American Shared Hospital Services (NYSE American: AMS) reported a net loss attributable to the company of $1.6 million for the full year 2025, compared with net income of $2.2 million in 2024, as the company navigated a transition toward direct patient care services. Total revenue for 2025 was $28.1 million, down slightly from $28.3 million in the prior year. However, the company announced a seven-year lease extension for its Proton Beam Radiation Therapy System with Orlando Health, Inc., extending the agreement through 2033.
The lease extension underscores the longstanding partnership between the two organizations, which spans over two decades, and reflects the ongoing collaboration in delivering advanced cancer treatment services using proton beam radiation therapy technology. The company also highlighted progress in its direct patient care services segment, which now represents the majority of total revenue. Revenue from this segment increased 23.7% year-over-year to $15.5 million, driven by the first full year of operations from three radiation therapy centers in Rhode Island and a center in Puebla, Mexico.
LINAC treatment sessions totaled 28,147 in 2025, nearly doubling from 14,662 in 2024, reflecting the expanded network of stand-alone centers. However, the equipment leasing segment faced headwinds, with revenue declining to $12.6 million from $15.6 million, due to the expiration of three Gamma Knife agreements and lower proton therapy volumes. Same-center Gamma Knife procedures increased 11.3%, supported by equipment upgrades, including the completion of an upgrade to the Esprit platform at the company's Lima, Peru facility.
Gross margins for 2025 fell to 18% from 32% in the prior year, primarily due to increased operating costs associated with the shift to direct patient care services, which carry lower margins than equipment leasing. The company ended the year with $3.7 million in cash and cash equivalents, down from $11.3 million, reflecting $7.5 million in capital expenditures for the Rhode Island centers and international operations.
CEO Gary Delanois noted that 2025 was a year of transition and operational expansion, with successful integration of the Rhode Island centers and completion of the first full year of operations in Puebla. The company is also pursuing new development initiatives, including Certificate of Need approvals for a radiation therapy center in Bristol, Rhode Island, and a proton beam radiation therapy center in Johnston, Rhode Island. Executive Chairman Ray Stachowiak emphasized the strategic shift toward direct patient care services, which he said strengthens long-term growth potential and creates more stable revenue streams.
Chief Financial Officer Scott Frech highlighted that the company's market value represents a steep discount to underlying shareholders' equity of $3.66 per share. The company is in discussions with its lender to address covenant issues related to its credit facility, with a focus on optimizing the balance sheet and strategic flexibility.
For the fourth quarter of 2025, revenue decreased 14.8% to $7.7 million, while net loss improved to $631,000 from a loss of $1.3 million in the same quarter of 2024. Adjusted EBITDA for the full year was $5.5 million, compared to $8.9 million in 2024. The company will hold a conference call at 12:00 PM ET today to discuss the results.
