American Shared Hospital Services (NYSE American: AMS) reported financial results for the first quarter ended March 31, 2026, highlighting a 15.9% increase in total revenue to $7.1 million compared to $6.1 million in the prior year period. The growth was primarily fueled by a 30.2% rise in direct patient services revenue, which reached $4.1 million, driven by higher procedure volumes at the company's three Rhode Island radiation therapy centers and its facility in Puebla, Mexico. Leasing revenue remained steady at $3.0 million year-over-year.
Gross margin improved 36.7% to $1.3 million, or 18.2% of revenue, compared to $0.9 million, or 15.4%, in the first quarter of 2025. The margin expansion was attributed to higher overall revenue and improved utilization across treatment centers, which offset higher operating costs associated with the growing direct patient services segment. Operating loss narrowed to $(0.9) million from $(1.3) million in the prior year period, reflecting the benefit of increased revenue and gross margin expansion.
Adjusted EBITDA increased 18.4% to $1.1 million from $0.9 million in the prior year quarter. Net loss attributable to American Shared Hospital Services was $(0.6) million, or $(0.09) per diluted share, compared to $(0.6) million, or $(0.10) per diluted share, in the prior year period.
Operationally, Gamma Knife procedures increased 10.1% year-over-year to 229, while proton beam radiation therapy (PBRT) treatments rose 20.7% to 1,003. The Rhode Island centers continued to ramp up utilization, and the Puebla center experienced strong growth driven by improved reimbursement and operational ramp-up. The company noted that volumes are trending higher into the second quarter.
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, “Growth across our LINAC and proton therapy platforms reflects increasing demand for advanced radiation therapy services, and we remain focused on further increasing utilization, improving reimbursement profiles, and driving sustained revenue expansion across our network.”
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 decreased to $16.8 million from $17.3 million. Shareholders' equity (excluding non-controlling interests) was $23.5 million, or approximately $3.56 per share.
The company continues to engage in constructive discussions with its lender regarding a potential extension of certain debt obligations. Management remains focused on strengthening liquidity and aligning its capital structure with long-term growth strategy.
A conference call to discuss the results is scheduled for today at 12:00 pm ET. Details are available on the company's website at www.ashs.com.
