v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

13. Segment Reporting

In January 2025, the Company experienced a strategic shift in connection with changes to its executive leadership, including the hiring of a new Chief Executive Officer (“CEO”). As a result, at the beginning of 2025, the Company began providing its operating results to the CEO, who is the Company’s CODM on the basis of a single segment. As the CODM progressed in her role, however, she started reviewing disaggregated financial information based upon two segments (the “June Segment Update”). In response, the Company revised its view of reportable segments based on the CODM’s methods for managing the organization and allocating resources. The June Segment Update has been retroactively presented in the Company’s condensed consolidated financial statements for the three months ended March 31, 2025.

The CODM reviews revenues and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) of each segment for the purpose of making operating decisions, assessing financial performance, and deciding how to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances monthly when making decisions about allocating resources to the segments.

Adjusted EBITDA is defined by the Company as net income (loss) determined in accordance with GAAP, before interest expense, provision for income taxes, depreciation and amortization, unit-based compensation expense and the impact, which may be recurring in nature, of transaction costs, one-time litigation and settlement expenses associated with claims made against the Company, costs associated with strategic initiatives and implementation, goodwill impairment charges, severance and executive recruiting costs, gains or losses on dispositions and other similar or infrequent items (although the Company may not have had such charges in the periods presented). Adjusted EBITDA includes adjustments to reflect the Company’s share of Adjusted EBITDA from unconsolidated affiliates.

The Company’s reportable segments are strategic business units that offer different services or structures for delivering outpatient imaging services. They are managed separately because each business requires a different operational strategy for managing performance and allocating resources. The Outpatient segment consists of imaging centers that are owned or operated by the Company (either wholly owned or via unconsolidated affiliate), where the Company performs the imaging scan and provides the radiologist’s interpretation service (i.e., read). Revenues are also earned through the provision of management services to operate the centers for certain of the Company’s unconsolidated affiliate partners. The Professional segment consists of professional interpretation services, where the imaging scan itself is performed at the hospital or point of care and not by the Company or its unconsolidated affiliates. The Company eliminates any intersegment transactions in consolidation.

Historically, corporate overhead expenses were allocated to each segment on the basis of net patient service revenue for each segment. During the third quarter of 2025, the Company changed its approach to allocating certain segment expenses. Physician compensation expense is now allocated based on the effort associated with services performed for each segment. Corporate overhead expenses are allocated to each segment based on estimated relative usage of these overhead costs.

The Company does not report balance sheet information by segment since it is not reviewed by its CODM. The CODM uses consolidated expense information to manage operations, and the CODM is not regularly provided disaggregated expenses by segment.

The following tables present revenues and Adjusted EBITDA for each reportable segment for the three months ended March 31, 2026 and 2025 (in thousands):

 

 

THREE MONTHS ENDED MARCH 31, 2026

 

 

OUTPATIENT

 

 

PROFESSIONAL

 

 

INTERSEGMENT
ELIMINATIONS

 

 

TOTAL OF
REPORTABLE
SEGMENTS

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Net patient service revenue

 

$

138,092

 

 

$

62,746

 

 

$

(3,520

)

 

$

197,318

 

Management fee and other revenue

 

 

49,807

 

 

 

5,412

 

 

 

—

 

 

 

55,219

 

Total revenues

 

 

187,899

 

 

 

68,158

 

 

 

(3,520

)

 

 

252,537

 

Other segment items(1)

 

 

149,526

 

 

 

55,332

 

 

 

(3,520

)

 

 

201,338

 

Adjusted EBITDA

 

$

38,373

 

 

$

12,826

 

 

$

—

 

 

$

51,199

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

(9,922

)

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

(1,364

)

Amortization of basis difference

 

 

 

 

 

 

 

 

 

 

 

(531

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(16,331

)

Loss on disposal of property and equipment

 

 

 

 

 

 

 

 

 

 

 

(137

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

(12,274

)

Severance and executive recruiting(2)

 

 

 

 

 

 

 

 

 

 

 

(945

)

Strategic initiatives and implementation(3)

 

 

 

 

 

 

 

 

 

 

 

(825

)

Transaction costs(4)

 

 

 

 

 

 

 

 

 

 

 

(2,582

)

Litigation and settlements(5)

 

 

 

 

 

 

 

 

 

 

 

(29

)

Other(6)

 

 

 

 

 

 

 

 

 

 

 

5

 

Adjustments for equity in earnings of
   unconsolidated affiliates(7)

 

 

 

 

 

 

 

 

 

 

 

(4,547

)

Net income

 

 

 

 

 

 

 

 

 

 

$

1,717

 

 

 

 

THREE MONTHS ENDED MARCH 31, 2025

 

 

OUTPATIENT

 

 

PROFESSIONAL

 

 

INTERSEGMENT
ELIMINATIONS

 

 

TOTAL OF
REPORTABLE
SEGMENTS

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Net patient service revenue

 

$

133,430

 

 

$

60,554

 

 

$

(1,686

)

 

$

192,298

 

Management fee and other revenue

 

 

47,371

 

 

 

5,332

 

 

 

—

 

 

 

52,703

 

Total revenues

 

 

180,801

 

 

 

65,886

 

 

 

(1,686

)

 

 

245,001

 

Other segment items(1)

 

 

138,979

 

 

 

56,709

 

 

 

(1,686

)

 

 

194,002

 

Adjusted EBITDA

 

$

41,822

 

 

$

9,177

 

 

$

—

 

 

 

50,999

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

(9,051

)

Income tax provision

 

 

 

 

 

 

 

 

 

 

 

(3,379

)

Amortization of basis difference

 

 

 

 

 

 

 

 

 

 

 

(500

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(29,849

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

(6,374

)

Gain on disposal of property and equipment

 

 

 

 

 

 

 

 

 

 

 

162

 

Severance and executive recruiting(2)

 

 

 

 

 

 

 

 

 

 

 

(1,370

)

Strategic initiatives and implementation(3)

 

 

 

 

 

 

 

 

 

 

 

(868

)

Transaction costs(4)

 

 

 

 

 

 

 

 

 

 

 

(3,588

)

Litigation and settlements(5)

 

 

 

 

 

 

 

 

 

 

 

128

 

Other(6)

 

 

 

 

 

 

 

 

 

 

 

(22

)

Adjustments for equity in earnings of
   unconsolidated affiliates(7)

 

 

 

 

 

 

 

 

 

 

 

(3,975

)

Net loss

 

 

 

 

 

 

 

 

 

 

$

(7,687

)

 

(1)
Other segment items for both segments include certain operating expenses that are not regularly provided to the CODM on a segment basis and that are identifiable with that segment, including general and administrative expenses.
(2)
Includes severance and recruiting expenses for executive leadership departures as part of strategic organizational changes.
(3)
Includes third-party consulting, implementation and integration expenses incurred as part of the Company’s strategic transformation and optimization initiatives, specifically related to the deployment of a new technology system and labor model, as well as the development, customization and integration of a new enterprise resource planning system.
(4)
Includes costs for third-party non-recurring IPO costs, buy-side and sell-side due diligence activities to evaluate and execute potential mergers and acquisitions, integrate acquired businesses and one-time employee retention bonuses related to potential mergers and acquisitions.
(5)
Consists of litigation and settlement costs for matters not related to core operations.
(6)
Consists of other costs related to debt financing, certain de novo start-up costs related to outpatient imaging centers and certain exit costs related to closed outpatient imaging centers.
(7)
Adjusts for the Company’s proportional share of depreciation and amortization, interest expense and losses/gains on asset disposals related to unconsolidated affiliates, which are included in equity in earnings from unconsolidated affiliates on the accompanying condensed consolidated statements of operations and comprehensive income (loss).