RadNet Reports Second Quarter Financial Results with Record Quarterly Revenue and Adjusted EBITDA (1) and Revises Upwards 2024 Financial Guidance Ranges Total Company Revenue increased 13.9% to $459

RadNet Reports Second Quarter Financial

Results with Record Quarterly Revenue and Adjusted EBITDA(1) and Revises Upwards 2024 Financial Guidance Ranges

LOS ANGELES, California, August 7, 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 operated outpatient imaging centers, today reported financial results

for its second quarter of 2024.

Dr. Howard Berger, President and Chief Executive

Officer of RadNet, commented, "Both the Imaging Center and Digital Health reportable operating segments demonstrated strong growth

and achieved record quarterly results. Total Company Revenue grew 13.9% as compared with last year's second quarter to a record

$459.7 million. The Digital Health segment Revenue of $15.8 million increased 36.4% from last year's same quarter. The strong growth

in Digital Health was, in part, driven by the AI businesses, whose Revenue increased 136.6% as compared with last year's second

quarter, mainly from the continuing success of the rollout of the Enhanced Breast Cancer Detection (EBCD) DeepHealth AI-powered screening

mammography program."

"Improved reimbursement from commercial

and capitated payors, continued strong demand for advanced imaging modalities, the growth of the Digital Health businesses and effective

cost controls resulted in an increase to Adjusted EBITDA(1) margins. Total Company EBITDA(1) margin of 15.7% during

this second quarter increased by 76 basis points over last year's second quarter." added Dr. Berger.

Dr. Berger continued, "Including the recently

announced joint venture with Providence Health System, a recent expansion of the Ventura County, California partnership with Dignity Health

and certain new de novo centers we have opened within existing joint ventures, as of the end of this second quarter, we had 149 of our

398 centers (or 37.4%) held in partnership with leading health systems. These partnerships allow us to play a more integral role within

the local healthcare communities we serve by increasing access, disseminating new technologies and improving the quality of patient care."

"Given the positive trends we continue to

experience in virtually all aspects of our business and the strong financial performance of the second quarter, we are revising upwards

certain guidance levels in anticipation of financial results that we believe will exceed both our original expectations and the amendments

we made to the guidance ranges upon releasing our first quarter 2024 results in May. We have increased 2024 guidance ranges for Revenue,

Adjusted EBITDA(1) and Free Cash Flow(2)," added Dr. Berger.

Dr. Berger continued, "In response to high

demand and patient backlogs in many of RadNet's local markets, we continue to pursue expanding capacity through the development

and construction of new imaging centers. We anticipate opening approximately six new centers by year end 2024 and an additional 15 centers

in 2025. Approximately half of these new centers will be within existing health system partnerships. Within Digital Health, but for Houston,

we are substantially complete with implementing the EBCD program. Continued development of the DeepHealth OS technology platform places

us on-track towards beginning implementation within RadNet in the coming months and within external customers as early as the first quarter

of 2025. The DeepHealth OS integrates generative AI capabilities to help us and external customers automate and drive efficiencies for

many of the back-office and support functions involved with running imaging centers."

"RadNet's balance sheet continues

to strengthen. In April, we completed a successful refinancing of our term loan and revolving line of credit, resulting in a reduction

of interest rates, an extension of maturities and the funding of additional cash to the balance sheet of approximately $168 million. At

quarter end, we had a cash balance of $741.7 million, and our leverage ratio of Net Debt to Adjusted EBITDA(1) was at a record

low, slightly above 1.0," concluded Dr. Berger.

Second Quarter Financial Results

For the second quarter of 2024, RadNet reported

Total Company Revenue of $459.7 million and Adjusted EBITDA(1) of $72.3 million. Revenue increased $56.0 million (or 13.9%)

and Adjusted EBITDA(1) increased $11.9 million (or 19.7%) as compared with the second quarter of 2023.

For the second quarter of 2024, RadNet reported

Digital Health Revenue (inclusive of intersegment revenue) of $15.8 million and Adjusted EBITDA(1) of $3.3 million. Revenue

increased $4.2 million (or 36.4%) and Adjusted EBITDA(1) increased $1.9 million (or 135.2%) as compared with the second quarter

of 2023. Digital Health Revenue and Adjusted EBITDA(1) growth was due in part from a $3.2 million (or 136.6%) increase in AI

Revenue, which climbed to $5.6 million during the second quarter of 2024.

Unadjusted for unusual or one-time items impacting

the second quarter, Total Company Net Loss for the second quarter of 2024 was $3.0 million as compared with a Total Company Net Income

of $8.4 million for the second quarter of 2023. Net Loss Per Share for the second quarter of 2024 was $(0.04),

compared with a Net Income per share of $0.12 in the second quarter of 2023, based upon a weighted average number of diluted shares outstanding

of 73.4 million shares in 2024 and 60.9 million shares in 2023.

of unusual or one-time items impacting the second quarter including: $1.9 million of non-cash loss from interest rate swaps; $5.6

million of non-cash interest expense related to extraordinary interest rate swap Other Comprehensive Income amortization, $0.8 million

expense related to leases for de novo facilities under construction that have yet to open their operations; $8.8 million of debt restructuring

and extinguishment expenses related to the April 2024 successful debt refinancing transaction; and $3.3 million of non-capitalized research

and development expenses related to the DeepHealth Cloud OS and generative AI. Adjusting for the above items, Total Company Adjusted Earnings(3)

was $12.0 million and diluted Adjusted Earnings Per Share(3) was $0.16 during the second quarter of 2024. This compares with

Total Company Adjusted Earnings(3) of $5.9 million and diluted Adjusted Earnings Per Share(3) of $0.10 during the

second quarter of 2023.

For the second quarter of 2024, as compared with

the prior year's second quarter, MRI volume increased 16.0%, CT volume increased 14.8% and PET/CT volume increased 20.4%. Overall

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 9.2% over the

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

quarters of 2024 and 2023, MRI volume increased 11.7%, CT volume increased 9.9% and PET/CT volume increased 13.7%. Overall same-center

volume, taking into account routine imaging exams, inclusive of x-ray, ultrasound, mammography and other exams, increased 6.1% over the

prior year's same quarter

Six Month Financial Results

For the first six months of 2024, RadNet reported

Total Company Revenue of $891.4 million and Adjusted EBITDA(1) of $130.8 million. Revenue increased $97.1 million (or 12.2%)

and Adjusted EBITDA(1) increased $22.2 million (or 20.4%) as compared with the first six months of 2023.

For the first six months of 2024, RadNet reported

Digital Health Revenue (inclusive of intersegment revenue) of $30.5 million and Adjusted EBITDA(1) of $6.8 million. Revenue

increased $7.8 million (or 34.4%) and Adjusted EBITDA(1) increased $5.4 million (or 381.5%) as compared with the first six

months of 2023. Digital Health Revenue and Adjusted EBITDA(1) growth was due in part to a $5.8 million (or 128.2%) increase

in AI Revenue, which climbed to $10.3 million during the six month period of 2024.

Unadjusted for one-time or unusual items, Total

Company Net Loss for the first six months of 2024 was $5.8 million as compared with a Total Company Net Loss of $12.6 million for the

first six months of 2023. Net Loss Per Share for the six month period of 2024 was $(0.08), compared with a

Net Loss per share of $(0.21) in the six month period of 2023, based upon a weighted average number of diluted shares outstanding of 71.8

million shares in 2024 and 59.2 million shares in 2023.

2024 Guidance Update

RadNet amends its previously announced guidance

Imaging Center Segment

Digital Health Segment

have increased guidance ranges of our core Imaging Center reporting segment for Revenue and Adjusted EBITDA(1).

Furthermore, despite increasing the Capital Expenditures guidance range by $5 million, we are expecting Free Cash Flow(2)

to be higher for the year. This is the result of the projected increase in Adjusted EBITDA(1) and lower Cash

Interest Expense. With respect to the Digital Health reportable segment, we remain on track to meet our original guidance levels."

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 to discuss its second quarter

2024 results on Thursday, August 8th, 2024 at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time).

Conference Call Details: