American Shared Hospital Services ((AMS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for American Shared Hospital Services painted a picture of cautious optimism. While the company celebrated revenue growth, improved margins, and successful market expansion, it also acknowledged ongoing challenges in the equipment leasing segment and proton therapy volumes. Despite reporting a net loss for the first nine months, the company remains hopeful about its growth strategy and future opportunities.
Revenue Growth and Improved Margins
American Shared Hospital Services reported a 2.5% year-over-year increase in revenue for the third quarter, with a 5.6% increase year-to-date. The company achieved a 16% improvement in gross margins, and operating losses narrowed significantly with a 92% improvement. Adjusted EBITDA saw a substantial 42% increase compared to the previous year, highlighting the company’s efforts to enhance financial performance.
Significant Growth in New Markets
The company’s new radiation therapy treatment center in Puebla, Mexico, demonstrated remarkable success with a 263% annual revenue growth. Additionally, the Direct Patient Services segment experienced a 9.4% increase in revenue, underscoring the company’s effective expansion strategy and its ability to tap into new markets successfully.
Expansion and New Facilities
American Shared Hospital Services announced plans to open a Gamma Knife Center in Guadalajara, Mexico, and highlighted the acquisition of three Rhode Island cancer treatment centers. These initiatives are expected to increase patient consultations and treatment volumes, reinforcing the company’s commitment to expanding its footprint and enhancing service delivery.
Decline in Equipment Leasing Segment
The earnings call revealed a decline in the equipment leasing segment, with revenue dropping from $11.5 million in the first nine months of 2024 to $9.7 million in the same period of 2025. This decline was attributed to contract expirations and a decrease in proton beam radiation therapy volumes, which impacted the overall performance of this segment.
Decrease in Proton Therapy Volumes
Proton therapy volumes experienced an 18% decrease, with total fractions for Q3 2025 falling to 3,095 from 3,764 in the first nine months of 2024. This decline was primarily due to cyclical fluctuations, posing a challenge for the company’s growth in this area.
Net Loss for the First Nine Months
The company reported a net loss of $922,000 for the first nine months of 2025, a stark contrast to the net income of $3.5 million in the same period of 2024. This loss was mainly due to the absence of a one-time bargain purchase gain from the previous year, highlighting the challenges faced in maintaining profitability.
Forward-Looking Guidance
Looking ahead, American Shared Hospital Services remains focused on strategic initiatives aimed at driving revenue growth and improving profitability. The company anticipates continued success from its new treatment centers in Rhode Island and Mexico. With a 2.5% rise in Q3 2025 revenue to $7.2 million and a 60% year-over-year increase in gross margins, the company is optimistic about its future prospects and ongoing expansion efforts.
In summary, the earnings call for American Shared Hospital Services highlighted a mix of achievements and challenges. While the company celebrated revenue growth and successful market expansion, it also faced difficulties in the equipment leasing segment and proton therapy volumes. However, with strategic initiatives and a focus on new markets, the company remains optimistic about its growth trajectory and future opportunities.