American Shared Hospital Services (NYSE American: AMS) 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% rise in direct patient services revenue, which reached $4.1 million, up from $3.1 million in the prior year quarter. Leasing revenue remained stable at $3.0 million.
The company's gross margin improved 36.7% to $1.3 million, or 18.2% of revenue, compared to $0.9 million, or 15.4%, in the prior year. This margin expansion was driven by higher overall revenue and improved utilization across treatment centers, which more than offset higher operating costs associated with the growing direct patient services segment. Adjusted EBITDA increased 18.4% to $1.1 million, up from $0.9 million in the prior year period.
Operationally, Gamma Knife procedures increased 10.1% year-over-year to 229, while proton beam radiation therapy (PBRT) treatments rose 20.7% to 1,003. The company's Rhode Island radiation therapy centers and its Puebla, Mexico facility continued to ramp up utilization, contributing to overall segment growth. 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, noted, “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 utilization continues to ramp up across our network, we expect to drive further margin expansion and increased profitability.” The company's operating loss improved to $(0.9) million from $(1.3) million in the prior year, and net loss attributable to American Shared Hospital Services remained flat at $(0.6) million.
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. Long-term debt decreased slightly to $16.8 million from $17.3 million. The company continues to engage in discussions with its lender regarding a potential extension of certain debt obligations. For more details, the conference call webcast is available at this link, and additional information can be found on the company's website at www.ashs.com.
