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 same period last year. The growth was primarily fueled by a 30.2% expansion 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 the company’s three Rhode Island radiation therapy centers and its facility in Puebla, Mexico, which experienced higher patient volumes throughout the quarter.
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 first quarter of 2025. The margin expansion was attributed to higher overall revenue and improved utilization across treatment centers, which offset increased operating costs associated with the direct patient services segment. Operating loss narrowed to $(0.9) million from $(1.3) million in the prior year period, reflecting the benefit of revenue growth and margin improvement. Net loss attributable to the company remained flat at $(0.6) million, or $(0.09) per diluted share, compared to $(0.6) million, or $(0.10) per diluted share, in the year-ago quarter.
Adjusted EBITDA increased 18.4% to $1.1 million, up from $0.9 million in the prior year period. The company also reported operational highlights, including a 10.1% year-over-year increase in Gamma Knife procedures to 229 and a 20.7% rise in proton beam radiation therapy (PBRT) treatments to 1,003. The Rhode Island centers continued to ramp up utilization, while the Puebla center showed strong growth driven by improved reimbursement and operational ramp-up.
Leasing revenue remained steady at $3.0 million, reflecting the impact of prior Gamma Knife agreement expirations, partially offset by improved procedure volumes at certain upgraded sites. The company noted that PBRT volumes continued to reflect normal cyclical fluctuations consistent with industry trends.
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. 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.”
Scott Frech, Chief Financial Officer, commented, “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 of March 31, 2026, the company had cash, cash equivalents, and restricted cash of $5.2 million, compared to $3.7 million at December 31, 2025. The current portion of long-term debt was $16.8 million, down from $17.3 million at year-end 2025. The company continues to engage in discussions with its lender regarding a potential extension of certain debt obligations.
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.