We came across a bearish thesis on RadNet, Inc. on the Hunterbrook substack. In this article, we will summarize the bulls’ thesis on RDNT. RadNet, Inc. stock was trading at $71.22 as of December 16. RDNT’s trailing P/E was 386.89 according to Yahoo Finance.
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RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States and internationally. RDNT presents a cautionary tale for investors seeking the AI ​​narrative, as its core business and new digital health segment reveal a significant disconnect between hype and reality.
Less than 5% of the company’s revenue, or about $65 million of $1.5 billion in the first nine months of 2025, comes from digital health, with much of that growth coming from business-to-business sales to RadNet’s own imaging centers. Although the company markets AI-based tools such as enhanced breast cancer detection and DeepHealthOS as transformative, external adoption has been minimal, with only one notable outside customer and limited traction among enterprise customers.
Revenue growth metrics are further clouded by neighboring center consolidations, which are pushing same-center sales from around 2.5-3% organically to 6-10% reported, masking underlying stagnation. Inconsistencies in reporting, including conflicting operational center counts and divergent revenue figures, highlight chaotic accounting and opaque reporting practices. Adjusted EBITDA margins, which exclude stock-based compensation and some R&D expenses, suggest improvements in profitability, but the adjusted figures actually reveal a contraction in margins, underscoring the fragility of the company’s financial health.
The insider sales, totaling more than 780,000 shares worth $50.9 million over the past two years, reinforce concerns that those closest to the company are monetizing the AI-fueled stock surge. Meanwhile, the underlying imaging center business faces persistent reimbursement pressure from Medicare and commercial payers, limiting sustainable growth. Despite investor enthusiasm for AI-driven disruption, RadNet’s core fundamentals and external adoption of its digital health tools indicate the stock is trading well above its intrinsic value, creating a high-risk scenario in which current valuation depends largely on hype rather than operational execution or sustainable revenue streams.
Previously we covered a bullish thesis on Tenet Healthcare Corporation (THC) by BlackSwanInvestor in December 2024, which highlighted the efficiency of the company’s ambulatory care segment, strong cash flow, debt reduction and undervaluation. The company’s stock price has appreciated approximately 56.62% since our coverage. The thesis still holds as Tenet’s outpatient care continues to drive value. Hunterbrook takes a contrarian view, emphasizing RadNet’s overstated AI growth, opaque reporting, and overvalued stocks.
