American Shared Hospital Services (AMS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 17% year-over-year to $6.1 million, driven by expansion in direct patient services, especially from the Rhode Island acquisition and Puebla, Mexico facility, offsetting declines in equipment leasing.

• Transitioned from an equipment leasing focus to a patient-centric service model, with treatment volumes expected to rebound in the latter half of 2025.

• Net loss attributable to shareholders was $625,000 ($0.10 per diluted share), compared to net income of $119,000 ($0.02 per share) in Q1 2024.

• Strong balance sheet and robust business development pipeline support long-term growth strategy.

• Cash and equivalents stood at $11.5 million at quarter-end, with $2 million drawn on a $7 million revolving line of credit.

Financial highlights

• Q1 2025 total revenue rose to $6.1 million, up from $5.2 million in Q1 2024; direct patient services revenue surged 224% to $3.1 million, while equipment leasing revenue declined to $3 million.

• Gross margin for Q1 2025 was $942,000, down from $2.1 million in Q1 2024, as costs of revenue increased.

• Operating loss was $1.3 million, compared to a loss of $85,000 in Q1 2024.

• Adjusted EBITDA was $949,000, down from $1.75 million in Q1 2024.

• Cash flow from operations was $2.5 million provided, offset by $4.0 million in capital expenditures.

Outlook and guidance

• Management anticipates stronger treatment volumes and revenue growth in the second half of 2025, with increased volumes at the Peru facility following a new social security contract.

• Expects continued international growth, especially from new and upgraded centers in Mexico, Ecuador, and Peru.

• Plans to open a fourth radiation therapy center and the first proton beam therapy center in Rhode Island, and launch a facility in Guadalajara, Mexico.

• Additional tuck-in acquisitions anticipated by year-end.

• Focus remains on operational efficiencies, cost controls, and expanding the direct patient care model.