CORE INVESTMENT THESIS
RadNet is a nearly 50-year-old radiology chain pulling off one of the most audacious AI rebrandings in recent memory — its Digital Health business generates less than 5% of revenue while the company trades at aggressive tech multiples.
According to Hunterbrook's investigation, reported same-center sales growth appears artificially inflated by center consolidations, financial disclosures contain significant inconsistencies, and insiders have sold $50.9 million in stock over two years with zero open-market purchases.
<5%
Only ~$65M of $1.5B in first 9 months of 2025
~50%
Digital Health sells to own imaging centers
$50.9M
780K+ shares sold in 2 years, zero purchases
~19x
Adjusted EBITDA (vs. 8-10x historical)
🎭 AI Business Is a Sideshow
Digital Health generates less than 5% of revenue (~$65M out of $1.5B). Much of that comes from selling software to RadNet's own imaging centers. Two-thirds of reported Digital Health growth (excluding acquisitions) is from internal sales.
📊 Same-Center Sales Manipulation
Hunterbrook analysis estimates ~57% of reported same-center growth came from closing centers within 15 minutes of surviving RadNet locations and shifting patients over. Real organic growth may be only 2.5-3%, not the reported 6-10%.
📝 Inconsistent Financial Disclosures
The 2024 10-K reported three different revenue figures for the Imaging Center business ($1.83B, $1.763B, $1.792B). One filing showed 398 centers; a later filing restated that to 375 for the same period with no explanation.
💰 Manufactured Profitability
RadNet excludes stock-based compensation AND some R&D from adjusted EBITDA. When these are included, operating margins are actually shrinking, not expanding—despite Wall Street celebrating "margin improvement."
🚪 External Customer Problems
Competitors won't buy RadNet's AI products because they view the company as "predatory." After RadNet acquired iCAD, SimonMed immediately switched to competitor Lunit. DeepHealth external sales efforts have been "very unsuccessful."
Dr. Howard Berger
CEO & Founder
Founded RadNet in the 1980s. Has not sold shares recently, but company pays $180,000/year to rent a New York apartment for a trust set up for his children—despite headquarters being in California.
Mark Stolper
Chief Financial Officer
Sold 35,000 shares in September 2024—roughly one-third of his holdings (excluding options). Before the AI pivot, he described "normalized" same-center growth as just 1-3%.
DeepHealth
AI Division / Acquired Company
Unveiled at RSNA 2023 with promises of 300 external customers. By August 2024, CEO admitted "nobody is using the full range" even within RadNet's own centers.
iCAD
Acquired for ~$100M (2024)
Held ~50% of AI breast cancer detection market but generated only $20M revenue pre-acquisition. Stock was ~$2 before RadNet paid $100M—5x revenues for a struggling standalone business.
Bethany McLean
Lead Investigative Reporter
Former Fortune reporter and co-author of "The Smartest Guys in the Room" about Enron. Now advisor and contributor to Hunterbrook Media.
SimonMed Imaging
Competitor / Former iCAD Customer
After RadNet acquired iCAD, SimonMed immediately switched to competitor Lunit—demonstrating how competitors view RadNet as "predatory" and won't buy their AI products.
Hunterbrook Media's Verdict
According to Hunterbrook Media, RadNet ($RDNT) is executing one of the most audacious AI rebrandings in recent memory—transforming a nearly 50-year-old radiology chain into a "tech" company trading at aggressive multiples. The investigation reveals that Digital Health generates less than 5% of revenue, reported same-center growth may be artificially doubled by consolidation tactics, financial disclosures contain significant inconsistencies, and insiders are aggressively selling. Hunterbrook concludes the company's valuation is disconnected from the underlying business reality.
🔻 HUNTERBROOK CAPITAL SHORT POSITION
Implied Downside: If Digital Health multiple normalized, significant equity value at risk
DISCLOSURE: Hunterbrook Capital is short $RDNT at the time of publication. Positions may change at any time. This dashboard summarizes allegations from Hunterbrook Media's investigative report published December 16, 2025. RadNet did not respond to repeated requests for comment. This is not investment advice. See full legal disclaimer at hntrbrk.com/terms.
