American Shared Hospital Services (NYSE American: AMS), a leading provider of stereotactic radiosurgery equipment and advanced radiation therapy cancer treatment services, announced financial results for the first quarter ended March 31, 2026. Total revenue increased 15.9% to $7.1 million, compared to $6.1 million in the same period last year, driven primarily by a 30.2% increase in direct patient services revenue to $4.1 million. Gross margin improved 36.7% to $1.3 million, or 18.2% of revenue, up from $0.9 million, or 15.4%, in the prior year. Adjusted EBITDA increased 18.4% to $1.1 million from $0.9 million.
The company's direct patient services segment saw significant growth, with revenue rising to $4.1 million from $3.1 million, fueled by increased patient volumes at its three Rhode Island radiation therapy centers and its facility in Puebla, Mexico. Leasing revenue remained stable at $3.0 million. Gamma Knife procedures increased 10.1% year-over-year to 229, while proton beam radiation therapy (PBRT) treatments grew 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, “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. 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.”
Operating loss improved to $(0.9) million from $(1.3) million in the prior year, reflecting higher revenue and margin expansion partially offset by increased operating costs at newer facilities. Net loss attributable to the company was $(0.6) million, or $(0.09) per diluted share, consistent with the prior year. Interest expense decreased to $0.3 million from $0.4 million due to lower average debt outstanding.
Scott Frech, Chief Financial Officer, stated, “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, driven by improved operating performance. Current portion of long-term debt was $16.8 million, down 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 discussions with its lender regarding a potential extension of debt obligations.
A conference call to discuss the results will be held today at 12:00 PM ET. Domestic callers may dial 1-844-413-3972, and international callers may dial 1-412-317-5776. A webcast can be accessed through the company's website at www.ashs.com or directly at this link.
