So here's a company that's decided the future of medical imaging is artificial intelligence, and it's putting its money where its mouth is. On Monday, RadNet, Inc. (RDNT) reported a record fourth quarter, beating Wall Street's expectations, and then promptly announced it's spending up to $270 million to buy a Paris-based AI firm called Gleamer. The market liked the news, sending shares higher.
Let's talk about the quarter first, because it's the kind of performance that gives a company the confidence to make a big bet. Revenue jumped 14.8% year-over-year to $547.7 million, which was nicely ahead of the $515.7 million analysts were expecting. Adjusted EBITDA, a key measure of profitability, grew even faster at 16.9% to $87.7 million. On a per-share basis, adjusted earnings came in at 23 cents, beating the estimate of 20 cents.
The driver? People are getting a lot of scans. Advanced imaging procedures—think MRIs, CTs, and PET/CTs—climbed 14.1% compared to last year. Even looking at just the centers RadNet already owned, that growth was a healthy 9.6%. PET/CT scans led the charge, but MRI and CT also posted double-digit gains. It seems the trend toward more complex, higher-acuity imaging is continuing to outpace routine exams.
There was also a bright spot in the company's Digital Health segment. That revenue, which includes some internal business, skyrocketed 48.2% to $27.9 million. Now, it's still a relatively small piece of the overall pie, but it's scaling up.
Now, if you look at the bottom line on a pure, unadjusted basis, RadNet actually reported a small net loss of $0.6 million, or 1 cent per share. That's a swing from a profit of $5.3 million a year ago. But the company says that's mostly due to one-time and nonrecurring items—the kind of accounting noise that gets smoothed out in those "adjusted" figures Wall Street watches.
Feeling good about its momentum, RadNet laid out some ambitious targets for 2026. For its core Imaging Center business, it's guiding for revenue growth of 17% to 19% and adjusted EBITDA growth of 18% to 22%. Even more impressive is the forecast for free cash flow, which it expects to grow between 29% and 41%. The Digital Health segment is projected to grow a staggering 46% to 56%.
And that brings us to the big news of the day: the acquisition. RadNet is buying Gleamer for up to 230 million euros (roughly $270 million) in an all-cash deal. Gleamer is a radiology AI developer with over 130 employees and a cloud-based platform. It has more than 700 customer contracts spread across 44 countries and a portfolio of software that's cleared for use in the U.S. and Europe, covering areas like musculoskeletal, breast, lung, and neurologic imaging.
Why does RadNet want it? In the words of CEO Dr. Howard Berger, it's about building "the most comprehensive collection of clinical AI solutions of any company worldwide." The logic is straightforward: imaging volumes are going up, but there's a shortage of radiologists to read all those scans. Automation is the answer. This is particularly relevant for high-volume, lower-cost exams like X-rays, which make up nearly a quarter of RadNet's imaging volume. By using AI to help triage and analyze these images, the company hopes to improve efficiency, reduce costs, and get patients their results faster.
Gleamer isn't just a promising technology; it's a business with serious growth. Its annual recurring revenue grew at a compound rate above 90% from 2022 to 2025 and is projected to hit about $30 million in 2026. RadNet expects the integration to start paying off by the third quarter of next year, contributing to cost savings and better patient care.
It's a bold move, but RadNet has the cash to do it. The company ended the year with over $767 million in cash and equivalents. So, it's using a strong quarter as a springboard to double down on its AI strategy, betting that the combination of its massive imaging network and Gleamer's software will create a powerhouse in diagnostic automation. The market's initial reaction suggests investors are buying the vision.
