American Shared Hospital Services Reports Q1 2025 Net Loss of $625,000 Despite Revenue Growth

American Shared Hospital Services (ASHS) reported a net loss of $625,000, or $0.10 per diluted share, for the first quarter of 2025, a significant decline from a net income of $119,000, or $0.02 per diluted share, in the same period of 2024. The company's total revenues increased by $896,000 to $6,112,000, driven primarily by a substantial rise in direct patient services revenue, which surged to $3,121,000 from $963,000 year-over-year. This increase was largely attributed to the financial contributions from the recently acquired Rhode Island Companies, which began operations in May 2024, and the radiation therapy facility in Puebla, Mexico, which commenced patient treatments in July 2024.

In contrast, revenue from the leasing segment decreased by $1,262,000 to $2,991,000, primarily due to lower Gamma Knife volumes following the expiration of two customer contracts and reduced proton beam radiation therapy (PBRT) volumes. The number of PBRT fractions fell to 831 from 1,276, while Gamma Knife procedures decreased to 208 from 273. The company noted that these declines were influenced by cyclical fluctuations and operational downtimes for equipment upgrades.

Total costs of revenue rose by $2,097,000 to $5,170,000, reflecting increased maintenance and operating costs associated with the newly acquired facilities in Rhode Island and Puebla. Depreciation and amortization expenses also increased to $1,445,000, driven by higher depreciation for upgraded equipment and the new facilities. Selling and administrative expenses decreased slightly to $1,808,000, attributed to lower legal costs related to business development efforts.

ASHS's cash position improved, with cash, cash equivalents, and restricted cash totaling $11,491,000 as of March 31, 2025, compared to $11,275,000 at the end of 2024. The company utilized $2,000,000 from its revolving line of credit during the quarter. Looking ahead, ASHS plans to continue expanding its direct patient services segment and anticipates that the new facilities will contribute positively to revenue growth. However, the company remains cautious about market conditions and the potential impact of lower procedure volumes on its financial performance.