated with Alzheimer s and dementia. During the quarter, PET/CT procedures increased 35.2% in aggregate and 14.7% on a same-center basis. As a result of the operating strength of March, we exceeded internal projections for the first quarter embedded in 2026 full-year

RadNet (RDNT) Q1 2026 Earnings Transcript

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RadNet (RDNT) Q1 2026 Earnings Transcript

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