American Shared Hospital Services (NYSE American: AMS) announced its financial results for the first quarter ended March 31, 2026, reporting a 15.9% increase in total revenue to $7.1 million compared to $6.1 million in the same period last year. The growth was primarily fueled by a 30.2% surge in direct patient services revenue, which reached $4.1 million, up from $3.1 million in the prior year quarter. This segment's performance was bolstered by contributions from the company's three Rhode Island radiation therapy centers and its Puebla, Mexico facility, which experienced increased patient volumes.
Gross margin improved significantly, rising 36.7% to $1.3 million, or 18.2% of revenue, compared to $0.9 million, or 15.4%, in the prior year period. The margin expansion was driven by higher overall revenue and improved utilization across treatment centers, which offset the higher cost structure associated with the growing direct patient services segment. Operating loss narrowed to $(0.9) million from $(1.3) million a year ago, reflecting the benefit of increased revenue and gross margin expansion, partially offset by higher operating costs from newer facilities.
Adjusted EBITDA, a non-GAAP measure, increased 18.4% to $1.1 million compared to $0.9 million in the prior year quarter. Net loss attributable to the company remained flat at $(0.6) million, or $(0.09) per diluted share, versus $(0.6) million, or $(0.10) per diluted share, in the prior year period.
Operationally, Gamma Knife procedures rose 10.1% year-over-year to 229, while proton beam radiation therapy (PBRT) treatments increased 20.7% to 1,003. The company noted that volumes are continuing to trend higher into the second quarter. Leasing revenue remained stable at $3.0 million, consistent with the prior year period, though the segment reflected the impact of prior Gamma Knife agreement expirations, partially offset by improved procedure volumes at upgraded sites.
Craig Tagawa, Interim Chief Executive Officer, stated, “We are encouraged by our performance in the first quarter of 2026, which reflects continued momentum in our direct patient care services segment and improved utilization across our treatment centers. Revenue growth of approximately 16% year-over-year was driven by strong contributions from our Rhode Island and Puebla radiation therapy centers, as well as growth in proton therapy volumes which is continuing into the second quarter.”
Ray Stachowiak, Executive Chairman, added, “We continue to execute on our strategy of expanding our direct patient care footprint while strengthening our clinical capabilities and partnerships. During the quarter, we saw meaningful increases in treatment volumes across our radiation therapy centers, particularly in Rhode Island and Puebla, which contributed directly to our year-over-year revenue growth. Growth across our LINAC and proton therapy platforms reflects increasing demand for advanced radiation therapy services.”
Scott Frech, Chief Financial Officer, emphasized, “Our first quarter performance highlights the strength of our operating model, as higher treatment volumes translated into improved margins and a significant reduction in operating loss. Additionally, I am pleased to report that we are continuing to see volumes trending higher into the second quarter. As utilization continues to ramp up across our network, we expect to drive further margin expansion and increased profitability.”
As of March 31, 2026, the company had cash, cash equivalents, and restricted cash of $5.2 million, up from $3.7 million at December 31, 2025. The current portion of long-term debt was $16.8 million, a decrease from $17.3 million. Shareholders’ equity stood at $23.5 million. The company continues to engage in discussions with its lender regarding a potential extension of debt obligations and remains focused on optimizing its capital structure.
For more details, a conference call is scheduled for today at 12:00 PM ET. Participants can dial 1-844-413-3972 (domestic) or 1-412-317-5776 (international) and ask to join the American Shared Hospital Services call. A webcast is available through the company's website at www.ashs.com or directly at https://event.choruscall.com/mediaframe/webcast.html?webcastid=NAuZg0I8A.
