Despite achieving 22.1% revenue growth in 2026Q1, the company reported a negative 2.8% gross margin, suggesting that current pricing structures are failing to cover direct service delivery costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Sales/Revenue | 2.14B | 2.04B | 1.83B | 1.62B | 1.43B | 1.32B | 1.07B | 1.15B | 975.15M | 922.19M | 884.53M | 809.63M | 717.57M | 702.99M | 647.15M | 619.8M | 548.54M | 524.37M | 502.12M | 425.47M | 161M | 145.57M | 137.28M | 140.26M | 139.28M | 111.84M | 87.96M | 72.3M | 58.82M | 67.02M | 56.54M |
| Revenue Growth % | 14.72% | 11.51% | 13.18% | 13.05% | 8.74% | 22.69% | -7.13% | 18.36% | 5.74% | 4.26% | 9.25% | 12.83% | 2.07% | 8.63% | 4.41% | 12.99% | 4.61% | 4.43% | 18.01% | 164.26% | 10.6% | 6.04% | -2.13% | 0.7% | 24.54% | 27.14% | 21.67% | 22.92% | -12.23% | 18.54% | 24.69% |
| Cost of Goods Sold | 1.94B | 1.95B | 1.58B | 1.4B | 1.26B | 1.12B | 965.9M | 999.69M | 867.55M | 802.38M | 775.8M | 708.29M | 602.65M | 598.65M | 542.99M | 477.83M | 420.97M | 397.75M | 384.3M | 330.55M | 120.34M | 109.01M | 105.83M | 106.08M | 105.47M | 78.01M | 62.01M | 59.3M | 0 | 0 | 0 |
| COGS % of Revenue | - | 95.55% | 86.38% | 86.31% | 88.41% | 85.42% | 90.12% | 86.61% | 88.97% | 87.01% | 87.71% | 87.48% | 83.99% | 85.16% | 83.9% | 77.09% | 76.74% | 75.85% | 76.54% | 77.69% | 74.74% | 74.88% | 77.09% | 75.63% | 75.73% | 69.75% | 70.5% | 82.02% | - | - | - |
| Gross Profit | 201.17M | 90.8M | 249.12M | 221.39M | 165.72M | 191.8M | 105.94M | 154.49M | 107.6M | 119.81M | 108.73M | 101.34M | 114.92M | 104.33M | 104.16M | 141.97M | 127.56M | 126.61M | 117.82M | 94.92M | 40.66M | 36.56M | 31.45M | 34.18M | 33.81M | 33.83M | 25.95M | 13M | 58.82M | 67.02M | 56.54M |
| Gross Margin % | 9.38% | 4.45% | 13.62% | 13.69% | 11.59% | 14.58% | 9.88% | 13.38% | 11.03% | 12.99% | 12.29% | 12.52% | 16.01% | 14.84% | 16.1% | 22.91% | 23.26% | 24.15% | 23.46% | 22.31% | 25.26% | 25.12% | 22.91% | 24.37% | 24.27% | 30.25% | 29.5% | 17.98% | 100% | 100% | 100% |
| Gross Profit Growth % | - | -63.55% | 12.52% | 33.6% | -13.6% | 81.05% | -31.43% | 43.58% | -10.19% | 10.19% | 7.3% | -11.82% | 10.15% | 0.16% | -26.63% | 11.29% | 0.75% | 7.46% | 24.13% | 133.43% | 11.22% | 16.25% | -7.99% | 1.1% | -0.06% | 30.36% | 99.62% | -77.9% | -12.23% | 18.54% | 24.69% |
| Operating Expenses | 118.92M | 0 | 144.49M | 122.69M | 119.35M | 109.25M | 70.25M | 84.61M | 72.9M | 66.8M | 66.61M | 60.61M | 59.26M | 58.89M | 57.74M | 93.55M | 87.99M | 87.23M | 85.23M | 72.82M | 24.39M | 22.73M | 21.67M | 21.82M | 22.49M | 14.73M | 11.35M | 10.6M | 75.33M | 74.02M | 58.37M |
| OpEx % of Revenue | - | - | 7.9% | 7.59% | 8.35% | 8.31% | 6.55% | 7.33% | 7.48% | 7.24% | 7.53% | 7.49% | 8.26% | 8.38% | 8.92% | 15.09% | 16.04% | 16.64% | 16.97% | 17.12% | 15.15% | 15.61% | 15.79% | 15.56% | 16.15% | 13.17% | 12.91% | 14.66% | 128.07% | 110.45% | 103.24% |
| Selling, General & Admin | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.82M | 2.88M | 745K | 1.24M | 806K | 736K | 1.39M | 838K | 731K | 30.83M | 27.47M | 7.63M | 5.63M | 3.91M | 4.94M | 7.18M | 4.02M | 2.58M | 3.1M | 0 | 0 | 0 |
| SG&A % of Revenue | - | - | - | - | - | - | - | - | - | 0.2% | 0.33% | 0.09% | 0.17% | 0.11% | 0.11% | 0.22% | 0.15% | 0.14% | 6.14% | 6.46% | 4.74% | 3.86% | 2.85% | 3.52% | 5.16% | 3.6% | 2.93% | 4.29% | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 0 | 144.49M | 122.69M | 119.35M | 109.25M | 70.25M | 84.61M | 181K | 258K | 2.61M | 2.85M | 2.03M | -228K | 3.68M | 92.16M | 87.16M | 86.5M | 54.4M | 45.35M | 16.77M | 17.1M | 17.76M | 16.87M | 15.31M | 10.71M | 8.77M | 7.5M | 75.33M | 74.02M | 58.37M |
| Operating Income | 82.26M | 90.8M | 104.62M | 98.7M | 46.36M | 82.55M | 35.68M | 69.88M | 30.89M | 50.05M | 38.48M | 39.12M | 53.3M | 43.6M | 45.23M | 50.66M | 38.44M | 38.86M | 32.59M | 21.17M | 16.27M | 13.84M | 9.78M | 12.36M | 11.32M | 19.1M | 14.6M | 2.4M | -16.51M | -7.67M | -1.83M |
| Operating Margin % | 3.84% | 4.45% | 5.72% | 6.11% | 3.24% | 6.28% | 3.33% | 6.05% | 3.17% | 5.43% | 4.35% | 4.83% | 7.43% | 6.2% | 6.99% | 8.17% | 7.01% | 7.41% | 6.49% | 4.97% | 10.11% | 9.5% | 7.12% | 8.81% | 8.12% | 17.08% | 16.59% | 3.32% | -28.07% | -11.44% | -3.24% |
| Operating Income Growth % | - | -13.21% | 6% | 112.88% | -43.84% | 131.35% | -48.93% | 126.24% | -38.29% | 30.07% | -1.63% | -26.62% | 22.25% | -3.59% | -10.72% | 31.81% | -1.09% | 19.23% | 53.97% | 30.09% | 17.6% | 41.52% | -20.93% | 9.25% | -40.76% | 30.87% | 508.17% | 114.54% | -115.28% | -318.32% | 96.53% |
| EBITDA | 303.73M | 242.93M | 242.46M | 288.19M | 231.09M | 253.22M | 190.39M | 217.33M | 103.78M | 116.85M | 105.09M | 99.73M | 112.56M | 102.49M | 102.97M | 108.14M | 92.43M | 92.66M | 86.14M | 66.45M | 32.66M | 30.77M | 27.54M | 29.3M | 26.63M | 29.81M | 23.37M | 9.9M | -7.87M | 1.12M | 4.21M |
| EBITDA Margin % | 14.16% | 11.91% | 13.25% | 17.83% | 16.16% | 19.25% | 17.76% | 18.83% | 10.64% | 12.67% | 11.88% | 12.32% | 15.69% | 14.58% | 15.91% | 17.45% | 16.85% | 17.67% | 17.15% | 15.62% | 20.29% | 21.14% | 20.06% | 20.89% | 19.12% | 26.65% | 26.57% | 13.69% | -13.37% | 1.66% | 7.44% |
| EBITDA Growth % | 44.54% | 0.19% | -15.87% | 24.71% | -8.74% | 33% | -12.39% | 109.4% | -11.18% | 11.19% | 5.38% | -11.4% | 9.83% | -0.46% | -4.78% | 17% | -0.24% | 7.57% | 29.63% | 103.43% | 6.15% | 11.74% | -6.01% | 10.05% | -10.68% | 27.55% | 136.05% | 225.86% | -805.41% | -73.5% | 109.53% |
| D&A (Non-Cash Add-back) | 221.48M | 152.13M | 137.84M | 189.49M | 184.72M | 170.66M | 154.71M | 147.45M | 72.9M | 66.8M | 66.61M | 60.61M | 59.26M | 58.89M | 57.74M | 57.48M | 54M | 53.8M | 53.55M | 45.28M | 16.39M | 16.94M | 17.76M | 16.94M | 15.31M | 10.71M | 8.77M | 7.5M | 8.64M | 8.78M | 6.04M |
| EBIT | 101.32M | 90.8M | 124.71M | 103.29M | 93.81M | 107.71M | 45.03M | 77.71M | 34.7M | 53.01M | 42.12M | 56.33M | 55.66M | 45.44M | 58.16M | 60.96M | 31.34M | 39.83M | 29.44M | 22.1M | 16.27M | 13.4M | 8.29M | 12.36M | 9.89M | 17.94M | 14.6M | 2.4M | -16.51M | -7.01M | -1.83M |
| Net Interest Income | -65.27M | -69.91M | -79.85M | -64.48M | -50.84M | -48.83M | -45.88M | -48.04M | -43.46M | -40.62M | -43.45M | -41.68M | -42.73M | -45.79M | -53.78M | -52.8M | -48.4M | -50.02M | -51.81M | -44.31M | -20.36M | -17.49M | -17.29M | -17.95M | -16.69M | -13.62M | -13.14M | 0 | -9.14M | -9.55M | -7.63M |
| Interest Income | 5.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 139.64K | 295.17K | 258.39K |
| Interest Expense | 70.33M | 69.91M | 79.85M | 64.48M | 50.84M | 48.83M | 45.88M | 48.04M | 43.46M | 40.62M | 43.45M | 41.68M | 42.73M | 45.79M | 53.78M | 52.8M | 48.4M | 49.19M | 51.81M | 44.31M | 20.36M | 17.49M | 17.29M | 17.95M | 16.69M | 13.62M | 13.14M | 0 | 9.28M | 9.84M | 7.89M |
| Other Income/Expense | -50.04M | -58.9M | -59.76M | -59.89M | -3.39M | -23.68M | -36.54M | -40.21M | 7.64M | -23.66M | -26.04M | -24.47M | -49.65M | -37.72M | -40.85M | -47.72M | -58.77M | -49.05M | -51.66M | -40.3M | -23.16M | -16.54M | -18.92M | -5.37M | -15.05M | -9.27M | -96.58K | -2M | -3.85M | 7.67M | 1.08M |
| Pretax Income | 32.22M | 31.91M | 44.86M | 38.81M | 42.97M | 58.88M | -854K | 29.67M | 38.53M | 26.39M | 12.44M | 14.64M | 3.65M | 5.89M | -2.1M | 2.94M | -20.34M | -10.19M | -19.07M | -18.13M | -6.89M | -3.13M | -9.34M | -5.36M | -5.17M | 9.18M | 14.5M | 400K | -20.36M | 7.11M | -754.87K |
| Pretax Margin % | 1.5% | 1.56% | 2.45% | 2.4% | 3% | 4.48% | -0.08% | 2.57% | 3.95% | 2.86% | 1.41% | 1.81% | 0.51% | 0.84% | -0.32% | 0.47% | -3.71% | -1.94% | -3.8% | -4.26% | -4.28% | -2.15% | -6.8% | -3.82% | -3.71% | 8.21% | 16.48% | 0.55% | -34.61% | 10.62% | -1.34% |
| Income Tax | 10.16M | 14.86M | 6.03M | 8.47M | 9.36M | 14.56M | 895K | 6.23M | 394K | 24.31M | 4.43M | 6.01M | 1.97M | 3.51M | -59.91M | 820K | 576K | 443K | 151K | 337K | 0 | 17.13M | 5.24M | -2.2K | 16.87M | -5.11M | 11.98M | 11.4M | 12.81M | -6.26M | 6.53M |
| Effective Tax Rate % | 31.55% | 46.58% | 13.43% | 21.83% | 21.79% | 24.73% | -104.8% | 20.99% | 1.02% | 92.14% | 35.64% | 41.02% | 53.86% | 59.63% | 2854.22% | 27.91% | -2.83% | -4.35% | -0.79% | -1.86% | 0% | -546.54% | -56.04% | 0.04% | -326.56% | -55.66% | 82.63% | 2850% | -62.95% | -87.97% | -864.79% |
| Net Income | -14.19M | -18.65M | 2.79M | 3.04M | 10.65M | 24.73M | -14.84M | 14.76M | 32.24M | 53K | 7.23M | 7.71M | 1.38M | 2.12M | 64.52M | 7.23M | -12.85M | -2.27M | -12.84M | -18.13M | -6.89M | -3.13M | -14.58M | -2.27M | -5.55M | 14.5M | 2.61M | -9M | -29.32M | -748.1K | -8.36M |
| Net Margin % | -0.66% | -0.91% | 0.15% | 0.19% | 0.74% | 1.88% | -1.38% | 1.28% | 3.31% | 0.01% | 0.82% | 0.95% | 0.19% | 0.3% | 9.97% | 1.17% | -2.34% | -0.43% | -2.56% | -4.26% | -4.28% | -2.15% | -10.62% | -1.62% | -3.99% | 12.97% | 2.97% | -12.45% | -49.85% | -1.12% | -14.79% |
| Net Income Growth % | 56.14% | -767.81% | -8.25% | -71.42% | -56.93% | 266.62% | -200.57% | -54.23% | 60735.85% | -99.27% | -6.21% | 460.25% | -35.09% | -96.71% | 792.23% | 156.26% | -466.92% | 82.34% | 29.2% | -163% | -119.9% | 78.49% | -542.96% | 59.16% | -138.28% | 454.74% | 129.04% | 69.31% | -3819.53% | 91.05% | 86.39% |
| Net Income (Continuing) | 22.05M | 17.05M | 38.84M | 30.34M | 33.61M | 44.32M | -1.75M | 23.44M | 38.13M | 2.08M | 8M | 8.64M | 1.69M | 2.38M | 59.6M | 7.34M | -20.91M | -10.63M | -19.22M | -18.13M | -6.89M | -3.57M | -14.22M | -5.46M | -6.43M | 13.81M | 1.1M | -10.6M | -29.5M | -2.34M | -9.51M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 272.16M | 266M | 231.1M | 182.66M | 158.46M | 117.25M | 92.56M | 81.45M | 73.07M | 8.37M | 3.57M | 3.88M | 2.34M | 2.29M | 634K | 949K | 57K | 54K | 78K | 206K | 0 | 0 | 0 | 637K | 1.5M | 1.14M | 576.84K | 400K | 676.11K | 1.43M | 1.34M |
| EPS (Diluted) | -0.18 | -0.25 | 0.04 | 0.05 | 0.17 | 0.46 | -0.29 | 0.47 | 0.66 | 0.00 | 0.15 | 0.17 | 0.03 | 0.05 | 1.64 | 0.19 | -0.35 | -0.06 | -0.36 | -0.52 | -0.33 | -0.15 | -0.71 | -0.11 | -0.27 | 0.68 | 0.14 | -0.46 | -1.50 | -0.04 | -0.43 |
| EPS Growth % | 59.32% | -768.45% | -20.59% | -72.29% | -63.04% | 258.62% | -161.7% | -28.79% | - | -99.27% | -11.76% | 466.67% | -40% | -96.95% | 763.16% | 154.29% | -456.44% | 82.53% | 30.77% | -57.58% | -120% | 78.87% | -545.45% | 59.26% | -139.71% | 385.71% | 130.43% | 69.33% | -3796.1% | 91.05% | 85.99% |
| EPS (Basic) | - | -0.25 | 0.04 | 0.05 | 0.19 | 0.47 | -0.29 | 0.47 | 0.67 | 0.00 | 0.16 | 0.18 | 0.03 | 0.05 | 1.71 | 0.19 | -0.35 | -0.06 | -0.36 | -0.52 | -0.33 | -0.15 | -0.71 | -0.12 | -0.27 | 0.74 | 0.14 | -0.46 | -1.50 | -0.04 | -0.43 |
| Diluted Shares Outstanding | 77.06M | 75.19M | 74.76M | 64.66M | 57.32M | 53.42M | 50.89M | 50.24M | 48.68M | 47.4M | 46.66M | 45.17M | 43.15M | 39.81M | 39.24M | 38.79M | 36.85M | 36.05M | 35.72M | 34.59M | 21.01M | 20.6M | 20.46M | 20.54M | 20.44M | 22.09M | 19.92M | 19.49M | 19.53M | 19.43M | 19.59M |
| Basic Shares Outstanding | 77.06M | 75.19M | 73.04M | 63.58M | 56.29M | 52.5M | 50.89M | 49.67M | 48.11M | 46.88M | 46.24M | 43.81M | 41.07M | 39.14M | 37.75M | 37.37M | 36.85M | 36.05M | 35.72M | 34.59M | 21.01M | 20.6M | 20.46M | 18.89M | 20.44M | 19.98M | 19.5M | 19.49M | 19.53M | 19.43M | 19.59M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 9.46% | 10.76% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Margin volatility and scale
According to the latest quarterly financial data, RadNet achieved a 22.1% revenue growth rate in 2026Q1, yet this top-line expansion has failed to translate into profitability, as the company continues to struggle with maintaining consistent margins amidst its aggressive pursuit of regional diagnostic market share.
The acceleration in revenue growth suggests that the company's roll-up strategy is successfully capturing volume, but the lack of corresponding margin expansion implies that the cost of acquiring this volume is rising. Investors should monitor whether this growth is sustainable or if it is being driven by lower-margin procedures that dilute the overall quality of the revenue base.
As reported in recent income statements, RadNet's gross margin plummeted to -2.8% in 2026Q1, a significant departure from the historical 13-15% range, indicating that the company is currently unable to cover its direct costs of service delivery through its existing reimbursement and pricing structure.
The collapse in gross margins suggests that the company's high fixed-cost base, including equipment leases and specialized labor, is becoming a significant burden during periods of operational scaling. This volatility warrants further investigation into whether the current margin profile is a temporary anomaly or a structural shift in the cost of diagnostic services.
Based on the provided financial figures, RadNet's operating income has failed to scale with revenue, resulting in a negative operating margin of 2.8% in 2026Q1, which highlights a disconnect between the company's expansion efforts and its ability to achieve meaningful economies of scale in its imaging centers.
The inability to generate positive operating income despite double-digit revenue growth suggests that the company's overhead and site-level expenses are rising in lockstep with, or faster than, its top-line gains. This trend implies that the current operating model may require a fundamental shift in productivity or cost management to reach sustainable profitability.
As indicated by the financial data, RadNet's net income has experienced extreme fluctuations, swinging from a $14.5 million profit in 2025Q2 to a $33.5 million loss in 2026Q1, which suggests that reported earnings are highly sensitive to non-operating items and periodic spikes in stock-based compensation.
The inconsistency in bottom-line performance makes it difficult to assess the underlying earnings power of the business. Investors should be cautious of the impact of stock-based compensation and other non-cash charges, which appear to be masking the true operational performance of the core diagnostic business.
Based on an analysis of the income statement, the primary risk to the investment thesis is the company's inability to maintain positive net margins, as evidenced by the -5.8% net margin reported in 2026Q1, which raises questions about the long-term viability of the current growth-at-any-cost model.
Short-sellers would likely focus on the company's reliance on external capital and the potential for margin compression to persist if reimbursement rates continue to face downward pressure. The current financial trajectory suggests that the company may be over-leveraging its operational capacity, which could lead to further earnings volatility in the coming quarters.
Quick answers to the most common questions about buying RDNT stock.
For fiscal year 2025, RadNet, Inc. (RDNT) reported total revenue of $2.04B. This represents a 3508.5% increase compared to $56.5M in 1996.
RadNet, Inc. (RDNT) reported a net loss of $18.7M for the fiscal year ending 2025.
RadNet, Inc. (RDNT) reported an operating income of $90.8M, resulting in an operating profit margin of 4.5%. This margin reflects the operational efficiency of the business before interest and taxes.
RadNet, Inc. (RDNT) generated $90.8M in gross profit for the year, representing a gross profit margin of 4.5%. This demonstrates the company's core pricing power and production efficiency.