American Shared Hospital Services Reports Q2 2025 Revenue of $7.1 Million, Net Loss of $280,000

American Shared Hospital Services (ASHS) reported its financial results for the second quarter and first half of 2025, revealing a total revenue of $7.1 million for the three months ending June 30, 2025, a slight increase from $7.1 million in the same period of 2024. For the first half of 2025, revenue reached $13.2 million, up from $12.3 million year-over-year. The company's rental revenue from medical equipment leasing decreased to $3.6 million for the second quarter, down from $3.9 million in the prior year, while direct patient services revenue increased to $3.5 million, compared to $3.2 million in the same quarter of 2024.

The financial performance reflects significant changes compared to the previous fiscal period, particularly in the direct patient services segment, which benefited from the acquisition of a 60% interest in the Rhode Island Companies in May 2024. This acquisition contributed to a notable increase in revenue from the newly integrated facilities, which generated $2.5 million in radiation therapy revenue for the second quarter. However, the leasing segment faced challenges, with a decline in Gamma Knife and proton beam radiation therapy (PBRT) volumes attributed to the expiration of customer contracts and cyclical fluctuations in procedure volumes.

Operationally, ASHS reported a net loss attributable to the company of $280,000, or $0.04 per diluted share, for the second quarter of 2025, a stark contrast to a net income of $3.6 million, or $0.55 per diluted share, in the same quarter of 2024. The loss was primarily driven by lower procedure volumes across both segments, leading to increased costs of revenue, which rose to $5.4 million for the quarter, up from $4.6 million in the prior year. The company also noted an increase in selling and administrative expenses, which decreased to $1.7 million from $1.9 million year-over-year, reflecting cost management efforts.

In terms of strategic developments, ASHS has been actively expanding its geographic footprint and service offerings. The company operates facilities in Rhode Island, Peru, Ecuador, and Mexico, with the Puebla facility beginning patient treatments in July 2024. The company has also committed to purchasing and installing additional Gamma Knife and LINAC systems, with total commitments amounting to $8.4 million as of June 30, 2025. These investments are part of ASHS's strategy to enhance its service capabilities and market presence.

Looking ahead, ASHS anticipates continued challenges in the leasing segment due to competitive pressures and contract expirations. However, the company remains optimistic about the growth potential of its direct patient services segment, particularly with the integration of the Rhode Island facilities and the expected increase in patient volumes from the Puebla facility. The company is focused on improving operational efficiencies and managing its debt obligations, with a cash position of $11.3 million as of June 30, 2025, which it believes will support its ongoing capital needs and strategic initiatives.