TacticScaleWhat RadNet Does & How It Makes Money (RDNT)
Updated October 2026 · reflects RadNet's latest reported financials
U.S. outpatient diagnostic imaging center operator with AI radiology software. Most revenue comes from performing diagnostic imaging procedures at its outpatient centers.
How RadNet makes money
Most revenue comes from performing diagnostic imaging procedures at its outpatient centers. Its Digital Health segment adds income from selling imaging IT systems (PACS), radiology informatics and AI software to radiology providers.
What RadNet does
RadNet, founded in 1981 and headquartered in Los Angeles, is an operator of outpatient diagnostic imaging centers in the United States, offering MRI, CT, PET, nuclear medicine, mammography, ultrasound, X-ray, fluoroscopy and multi-modality imaging. This Imaging Centers segment is the core of the business. Its Digital Health segment develops imaging software: systems that store, display and distribute digital images (PACS), informatics built for outpatient radiology, AI suites that assist radiologists with breast, lung and prostate images, prostate cancer screening solutions, and DeepHealth OS, a cloud-native operating system for running radiology services. This pairs a large imaging-services footprint with a growing AI and software business.
Products & services
- Outpatient imaging centers (MRI, CT, PET, mammography, ultrasound)
- Picture archiving and communication systems (PACS)
- AI suites for breast, lung and prostate imaging
- Prostate cancer screening solutions
- DeepHealth OS cloud-native radiology operating system
- Outpatient radiology informatics
What is RadNet worth?
On an owner-earnings DCF, RadNet's most-likely value is about $22 versus a recent price near $71 (68% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$10) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 17.8× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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