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% rise in direct patient services revenue, which reached $4.1 million, driven by higher patient volumes at its 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, up from $0.9 million, or 15.4%, in the prior year period. Adjusted EBITDA increased 18.4% to $1.1 million, reflecting better operational efficiency. The company also reported a reduction in operating loss to $(0.9) million from $(1.3) million, though net loss remained flat at $(0.6) million.
Operationally, Gamma Knife procedures grew 10.1% year-over-year to 229, while proton beam radiation therapy (PBRT) treatments increased 20.7% to 1,003. The company noted that volumes are continuing to trend higher into the second quarter. Leasing revenue remained stable at $3.0 million, as prior Gamma Knife contract expirations were partially offset by improved volumes at upgraded sites.
Craig Tagawa, Interim CEO, 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.” Executive Chairman Ray Stachowiak 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.”
CFO Scott Frech highlighted the company’s focus on capital structure optimization, noting, “As utilization continues to ramp up across our network, we expect to drive further margin expansion and increased profitability. We are also actively focused on enhancing our capital structure to support the next phase of growth.”
The company ended the quarter with $5.2 million in cash, up from $3.7 million at year-end 2025, driven by improved operating performance. Long-term debt decreased to $16.8 million from $17.3 million. Management continues discussions with its lender regarding a potential extension of certain debt obligations.
The results underscore AMS’s strategic shift toward direct patient care, which now accounts for a larger share of revenue. As the company ramps up utilization at its newer facilities, investors will watch for continued margin expansion and a path to profitability. A conference call to discuss the results was scheduled for 12:00 PM ET on May 14, 2026, with a replay available through May 21, 2026, at 1-855-669-9658, access code 6753554, or on the company’s website at www.ashs.com.
