American Shared Hospital Services (NYSE American: AMS) reported financial results for the fourth quarter and full year 2025, highlighting a strategic shift toward direct patient care services and a significant lease extension for its proton beam radiation therapy system. The company announced a seven-year lease extension with Orlando Health, Inc. through 2033, underscoring the long-term nature of its partnerships. This extension is crucial as it provides revenue stability and demonstrates confidence in the company's technology and services.
For the full year 2025, total revenue was $28.1 million, slightly down from $28.3 million in 2024. The net loss attributable to the company was $1.6 million, or $0.23 per diluted share, compared to net income of $2.2 million, or $0.33 per diluted share, in 2024. The decline was primarily due to lower leasing revenue from the expiration of three Gamma Knife agreements and reduced proton beam radiation therapy (PBRT) volumes, coupled with increased operating costs from the expansion of direct patient care services, which have lower margins.
Direct patient care services revenue increased 23.7% to $15.5 million, driven by the first full year of operations from three radiation therapy centers in Rhode Island and a center in Puebla, Mexico. LINAC treatment sessions rose to 28,147 from 14,662 in 2024, reflecting the expanded network. However, leasing segment revenue fell to $12.6 million from $15.6 million, as Gamma Knife procedures declined 13.6% overall, though same-center procedures increased 11.3% following equipment upgrades. PBRT procedures totaled 4,056, down from 5,139, attributed to normal cyclical fluctuations.
CEO Gary Delanois stated, '2025 was a year of transition and operational expansion. We successfully integrated the Rhode Island centers and completed the first full year at Puebla. We are extremely pleased to announce a seven-year lease extension with Orlando Health, reflecting our longstanding partnership.' Executive Chairman Ray Stachowiak added, 'Our strategic shift toward direct patient care services strengthens long-term growth potential. We have Certificate of Need approvals for new centers in Bristol and Johnston, Rhode Island, positioning us for further expansion.'
The company ended 2025 with $3.7 million in cash and cash equivalents, down from $11.3 million, due to $7.5 million in capital expenditures. Total current portion of long-term debt was approximately $17.3 million, and certain financial covenants were not met, though constructive discussions with the lender are ongoing. Shareholders' equity stood at $24.0 million, or $3.66 per share.
Looking ahead, the company remains focused on optimizing operations, expanding patient access, and pursuing strategic opportunities. The lease extension with Orlando Health and the Rhode Island expansions are key drivers for future growth, despite current financial headwinds.
