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, showing 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 driven by a 30.2% increase in direct patient services revenue, which reached $4.1 million, up from $3.1 million in the prior year period. Leasing revenue remained stable at $3.0 million.
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 more than offset the higher cost structure associated with the company's growing direct patient services segment. Operating loss improved to $(0.9) million from $(1.3) million in the prior year period, reflecting the benefit of increased revenue and gross margin expansion. Net loss attributable to American Shared Hospital Services 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 prior year period. Adjusted EBITDA increased 18.4% to $1.1 million compared to $0.9 million in the prior year quarter.
The company's direct patient care services segment saw a 30.2% revenue increase, driven by contributions from its three Rhode Island radiation therapy centers and its Puebla, Mexico facility, which experienced increased patient volumes. Gamma Knife procedures increased 10.1% year-over-year to 229, while proton beam radiation therapy (PBRT) treatments increased 20.7% to 1,003. The Rhode Island centers continued to ramp up utilization, and the Puebla center maintained strong growth due to improved reimbursement and operational ramp-up.
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.”
The company's balance sheet showed cash, cash equivalents, and restricted cash of $5.2 million as of March 31, 2026, compared to $3.7 million at December 31, 2025. The current portion of long-term debt decreased to $16.8 million 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 constructive discussions with its lender regarding a potential extension of certain debt obligations.
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. We are continuing to see volumes trending higher into the second quarter, and we expect to drive further margin expansion and increased profitability.”
A conference call to discuss the results will be held today at 12:00 pm ET. Participants can dial 1-844-413-3972 (domestic) or 1-412-317-5776 (international) and ask to join the American Shared Hospital Services call. A simultaneous webcast can be accessed through the company's website at www.ashs.com or directly at https://event.choruscall.com/mediaframe/webcast.html?webcastid=NAuZg0I8. A replay will be available until May 21, 2026, by dialing 1-855-669-9658 or 1-412-317-0088, access code 6753554.
