RadNet Q1 Revenue Jumps 8.5% to $360.2M; EBITDA Margin Slides 120bp
RadNet reported record Q1 2026 revenue of $360.2 million, an 8.5% increase over prior-year driven by a 5% rise in same-store imaging volumes and two newly acquired outpatient centers. Adjusted EBITDA margin contracted 120 basis points to 11.3% due to 12% higher labor and supply costs, while management maintained full-year revenue guidance of $1.45 – 1.50 billion.
1. Record Q1 Revenue Growth
RadNet achieved its highest quarterly revenue ever, with Q1 2026 sales rising 8.5% year-over-year to $360.2 million. Growth was fueled by a 5% increase in same-store imaging volumes and the integration of two outpatient centers acquired late in 2025.
2. EBITDA Margin Pressure
Despite top-line gains, adjusted EBITDA margin fell by 120 basis points to 11.3% as labor expenses climbed 12% and consumable supply costs surged. The company cited industry-wide staffing shortages and inflation in medical supplies as key margin headwinds.
3. Guidance and Strategic Outlook
Management reaffirmed its full-year revenue target of $1.45–1.50 billion, pointing to ongoing clinic expansions and technology investments to sustain growth. However, leadership warned that reimbursement pressures and persistent labor constraints could temper profitability gains in the coming quarters.