Hunterbrook Capital released a short‑seller report on December 16, 2025, alleging that RadNet, Inc. (NASDAQ: RDNT) has overstated the importance of its artificial‑intelligence initiatives and that less than 5% of the company’s total revenue comes from its Digital Health segment.
The report cites RadNet’s Q3 2025 Digital Health revenue of $24.8 million, which represents 4.75% of the company’s $522.9 million total revenue. In 2024, Digital Health revenue of $65.7 million accounted for 3.59% of the $1.8297 billion total revenue, confirming the <5% claim.
Hunterbrook argues that the bulk of Digital Health revenue is generated from internal sales to RadNet’s own imaging centers, rather than from third‑party customers, and that same‑center sales growth may be inflated by consolidating nearby locations into single reporting units, potentially masking organic demand.
Despite the allegations, RadNet’s Digital Health segment has shown strong growth, rising 51.6% YoY in Q3 2025 and 32.5% in 2024. AI revenue within the segment increased 112% YoY in Q3 2025, driven by acquisitions such as iCAD and the Enhanced Breast Cancer Detection program.
In its Q3 2025 earnings call, CEO Howard Berger highlighted the company’s continued strong performance, noting that both Imaging Center and Digital Health segments delivered record results. The company’s overall revenue of $522.9 million beat analyst expectations, reflecting robust demand across core services.
The short‑seller report raises questions about the sustainability of RadNet’s AI‑driven growth narrative and the transparency of its revenue reporting. Investors will likely scrutinize the company’s customer mix and consolidation practices in the coming weeks.
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