RadNet, Inc. Common Stock 2026 Jefferies Healthcare Services and Technology Conference

Yeah. Thank you, Brian. It is great to be here with you all. Thanks for the attention. It is exciting to be at RadNet. As Brian said, I started DeepHealth, and RadNet acquired it in the summer of 2020, June of 2020. That was back when DeepHealth was just focused on mammography. As you probably know, RadNet does about as many mammograms every year as the country of England, so it is a big part of our business at RadNet. Since then, AI has exploded in impact and RadNet has grown substantially, and that combination is why I am still here. I was just whispering to Brian that my wife is like, "Greg, why aren't you retiring? You sold your company. Let's move to Paris." I just cannot see a better place to have high impact in medicine than RadNet right now.

Radiology is the most digital of all of the medical specialties. We were digital in the '90s for lots of reasons, and it is deep in the DNA of our specialty, more than pathology, more than anything else. The opportunity for AI to transform medicine is going to come right through our specialty. When you couple that with the impact imaging can have in population health, in urgent care management, in inpatient management, it just touches everybody's lives. As you all know, 90%, 95% of everybody who goes into an ER comes through the radiology department. Lots of outpatient imaging that is growing. Lots that is not being done by radiology, in OB and in med, and all of these things say to me that the opportunities to improve healthcare and have impact on patient health is, and coupled with the innovations in AI, is going to happen in radiology.

The scale that RadNet brings that allows us to get data and therefore train the AI, deploy it, figure out where it is working and where it is not working, and iterate, that sort of flywheel of innovation cycle, I just do not see any better place to be. That is why I am still here. It has been a great six years, and we are a much different company than we were six years ago with a huge vision, and there is lots more to come.

Yes. RadNet, as you all know, or as many of you know, reports two segments today. We have an imaging center business that's over $2 billion in revenue, and then we have this digital health business that's taken the DeepHealth name, but really does more than mammography. It does all kinds of AI and other IT solutions for outpatient and inpatient radiology. That's, on this year, we've guided to $135 million-$145 million in revenue. So over $2 billion and $145 million, clearly very different sizes. The reason we break out the digital health business is because of its higher growth rate. We're definitely, I think, in Q2, we grew at 90%. Also because of the investments that are needed in AI. We wanted to make it clear how those investments are returning to those investors.

We also have this services business, which is just doing great. As you saw in our last quarter, we reported 25% revenue growth, and that was on top of an earlier quarter where we reported 22% revenue growth. Of that, I think 10-plus percent was same-store MRI growth. We had 8% or 9% same-store PET and CT growth. So the core imaging business is doing fantastic and well. The AI business, if you will, or the digital health business, has actually been the enabler for a lot of that. The reason that we had 10% same-store growth in MR wasn't because the demand hadn't been there before. It was because the digital health tools allowed us to meet the surging demand for radiology by opening up slots that our techs could now scan, scheduling more efficiently, speeding up the exam time, speeding up the reporting.

Essentially, that demand is still out there for even more. It's can we hire the people? Can we execute in order to meet that demand?

Yeah. It's a great question, and you're right. When I look at my old employer on the OEM side or other companies, I don't see them in double-digit revenue growth, and yet we've guided to that for this year, and we don't see any reason to slow down. There are a couple of things. There is a lot of new technology in imaging, whether it's cardiac that's growing with things like HeartFlow, whether it's new PET tracers like PYLARIFY, where we just didn't have a way to monitor prostate cancer before, and now we do. Whether it's the increased recognition of screening as a way to lower healthcare costs, whether with lung cancer screening that's really shown stage shift in the ability to improve not just health, but the cost of that healthcare by diagnosing cancer earlier.

Or just the demographics, that patients are getting older, and as they get older, they get sicker, and they need more imaging. All of those tailwinds are really pushing to boost the demand for imaging broadly. When you add to that the lower cost, the cost pressures that say, "Let's get out of the high-cost locations, inpatient or HOPDs, to pure outpatient settings." As I think you've seen us talk about, Brian, we've now got three mammography locations in Walmart, trying to get the costs even lower. The desire to get to low-cost settings is universal, and that's a big tailwind for us. None of those seem to be slowing down. I think they're very sustainable. The Trump administration is talking about site-neutral payments.

I don't know that they'll be able to get that through, but whether they do, which would be a huge tailwind for us, or whether they don't, and it's just the payers who keep pushing to go to lower cost settings. The reason I'm very bullish on RadNet specifically is we already are in the lowest reimbursement states today. That's our base in California and some of the East Coast. We have not the richest mix in terms of advanced procedures. We're still under 30% advanced procedures, so we can only get better. We can do more advanced procedures than we're doing. We could move into states with better reimbursement than we're getting. And that's, I think, how margin expansion, even if we just keep doing what we're doing, we're just in different geographies, I think we are going to have an opportunity for margin expansion.