RadNet’s Digital Health business is emerging as an increasingly significant growth engine as the diagnostic imaging company expands its DeepHealth AI and Enterprise Imaging products beyond its own network.
RadNet reported record quarterly revenue and adjusted EBITDA for the second quarter and raised its 2026 financial guidance. Digital Health segment revenue increased 56.5% year over year to $32.4 million, while annual recurring revenue reached $105.5 million as of June 30.
Digital Health ARR increased 97.2% from the prior year and 8.9% sequentially. More significantly, external customers now account for approximately 63% of Digital Health revenue, demonstrating that the business is increasingly selling its technology to hospitals, health systems and other organizations outside RadNet’s own imaging centers.
RadNet signed approximately $21 million of new Digital Health business during Q2, bringing six-month new-business total contract value to approximately $37 million. Most of those contracts were with hospitals and health systems and included DeepHealth AI and Enterprise Imaging offerings.
DeepHealth also received FDA clearance at the end of July for its breast ultrasound AI solution. RadNet plans to implement the technology across its breast imaging centers by year-end and expects both revenue contributions and cost savings from the rollout during the second half of 2026.
At the company level, second-quarter revenue increased 25% to $622.7 million and adjusted EBITDA rose 22.7% to a quarterly record of $99.7 million. RadNet also increased its Imaging Center revenue, adjusted EBITDA and free cash flow guidance for the year.
KEY QUOTES:
“The Digital Health division continues to make significant progress. At June 30, 2026, ARR was $105.5 million, an increase of 97.2% from June 30, 2025 and an increase of 8.9% sequentially from March 31, 2026.”
“ARR generated by external (non-RadNet) customers now comprises approximately 63% of Digital Health Revenue.”
Dr. Howard Berger, President and CEO of RadNet
