RadNet (RDNT) Barclays 28th Annual Global Healthcare Conference summary

Business performance and outlook

• Achieved record revenue growth of over 14.8% and substantial EBITDA improvement, with strong same-center and MRI volume growth in recent quarters.

• PET CT volumes grew over 14% year-over-year, with CT in the mid-single digits; these trends are continuing into the current year.

• Outpatient imaging is benefiting from a shift away from higher-cost hospitals, driven by patient and payer preferences for lower-cost care sites.

• 2026 guidance projects revenue growth of 17%-19% and EBITDA growth of 18%-22%, implying margin improvement.

• Digital health segment expected to grow over 50% in 2026, driven by both organic growth and acquisitions.

Digital health and AI strategy

• Digital health segment now reported separately, with increased transparency including annual recurring revenue (ARR) metrics.

• New reporting will provide more comprehensive operating metrics, including both consolidated and unconsolidated centers.

• Digital health revenue reliance on internal customers is expected to decline from 45% in 2025 to below 20% by 2028, as external sales grow.

• Hospitals are expected to make up half of the digital health customer mix by 2028, with enterprise solutions tailored for health systems.

• DeepHealth OS workflow will support multi-specialty imaging and is set for broader health system rollout in 2027 and beyond.

Gleamer acquisition and integration

• Acquired Gleamer to complete AI offerings in X-ray, the most prevalent procedure and a key area for radiologist productivity.

• Gleamer brings advanced X-ray AI, strong global customer base, and rapid ARR growth of over 90% CAGR since 2022.

• Integration expected to drive $7 million in near-term revenue synergies through cross-selling and upselling.

• Cost synergies anticipated from leveraging Gleamer's talent, with profitability expected within 12 months.

• Gleamer's technology will be integrated across operations, improving efficiency and expanding AI capabilities in MRI and CT.