American Shared Hospital Services Reports 15.9% Revenue Growth in Q1 2026, Driven by Direct Patient Care Expansion

American Shared Hospital Services (NYSE American: AMS) reported financial results for the first quarter ended March 31, 2026, with total revenue increasing 15.9% to $7.1 million compared to $6.1 million in the prior year period. The growth was primarily driven by a 30.2% increase in direct patient services revenue, which reached $4.1 million, reflecting higher procedure volumes at the company's Rhode Island radiation therapy centers and its facility in Puebla, Mexico.

Gross margin improved 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. Adjusted EBITDA increased 18.4% to $1.1 million from $0.9 million in the prior year period.

Operating loss improved to $(0.9) million from $(1.3) million in the prior year period. 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.

In the direct patient care segment, revenue grew 30.2% to approximately $4.1 million, driven by contributions from the three Rhode Island centers and the Puebla facility, which operated throughout the quarter and experienced increased patient volumes. The leasing segment generated $3.0 million in revenue, consistent with the prior year, reflecting the impact of prior Gamma Knife agreement expirations partially offset by improved procedure volumes at upgraded sites.

Operationally, 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 company's Rhode Island centers and Puebla center continued to ramp up utilization, with Puebla benefiting from improved reimbursement.

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, commented, "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."

The company reported cash, cash equivalents, and restricted cash of $5.2 million as of March 31, 2026, up from $3.7 million at December 31, 2025. Shareholders' equity (excluding non-controlling interests) was $23.5 million, or approximately $3.56 per share. The company continues to engage in discussions with its lender regarding a potential extension of certain debt obligations.

For more information, visit the company's website at www.ashs.com. A replay of the conference call will be available through May 21, 2026, at 1-855-669-9658 or 1-412-317-0088, access code 6753554.