American Shared Hospital Services (NYSE American: AMS) 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 fueled by a 30.2% rise in direct patient services revenue, which reached $4.1 million, driven by higher procedure volumes at the company's Rhode Island radiation therapy centers and its Puebla, Mexico facility. Leasing revenue remained stable at $3.0 million.
Gross margin improved 36.7% 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 reflected higher overall revenue and improved utilization across treatment centers. Operating loss narrowed to $(0.9) million from $(1.3) million, and net loss attributable to the company was $(0.6) million, consistent with the prior year. Adjusted EBITDA increased 18.4% to $1.1 million.
Operationally, Gamma Knife procedures rose 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 showed strong growth due to improved reimbursement and operational ramp-up. Craig Tagawa, Interim CEO, stated that the company is encouraged by the continued momentum in direct patient care services and improved utilization across treatment centers, with proton therapy volumes continuing to trend higher into the second quarter.
Executive Chairman Ray Stachowiak highlighted the expansion of the direct patient care footprint and strengthening of clinical capabilities. He noted meaningful increases in treatment volumes at the Rhode Island and Puebla centers, which contributed directly to revenue growth. The company remains focused on increasing utilization, improving reimbursement profiles, and driving sustained revenue expansion.
Chief Financial Officer Scott Frech emphasized that higher treatment volumes translated into improved margins and a significant reduction in operating loss. He reported that volumes are continuing to trend higher into the second quarter, and as utilization ramps up, the company expects further margin expansion and increased profitability. The company is also actively focused on enhancing its capital structure to support the next phase of growth.
As of March 31, 2026, the company had cash and restricted cash of $5.2 million, up from $3.7 million at year-end 2025. Current portion of long-term debt decreased to $16.8 million from $17.3 million. Shareholders' equity stood at $23.5 million, or approximately $3.56 per share. The company continues discussions with its lender regarding a potential extension of debt obligations and remains focused on strengthening its liquidity profile.
A conference call to discuss the results will be held at 12:00 PM ET today. Details are available on the company's website at www.ashs.com.
