RadNet, Inc.RDNT
RadNet, Inc. Segments Disclosure
SEGMENT REPORTING
Our chief operating decision maker ("CODM"), who is also our CEO, evaluates the financial performance of our segments based upon their respective revenue and segmented internal profit and loss statements prepared on a basis not consistent with GAAP. The CODM considers actual to budget and current year actual to prior year actual for revenue and other profit and loss measures on a monthly basis for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment. We do not report balance sheet information by segment since it is not reviewed by our CODM to evaluate segment performance or to make resource allocation decisions.
Our Imaging Center segment provides physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders. Services include magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), nuclear medicine, mammography, ultrasound, diagnostic radiology (X-ray), fluoroscopy and other related procedures. The vast majority of our centers offer multi-modality imaging services, a strategy that diversifies revenue streams, reduces exposure to reimbursement changes and provides patients and referring physicians one location to serve the needs of multiple procedures.
Our Digital Health segment develops and deploys clinical applications to enhance interpretation of medical images and improve patient outcomes with an emphasis on brain, breast, prostate, and pulmonary diagnostics. Included in the segment is our eRad subsidiary, which designs the underlying critical scheduling, data storage and retrieval systems necessary for imaging center operation.
In the normal course of business, our Imaging Center and Digital Health segments enter into transactions with each other. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues recognized by a segment and expenses incurred by the counterparty are eliminated in consolidation and do not affect consolidated results.
The following tables reflect certain financial data for each reportable segment:
Year Ended December 31, 2025 | |||||||||||
| Imaging Center | Digital health | Total | |||||||||
| Revenues from external customers | $ | 1,988,193 | $ | 52,017 | $ | 2,040,210 | |||||
| Intersegment revenues | — | 40,674 | 40,674 | ||||||||
| $ | 1,988,193 | $ | 92,691 | $ | 2,080,884 | ||||||
| Reconciliation of revenue | |||||||||||
| Elimination of intersegment revenues | (40,674) | ||||||||||
| Total consolidated revenues | $ | 2,040,210 | |||||||||
| Less: | |||||||||||
| Other segment items* | $ | 1,745,989 | $ | 107,973 | |||||||
| Segment profit (loss) | 242,204 | (15,282) | 226,922 | ||||||||
| Reconciliation of segment profit | |||||||||||
| Depreciation and amortization | (152,127) | ||||||||||
| Loss on sale and disposal of equipment and other | (9,658) | ||||||||||
| Severance costs | (3,145) | ||||||||||
| Interest expense | (69,913) | ||||||||||
| Equity in earnings of joint ventures | 14,876 | ||||||||||
| Non-cash change in fair value of interest rate swaps | (7,112) | ||||||||||
| Other income | 32,066 | ||||||||||
| Income before income taxes | $ | 31,909 | |||||||||
*Other segment items include operating expenses, inclusive of cost of operations and lease abandonment charges.
| Year Ended December 31, 2024 | |||||||||||
| Imaging Center | Digital health | Total | |||||||||
| Revenues from external customers | $ | 1,792,319 | $ | 37,345 | $ | 1,829,664 | |||||
| Intersegment revenues | — | 28,361 | 28,361 | ||||||||
| 1,792,319 | 65,706 | 1,858,025 | |||||||||
| Reconciliation of revenue | |||||||||||
| Elimination of intersegment revenues | (28,361) | ||||||||||
| Total consolidated revenues | $ | 1,829,664 | |||||||||
| Less: | |||||||||||
| Other segment items* | $ | 1,542,274 | $ | 69,114 | |||||||
| Segment profit (loss) | 250,045 | (3,408) | 246,637 | ||||||||
| Reconciliation of segment profit | |||||||||||
| Depreciation and amortization | (137,838) | ||||||||||
| Loss on sale and disposal of equipment and other | (2,276) | ||||||||||
| Severance costs | (1,902) | ||||||||||
| Interest expense | (79,849) | ||||||||||
| Equity in earnings of joint ventures | 14,472 | ||||||||||
| Non-cash change in fair value of interest rate swaps | (8,006) | ||||||||||
| Debt restructuring and extinguishment expenses | (11,292) | ||||||||||
| Other income | 24,916 | ||||||||||
| Income before income taxes | $ | 44,862 | |||||||||
*Other segment items include operating expenses, inclusive of cost of operations and lease abandonment charges.
Year Ended December 31, 2023 | |||||||||||
| Imaging Center | Digital health | Total | |||||||||
| Revenues from external customers | $ | 1,590,564 | $ | 26,066 | $ | 1,616,630 | |||||
| Intersegment revenues | — | 23,510 | 23,510 | ||||||||
| 1,590,564 | 49,576 | 1,640,140 | |||||||||
| Reconciliation of revenue | |||||||||||
| Elimination of intersegment revenues | (23,510) | ||||||||||
| Total consolidated revenues | $ | 1,616,630 | |||||||||
| Less: | |||||||||||
| Other segment items* | $ | 1,381,847 | $ | 42,048 | |||||||
| Segment profit (loss) | 208,717 | 7,528 | 216,245 | ||||||||
| Reconciliation of segment profit | |||||||||||
| Depreciation and amortization | (128,391) | ||||||||||
| Loss on sale and disposal of equipment and other | (2,187) | ||||||||||
| Severance costs | (3,778) | ||||||||||
| Interest expense | (64,483) | ||||||||||
| Equity in earnings of joint ventures | 6,427 | ||||||||||
| Non-cash change in fair value of interest rate swaps | (8,185) | ||||||||||
| Debt restructuring and extinguishment expenses | — | ||||||||||
| Other income | 6,354 | ||||||||||
| Gain on contribution of imaging centers into joint venture | 16,808 | ||||||||||
| Income before income taxes | $ | 38,810 | |||||||||
*Other segment items include operating expenses, inclusive of cost of operations and lease abandonment charges.
Substantially all of our property, equipment and right-of-use assets were located in the United States as of December 31, 2025 and 2024.
Service revenue attributed to countries that represent a significant portion of consolidated service revenue are as follows (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| United States | $ | 2,006,237 | $ | 1,802,422 | $ | 1,599,745 | |||||||||||
| Other countries | 33,973 | 27,242 | 16,885 | ||||||||||||||
| Total | $ | 2,040,210 | $ | 1,829,664 | $ | 1,616,630 | |||||||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.