American Shared Hospital Services (NYSE American: AMS), a leading provider of stereotactic radiosurgery equipment and advanced radiation therapy cancer treatment services, today announced financial results for the first quarter ended March 31, 2026. The company reported total revenue of $7.1 million, a 15.9% increase from $6.1 million in the same period last year, driven primarily by a 30.2% surge in direct patient services revenue to $4.1 million. This growth was fueled by higher procedure volumes at the company's three Rhode Island radiation therapy centers and its facility in Puebla, Mexico.
Gross margin improved 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 reflects higher overall revenue and improved utilization across treatment centers, which more than 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, while Adjusted EBITDA increased 18.4% to $1.1 million, compared to $0.9 million in the prior year quarter.
Craig Tagawa, Interim Chief Executive Officer, commented, “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.”
The company's Gamma Knife procedures increased 10.1% year-over-year to 229, while proton beam radiation therapy (PBRT) treatments rose 20.7% to 1,003. Leasing revenue remained stable at $3.0 million, as the impact of prior Gamma Knife agreement expirations was partially offset by improved procedure volumes at certain upgraded sites.
Ray Stachowiak, Executive Chairman, stated, “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.”
Net loss attributable to American Shared Hospital Services was $(0.6) million, or $(0.09) per diluted share, consistent with the prior year period. The company ended the quarter with $5.2 million in cash, cash equivalents, and restricted cash, up from $3.7 million at December 31, 2025, driven by improved operating performance and working capital timing.
Scott Frech, Chief Financial Officer, noted, “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.”
The company continues to engage in constructive discussions with its lender regarding a potential extension of certain debt obligations. Management remains focused on strengthening the company's liquidity profile and aligning its capital structure with its long-term growth strategy. A conference call to discuss the results was scheduled for 12:00 PM ET today. More information is available on the company's website at www.ashs.com.
