Is RDNT a good stock to buy? We came across a bearish thesis on RadNet, Inc. on Hunterbrook’s Substack. In this article, we will summarize the bears’ thesis on RDNT. RadNet, Inc.’s share was trading at $57.85 as of April 20th. 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 faces growing skepticism following recent disclosures and investigative reporting that raise questions about the integrity of its financial reporting. The company, which has repositioned itself as an AI-driven growth story, has quietly eliminated “same-center” sales metrics from its 2025 10-K, a key performance indicator that Wall Street historically cited to gauge organic growth.
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Hunterbrook Media’s investigation highlighted that RadNet had been consolidating nearby imaging centers, artificially inflating same-center growth to appear between 6% and 10%, when the underlying organic growth was closer to 2.5%–3%. Multiple former accounting employees described a culture of pressure and top-down manipulation, where adjustments were made to present a more favorable financial picture, often bypassing standard controls and professional judgment.
Leadership reportedly prioritized optics over accuracy, with practices such as capitalizing expenses to boost assets and obscure true profitability. Despite these red flags, RadNet’s management maintains that its GAAP revenue is accurate, yet the removal of detailed metrics makes it difficult for investors to independently verify performance. The Digital Health division, central to the company’s AI rebrand, generated less than 5% of total revenue in 2025, calling into question the rationale behind the elevated valuation multiples now assigned to the business.
Trading at roughly 18 times EBITDA and higher once adjustments are considered, RadNet’s stock appears richly priced relative to the underlying fundamentals, particularly given the opaque reporting, historical accounting irregularities, and limited visibility into organic growth. These factors suggest a cautious or bearish stance, as the market may have overestimated the company’s AI-driven growth potential while underestimating operational and financial risks.
Previously, we covered a bullish thesis on Tenet Healthcare Corporation (THC) by BlackSwanInvestor in December 2024, which highlighted the company’s focus on high-margin Ambulatory Care growth, improved cash flow, debt reduction, and operational efficiency, with THC’s stock trading at a significant discount to intrinsic value. THC’s stock price has appreciated by approximately 52.15% since our coverage. Hunterbrook shares a contrarian view on RadNet, Inc. (RDNT), emphasizing accounting irregularities, opaque same-center growth metrics, and elevated valuation multiples, suggesting caution despite its AI growth narrative.
RadNet, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held RDNT at the end of the fourth quarter which was 28 in the previous quarter. While we acknowledge the risk and potential of RDNT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RDNT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
