RadNet, Inc. (NASDAQ: RDNT) is a leading national provider of fixed-site outpatient diagnostic imaging services in the United States, operating a network of 401 imaging centers across states including California, New York, and Texas.

In the first quarter of 2025, RadNet reported total revenue of $471.4 million, marking an increase of 9.2% from $431.7 million in the same quarter of 2024. However, the company faced significant challenges due to adverse weather conditions, which negatively impacted revenue by approximately $22 million and adjusted EBITDA by about $15 million. Adjusted EBITDA for the quarter was $46.4 million, reflecting a decrease of 20.6% compared to $58.5 million from the first quarter of 2024. If the weather impact is considered, revenue growth would be 14.3%, and adjusted EBITDA would increase by 5%.

The Digital Health segment saw revenue rise to $19.2 million, a 31.1% increase from $14.7 million in the prior year. Adjusted EBITDA for the Digital Health segment also improved to $3.7 million, up 5.4% from $3.5 million in the first quarter of 2024. Aggregate procedural volumes increased by 3.6%, but same-center procedural volumes experienced a slight decline of 0.3% year-over-year.

The company ended the first quarter with a cash balance of $717 million and a net debt to adjusted EBITDA ratio slightly above 1x. Days sales outstanding (DSO) improved to 33.3 days compared to the same period last year. Additionally, RadNet has increased its revenue and adjusted EBITDA guidance for the remainder of 2025 by approximately $10 million and $3 million, respectively, reflecting positive performance trends observed in March, April, and early May.

Regarding operating segments, MRI volume grew by 8.4%, while CT volume increased by 8.3% year-over-year; PET/CT volumes saw notable growth, rising 22.9% due to a higher volume of prostate and brain imaging procedures. The increased adoption of advanced imaging continues to bolster procedural volumes, with advanced imaging constituting 26.9% of the overall procedural volume as of this quarter, up from 25.7% in the prior year’s first quarter.

RadNet’s strong performance in advanced imaging, including a growth rate of nearly 23% for PET/CT procedures, alongside a solid financial position characterized by robust liquidity and manageable leverage, suggest stability and potential for continued growth in the imaging services sector.