American Shared Hospital Services (NYSE American: AMS) on Thursday reported financial results for the first quarter ended March 31, 2026, showing a 15.9% increase in total revenue to $7.1 million compared with $6.1 million in the same period last year. The growth was primarily fueled by a 30.2% rise in direct patient services revenue, which reached $4.1 million, up from $3.1 million in the prior year quarter. Leasing revenue remained steady at $3.0 million.
The company's gross margin improved 36.7% to $1.3 million, or 18.2% of revenue, compared with $0.9 million, or 15.4%, a year earlier. Operating loss narrowed to $(0.9) million from $(1.3) million, and adjusted EBITDA increased 18.4% to $1.1 million. Net loss attributable to the company was $(0.6) million, or $(0.09) per diluted share, unchanged from the prior year period.
Direct patient services growth was driven by the company's three Rhode Island radiation therapy centers and its facility in Puebla, Mexico, which saw increased patient volumes. 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.
Craig Tagawa, Interim Chief Executive Officer, said the results reflect continued momentum in the direct patient care services segment and improved utilization across 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,” Tagawa said.
Executive Chairman Ray Stachowiak emphasized the company's strategy of expanding its direct patient care footprint. “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,” Stachowiak said.
Chief Financial Officer Scott Frech highlighted that higher treatment volumes translated into improved margins and a significant reduction in operating loss. “As utilization continues to ramp up across our network, we expect to drive further margin expansion and increased profitability,” Frech said. He also noted the company is actively focused on enhancing its capital structure to support the next phase of growth.
The cost of revenue increased to $5.8 million from $5.2 million, primarily due to higher operating costs associated with the direct patient services segment, including staffing, facility-related expenses, and maintenance costs. Selling and administrative expenses rose modestly to $1.9 million from $1.8 million.
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. Current portion of long-term debt decreased to $16.8 million from $17.3 million. Shareholders' equity was $23.5 million, or approximately $3.56 per share.
The company continues 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 12:00 pm ET today. The call can be accessed via the company's website at www.ashs.com or directly at https://event.choruscall.com/mediaframe/webcast.html?webcastid=NAuZg0I8A.
