A 9× imaging roll-up that re-rated to 22× on an AI story — and the market is already taking it back.

• The multiple did the work. EV/EBITDA ran from ~9× in 2023 to 21.9× at the FY25 peak on the same 4–6% operating margin — a pure re-rating, not an earnings story. Compression is now live: 14.5× today, still 1.3 standard deviations above the 20-year median of 8.5×.
• Imaging earns its keep; the premium doesn't come from it. 418 centers produced $1.99B at a 15.4% EBITDA margin and 1.7% ROIC — the lowest capital return in the healthcare-services peer set. DVA and THC deliver higher margins and trade at 7–8× EV/EBITDA. The gap is Digital Health.
• Digital Health is 4.5% of revenue and two-thirds of the argument. The segment grew 41% to $92.7M but its operating loss doubled to −$32.3M; 45% of its revenue is sold internally. The stock reaches $85 if this becomes SaaS; it revisits $36 if it doesn't.

Record revenue and record cash — masking a GAAP net loss and an equity-funded growth engine.

Revenue accelerated through the year and leverage sits at 1.0× net debt/EBITDA after the 2024 equity raise and refi. But the California healthcare wage step-up compressed EBITDA margin 230bps, GAAP net income swung to −$18.7M, and stock-based comp consumed two-thirds of reported free cash flow. On an SBC-adjusted basis the business produced $31M of true shareholder cash — a 0.7% yield on market cap.

The company RadNet is becoming — and the thing the market is really paying for.

Before (2021). RadNet was the largest U.S. outpatient imaging operator — 330 centers, 99.9% of revenue from scan volume, AI a side project, ROIC under 2%. A capital-heavy regional roll-up priced at 9× EBITDA.

Pivot (2024–2026). Management rebranded the AI division as Digital Health in late 2024, raised $230M of equity, then bought iCAD (July 2025, all-stock), See-Mode, CIMAR UK, and Gleamer (March 2026, up to €230M) — over $400M of AI M&A in nine months. The company now markets itself as the world's largest radiology AI provider.

Today. 22 FDA clearances, 2,075 Digital Health customers, $75M ARR against a $140M year-end 2026 target. The only prior AI milestone — Aidence's Veye lung-nodule filing — was impaired for $3.9M after a failed FDA submission, disclosed inside the MD&A. The platform exists; whether it converts is the next-twelve-months question.

A textbook downtrend that momentum indicators haven't caught up to yet.

• Second death cross in 13 months. The 50-day SMA crossed below the 200-day on 2026-03-20 for the second time since March 2025; the intervening golden cross did not hold. Price sits 18.8% below the 200-day and in the bottom 21% of its 52-week range.
• No capitulation signature. None of the six largest volume days of the last seven years landed during the March–April 2026 decline. RSI prints 41, not oversold. This is slow distribution, not a panic low — sellers are not yet exhausted.
• Leadership is compressing. Over three years RDNT still doubled the S&P 500 (+105% vs +71%) and lapped the healthcare ETF (+9%). But the RDNT-vs-SPY excess-return gap collapsed from 150 points in November 2024 to 34 points today.

A 40-year founder-CEO who sits at the center of both the economics and the succession risk.

• One person, three titles. Howard Berger (81) is Chairman, CEO, and President, with no named successor and 0.66% of shares directly. A January 2026 reshuffle promoted four lieutenants to regional and divisional CEOs — a federated structure that reads as succession prep without a public timetable.
• Berger personally owns 99% of BRMG. Beverly Radiology Medical Group supplies physicians to nearly every RadNet center in California and Arizona, under a management agreement auto-renewed for 10 years in January 2024; RadNet collects 78% of BRMG's gross. Any disorderly transition re-prices that relationship.
• Every insider has sold; none has bought. 11 open-market sales, zero purchases over the last six months through a $60–$82 range, for $9.3M of net selling. COO Patel has 177,649 shares pledged in a margin account. Say-on-pay support slipped from 89% to 83%.