RadNet announced the acquisition of CIMAR UK, a cloud‑native image‑management platform that connects more than 50% of NHS trusts and 80% of UK private hospital groups, on November 11, 2025. The deal adds CIMAR’s vendor‑neutral data connectivity and interoperability capabilities to RadNet’s DeepHealth portfolio, positioning the company to accelerate the rollout of AI services across the UK and broader European markets. The transaction is a strategic fit that expands RadNet’s global footprint and strengthens its AI‑enabled diagnostic imaging offering.
In its Q3 2025 earnings release, RadNet reported total revenue of $522.9 million, a 13.4% year‑over‑year increase that beat the consensus estimate of $498.13 million by $24.77 million. The revenue lift was driven by a 51.6% jump in Digital Health revenue to $24.8 million, fueled by AI adoption and recent acquisitions, while Imaging Center revenue grew 8.5% to $498.1 million. Adjusted EBITDA rose 15.2% to $84.9 million, and the company’s adjusted EBITDA margin expanded to 16.2% from 15.9% in Q3 2024, reflecting improved pricing power and operational leverage in high‑margin AI services.
The company’s earnings per share fell short of expectations, reporting a diluted adjusted EPS of $0.20 versus the consensus of $0.23. The miss was largely due to a modest increase in operating expenses associated with the CIMAR integration and a one‑time restructuring charge. Management noted that the EPS shortfall was offset by the revenue beat and margin improvement, underscoring the company’s ability to generate strong top‑line growth while maintaining disciplined cost control.
RadNet raised its full‑year 2025 revenue guidance to $4.396 billion–$4.400 billion from the prior $4.14 billion–$4.15 billion, and lifted adjusted EBITDA guidance to $2.151 billion–$2.155 billion. CEO Howard Berger highlighted that the guidance increase reflects confidence in sustained demand for advanced imaging and the rapid deployment of DeepHealth AI solutions. The company also reiterated its focus on scaling the Digital Health segment, which now accounts for 4.7% of total revenue but is growing at a 51.6% annual rate.
Investors reacted positively to the combination of a revenue beat, margin expansion, and a higher full‑year outlook. The market viewed the Digital Health growth and the strategic acquisition of CIMAR UK as key drivers of future profitability, while the EPS miss was seen as a manageable short‑term effect of integration costs. The overall sentiment indicates confidence in RadNet’s ability to capitalize on AI‑enabled imaging opportunities in the UK and Europe.
The acquisition of CIMAR UK, coupled with robust Q3 earnings, positions RadNet to accelerate its AI platform globally. By integrating CIMAR’s cloud‑native infrastructure, RadNet can deliver faster, more accurate diagnostics to a broader patient base, while the strong financial performance signals that the company can sustain growth and profitability as it expands its digital health footprint.
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