RadNet: 3 Key Takeaways for Long-Term Investors
Key Points
RadNet agreed to acquire ONRAD to directly serve over 225 hospitals.
Digital Health's total contract value reached $108 million year-to-date.
Aggregate imaging procedural volume increased 19.9% in the third quarter.
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On its third-quarter 2026 earnings call, held on Nov. 9, 2026, RadNet (NASDAQ:RDNT) announced record quarterly revenue of $638 million, supported by rising demand for advanced imaging procedures. The outpatient scanner operator is automating routine radiology work to expand capacity while adding hospital partnerships to capture more patient volume. Three things management said stand out.
1. Hospital Partnerships Expand Beyond Outpatient Centers
RadNet is expanding directly into hospital systems through its pending acquisition of ONRAD, a teleradiology (remote scan reading) and physician staffing company. The transaction adds 225 hospital customer locations across 26 states, creating a direct distribution channel for the company's enterprise software and professional services.
ONRAD gives RadNet an established platform to serve hospitals directly while expanding what we can offer our existing joint venture partners.
-- Howard Berger, President and Chief Executive Officer
2. Artificial Intelligence Tools Streamline Radiologist Workflows
Patient demand for complex scans is outpacing the national supply of trained radiologists, pushing imaging centers to increase daily scanner throughput. RadNet is deploying automated draft reporting software to process patient exams, cutting report generation times by up to 30% and eliminating repetitive dictation tasks for doctors.
When every study, order or clinical history runs through our AI-powered solutions, we can automate and streamline the radiology workflow.
-- Sham Sokka, Chief Operating and Technology Officer of Digital Health
3. External Clients Fuel Digital Health Segment Growth
RadNet is building its Digital Health unit into a stand-alone software business that sells to third-party healthcare systems. Segment annual recurring revenue (ARR, the predictable yearly value of contracted software subscriptions) reached $112.6 million, driven largely by medical clients outside RadNet's own regional network.
External ARR, the ARR generated outside of RadNet, more than doubled since September 30, 2025, to $73 million and now makes up 65% of our ARR base, up from 52% end of year 2025.
-- Kees Wesdorp, President and CEO of Digital Health
Looking Ahead
Outpatient scan demand remains steady as health systems seek partnerships with low-cost centers. RadNet uses remote scanner controls and clinical software to expand daily capacity despite ongoing technologist labor shortages.
Health systems like the University of Maryland continue to recognize that cost-effective freestanding outpatient imaging centers are essential to their long-term strategies...
-- Howard Berger, President and Chief Executive Officer
Deploying automated software workflows across new hospital contracts positions the business to lead preventive diagnostic care over the long run.
RadNet is here for the long haul. We have a mission and we intend to be that piece that helps pull it all together.
-- Howard Berger, President and Chief Executive Officer
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