American Shared Hospital Services Reports 15.9% Revenue Growth in Q1 2026, Driven by Direct Patient Care Expansion
American Shared Hospital Services reported strong first-quarter 2026 results with revenue growth of 15.9%, improved gross margins, and increased treatment volumes, signaling a successful ramp-up of its direct patient services segment.
American Shared Hospital Services (NYSE American: AMS), a provider of stereotactic radiosurgery equipment and advanced radiation therapy cancer treatment 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 prior-year period. The growth was driven primarily by a 30.2% rise in direct patient services revenue to $4.1 million, reflecting higher procedure volumes at its Rhode Island radiation therapy centers and its Puebla, Mexico facility.
Gross margin improved 36.7% to $1.3 million, or 18.2% of revenue, up from $0.9 million, or 15.4%, in the same quarter last year. The company's operating loss narrowed to $(0.9) million from $(1.3) million, while Adjusted EBITDA increased 18.4% to $1.1 million. Net loss attributable to the company 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.
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 company noted that volumes are continuing to trend higher into the second quarter. Leasing revenue remained steady at $3.0 million, reflecting the impact of prior Gamma Knife contract expirations offset by improved procedure volumes at upgraded sites.
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.”
The company’s cash, cash equivalents, and restricted cash increased to $5.2 million as of March 31, 2026, from $3.7 million at December 31, 2025, driven by improved operating performance and working capital timing. The current portion of long-term debt decreased to $16.8 million from $17.3 million. Management remains focused on optimizing its capital structure and is in constructive discussions with its lender regarding a potential extension of certain debt obligations.
The news underscores the growing demand for advanced radiation therapy services as cancer treatment centers expand their capabilities. American Shared Hospital Services' strategic focus on direct patient care and partnerships positions it to benefit from the increasing need for accessible, high-quality cancer care. More information can be found on the company's website at www.ashs.com.