American Shared Hospital Services Reports Stronger Q1 2026 Revenue Despite Continued Net Loss

American Shared Hospital Services reported higher first-quarter 2026 revenue, improved gross margin, and stronger adjusted EBITDA, as growth in direct patient services helped offset ongoing operating losses.

The company said total revenue reached $7.1 million for the quarter ended March 31, 2026, up 15.9% from $6.1 million in the same period last year. The results were discussed during the company’s earnings call on May 14, 2026, with Executive Chairman Raymond Stachowiak, Interim CEO Craig K. Tagawa, and CFO Frech Scott participating.

Direct Patient Services Lead Growth

A key driver of the quarter was the company’s direct patient services business. Revenue from this segment rose 30.2% to about $4.1 million, compared with $3.1 million a year earlier. The company linked the gain to contributions from its three Rhode Island radiation therapy centers and its Puebla, Mexico facility, which operated throughout the quarter and saw higher patient volumes.

This performance is important because it shows American Shared Hospital Services is becoming more than a medical equipment leasing company. By expanding treatment-center operations, the company is building a broader revenue base tied directly to patient care demand.

Margins Improve as Revenue Rises

Gross profit increased to $1.3 million, representing a gross margin of 18.2%. That compares with $0.9 million, or 15.4%, in the first quarter of 2025. The improvement suggests that stronger patient volume and better operating leverage helped the company manage costs more effectively.

Adjusted EBITDA also improved, rising 18.4% to about $1.1 million, compared with $0.9 million in the prior-year period.

Net Loss Remains a Challenge

Even with better revenue and margins, American Shared Hospital Services remained unprofitable. The company reported a net loss attributable to shareholders of about $0.6 million, or $0.09 per diluted share. In the first quarter of 2025, the company posted a similar net loss of about $0.6 million, or $0.10 per diluted share.

The operating loss improved to $0.9 million, compared with $1.3 million a year earlier. This shows progress, although the company still needs stronger scale, higher utilization, or tighter cost control to move toward sustained profitability.

Leasing Revenue Holds Steady

The company’s medical equipment leasing revenue remained stable at about $3.0 million, nearly unchanged from the prior-year period. This segment continues to provide a dependable base, while direct patient services appear to be the faster-growing part of the business.

Outlook: Higher Volumes May Support Q2 Momentum

Management said procedure volumes were trending higher into the second quarter. That could support continued revenue growth if demand remains firm across the company’s radiation therapy centers and equipment partnerships.

American Shared Hospital Services operates in a specialized healthcare niche, focusing on stereotactic radiosurgery equipment, Gamma Knife services, proton therapy, and advanced radiation therapy cancer treatment services. Its model gives hospitals and treatment centers access to expensive medical technology without requiring them to carry the full financial burden alone.

Investor Takeaway

The first-quarter results show a company with improving sales momentum, better margins, and stronger adjusted EBITDA. However, the continued net loss remains the main concern for investors.

For now, the key question is whether American Shared Hospital Services can convert rising patient volume into consistent profitability. If direct patient services continue to grow and leasing revenue remains stable, the company may be in a better position during the rest of 2026.

Overall, Q1 2026 was a step forward for American Shared Hospital Services, but not yet a full turnaround. Revenue growth and margin improvement were encouraging, while the company’s path to positive net income remains the central issue to watch.

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