RadNet, Inc.

Good morning, ladies and gentlemen, and welcome to the RadNet End Third Quarter 2025 Financial Results Conference Call. At this time, all participants will be in the listen-only mode. Following the presentation this morning, there will be a question-and-answer session. To ask a question, we will press star and then 1 on your touch-tone phone. To withdraw your question, we will press star and then 2. As a reminder, this call is being recorded. I now hand the conference over to Mr. Mark Stoplow, Executive VP and CFO. Thank you and over to you.

Thank you. Good morning, ladies and gentlemen, and thank you for joining Dr. Howard Berger and me today to discuss RADNET's third quarter 2025 financial results. Before we begin today, we'd like to remind everyone of the Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning anticipated future financial and operating performance, Radnett's ability to continue to grow the business by generating patient referrals and contracts with radiology practices, recruiting and retaining technologists, receiving third-party reimbursement for diagnostic imaging services, successfully integrating acquired operations, generating revenue and adjusted EBITDA for the acquired operations as estimated, among others, are forward-looking statements within the meaning of the safe harbor. Forward-looking statements are based on management's current preliminary expectations and are subject to risks and uncertainties, which may cause RADNET's actual results to differ materially from the statements contained herein. These risks and uncertainties include those risks set forth in Radnett's reports filed with the SEC from time to time, including Radnett's annual report on Form 10-K for the year ended December 31st, 2024. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date it is made. RADNET undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date they were made or to reflect the occurrence of unanticipated events. And with that, I'd like to turn the call over to Dr. Berger.

Thank you, Mark. Good morning, everyone, and thank you for joining us today. On today's call, Mark and I plan to provide you with highlights from our third quarter 2025 results, give you more insight into factors which affected this performance, and discuss our future strategy. After our prepared remarks, we will open the call to your questions. I'd like to thank all of you for your interest in our company and for dedicating a portion of your day to participate in our conference call this morning. With that, let's begin. I am very pleased with the performance in the third quarter. Revenue and adjusted EBITDA were both quarterly records and exceeded internal budgets set at the beginning of 2025. Total company revenue increased 13.4% and adjusted EBITDA increased 15.2% relative last year's third quarter, resulting in a 26 basis point improvement in adjusted EBITDA margins. This performance is reflective of several positive and continuing trends that have been driving RadNet's strong results in recent quarters. First, same-center procedural volume continues to be robust, particularly within advanced imaging. Advanced imaging increased 13.0 percent on an aggregate basis and 9.9 percent on a same-center basis as compared with last year's third quarter. This performance resulted from, among other things, equipment and software upgrades, which have shortened scanning times and increased capacity. A reduction of exam room closures from remote scanning enabled by Deep Health's TechLive recently approved FDA software. Deployment of AI-assisted dynamic schedule devices designed to fill exam slots that would otherwise have gone unutilized. Recent de novo center openings and tuck-in acquisitions, along with the continuing shift from expensive hospital imaging towards more cost-effective ambulatory freestanding imaging. Margins continue to benefit from the continuing shift in procedure mix towards advanced imaging. In this third quarter, 28.2% of our procedures were from advanced imaging compared to 26.7% in the third quarter of last year. While the growth in advanced imaging is due in part to TechLive and the dynamic scheduling which are serving to expand our operating hours and ensure appointments are fully utilized is also the result of certain advanced imaging specialty practices we have been building. Examples of these programs include prostate PET-CT or PSMA, amyloid brain PET-CT, prostate MRI, and coronary CT angiography. Today's advanced imaging equipment is more capable than ever, and some of the faster-growing advanced imaging studies are an outgrowth of recently FDA-cleared Novell radioactive pharmaceuticals and advanced post-processing software. Furthermore, an increased focus within the healthcare delivery system on early detection of disease and population health screening is driving increased clinical indications for ordering more advanced imaging studies. RadNet's strong financial performance in the third quarter is also reflective of improvement in reimbursement rates with commercial and capitated payers who recognize the position RadNet offers as to lower-priced alternatives to hospital-based imaging. To this end, we have been successful in receiving rate increases from many of the larger commercial and capitated payers, and several capitated contracts have been converted to higher-paying fee-for-service relationships in recent quarters. The stronger operating results in the third quarter relative to our internal budget, along with trends that we are continuing into this year's fourth quarter resulted in the decision to increase 2025 full-year guidance ranges for revenue and adjusted EBITDA. Mark will discuss this in more detail in his prepared remarks. Steady progress also continues in the digital health operating segment. The EVCD deep health AI-powered breast cancer screening program continues to expand. Currently, we are experiencing a blended adoption rate nationally above 45%, with more cancers being found across RadNet centers, which otherwise might have only been detected at a later date. In the quest for reimbursement, we continue to make inroads with third-party payers. During the third quarter, several of our larger capitated medical groups agreed to add EBCD as a covered benefit for over 700,000 members. In an effort to boost compliance with annual breast cancer screening guidelines, Regal Medical Group, Lakeside Community Healthcare, ADAC Medical Group, and Desert Oasis Healthcare have agreed to reimburse RadNet for its EBCD program. On July 17th, the previously announced acquisition of ICAD, a global leader in clinically proven AI-powered breast health solutions, was completed with over 1,500 provider locations facilitating over 8 million annual mammograms in 50 countries. ICAD's profound breast health suite and RedNet's deep health AI-powered breast skin solutions together can materially expand and improve patient diagnosis and outcomes on a global basis through further enabling accuracy and early detection. We have substantially completed the integration to digital health of most of the ICADS operations with cross synergies ahead of plan and recent customer wins demonstrating the power of the newly merged entities. Also within digital health, we completed the implementation of CMODES thyroid ultrasound technology across more than 240 radnet centers. As you may recall, CMODES initial applications to detect and characterize thyroid nodules, and breast lesions in ultrasound imaging, improved diagnostic accuracy, and enhanced clinical workflows. In the most recent month, within the RadNet centers, we processed over 14,000 thyroid scans using this technology. Early deployment of CMOS FDA-approved thyroid ultrasound AI has demonstrated over 30% reduction in scan time. Furthermore, because a reimbursement code already exists that makes a portion of our over 230,000 annual thyroid ultrasounds eligible for additional reimbursement, we have been successfully billing for CMODE's AI. An initiative is ongoing to pursue FDI approval for CMODE's next application in breast AI ultrasound, which constitutes over 600,000 of radnets, approximately 2.7 million, annually thyroid exams. Some of you may have also seen last week an announcement that RadNet acquired the assets of AlphaRT. AlphaRT has been advancing several initiatives around remote technology scanning, including a vendor-agnostic staffing service capable of delivering on-demand access to highly skilled remote MRI technologists, a real-time AI-driven safety safety alert system to detect unsafe materials or circumstances within the mri suite and an mri tech aid certification program designed to strengthen the workforce in an effort to deliver high quality care this platform has implications for both operating segments of our business for digital health alpha rt will enable the sales and marketing teams of tech live to offer a more comprehensive portfolio solutions around remote scanning to now include providing remote technologists as a staffing service and a training and certification program for tech aides necessary to effectively provide onsite care in conjunction with remote scanning. For the imaging center operating segment, AlphaRT will pursue building and training remote technologists that can be used as a labor pool to scan for RADnet facilities. Furthermore, AlphaRT should become the principal training agent for RadNet's tech aides, or what we call internally, in-suite assistants, or ISIs. Before I turn the call back to Mark, I would just like to highlight our financial liquidity and leverage, which continues to be carefully managed. As of September 30th, 2025, cash balance was $804.7 million, and net debt to adjusted EBITDA ratio approximately 1.0. An attractive pipeline of acquisition opportunities is being evaluated for both the core imaging services division and for digital health, and we have confidence in our ability to invest the cash balance over time in opportunities that advance RadNet's strategic objectives. At this time, we'd like to turn the call back over to Mark to discuss some of the highlights of our third quarter 2025 performance. When it's finished, I will make some closing remarks.