Accuray Reports Fiscal 2027 First Quarter Financial Results

Service revenue and margins improved, while product revenue, orders and backlog declined year over year.

Rhea-AI Summary

Accuray (ARAY) reported fiscal 2027 first-quarter revenue of $86.5 million, down year over year as product sales declined. For the quarter ended September 30, 2026, revenue fell 8%, with product revenue down 26% and service revenue up 4%. Gross margin rose to 30.1% from 28.8%.

Net income was $10.1 million, or $0.07 per diluted share, including a $59.6 million non-cash debt-extinguishment gain and $35.4 million goodwill impairment. Excluding both, net loss narrowed to $14.0 million from $21.7 million. Adjusted EBITDA turned positive at $2.5 million. Gross product orders fell to $19.8 million from $39.6 million; backlog declined approximately 31% to $272.0 million.

After quarter end, shareholders approved proposals to help enable TCW financing, including a $40 million debt exchange for convertible preferred equity. Accuray continues not to provide formal fiscal 2027 revenue or adjusted EBITDA guidance.

12 points · 1 major

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1 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointTCW financing provided a $15 million investment associated with the July transaction. 88% of market cap
• Moderate pointService revenue grew 4% year over year to $59.2 million, or 5% on a constant-currency basis.
• Moderate pointOperating expenses excluding goodwill impairment fell 29% year over year to $27.2 million.
• Moderate pointTransformation initiatives generated approximately $13 million of year-over-year cost and margin improvement.
• Moderate pointNet loss excluding the debt gain and impairment narrowed to $14.0 million from $21.7 million.
• Moderate pointAdjusted EBITDA reached $2.5 million versus negative $4.1 million in the prior-year quarter.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Proposed $40 million debt-for-equity exchange would replace term loan debt with convertible preferred equity. 2.3× market cap

5 minor points

• Minor pointService gross margin rose 120 basis points year over year to 35.1%.
• Minor pointTotal gross margin increased to 30.1% from 28.8% in the prior-year quarter.
• Minor pointNet income reached $10.1 million versus a $21.7 million loss, including a $59.6 million non-cash debt-extinguishment gain.
• Minor pointCash, cash equivalents and restricted cash rose $1.6 million from June 30 to $50.4 million.
• Minor pointRaySearch definitive agreement was signed to advance Accuray's online adaptive radiation therapy strategy.

Negative

• Major pointGoodwill impairment added a $35.4 million non-cash charge in the quarter. 2.1× market cap
• Moderate pointTotal revenue declined 8% year over year to $86.5 million.
• Moderate pointProduct revenue fell 26% year over year to $27.3 million.
• Moderate pointGross product orders declined to $19.8 million from $39.6 million in the prior-year quarter.
• Moderate pointOrder backlog fell approximately 31% year over year to $272.0 million at September 30, 2026.
• Moderate pointInterest expense increased to $11.828 million from $8.052 million in the prior-year quarter.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Convertible preferred equity in the proposed $40 million debt exchange introduces potential common-share dilution. 2.3× market cap

4 minor points

• Minor pointBook-to-bill ratio declined to 0.7 from 1.1 in the prior-year quarter.
• Minor pointGross profit declined to $26.1 million from $27.0 million in the prior-year quarter.
• Minor pointOperating loss widened to $36.502 million from $11.313 million in the prior-year quarter.
• Minor pointDebt-for-equity exchange remained conditional at September 30, including shareholder approval and implementation of a reverse stock split.

News Explained

The $59.6 million noncash gain did not establish that the $40 million debt-for-equity exchange had closed by September 30, 2026.

The company reports a $15 million investment associated with its July TCW financing, alongside the contemplated $40 million exchange of term-loan debt for convertible preferred equity.

At September 30, 2026, the exchange remained subject to closing conditions including stockholder approval and reverse-split implementation; after quarter-end, stockholders approved proposals to help enable completion.

A reverse stock split reduces the share count and proportionally raises the per-share price; by itself, it does not change company value.

The $59.6 million noncash debt-extinguishment gain did not depend on completing the exchange: the July financing added a substantive contingent conversion feature to outstanding loans, and replacement loans were initially recognized at fair value.

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Market move: ARAY -23.34% vs previous close. Fiscal 1Q27 earnings report

$0.11 – $0.16 Day Range

$13.65M Mkt Cap at Last Price

On Nov 4, the day this news came out, the latest delayed price for ARAY is 23.34% below the previous close. Our momentum scanner has recorded 28 alerts for this stock so far that day. The latest delayed price is $0.11. Relative volume is elevated at 2.4x what this stock usually trades by this time of day.

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Key Figures

Total net revenue: $86.5 million; down 8% year over year Product revenue: $27.3 million; down 26% year over year Service revenue: $59.2 million; up 4% year over year +5 more

Total net revenue

$86.5 million; down 8% year over year

Fiscal 2027 first quarter; prior-year quarter was $93.9 million

Product revenue

$27.3 million; down 26% year over year

Fiscal 2027 first quarter

Service revenue

$59.2 million; up 4% year over year

Fiscal 2027 first quarter

Service gross margin

35.1%; up 120 basis points year over year

Fiscal 2027 first quarter

Goodwill impairment charge

$35.4 million

Non-cash charge included in fiscal 2027 first-quarter operating expenses

Adjusted EBITDA

$2.5 million

Fiscal 2027 first quarter; compared with negative $4.1 million in the prior-year quarter

Gross product orders

$19.8 million

Fiscal 2027 first quarter; compared with $39.6 million in the prior-year quarter

Order backlog

$272.0 million; approximately 31% lower

As of September 30, 2026, compared with the end of the prior fiscal-year first quarter

Previous Earnings Reports

4 past events · Latest: Aug 19

Same Type 4 events

1. Aug 19

   Fiscal 2026 results

   24h Move

   -0.8%

   Full-year revenue and product revenue fell, while service revenue grew and backlog contracted.

2. May 06

   Fiscal Q3 results

   24h Move

   -38.5%

   Q3 revenue fell 7%, product revenue declined 13%, and the company withdrew fiscal-year guidance.

3. Feb 04

   Fiscal Q2 results

   24h Move

   -20.7%

   Q2 revenue fell 12%, product revenue fell 26%, and gross margin contracted to 23.5%.

4. Nov 05

   Fiscal Q1 results

   24h Move

   -15.9%

   Prior-year Q1 revenue fell 7%, product revenue fell 23%, and net loss widened.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

goodwill impairment, adjusted ebitda, convertible preferred equity, sbrt, +2 more

6 terms

goodwill impairment financial

"including a $35.4 million non-cash goodwill impairment charge"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

adjusted ebitda financial

"Adjusted EBITDA was $2.5 million in the first quarter"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

convertible preferred equity financial

"the $40 million exchange of term loan debt for convertible preferred equity"

A class of company ownership that gives holders priority for dividends and claims on assets but can be exchanged later for ordinary shares, like a special ticket that can be turned into regular stock. It matters to investors because it blends steady income and downside protection with the potential for stock-market upside, affecting expected returns, future share dilution, and control over the company depending on when and how conversion happens.

sbrt medical

"excellent eight-year biochemical control for SBRT"

Stereotactic body radiation therapy (SBRT) is a highly focused form of cancer treatment that delivers very strong doses of radiation to a small tumor area while sparing nearby healthy tissue, similar to using a precise laser pointer instead of a floodlight. Investors watch SBRT because its adoption affects demand for specialized medical devices, treatment centers, and reimbursement patterns, and shifts in clinical effectiveness or regulatory approval can influence healthcare company revenues and costs.

online adaptive radiation therapy technical

"to accelerate its online adaptive radiation therapy strategy"

A form of radiation treatment in which the therapy plan is updated immediately before or during a treatment session using current imaging and patient positioning, then delivered while the patient is on the treatment table. Think of it like tailoring radiation to the patient’s exact shape and tumor position that day, rather than using a one-size-fits-all plan made earlier. It matters to investors because it drives demand for advanced imaging, software, and hardware and can change clinic workflow, treatment efficiency, and reimbursement dynamics.

gaap financial

"Accuray reports its financial results in accordance with generally accepted accounting principles"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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AI-generated analysis. How Rhea-AI works. Not financial advice.

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MADISON, Wis., Nov. 4, 2026 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the first quarter ended September 30, 2026.

Key Highlights 

• Service revenue grew 4% year-over-year to $59.2 million, up 5% on a constant currency basis, driven by service contract pricing actions and nearly 3% growth in the global installed base.
  
  
• Service gross margin rose 120 basis points from the prior year to 35.1%, primarily driven by pricing actions and a lower service labor cost structure.
  
  
• Operating expenses were $62.6 million in the first quarter of fiscal 2027, including a $35.4 million non-cash goodwill impairment charge. Excluding the goodwill impairment charge, operating expenses fell 29% to $27.2 million from $38.3 million in the prior year first quarter, as transformation initiatives continued to deliver measurable results. Overall, transformation initiatives generated approximately $13 million of cost and margin improvement year over year; driven by headcount reductions, more efficient usage of strategic partners, focused product development and marketing plans, and continued discretionary spending discipline.
  
  
• Accuray signed a definitive agreement with RaySearch to accelerate its online adaptive radiation therapy strategy. It also advanced its collaboration with Samsung NeuroLogica on volumetric imaging for the CyberKnife System.
  
  
• Long-term PACE-A data presented at ASTRO showed excellent eight-year biochemical control for SBRT, with about 75% of SBRT patients treated with the CyberKnife System. SBRT also showed quality-of-life advantages over surgery.
  
  
• The Company's financial foundation was strengthened by the $15 million investment associated with its previously announced financing transaction with TCW in July. After quarter end, stockholders approved the proposals needed to help enable the Company to complete the financing transaction with TCW, including the $40 million exchange of term loan debt for convertible preferred equity. These actions are intended to reduce leverage, enhance liquidity, and provide greater flexibility to execute our strategy.

"As I said on our last call, fiscal 2026 was a year of transformation, and fiscal 2027 is about execution," said Steve La Neve, President and Chief Executive Officer of Accuray. "During the first quarter, we made progress across several areas. Service margins improved, operating expenses remained well controlled, we strengthened our financial position, and we advanced our innovation roadmap through strategic partnerships with RaySearch and Samsung NeuroLogica. By combining our strengths in precision treatment delivery and real-time motion management with enhanced imaging and adaptive capabilities, we believe we can further differentiate our platforms and deliver greater value for clinicians and patients."

Mr. La Neve continued, "At the same time, we see a clear opportunity to improve product and order performance. The customer engagement we saw at ASTRO, the growing clinical evidence supporting precision radiation therapy, and the opportunities created by our innovation strategy reinforce our confidence in the direction we are taking. Our focus now is on turning that engagement into orders and revenue, and on pairing the operating discipline we have built with stronger commercial performance. We know what we need to execute, and our team is focused on delivering."

Fiscal First Quarter Results

Total net revenue was $86.5 million in the first quarter of fiscal 2027, or a decrease of 8 percent, as compared to $93.9 million in the prior fiscal year first quarter. Product revenue was $27.3 million in the first quarter of fiscal 2027, or a decrease of 26 percent, as compared to $37.2 million in the prior fiscal year first quarter. Service revenue was $59.2 million in the first quarter of fiscal 2027, or an increase of 4 percent, as compared to $56.8 million in the prior fiscal year first quarter.

Total gross profit was $26.1 million in the first quarter of fiscal 2027, or 30.1 percent of total net revenue, as compared to a total gross profit of $27.0 million, or 28.8 percent of total net revenue, in the prior fiscal year first quarter. The increase in gross margin rate was primarily due to a higher service gross margin rate, reflecting ongoing pricing initiatives.

Operating expenses were $62.6 million in the first quarter of fiscal 2027, including a $35.4 million non-cash goodwill impairment charge. Excluding the goodwill impairment charge, operating expenses were $27.2 million, a decrease of 29 percent compared to the prior fiscal year first quarter. Operating expenses in the first quarter of fiscal 2027 included $0.4 million in restructuring charges, as compared to $2.8 million in the prior year. Excluding goodwill impairment, operating expenses decreased across all operating expense categories as a result of the Company's disciplined execution of its transformation initiatives.

The Company recognized a gain on extinguishment of debt of approximately $59.6 million in connection with its July 2026 financing transaction. The transaction added a substantive contingent conversion feature to the outstanding Term Loan B and Delayed Draw Term Loan, resulting in extinguishment accounting and initial recognition of the replacement loans at fair value. The gain primarily reflected the difference between the net carrying amounts of the existing loans and the fair value of the replacement loans. Recognition of the gain did not depend on completion of the debt-for-equity exchange, which remained subject to closing conditions at September 30, 2026, including requisite stockholder approval and implementation of a reverse stock split.

Net income was $10.1 million in the first quarter of fiscal 2027, or a diluted net income of $0.07 per share, including the $59.6 million non-cash gain on extinguishment of debt and $35.4 million non-cash goodwill impairment charge. Excluding both items, net loss was $14.0 million in the first quarter of fiscal 2027, or a diluted net loss of $0.10 per share, as compared to a net loss of $21.7 million, or a diluted net loss of $0.18 per share, in the prior fiscal year first quarter. Adjusted EBITDA was $2.5 million in the first quarter of fiscal 2027, as compared to a negative adjusted EBITDA of $4.1 million in the prior fiscal year first quarter.

Gross product orders were $19.8 million in the first quarter of fiscal 2027 as compared to $39.6 million in the prior fiscal year first quarter. The book to bill ratio was 0.7 in the first quarter of fiscal 2027, as compared to 1.1 the prior fiscal year first quarter. Order backlog as of September 30, 2026 was $272.0 million, which is approximately 31% percent lower than at the end of the prior fiscal year first quarter.

Total cash, cash equivalents and restricted cash as of quarter end amounted to $50.4 million, an increase of $1.6 million from June 30, 2026.

Fiscal Year 2027 Financial Guidance

The Company continues not to provide formal revenue or Adjusted EBITDA guidance for fiscal 2027. After a fiscal 2026 focused on transformation, its priority in fiscal 2027 is execution. That means building on the progress made in service margins, cost structure and financial flexibility, and turning commercial engagement into stronger product revenue and order performance. With a more efficient business model in place, the Company believes it is well positioned to execute on its strategic priorities in fiscal 2027.

Conference Call Information

Accuray will host a conference call beginning at 3:30 p.m. CT/4:30 p.m. ET today to discuss results for the first quarter of fiscal 2027 as well as recent corporate developments. Conference call dial-in information is as follows:

• U.S. callers: (800) 715-9871

• International callers: (646) 307-1963

Individuals interested in listening to the live conference call via the Internet may do so by logging on to the Investor Relations section of Accuray's website, www.accuray.com. There will be a slide presentation accompanying today's event which can also be accessed on the company's Investor Relations page at www.accuray.com.

In addition, a taped replay of the conference call will be available beginning approximately one hour after the call's conclusion and will be available for seven days. The replay number is (855) 669-9658 (USA), or (412) 317-0088 (International), Conference ID: 7745341. An archived webcast will also be available on Accuray's website until Accuray announces its results for the second quarter of fiscal 2027.

Use of Non-GAAP Financial Measures

Accuray reports its financial results in accordance with generally accepted accounting principles in the United States ("GAAP") and the rules of the SEC. To supplement its financial statements prepared and presented in accordance with GAAP, Accuray uses certain non-GAAP financial measures, such as adjusted EBITDA and revenue on a constant currency basis.

Accuray has supplemented its GAAP net income (loss) with a non-GAAP measure of adjusted earnings before interest, taxes, depreciation, amortization, stock-based compensation, changes to the fair value of warrant liability, gain on extinguishment of debt, goodwill impairment and restructuring charges ("adjusted EBITDA"). The calculation of adjusted EBITDA also excludes certain non-recurring, irregular and one-time items. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the company and facilitates a meaningful comparison of results for current periods with previous operating results. A reconciliation of GAAP net income (loss) (the most directly comparable GAAP measure) to non-GAAP adjusted EBITDA is provided in the schedules below.

Accuray has also reported certain operating results on a constant currency basis in order to facilitate period-to-period comparisons of its results without regard to the impact of foreign currency exchange rate fluctuations. Management believes disclosure of non-GAAP constant currency results is helpful to investors because it facilitates period-to-period comparisons of the company's results by increasing the transparency of the underlying performance by excluding the impact of foreign currency exchange rate fluctuations. The GAAP measure most directly comparable to net revenue on a constant currency basis is revenue. Accuray calculates the constant currency amounts by translating local currency amounts in the current period using the same foreign translation rate used in the prior period being compared against rather than the actual exchange rate in effect during the current period.

There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP.

About Accuray

Accuray Incorporated (Nasdaq: ARAY) is committed to expanding the powerful potential of radiation therapy to improve as many lives as possible. We invent unique, market-changing solutions that are designed to deliver radiation treatments for even the most complex cases—while making commonly treatable cases even easier—to meet the full spectrum of patient needs. We are dedicated to continuous innovation in radiation therapy for oncology, neuro-radiosurgery, and beyond, as we partner with clinicians and administrators, empowering them to help patients get back to their lives, faster. Accuray is headquartered in Madison, Wisconsin, with facilities worldwide.

Forward-Looking Statements

Statements made in this press release that are not statements of historical fact are forward-looking statements that are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release relate, but are not limited, to the company's future results of operations and financial position, including expectations regarding: the company's service margins, backlog, age-ins and age-outs, cancellations of contracts and foreign currency impacts; the expected impact of changes to strengthen the company's commercial organization and improve execution;  expectations regarding the effects of the global macroeconomic conditions on the company's financial results and business; the company's ability to further differentiate its platforms and deliver greater value; the company's ability to execute on delivering stronger commercial performance; the company's ability to execute on its strategic priorities in fiscal 2027; expectations related to the company's credit facilities; the expected benefits from the transformation plan and refinancing transactions; the ability to achieve the objectives of the transformation plan; the company's ability to deliver sustained performance and execute on its strategies and objectives, including related to its transformation efforts; the company's ability to improve sales and drive margin expansion; opportunities to accelerate top-line growth and expand profitability;  expectations related to the amount and timing of realizing deferred margin from the company's China joint venture; expectations with respect to strategic partnerships and collaborations; expectations related to the markets and regions in which the company operates; expectations regarding new product introductions and innovations; expectations regarding installed base growth; and the company's ability to improve execution, drive sustainable, profitable growth, while creating long-term value for patients, providers and shareholders. Forward-looking statements generally can be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "may," "will be," "will continue," "will likely result," and similar expressions. These forward-looking statements involve risks and uncertainties. If any of these risks or uncertainties materialize, or if any of the company's assumptions prove incorrect, actual results could differ materially from the results expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the effect of the global macroeconomic environment on the operations of the company and those of its customers and suppliers; effects related to international tariffs; disruptions to our supply chain, including increased logistics costs; the company's ability to achieve widespread market acceptance of its products; substantial outstanding indebtedness and its ability to maintain compliance with financial covenants related to its debt; the company's ability to successfully implement its transformation plan; the effect of enhanced international tariffs on the company; the company's ability to realize the expected benefits of the China joint venture and other partnerships; risks inherent in international operations; geopolitical uncertainty, including armed conflict or political instability in the Middle East or other regions in which the company or its customers operate, and the effect of such conditions on the timing of system installations, customer site readiness, service revenue recognition, and the ability to complete transactions in affected markets; the company's ability to maintain or increase its gross margins on product sales and services; delays in regulatory approvals or the development or release of new offerings; the company's ability to meet the covenants under its credit facilities; the company's ability to convert backlog to revenue; and such other risks identified under the heading "Risk Factors" in the company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on August 27, 2026, and as updated periodically with the company's other filings with the SEC.

Forward-looking statements speak only as of the date the statements are made and are based on information available to the company at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The company assumes no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Accordingly, investors should not place undue reliance on any forward-looking statements.

Aman Patel, CFA	Steve Monroe
Investor Relations, ICR - Westwicke	Vice President, Financial Planning & Analysis - Accuray
investor.relations@accuray.com	investor.relations@accuray.com

Financial Tables to Follow

Accuray Incorporated Condensed Consolidated Statements of Operations (in thousands, except per share data) (Unaudited)
		Three Months Ended
		September 30,
		2026				2025
Net revenue:
Products		$	27,344			$	37,161
Services			59,179				56,781
Total net revenue			86,523				93,942
Cost of revenue:
Cost of products			22,047				29,422
Cost of services			38,392				37,509
Total cost of revenue			60,439				66,931
Gross profit			26,084				27,011
Operating expenses:
Research and development			7,811				11,218
Selling and marketing			8,681				11,699
General and administrative			10,319				12,596
Restructuring			383				2,811
Goodwill impairment			35,392				—
Total operating expenses			62,586				38,324
Loss from operations			(36,502)				(11,313)
Income from equity method investment, net			114				439
Interest expense			(11,828)				(8,052)
Gain on extinguishment of debt			59,563				—
IEEPA refund financing costs			(55)				—
Loss from change in fair value of warrant liability			(707)				(1,874)
Other income (expense), net			66				(407)
Income (loss) before provision for income taxes			10,651				(21,207)
Provision for income taxes			517				471
Net income (loss)		$	10,134			$	(21,678)
Net income (loss) per share - basic		$	0.07			$	(0.18)
Net income (loss) per share - diluted		$	0.07			$	(0.18)
Weighted average common shares used in computing net income (loss) per share:
Basic			138,202				118,946
Diluted			139,256				118,946

 

Accuray Incorporated Condensed Consolidated Balance Sheets (in thousands) (Unaudited)
		September 30, 2026				June 30, 2026
Assets
Current assets:
Cash and cash equivalents			42,254			$	40,623
Restricted cash			827				611
Accounts receivable, net			50,343				67,409
Inventories, net			146,083				147,075
Prepaid expenses and other current assets			26,342				31,783
Deferred cost of revenue			199				276
Total current assets			266,048				287,777
Noncurrent assets:
Property and equipment, net			25,916				27,316
Investment in joint venture			5,311				5,024
Operating lease right-of-use assets, net			26,131				27,512
Goodwill			22,524				57,911
Long-term restricted cash			7,302				7,533
Other assets			36,823				30,603
Total assets		$	390,055			$	443,676
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$	33,050			$	40,554
Accrued compensation			12,732				15,666
Operating lease liabilities, current			7,849				8,236
Other accrued liabilities			23,244				32,235
Customer advances			9,578				10,401
Deferred revenue, current			76,953				82,813
Short-term debt, net			6,700				1,500
Total current liabilities			170,106				191,405
Non current liabilities:
Operating lease liabilities, non-current			26,453				27,768
Long-term other liabilities			6,107				5,477
Warrant liability			6,489				2,427
Deferred revenue, non-current			24,836				28,530
Investor deposit obligation			7,975				—
Long-term debt, net			94,972				146,370
Total liabilities			336,938				401,977
Stockholders' equity:
Common stock			120				119
Additional paid-in capital			612,552				613,559
Accumulated other comprehensive loss			(1,223)				(3,513)
Accumulated deficit			(558,332)				(568,466)
Total stockholders' equity			53,117				41,699
Total liabilities and stockholders' equity		$	390,055			$	443,676

 

Accuray Incorporated Summary of Orders and Backlog (in thousands, except book to bill ratio) (Unaudited)
		Three Months Ended
		September 30,
		2026				2025
Gross orders		$	19,846			$	39,570
Net orders		$	(13,235)			$	5,915
Order backlog		$	271,970			$	395,726
Book to bill ratio (a)			0.7				1.1

(a)

Book to bill ratio is defined as gross orders for the period divided by product revenue for the period.

 

Accuray Incorporated Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (in thousands) (Unaudited)
		Three Months Ended
		September 30,
		2026				2025
GAAP net income (loss)		$	10,134			$	(21,678)
Depreciation and amortization (a)			2,027				1,676
Stock-based compensation			1,121				2,515
Interest expense, net (b)			11,697				7,780
Gain on extinguishment of debt			(59,563)				—
Goodwill impairment			35,392				—
Provision for income taxes			517				471
Loss from change in fair value of warrant liability			707				1,874
IEEPA refund financing costs			55				—
Restructuring charges			383				2,811
Post-financing costs			—				441
Adjusted EBITDA		$	2,470			$	(4,110)

	(a)	Consists of depreciation on property and equipment and amortization of capitalized software and intangibles.
	(b)	Consists of interest expense net of interest income.

 

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SOURCE Accuray Incorporated

FAQ

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What were Accuray's fiscal 2027 first-quarter earnings?

Accuray reported $10.1 million in net income, or $0.07 per diluted share, for the quarter ended September 30, 2026. Results included a $59.6 million non-cash debt-extinguishment gain and $35.4 million non-cash goodwill impairment. Excluding both items, net loss was $14.0 million, or $0.10 per diluted share.

How did Accuray's orders and backlog perform in fiscal 2027's first quarter?

Gross product orders were $19.8 million, compared with $39.6 million a year earlier, while backlog was $272.0 million at September 30, 2026, approximately 31% below the prior-year quarter-end. The book-to-bill ratio was 0.7, compared with 1.1 a year earlier.

Why did Accuray recognize a debt-extinguishment gain before completing the TCW debt exchange?

The July financing added a contingent conversion feature to Term Loan B and the Delayed Draw Term Loan, triggering debt-extinguishment accounting and recognition of replacement loans at fair value. The gain primarily reflected the difference between the existing loans' net carrying amounts and the replacement loans' fair value; recognition did not depend on completing the debt-for-equity exchange.