RadNet, Inc. (RDNT): Business Model Canvas [Dec-2025 Updated]

You're looking to map out exactly how a major player like RadNet, Inc. actually makes its money, especially as they pivot from just scans to tech. Honestly, it's a fascinating hybrid model: they run a massive physical footprint-over 400 centers-while aggressively building out their DeepHealth AI platform. To give you a sense of scale based on their 2025 outlook, core imaging center services are guiding toward roughly $1.835 billion to $1.885 billion, but that new Digital Health segment is expected to chip in $80 million to $90 million this year alone. Dive into the full Business Model Canvas below to see precisely how their key partnerships, resources, and revenue streams connect this physical-digital strategy.

RadNet, Inc. (RDNT) - Canvas Business Model: Key Partnerships

You're looking at how RadNet, Inc. builds scale and deploys technology through its external relationships. It's not just about owning centers; it's about the strategic alliances that fuel capital-light growth and AI adoption. Honestly, the JV structure is a big part of their playbook for expansion.

Hospital Systems: Joint Ventures (JVs) for capital-light expansion are a core component of the growth strategy. As of June 30, 2025, RadNet, Inc. reported that 38% of its imaging centers operate as joint ventures. This structure allows for expansion without deploying 100% of the capital internally. For context on the year, the company deployed $20.5 million in equity into joint ventures year-to-date through the first six months of 2025. Management noted in their November 2025 call that the outlook for new partnerships with health systems remains robust.

Here's a quick look at some partnership-related metrics and scale as of mid-to-late 2025:

Managed Care Organizations (MCOs): Strategic payor contracts are essential for driving volume through in-network coverage. The company cited increased reimbursement from commercial and capitated payors as a factor contributing to its record Q3 2025 performance. The rollout of the AI-powered Enhanced Breast Cancer Detection (EBCD) program is also seen as indicative of traction RadNet, Inc. is gaining with commercial payors for advanced screening reimbursement.

Technology Vendors: Collaborations for AI integration are heavily focused on the Digital Health segment. RadNet, Inc.'s subsidiary, DeepHealth, has a significant, expanding relationship with GE HealthCare. This collaboration, which was expanded in November 2025, aims to integrate AI across multiple modalities. For instance, the AI-powered Thyroid Suite, when used, has shown a 30% reduction in exam times, with radiologists accepting the results without correction in about 94% of over 4,070 generated reports. Furthermore, the partnership with ConcertAI's TeraRecon is noted as a strategic collaboration for DeepHealth, though specific financial metrics tied to this relationship aren't public.

Large Physician Groups: AI partnerships are key to deploying population health initiatives. The EBCD program has been adopted by affiliates of one of Southern California's largest health networks, including Regal Medical Group, Lakeside Community Healthcare, and ADOC Medical Group. These groups manage nearly 600,000 members across Los Angeles, Ventura, Orange, San Bernardino, Riverside, and San Diego counties, giving RadNet, Inc. a large patient base for its AI screening tools.

Medical Equipment OEMs: Agreements for advanced scanners are foundational to maintaining high-quality service delivery. The expanded partnership with GE HealthCare is a prime example, focusing on integrating DeepHealth's AI solutions into GE's Senographe Pristina mammography systems worldwide and incorporating TechLive and Thyroid AI into GE's ultrasound products. This leverages the scale of a major OEM for the deployment of RadNet, Inc.'s proprietary technology. While Siemens is mentioned in market news, the specific details of a direct, large-scale equipment OEM agreement comparable to the GE HealthCare one are not detailed in the latest reports.

Finance: review Q3 2025 cash balance of $804.7 million against YTD JV investment by end of week.

RadNet, Inc. (RDNT) - Canvas Business Model: Key Activities

You're looking at the core engine of RadNet, Inc. (RDNT) operations as of late 2025. These are the activities that keep the lights on and drive growth, grounded in the latest reported figures.

Operating and managing a network of over 400 outpatient imaging centers

RadNet, Inc. functions as the largest provider of freestanding, fixed-site outpatient diagnostic imaging in the country. The scale of this operation is significant, requiring constant management across multiple states.

• Total number of imaging centers across the U.S. as of September 30, 2025: 407.
• Total number of centers as of Q2 2025: 405.
• Geographic footprint spans 8 states: Arizona, California, Delaware, Florida, Maryland, New Jersey, New York, and Texas.
• Centers held through joint venture structures as of Q2 2025: 154.
• The company sees the joint venture percentage climbing to 50%.

Developing and deploying the DeepHealth AI platform and its clinical suites

The Digital Health segment is a major focus, integrating AI across the enterprise and for external customers. This is where the technology investment translates into measurable operational and clinical impact.

Here's a look at the financial contribution and scale of the AI deployment:

The clinical impact metrics from the deployed suites are concrete:

• Breast Suite supports over 10 million mammograms annually globally.
• Breast cancer detection increase from a study using the Breast Suite: 21% across 579,000 women.
• TechLive reduced MR room closures by 42%.
• Thyroid Suite deployment across over 200 RadNet sites showed a 94% acceptance rate of AI measurements without correction.

Executing strategic acquisitions and new center construction (13 new projects planned for 2025)

Capacity expansion is driven by both building new sites and acquiring existing ones. The company had aggressive targets for 2025 construction.

• Number of de novo projects in the pipeline for 2025 (as of March 2025): 13.
• New centers opened in 2024: eight.
• Cost to erect a new 5,000- to 10,000-square-foot facility: approximately $5 million to $7 million.
• Estimated revenue per new facility: around $6 million.
• Target return on investment capital for new builds: 15% to 25%.
• Typical multiple for smaller 'tuck-in' acquisitions: 4 to 7 times EBITDA.
• Acquisition of iCAD, Inc. completed in July 2025.
• Acquisition of CIMAR UK completed in November 2025.

Negotiating and managing complex payor and reimbursement contracts

Contract management is key to margin performance, with a clear shift in strategy to favor certain payment models. The efficiency of collecting revenue reflects this management.

• Days Sales Outstanding (DSO) reduced to 31.9 days as of Q3 2025, the lowest historical level.
• The company is transitioning away from capitation contracts toward higher-rate fee-for-service arrangements, primarily in California.

Performing high-volume advanced imaging (MRI, CT, PET/CT) procedures

The focus on advanced imaging modalities is evident in the volume growth, which delivers higher reimbursement and revenue per procedure. RadNet, Inc. completes more than 10 million outpatient imaging procedures annually.

Here is the modality mix based on payments received in Q2 2025:

Volume growth for advanced imaging procedures shows strong momentum:

• Aggregate advanced imaging volumes (CT, MRI, PET/CT) up 9% in Q2 2025 versus the same three months last year.
• Aggregate advanced imaging procedural volumes up 13.0% in Q3 2025 year-over-year.
• Same-center advanced imaging volumes up 9.9% in Q3 2025.
• Same-center PET/CT volume growth (Q2 2025): Up 16.2%.
• Same-center MRI volume growth (Q2 2025): Up 6.6%.
• Same-center CT volume growth (Q2 2025): Up 5.9%.
• Advanced imaging modalities represented 27.5% of total procedural volumes in Q2 2025, up from 26.5% in Q2 2024.

RadNet, Inc. (RDNT) - Canvas Business Model: Key Resources

You're looking at the core assets that make RadNet, Inc. tick, the stuff that can't easily be copied. These aren't just line items; they are the engines driving their growth, especially in the digital health space.

Extensive fixed-site network

RadNet, Inc. is the largest provider of freestanding, fixed-site outpatient diagnostic imaging in the country. As of the second quarter of 2025, the total number of their imaging centers across the U.S. stood at 405. This network spans core markets including Arizona, California, Delaware, Florida, Maryland, New Jersey, New York, and Texas. A significant portion of this physical footprint is built through partnerships; about 38%, or 152 of the 398 centers mentioned in early 2025, were held through joint ventures (JVs) with hospital systems. The company sees this JV structure as a big growth engine, aiming for that percentage to climb to 50%. These centers offer a multi-modality strategy, which is key to revenue diversification.

The types of advanced imaging equipment housed within these centers support a comprehensive service offering:

• MRI (Magnetic Resonance Imaging)
• CT (Computed Tomography)
• PET (Positron Emission Tomography)
• Nuclear Medicine
• Mammography
• Ultrasound
• Diagnostic Radiology (X-ray)
• Fluoroscopy

Honestly, RadNet, Inc. claims to purchase more imaging equipment than any other company in the U.S.

Proprietary AI platform and Massive Data Asset

The technological backbone is DeepHealth, a wholly owned subsidiary, anchored by DeepHealth OS, which is described as a cloud-native operating system. This platform unifies clinical and operational intelligence. The AI portfolio is substantial, with the DeepHealth Breast Suite supporting over 10 million mammograms annually for its workflow tools and risk assessment applications. This data scale is critical; adding the installed customer base from the iCAD acquisition was projected to bring the total annual mammograms impacted by their AI offerings to a combined 10 million across 1,700 sites in 50 countries.

The real-world deployment numbers show adoption, too. As of late November 2025, over 5,000 radiologists were leveraging DeepHealth's current solutions across more than 200 sites within RadNet, Inc. Furthermore, the TechLive remote scanning solution has connected more than 400 scanners across modalities like MR, Ultrasound, CT, and PET/CT within RadNet, Inc. facilities since February 2025.

Here's a snapshot of the Digital Health segment's financial contribution and scale as of Q1 2025:

Clinical and technical talent

The human capital is split between the core imaging operations and the Digital Health R&D team. As of September 30, 2025, RadNet, Inc. had 11,021 total employees. The AI-focused team saw an infusion of talent from the iCAD acquisition, which brought a "strong" workforce of 66 FTEs with AI expertise. That specialized team included 26 focused on research and development.

You can see the scale of the talent pool in the table below:

This talent base, combined with the physical and digital assets, forms the core of RadNet, Inc.'s competitive position. Finance: draft 13-week cash view by Friday.

RadNet, Inc. (RDNT) - Canvas Business Model: Value Propositions

You're looking at how RadNet, Inc. (RDNT) delivers distinct value in the crowded diagnostic imaging space. It's not just about volume; it's about proving better outcomes at a better price point than the hospital down the street. Honestly, their value proposition is built on a few very concrete, data-backed pillars.

Cost-Effective Care: Outpatient setting offers lower costs than traditional hospital imaging.

The fundamental value here is shifting procedures out of the higher-cost hospital environment and into RadNet, Inc.'s outpatient centers. This translates directly to lower costs for the system and, ultimately, for the patient. You see this commitment reflected in the volume shifts. In the third quarter of 2025, aggregate advanced imaging volume, which includes MRI, CT, and PET/CT, increased by 13.0% year-over-year, showing patients are choosing this setting. For the full year 2025, the Imaging Center segment revenue guidance was up to $1.93 billion.

Clinical Excellence: AI-powered diagnostics that show a 21.6% higher breast cancer detection rate.

This is where the DeepHealth subsidiary really moves the needle. The AI-Supported Safeguard Review Evaluation (ASSURE) study, which looked at over 579,000 women across 109 sites, provided the proof you need. The AI-powered workflow increased the cancer detection rate by 21.6% over standard 3D mammography. Plus, they managed to keep recall rates consistent while increasing the positive predictive value by 15%. For a specific, high-risk group, the detection rate boost was even higher.

Here's a quick look at the clinical impact data from the ASSURE study:

The DeepHealth Breast Suite itself supports over 10 million mammograms annually.

Convenience and Access: Online scheduling, extended hours, and a large geographic footprint.

RadNet, Inc. is the largest provider of freestanding, fixed-site diagnostic imaging services in the U.S. by location count. As of early 2025, they operated 401 outpatient imaging centers. They are concentrated in 8 core states: Arizona, California, Delaware, Florida, Maryland, New Jersey, New York, and Texas. They are actively expanding this access, with 13 new de novo center projects in the pipeline for 2025. A key part of their access strategy involves partnerships; about 38% (or 152/398 centers as of early 2025) are held through Joint Venture (JV) deals, with a target to climb to 50%.

Operational Efficiency: DeepHealth OS streamlines workflow for radiologists and staff.

The DeepHealth OS is the engine unifying clinical and operational intelligence. This is where you see the impact on labor and throughput. For instance, the TechLive remote scanning capability, deployed across 33 MR systems in their New York area facilities since February 2025, resulted in 42% fewer MR room closures. This directly drives higher throughput. Furthermore, in their Thyroid Suite deployment across over 200 RadNet sites, radiologists accepted AI-based measurements without correction in greater than 94% of the cases reviewed. The Digital Health segment, which houses this technology, is showing strong financial results, posting revenue of $19.2 million in Q1 2025 (a 31.1% increase year-over-year), and even higher revenue of $24.8 million in Q3 2025 (a 51.6% jump year-over-year).

Value-Based Alignment: AI tools support proactive, preventative screening programs for payors.

The focus on superior detection and efficiency directly aligns with payor goals for value-based care, which emphasizes outcomes over volume. The EBCD program, which uses the AI workflow, is offered to patients for an extra charge of $40 to have the AI read over mammograms. By catching cancer earlier, as demonstrated by the 21.6% detection rate increase, RadNet, Inc. supports the core tenet of value-based care: better patient outcomes at a lower systemic cost. The company's strong cash balance of $804.7 million as of September 30, 2025, and a Net Debt to Adjusted EBITDA ratio of approximately 1.0x, gives them the flexibility to aggressively pursue these value-driving partnerships.

Finance: draft 13-week cash view by Friday.

RadNet, Inc. (RDNT) - Canvas Business Model: Customer Relationships

High-touch patient service: Focus on convenience and a positive experience at the center.

The focus on patient experience is supported by operational improvements like the TechLive remote scanning solution, which drove 42% fewer MR room closures in a New York pilot. In the first quarter of 2025, RadNet, Inc. posted a total procedure volume of 2,742,973 exams. For that same quarter, Mammography volume totaled 476,378 procedures. Advanced imaging mix grew to 28.2% of all procedures in the third quarter of 2025, up from 26.7% in the third quarter of 2024.

Dedicated account management: For large payors and hospital Joint Venture partners.

As of December 31, 2024, 38% or 152/398 of RadNet, Inc.'s imaging centers were held through Joint Venture (JV) deals, with a goal to climb to 50%. RadNet, Inc. plans to continue expanding through additional JVs, particularly with hospital systems. Capitation payments represented 6.1% of the payor mix in the second quarter of 2025, a figure management noted was intentionally trending down as contracts convert to higher-priced fee-for-service arrangements.

Referral-based: Strong relationships with referring physicians for consistent volume.

The structure of Joint Ventures often includes an agreement to ask hospital partners to use their influence and relationships with community-based physicians to drive referrals into the jointly owned facilities. RadNet, Inc. is the largest operator of freestanding, fixed-site outpatient diagnostic imaging service centers in the United States, based on number of centers and revenue.

B2B sales and support: Direct sales of DeepHealth software to external health systems.

RadNet, Inc.'s Digital Health segment revenue for the third quarter of 2025 was $24.8 million. For the first nine months of 2025, Digital Health Revenue reached $64.8 million. The DeepHealth Thyroid AI demonstrated up to a 30% reduction in scan slot time during initial deployment at RadNet outpatient imaging centers. Deployment of DeepHealth solutions across more than 200 sites within RadNet showed that radiologists accepted AI-based measurements and characterization without correction in greater than 94% of cases involving more than 4,070 nodules.

Digital self-service: Online portals for patient scheduling and report access.

Patient portals allow users to schedule appointments online and access radiology reports and images. The DeepHealth Operations Suite introduces new Patient Engagement solutions designed to improve communication and scheduling.

Here's a quick look at some operational metrics supporting these customer-facing activities:

RadNet, Inc. (RDNT) - Canvas Business Model: Channels

The channels RadNet, Inc. uses to reach its customers are a blend of traditional high-volume physical presence and rapidly scaling digital health distribution.

Physical Imaging Centers: This remains the bedrock, with RadNet, Inc. operating as the largest provider of freestanding, fixed-site outpatient diagnostic imaging in the United States based on locations and annual imaging revenue. As of September 30, 2025, the company owned and/or operated 407 imaging centers across its core markets: Arizona, California, Delaware, Florida, Maryland, New Jersey, New York, and Texas. A significant portion of this physical footprint is built through partnerships; about 38%, or 152/398 centers as of early 2025, were held through Joint Venture (JV) deals, with management seeing this climbing to 50% as a major growth engine. The company completed nine new centers in 2024 and had 13 projects in the pipeline for 2025.

Referring Physician Network: This traditional channel drives patient flow into the fixed-site centers. The business model benefits from a continuing shift of procedures from hospitals to ambulatory sites of care. The company is the largest outpatient imaging provider in almost all of its operating markets, which helps bolster negotiating power with health insurers.

DeepHealth Digital Sales: This represents the direct B2B sales channel for its Artificial Intelligence (AI) software solutions, marketed under the DeepHealth brand. The Digital Health segment is a key growth driver, reporting revenue of $24.8 million in the third quarter of 2025, a year-over-year increase of 51.6%. Specifically, AI revenue within this segment grew by 112% in Q3 2025. DeepHealth's expanded portfolio is deployed across RadNet, Inc.'s 407 imaging centers and other customer sites worldwide, with more than 5,000 radiologists leveraging its solutions.

Teleradiology Services: RadNet, Inc. provides teleradiology professional services to customers in the diagnostic imaging industry. The company also made strategic moves, such as the acquisition of CIMAR UK, indicating an international component to its service delivery, though specific revenue for the UK-based HLH Imaging Group is not detailed. The TechLive solution, part of the DeepHealth portfolio, acts as a multimodality, vendor-agnostic remote imaging and radiology management solution, connecting more than 400+ scanners.

Online/Mobile Platforms: Digital engagement is facilitated through platforms like the Operations Suite, a cloud-first platform unifying scheduling, billing, analytics, and patient communication, using agentic AI to reduce administrative burden. The company also uses technology like See-Mode's thyroid ultrasound technology, which was implemented across 240+ centers, noting a 30% reduction in scan time.

Here's a quick look at the financial scale of the primary revenue channels for the third quarter of 2025:

The company's robust cash balance of $804.7 million as of September 30, 2025, and a Net Debt to Adjusted EBITDA ratio of approximately 1.0x, supports the continued investment in and expansion of these diverse channels.

The deployment of AI tools shows direct channel impact:

• DeepHealth Breast Suite supports over 10 million mammograms annually.
• TechLive deployment at 64 New York area locations resulted in a 27% increase in advanced breast MRI since February 2025.
• Thyroid Suite deployment across more than 200 sites showed radiologists accepting AI-based measurements without correction in greater than 94% of cases.

Finance: review the capital allocation plan for the 13 centers currently in the 2025 construction pipeline by end of Q4.'

RadNet, Inc. (RDNT) - Canvas Business Model: Customer Segments

You're looking at the core groups that drive the revenue engine for RadNet, Inc. as of late 2025. It's a mix of direct service recipients and strategic partners, all essential to their scale.

Here's a quick look at the operational footprint that serves these segments:

The customer base is diverse, spanning from the individual patient to large institutional partners.

Patients:

These are the individuals needing routine and advanced diagnostic imaging services. The sheer volume of exams points to the scale of this segment. For instance, in the first quarter of 2025, the total procedure volume across all centers reached 2,742,973 procedures. Advanced imaging procedures are a growing focus, with aggregate MRI volume up 14.8% and PET/CT volume up 21.1% in Q3 2025 compared to the prior year.

• MRI procedures in Q1 2025: 447,330
• CT procedures in Q1 2025: 271,170
• Mammography procedures in Q1 2025: 476,378

Managed Care Payors:

Insurance companies and capitated arrangements form a critical revenue stream. RadNet, Inc. has specific data showing how their service fees break down by payor class, which helps you see where the reimbursement leverage lies. This group is definitely key to their top line.

The payor mix from the first quarter of 2024, which gives us a baseline, shows the dominance of commercial payors:

Management noted in Q2 2025 that growth was driven partly by improved reimbursement from commercial and capitated payors.

Referring Physicians:

While direct financial numbers for this segment aren't explicitly broken out like payors, their activity drives the patient volume. The company's strategy involves maintaining strong relationships with community-based physicians to drive referrals into their facilities. The overall growth in advanced imaging volumes-like the 13.0% aggregate increase in Q3 2025-is a direct reflection of their ordering patterns.

Hospital Systems/ACOs:

These partners are crucial for capital-light expansion through Joint Ventures (JVs). As of early 2025, about 38%, or 152 out of 398 centers, were held through JV deals, with a stated goal to climb to 50%. RadNet, Inc. accounts for its investment in these JVs under the equity method. The strategy is to partner with health systems that are losing outpatient business to ambulatory sites, allowing them to participate as partners.

External Radiology Groups:

This segment buys the DeepHealth AI and informatics software. The scale here is significant, with the portfolio deployed across RadNet's 407 centers and other customer sites globally.

• Over 5,000 radiologists are leveraging DeepHealth solutions.
• The DeepHealth Breast Suite supports over 10 million mammograms annually.
• The TechLive remote scanning solution connects over 400+ scanners.
• Wichita Radiological Group selected the Operations Suite™ to replace its legacy Radiology Information System.

The AI revenue within the Digital Health segment grew 112% year-over-year in Q3 2025. Finance: draft 13-week cash view by Friday.

RadNet, Inc. (RDNT) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep RadNet, Inc. running its massive network of outpatient imaging centers and its growing digital health arm. Honestly, for a company this size, the fixed costs are substantial, which is why they focus so hard on volume growth and contracting power.

Capital Expenditure: High cost of acquiring and maintaining advanced imaging equipment.

The investment in advanced imaging equipment-MRI, CT, PET/CT-is a major ongoing drain, even if the purchase itself is capitalized. RadNet, Inc. raised its full-year 2025 Capital Expenditures guidance by $7,000,000 after the second quarter, reflecting additional growth investments planned for the second half of the year. The revised guidance range for 2025 Capital Expenditures (net of proceeds from sales) is between $145 million and $155 million. Depreciation and amortization, which captures the cost of this equipment over time, was $111,275 thousand for the first nine months of 2025. That's a big number that eats into operating cash flow before you even look at interest payments.

Personnel Costs: Salaries and benefits for radiologists, technologists, and support staff.

Personnel is definitely one of the principal components of RadNet, Inc.'s expenses, alongside debt service and real estate lease expenses. While the exact 2025 dollar amount for total salaries and benefits isn't explicitly broken out in the latest reports, the company noted in early 2025 that it would focus on implementing digital health solutions to drive automation and efficiencies in labor utilization in 2025. This suggests managing headcount and labor cost inflation is a key focus area.

Real Estate/Leasing: Operating costs for over 400 physical center locations.

Operating over 407 centers as of September 30, 2025, the real estate footprint is massive. While total operating lease costs aren't itemized, related charges give you a sense of the burden. For the first nine months of 2025, Lease abandonment charges totaled $8,330 thousand. Also, Non-operational rent expenses for the same nine-month period were $2,459 thousand. You have to remember that they are constantly evaluating these property leases to reduce expenses.

Technology R&D: Ongoing investment in the DeepHealth platform and AI development.

Investment in technology, particularly the DeepHealth platform and AI solutions, is a distinct cost center. For the first nine months of 2025, Non-Capitalized R&D expenses related to the DeepHealth Cloud OS & Generative AI were $13,835 thousand. This is a forward-looking investment, as AI revenue within the Digital Health segment grew 112% year-over-year in Q3 2025.

Acquisition Costs: Expenses related to tuck-in acquisitions and new JV formation.

Growth through acquisition is a stated strategy, and that comes with upfront costs. For the first nine months of 2025, Acquisition transaction costs totaled $5,109 thousand. Just in the third quarter of 2025, these costs were $2,136 thousand. The company is actively pursuing expansion, so you should expect these transaction-related expenses to be a recurring line item.

Here's a quick look at the key cost components for the first nine months of 2025, in thousands of U.S. Dollars, where data is available:

The company operates approximately 37% (or 149 centers) through hospital joint ventures out of its total 398 centers as of the end of 2024, with plans to climb toward 50%.

RadNet, Inc. (RDNT) - Canvas Business Model: Revenue Streams

The revenue streams for RadNet, Inc. (RDNT) are fundamentally split between its core imaging center operations and its growing Digital Health segment.

Imaging Center Services: This is the primary revenue driver, stemming from patient procedures across its network. Management has provided an updated full-year 2025 guidance for Imaging Center segment total net revenue in the range of $1.900 billion to $1.930 billion. This growth is supported by strong procedure utilization; for the third quarter of 2025, aggregate advanced imaging (MRI, CT, and PET/CT) procedural volumes increased 13.0% compared to the third quarter of 2024. On a same-center basis, these advanced volumes grew 9.9% in the same period. The business mix continues to shift favorably, with advanced imaging accounting for 28.2% of all procedures in the third quarter of 2025, up from 26.7% in the third quarter of 2024.

Digital Health Segment: Revenue from the Digital Health segment, which includes DeepHealth AI software and informatics, is guided for the full year 2025 to be between $85 million and $95 million, an upward revision from previous guidance. For the nine months ended September 30, 2025, this segment generated $64.8 million in revenue. The third quarter of 2025 alone saw Digital Health Revenue of $24.8 million, representing a 51.6% increase year-over-year, partially due to the July 17, 2025, acquisition of iCAD, Inc.

Fee-for-Service: This revenue component is the mechanism through which the Imaging Center services are paid. Payments are collected from a diverse set of sources, including commercial payors, government programs like Medicare and Medicaid, and direct payments from patients. The company's focus on operational efficiency is evident in its Days Sales Outstanding (DSO), which was reduced to 31.9 days as of September 30, 2025, the lowest historical level.

Joint Venture Income: A significant portion of the Imaging Center footprint is structured through partnerships. As of the second quarter of 2025, RadNet, Inc. operated 405 outpatient imaging centers in total, with 38% of these operating as joint ventures with hospital and health systems. The equity earnings from these partnerships contribute to overall revenue.

Supplemental AI Fees: Revenue is also generated from value-added AI programs that go beyond basic workflow integration. For instance, revenue from the Enhanced Breast Cancer Detection (EBCD) AI program showed strong growth, rising 28.7% year-over-year in the third quarter of 2025. The DeepHealth Breast Suite, which integrates iCAD technologies, is now positioned to support over 10 million mammograms annually.

Here's a quick math look at the key 2025 guidance and recent performance metrics for the revenue streams:

The fee-for-service component is directly tied to the volume and reimbursement rates. You should note the company's strong cash position as of September 30, 2025, with a cash balance of $804.7 million, which supports continued investment in these revenue-generating assets.

• Imaging Center Revenue Growth Drivers: Advanced imaging mix at 28.2% of volume.
• Digital Health Growth Driver: iCAD acquisition completed July 17, 2025.
• Fee-for-Service Efficiency: DSO at 31.9 days.
• JV Structure: 405 centers in operation as of Q2 2025.

Finance: draft 13-week cash view by Friday.