American Shared Hospital Services (NYSE American: AMS), a provider of stereotactic radiosurgery equipment and advanced radiation therapy services, reported 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 fueled by a 30.2% increase in direct patient services revenue, which reached $4.1 million, driven 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% year-over-year to $1.3 million, or 18.2% of revenue, up from $0.9 million, or 15.4%, in the prior year period. The margin expansion was attributed to higher overall revenue and improved utilization across treatment centers, which offset the higher cost structure of the growing direct patient services segment. Operating loss narrowed to $(0.9) million from $(1.3) million a year ago, while net loss attributable to the company remained flat at $(0.6) million, or $(0.09) per diluted share. Adjusted EBITDA increased 18.4% to $1.1 million, compared to $0.9 million in the prior year quarter.
Operationally, Gamma Knife procedures increased 10.1% year-over-year to 229, and proton beam radiation therapy (PBRT) treatments rose 20.7% to 1,003. The Rhode Island and Puebla centers continued to ramp up utilization, contributing to segment growth. Leasing revenue remained steady at $3.0 million, reflecting the impact of prior Gamma Knife agreement expirations partially offset by improved procedure volumes at upgraded sites.
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, "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."
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. Current portion of long-term debt decreased to $16.8 million from $17.3 million. The company continues to engage in discussions with its lender regarding a potential extension of debt obligations and is focused on optimizing its capital structure to support future growth.
For more details, a conference call will be held today at 12:00 PM ET, accessible via the company's website at www.ashs.com or through a direct webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=NAuZg0I8A.
