RadNet Achieves Record Revenue and Adjusted EBITDA in Q4 2024, Driven by Strong Demand for Diagnostic Imaging Services
RadNet, Inc., a leading provider of diagnostic imaging services, announced record revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter of 2024. The company's strong performance was driven by increased demand for diagnostic imaging services across its markets, as well as improved reimbursement from commercial payers.
Total company revenue increased 13.5% to $477.1 million in Q4 2024, while adjusted EBITDA rose 14% to $75 million compared to the same period last year. Digital Health revenues grew 28.1% to $18.9 million, with adjusted EBITDA increasing 61.6% to $4.5 million.
Imaging center revenue was boosted by increased demand in virtually all of RadNet's markets, as patients increasingly turn to freestanding ambulatory imaging centers over hospital-based alternatives due to their lower costs. This led to an aggregate procedural volume growth of 8% and a same-center procedural volume increase of 4% compared to the same period last year.
"We're very pleased with our performance in the fourth quarter," said Dr. Howard Berger, CEO of RadNet. "Our strong revenue growth was driven by increased demand for diagnostic imaging services across our markets, as well as improved reimbursement from commercial payers who recognize the important role we play as a lower-priced alternative to hospital-based imaging."
RadNet's focus on advanced imaging technologies such as MRI, CT, and PET/CT also contributed to its strong performance. During Q4 2024, advanced imaging represented 26.8% of RadNet's procedural volume, an increase of 137 basis points from the same period last year.
The company invested heavily in new facilities during 2024, opening nine de novo centers in markets where there are patient backlogs or a need for additional capacity. These new centers are expected to contribute significantly to long-term performance and growth.
"Our focus on delivering high-quality diagnostic imaging services while improving patient outcomes has driven our success," said Mark Stolper, Executive Vice President and Chief Financial Officer of RadNet. "We're confident that our strong momentum will continue into 2025."
