RadNet secures $100 million incremental term loan for acquisitions

LOS ANGELES - RadNet, Inc. (NASDAQ:RDNT), a provider of outpatient diagnostic imaging services with a market capitalization of $4.34 billion and annual revenue of $1.87 billion, announced Wednesday it has secured a $100 million incremental term loan through an amendment to its existing credit agreement. According to InvestingPro data, the company maintains a healthy current ratio of 2.01, indicating strong liquidity position.

The financing, provided by Barclays Bank PLC, will mature on April 18, 2031, coinciding with the company’s existing $868.4 million term loan. Quarterly principal payments on the combined term loan will increase to approximately $2.4 million from $2.2 million previously. While currently not profitable, InvestingPro analysis indicates that net income is expected to grow this year, with analysts forecasting a return to profitability.

RadNet plans to use the proceeds to finance future acquisitions and for general corporate purposes. The company operates 401 outpatient imaging centers across eight states, including California, New York, Florida, and Texas.

"This incremental financing increases our capacity to execute on a pipeline of acquisition opportunities while maintaining our conservative capital structure," said Mark Stolper, Executive Vice President and Chief Financial Officer of RadNet, in the press release.

The new funding adds to RadNet’s $717 million cash balance reported as of March 31, 2025. All other terms and covenants of the credit agreement remain unchanged, according to the company.

RadNet provides diagnostic imaging services along with radiology information technology, artificial intelligence solutions under its DeepHealth brand, and teleradiology services. The company employs over 11,000 people, including contracted radiologists, full-time and per diem employees, and technologists.

The announcement was made in a company press release.

In other recent news, RadNet Inc. reported notable developments in its financial and strategic operations. The company announced a revenue increase to $471.4 million for the first quarter of 2025, surpassing forecasts, though it posted an earnings per share (EPS) of -$0.5, which missed projections. In response to these results, RadNet raised its 2025 revenue and adjusted EBITDA guidance, reflecting optimism about its financial trajectory. Additionally, RadNet acquired See-Mode Technologies, an AI ultrasound innovator, which is expected to enhance diagnostic accuracy and efficiency across its network of imaging centers.

Truist Securities maintained a Buy rating on RadNet, citing strong performance in core imaging operations and potential growth in the digital health sector, with a price target of $74. Meanwhile, Raymond James also maintained a Strong Buy rating, raising its price target to $66, following RadNet’s better-than-expected revenue and adjusted EBITDA. The recent acquisition of iCAD, a provider of advanced cancer detection solutions, is seen as a strategic move to bolster RadNet’s capabilities in breast health solutions.

Despite challenges such as adverse weather impacting revenue, RadNet demonstrated resilience with a rebound in volumes and ongoing expansion efforts. The company’s digital health segment saw significant growth, contributing to overall revenue increases. Analysts at Truist Securities anticipate further benefits from the growth of advanced medical procedures and an expanding role for RadNet’s AI initiatives, as the company progresses through 2025 and into 2026.

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