RadNet Reports Fourth Quarter 2024 Results, Including Record Revenue and Adjusted EBITDA (1) and Releases 2025 Financial Guidance Total Company Revenue increased 13.5% to a quarterly record of $477.

RadNet Reports Fourth Quarter 2024

Results, Including Record Revenue and Adjusted EBITDA(1) and Releases 2025 Financial Guidance

LOS ANGELES, California, February 27, 2024

- RadNet, Inc. (NASDAQ: RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic

imaging services through a network of 398 owned and/or operated outpatient imaging centers, today reported financial results for its fourth

quarter and full-year ended December 31, 2024.

Dr. Howard Berger, President and Chief Executive

Officer of RadNet, commented, "I am very pleased with our performance in the fourth quarter and for full-year 2024. Relative to

last year's fourth quarter, Revenue increased 13.5% and Adjusted EBITDA(1) increased 14.0%. This performance was driven

by strong aggregate procedural volume growth of 8.0% and same center procedural growth of 4.0%. This performance enabled us to meet or

exceed guidance levels we set at the beginning of 2024 and revised upward throughout the year."

Dr. Berger continued, "During the fourth

quarter, we continued to experience increased demand in virtually all of our markets. This demand was the primary catalyst for the investments

made to expand capacity by the opening of nine new centers during the year. Throughout 2024, the centers within health system partnerships

grew from 130 at the beginning of 2024 to 153 by the end of the year. Joint venture facilities now represent 38.4% of the 398 locations."

"During 2024, significant progress was made

in the Digital Health division, culminating with the fourth quarter launch of DeepHealth OS, SmartMammoTM and TechLiveTM

solutions in addition to expansion of the AI clinical tools in breast, lung, prostate and brain. We intend to implement these new solutions

throughout the RadNet network during 2025, and they should create significant efficiencies in our operations that will help address challenges

resulting from the shortage and rising cost of skilled labor. Furthermore, these solutions will enable us to expand capacity by streamlining

workflow and automating processes that will improve the patient experience," added Dr. Berger.

"During 2024, liquidity and financial leverage

were carefully managed, as highlighted by a $230 million stock offering completed in March, a debt refinancing completed in April which

lowered our cost of capital and extended maturities through 2031 and a debt repricing transaction completed in November which lowered

the interest cost on RadNet's credit facility. As a result of these actions and a focus on margins and Adjusted EBITDA(1)

growth, at year-end 2024, net debt to Adjusted EBITDA(1) fell below 1.0x, from approximately 2.0x at year-end 2023. The cash

balance at the end of 2024 grew to $740 million, from $342 million at year-end 2023," concluded Dr. Berger.

Fourth Quarter Report:

For the fourth quarter of 2024, RadNet reported

Total Company Revenue of $477.1 million and Adjusted EBITDA(1) of $75.0 million. Revenue increased $56.7 million (or 13.5%)

and Adjusted EBITDA(1) increased $9.2 million (or 14.0%) as compared with the fourth quarter of 2023.

For the fourth quarter of 2024, RadNet reported

Digital Health Revenue of $18.9 million (inclusive of intersegment revenue) and Adjusted EBITDA(1) of $4.5 million. Revenue

increased $4.1 million (or 28.1%) and Adjusted EBITDA(1) increased $1.7 million (or 61.6%) as compared with the fourth quarter

There were a number of unusual or one-time items

impacting the fourth quarter including: $1.1 million in severance expense related to cost-savings initiatives; $2.5 million impairment

loss on lease abandonment; $1.1 million expense related to leases for de novo facilities under construction that have yet to open their

operations; $462,000 of acquisition transaction costs; $2.4 million loss in conjunction with extinguishment of debt and related expenses

as a result of the Company's refinancing and repricing debt transactions; $5.0 million of non-capitalized research and development

expenses related to the DeepHealth Cloud OS and generative AI; and $577,000 of non-cash loss from interest rate swaps. Adjusting for the

above items, Total Company Adjusted Earnings(3) was $16.7 million and diluted Adjusted Earnings Per Share(3) was

$0.22 during the fourth quarter of 2024. This compares with Total Company Adjusted Earnings(3) of $9.9 million and diluted

Adjusted Earnings Per Share(3) of $0.15 during the fourth quarter of 2023.

Unadjusted for unusual or one-time items impacting

the fourth quarter, Total Company Net Income for the fourth quarter of 2024 was $5.3 million as compared with a Total Company Net Loss

of $1.9 million for the fourth quarter of 2024. Fully diluted Net Income Per Share for the fourth quarter of 2024 was $0.07, compared

with a fully diluted Net Loss per share of $(0.03) in the fourth quarter of 2023, based upon a weighted average number of diluted shares

outstanding of 75.5 million shares in 2024 and 67.9 million shares in 2023.

For the fourth quarter of 2024, as compared with

the prior year's fourth quarter, MRI volume increased 13.4%, CT volume increased 13.9% and PET/CT volume increased 23.9%. Overall

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 8.0% over the

prior year's fourth quarter. On a same-center basis, including only those centers which were part of RadNet for both the fourth

quarters of 2024 and 2023, MRI volume increased 8.5%, CT volume increased 8.7% and PET/CT volume increased 16.3%. Overall same-center

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 4.0% over the

prior year's same quarter.

For full-year 2024, RadNet reported Total Company

Revenue of $1,829.7 million and Adjusted EBITDA(1) of $279.5 million. Revenue increased $213.0 million (or 13.2%) and Adjusted

EBITDA(1) increased $47.1 million (or 20.3%) as compared with full-year 2023.

For full-year 2024, RadNet reported Digital Health

Revenue (inclusive of intersegment revenue) of $65.7 million and Adjusted EBITDA(1) of $14.6 million. Revenue increased $16.1

million (or 32.5%) and Adjusted EBITDA(1) increased $8.1 million (or 124.0%) as compared with full-year 2023.

Unadjusted for one-time or unusual items, Total

Company Net Income for 2024 was $2.8 million as compared with a Total Company Net Income of $3.0 million in 2023. Fully diluted Net Income

Per Share for 2024 was $0.04, compared with a Net Income per share of $0.05 in 2023, based upon a weighted average number of diluted shares

outstanding of 74.8 million shares in 2024 and 64.7 million shares in 2023.

Actual 2024 Results vs. 2024 Guidance

Imaging Center Segment

Digital Health Segment

Dr. Berger highlighted, "In January and

February of 2025, we experienced more severe winter weather conditions than last year in our East Coast and Texas operations as well as

catastrophic fires in Southern California. These unanticipated events had a significant impact on the utilization of healthcare services

in these regions, which resulted in an estimated loss of $22 million of Revenue and $15 million of Adjusted EBITDA(1) to the

RadNet operations. These significant events have caused a revision to the first quarter of our initial 2025 Imaging Center segment budget,

which is now reflected in our full-year 2025 guidance."

RadNet reports 2025 guidance ranges as follows:

Imaging Center Segment

Digital Health Segment

Dr Berger added, "Within the Imaging Center

segment, 2025 performance will be impacted by continued focus on same-center performance, tuck-in acquisitions, increasing reimbursement

efforts, expanded and new health system joint ventures and de novo center openings. Incorporated into 2025 guidance is continued increases

in salaries, wages and benefits, which is indicative of broader industry conditions. To address the labor challenges, we will be focused

in 2025 on the implementation of the Digital Health solutions intended to drive automation and efficiencies in the utilization of labor."

"Within the Digital Health segment, 2025

growth will be driven by a variety of factors including, sales of the new DeepHealth OS Operating and Diagnostic software suites, sales

and licensing revenue from the new SmartTechologyTM products (eg, SmartMammoTM), licensing fees from the TechLiveTM

technologist remote-control and automation technology and further licensing and patient revenue from mammography, lung, prostate and brain

AI solutions. In 2025, significant infrastructure investments will be made in building sales, marketing and implementation teams and we

will pursue completing potential acquisitions, both of which will contribute to the long-term success in selling and licensing Digital

Health solutions to external customers", concluded Dr. Berger.

Conference Call for Tomorrow

Dr. Howard Berger, President and Chief Executive

Officer, and Mark Stolper, Executive Vice President and Chief Financial Officer, will host a conference call tomorrow, February 28th,

at 10:30 a.m. Eastern Time. During the call, management will discuss the Company's 2024 fourth quarter and year-end results.