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 prior year period. The growth was primarily fueled by a 30.2% rise in direct patient services revenue, reaching $4.1 million, driven by higher procedure volumes at the company's Rhode Island radiation therapy centers and its facility in Puebla, Mexico. Leasing revenue remained stable at $3.0 million.
Gross margin improved by 36.7% to $1.3 million, or 18.2% of revenue, compared to $0.9 million, or 15.4%, in the prior year period. Operating loss narrowed to $(0.9) million from $(1.3) million, while net loss attributable to the company remained flat at $(0.6) million. Adjusted EBITDA increased 18.4% to $1.1 million from $0.9 million.
Operationally, Gamma Knife procedures rose 10.1% year-over-year to 229, and 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 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.' 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.'
Cost of revenue increased to $5.8 million from $5.2 million due to higher operating costs associated with direct patient services, including staffing and facility expenses. Selling and administrative expenses rose slightly to $1.9 million. Interest expense decreased to $0.3 million from $0.4 million due to lower average debt.
As of March 31, 2026, the company had cash, cash equivalents, and restricted cash of $5.2 million, up from $3.7 million at December 31, 2025. Current portion of long-term debt was $16.8 million, down from $17.3 million. Shareholders' equity (excluding non-controlling interests) stood at $23.5 million.
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. We are continuing to see volumes trending higher into the second quarter.'
The company will hold a conference call today at 12:00 pm ET. Details are available on the company's website at www.ashs.com.
This announcement is important as it demonstrates American Shared Hospital Services' successful pivot to direct patient services, which is driving revenue growth and margin improvement despite challenges in the leasing segment. The increasing treatment volumes underscore growing demand for advanced radiation therapy, positioning the company for sustained long-term growth.
