RadNet misses Q4 earnings, issues weak 2025 guidance; shares drop

Published 27/02/2025, 23:14
RadNet misses Q4 earnings, issues weak 2025 guidance; shares drop

LOS ANGELES - RadNet , Inc. (NASDAQ:RDNT) reported fourth-quarter earnings that fell short of analyst expectations and provided disappointing full-year 2025 revenue guidance, sending shares down 6.3% in trading.

The diagnostic imaging services provider posted adjusted earnings per share of $0.22 for Q4 2024, missing the analyst consensus of $0.20. Revenue came in at $477.1 million, beating estimates of $466.19 million and representing a 13.5% increase YoY.

RadNet’s Q4 revenue growth was driven by strong procedural volume increases, with aggregate volumes up 8% and same-center volumes rising 4% compared to Q4 2023.

However, the company’s 2025 revenue outlook disappointed investors. RadNet forecasts full-year 2025 revenue of $1.825-1.875 billion, well below the $1.959 billion analysts were expecting.

CEO Howard Berger cited severe winter weather and fires impacting Q1 2025 operations as reasons for the lowered guidance, estimating a $22 million revenue hit and $15 million adjusted EBITDA impact.

"These significant events have caused a revision to the first quarter of our initial 2025 Imaging Center segment budget, which is now reflected in our full-year 2025 guidance," Berger stated.

For Q4, RadNet’s adjusted EBITDA increased 14% to $75 million. The company ended 2024 with $740 million in cash and a net debt to adjusted EBITDA ratio below 1.0x.

While Q4 results were mixed, the weak 2025 outlook appears to be driving the negative stock reaction as investors reassess RadNet’s near-term growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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