Accuray Reports Fourth Quarter and Fiscal 2026 Financial Results
Rhea-AI Summary
Accuray (NASDAQ: ARAY) reported fiscal 2026 results for the year ended June 30, 2026, highlighting a transformation plan that delivered more than $20 million of cost and margin improvement versus an original $12 million target and a new financing transaction with TCW Asset Management intended to strengthen liquidity, reduce leverage and provide covenant relief through December 2027.
For Q4, net revenue was $100.9 million (down 21% year over year) with product revenue of $40.8 million (down 42%) and service revenue of $60.1 million (up 6%). Q4 gross margin improved to and Adjusted EBITDA rose to $12.9 million. Full-year 2026 net revenue was $401.9 million (down 12%), including a 27% decline in product revenue and 4% growth in service revenue. GAAP net loss widened to $49.2 million while Adjusted EBITDA decreased to $10.6 million. Fiscal 2026 gross product orders fell to $191.9 million, with year-end backlog of $312.5 million, about 27% lower than a year earlier. The company is not providing formal fiscal 2027 revenue or Adjusted EBITDA guidance.
Positive
- Transformation plan benefits exceeded target with over $20 million cost and margin improvement in fiscal 2026 versus a $12 million goal
- Q4 gross margin improved to 34.8% of revenue versus 30.6% in the prior-year quarter
- Q4 Adjusted EBITDA increased to $12.9 million from $9.4 million year over year
- Service revenue growth of 6% in Q4 and 4% for fiscal 2026 supports recurring revenue base
- Comprehensive financing with TCW Asset Management is expected to strengthen liquidity, reduce leverage and provide covenant relief through December 2027
- Fiscal 2026 book-to-bill ratio remained above 1.0 at 1.1, despite lower order volumes
Negative
- Q4 total revenue declined 21% year over year to $100.9 million
- Q4 product revenue fell 42% year over year to $40.8 million
- Fiscal 2026 total revenue decreased 12% to $401.9 million versus $458.5 million in the prior year
- Fiscal 2026 product revenue dropped 27% to $172.7 million, while gross margin fell to 27.7% from 32.1%
- GAAP net loss widened to $49.2 million ($0.40 per share) from a $1.6 million loss in the prior year
- Adjusted EBITDA for fiscal 2026 declined to $10.6 million from $28.3 million in the prior year
- Order metrics weakened with fiscal 2026 gross product orders down to $191.9 million and backlog down about 27% to $312.5 million
- Interest expense more than doubled to $32.9 million in fiscal 2026 from $13.0 million a year earlier
- 2027 visibility is reduced as the company is not providing formal revenue or Adjusted EBITDA guidance for fiscal 2027
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | third-quarter earnings | Negative | -38.5% | Revenue declined, losses widened, and fiscal guidance was withdrawn amid geopolitical uncertainty. |
| Feb 04 | second-quarter earnings | Negative | -20.7% | Revenue and gross margin declined, with a net loss and restructuring charges. |
| Nov 05 | first-quarter earnings | Negative | -15.9% | Revenue and profitability declined despite service growth and reaffirmed fiscal guidance. |
| Aug 13 | fiscal 2025 earnings | Neutral | -2.0% | Mixed quarterly and annual results included service growth and completed debt refinancing. |
| Apr 30 | third-quarter earnings | Positive | -12.9% | Revenue, service revenue, adjusted EBITDA, and cash position improved year over year. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
All five tagged earnings events had negative 24-hour reactions, averaging -18%, including releases with operational or service-revenue positives.
Key Terms
gaap financial
adjusted ebitda financial
book to bill ratio financial
covenants financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Key Highlights
- The Company's transformation plan delivered more than
$20 million $12 million
- The Company announced a comprehensive financing transaction with TCW Asset Management that strengthens liquidity, reduces leverage, provides relief for certain covenants through December 2027, and enhances financial flexibility to support long-term strategic objectives.
- Service revenue increased
6% year-over-year in the fourth quarter and4% for the full fiscal year, reflecting continued momentum and a stable foundation for profitable growth in the Company's recurring revenue business.
- The Company has been expanding its strategic partnership ecosystem through collaborations with leading organizations across imaging, software, engineering, adaptive therapy, research, and customer support; accelerating innovation while enabling Accuray to remain focused on its core competencies.
- Strong customer engagement at ESTRO 2026 reinforced growing market interest in Accuray's differentiated technologies and supported a meaningful increase in qualified commercial opportunities.
"Fiscal 2026 was a transformational year for Accuray. Throughout the year, we strengthened our operational foundation, improved accountability and execution, expanded our ecosystem of strategic partnerships, advanced differentiated technology capabilities, and took important steps to enhance our financial position," said Steve LaNeve, President and Chief Executive Officer. "Despite ongoing geopolitical uncertainty, tariff pressures, and market volatility, we remained focused on the factors within our control and successfully executed against the transformation initiatives we introduced earlier in the fiscal year. As a result, Accuray enters fiscal 2027 as a stronger company with greater financial flexibility, and a clear focus on driving sustainable revenue growth, margin expansion, and long-term shareholder value."
Fiscal Fourth Quarter Results
Total net revenue was
Total gross profit in the fourth quarter of fiscal 2026 was
Operating expenses were
Net loss was
Gross product orders were
Total cash, cash equivalents, and short-term restricted cash were
Fiscal Year 2026 Highlights
Total net revenue was
Total gross profit was
Operating expenses were
GAAP net loss was
Gross product orders were
"Fiscal 2026 was a year of meaningful operational and structural change," said Ali Pervaiz, Chief Financial Officer. "While product demand in certain regions remained impacted by geopolitical developments and tariff uncertainty, we continued to expand service revenue, improve operating efficiency, and execute our transformation initiatives ahead of expectations. We also announced a comprehensive transaction that enhances liquidity and reduces leverage as we enter the next phase of Accuray's transformation."
Fiscal Year 2027 Financial Guidance
As the Company enters fiscal 2027, management believes Accuray is operating from a position of greater strength than a year ago. The Company expects continued growth in service revenue, improved service margins driven by pricing optimization and operational efficiencies, ongoing operating expense discipline, and continued benefits from transformation initiatives. Strategic partnerships are also expected to play an increasingly important role in expanding capabilities while enabling the Company to remain focused on its core competencies.
Given ongoing uncertainty related to geopolitical developments, international trade policy, tariff impacts, conditions in
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 fourth quarter of fiscal 2026 as well as recent corporate developments. Conference call dial-in information is as follows:
U.S . callers: (888) 999-5318
- International callers: (848) 280-6460
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 (877) 344-7529 (
Use of Non-GAAP Financial Measures
Accuray reports its financial results in accordance with generally accepted accounting principles in
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, 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.
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.
Safe Harbor Statement
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 recently announced financing transaction; the company's strategic partnerships and collaborations and ability to realize the expected benefits of those relationships; the ability to drive sustainable revenue growth, margin expansion, and long-term shareholder value; the effects of the global macroeconomic conditions on the company's financial results and business as well as the business of the company's customers and suppliers; the sufficiency of the company's cash, cash equivalents and investments to meet the company's anticipated cash needs for working capital and capital expenditures and the company's business strategy, plans and objectives; the expected benefits from the transformation plan, including expected improvement in annualized operating profit and cost and margin improvements; the ability to achieve the objectives of the transformation plan; service revenue and service margin improvements; the company's ability to deliver sustained performance and execute on its strategies and objectives, including related to its transformation efforts and restructuring plans; the company's ability to improve sales and drive margin expansion; opportunities to accelerate top-line growth and expand profitability; the company's ability to navigate supply chain, logistics, macroeconomic, and foreign exchange challenges; expectations related to the markets and regions in which the company operates; new product introductions and innovations; installed base growth; clinical outcomes; 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 realize the expected benefits of the China joint venture and other strategic 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 Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (the "SEC") on May 6, 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 | Twelve Months Ended | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Net revenue: | ||||||||||||||||
Products | $ | 40,832 | $ | 70,702 | $ | 172,712 | $ | 237,580 | ||||||||
Services | 60,087 | 56,841 | 229,235 | 220,925 | ||||||||||||
Total net revenue | 100,919 | 127,543 | 401,947 | 458,505 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of products | 27,895 | 51,254 | 132,297 | 162,569 | ||||||||||||
Cost of services | 37,947 | 37,310 | 158,196 | 148,969 | ||||||||||||
Total cost of revenue | 65,842 | 88,564 | 290,493 | 311,538 | ||||||||||||
Gross profit | 35,077 | 38,979 | 111,454 | 146,967 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 7,707 | 11,470 | 37,753 | 47,942 | ||||||||||||
Selling and marketing | 9,587 | 11,409 | 38,573 | 43,315 | ||||||||||||
General and administrative | 11,512 | 11,866 | 45,398 | 47,871 | ||||||||||||
Restructuring | 747 | — | 16,172 | — | ||||||||||||
Total operating expenses | 29,553 | 34,745 | 137,896 | 139,128 | ||||||||||||
Income (loss) from operations | 5,524 | 4,234 | (26,442) | 7,839 | ||||||||||||
(Loss) income from equity method investment | (194) | 885 | 1,124 | 4,714 | ||||||||||||
Interest expense | (8,698) | (4,226) | (32,905) | (12,954) | ||||||||||||
Gain on extinguishment of debt | — | 1,475 | — | 1,475 | ||||||||||||
IEEPA refund financing costs | (2,405) | — | (2,405) | — | ||||||||||||
Gain (loss) from change in fair value of warrant liability | 1,171 | (499) | 8,369 | (499) | ||||||||||||
Other income, net | 3,095 | 202 | 5,011 | 559 | ||||||||||||
Income (loss) before provision for income taxes | (1,507) | 2,071 | (47,248) | 1,134 | ||||||||||||
Provision for income taxes | 434 | 948 | 1,946 | 2,725 | ||||||||||||
Net income (loss) | $ | (1,941) | $ | 1,123 | $ | (49,194) | $ | (1,591) | ||||||||
Net income (loss) per share - basic | $ | (0.02) | $ | 0.01 | $ | (0.40) | $ | (0.02) | ||||||||
Net income (loss) per share - diluted | $ | (0.02) | $ | 0.01 | $ | (0.40) | $ | (0.02) | ||||||||
Weighted average common shares used in computing income (loss) per share: | ||||||||||||||||
Basic | 126,390 | 106,702 | 122,635 | 102,768 | ||||||||||||
Diluted | 126,390 | 108,891 | 122,635 | 102,768 | ||||||||||||
Accuray Incorporated Condensed Consolidated Balance Sheets (in thousands) (Unaudited)
| ||||||||
June 30, | June 30, | |||||||
2026 | 2025 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 40,623 | $ | 57,416 | ||||
Restricted cash | 611 | 574 | ||||||
Accounts receivable, net | 67,409 | 83,192 | ||||||
Inventories, net | 147,075 | 141,020 | ||||||
Prepaid expenses and other current assets | 31,783 | 33,501 | ||||||
Deferred cost of revenue | 276 | 1,762 | ||||||
Total current assets | 287,777 | 317,465 | ||||||
Noncurrent assets: | ||||||||
Property and equipment, net | 27,316 | 28,658 | ||||||
Investment in joint venture | 5,024 | 4,612 | ||||||
Operating lease right-of-use assets | 27,512 | 33,115 | ||||||
Goodwill | 57,911 | 57,802 | ||||||
Restricted cash | 7,533 | 4,144 | ||||||
Other assets | 30,603 | 24,443 | ||||||
Total assets | $ | 443,676 | $ | 470,239 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 40,554 | $ | 34,033 | ||||
Accrued compensation | 15,666 | 14,573 | ||||||
Operating lease liabilities, current | 8,236 | 7,375 | ||||||
Other accrued liabilities | 32,235 | 29,361 | ||||||
Customer advances | 10,401 | 12,197 | ||||||
Deferred revenue, current | 82,813 | 82,306 | ||||||
Short-term debt, net | 1,500 | 12,734 | ||||||
Total current liabilities | 191,405 | 192,579 | ||||||
Operating lease liabilities, non-current | 27,768 | 32,482 | ||||||
Long-term other liabilities | 5,477 | 5,160 | ||||||
Warrant liability | 2,427 | 8,497 | ||||||
Deferred revenue, non-current | 28,530 | 26,566 | ||||||
Long-term debt, net | 146,370 | 123,786 | ||||||
Total liabilities | 401,977 | 389,070 | ||||||
Stockholders' Equity: | ||||||||
Common stock | 119 | 113 | ||||||
Additional paid-in capital | 613,559 | 602,165 | ||||||
Accumulated other comprehensive loss | (3,513) | (1,837) | ||||||
Accumulated deficit | (568,466) | (519,272) | ||||||
Total stockholders' equity | 41,699 | 81,169 | ||||||
Total liabilities and stockholders' equity | $ | 443,676 | $ | 470,239 | ||||
Accuray Incorporated Summary of Orders and Backlog (in thousands) (Unaudited)
| ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Gross orders | $ | 37,741 | $ | 84,741 | $ | 191,898 | $ | 288,035 | ||||||||
Net orders | (2,927) | 45,282 | 58,217 | 177,233 | ||||||||||||
Order backlog | 312,549 | 426,972 | 312,549 | 426,972 | ||||||||||||
Book to bill ratio (a) | 0.9 | 1.2 | 1.1 | 1.2 | ||||||||||||
(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 Earnings Before Interest, Taxes, Depreciation, Amortization, Stock-Based Compensation and Other (Adjusted EBITDA) (in thousands)
| ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
GAAP net income (loss) | $ | (1,941) | $ | 1,123 | $ | (49,194) | $ | (1,591) | ||||||||
Depreciation and amortization (a) | 2,025 | 1,598 | 7,942 | $ | 6,150 | |||||||||||
Stock-based compensation | 1,680 | 2,818 | 6,455 | 10,201 | ||||||||||||
Interest expense, net (b) | 8,578 | 3,937 | 32,086 | 11,762 | ||||||||||||
Gain on extinguishment of debt | — | (1,475) | — | (1,475) | ||||||||||||
Provision for income taxes | 434 | 948 | 1,946 | 2,725 | ||||||||||||
(Gain) loss from change in fair value of warrant liability | (1,171) | 499 | (8,369) | 499 | ||||||||||||
IEEPA refund financing Costs | 2,405 | — | 2,405 | — | ||||||||||||
Restructuring charges | 747 | — | 16,172 | — | ||||||||||||
Post financing cost | 121 | — | 1,152 | — | ||||||||||||
Adjusted EBITDA | $ | 12,878 | $ | 9,448 | $ | 10,595 | $ | 28,271 | ||||||||
(a) Consists of depreciation, primarily on property and equipment, as well as amortization of capitalized software and intangibles. |
(b) Consists of interest expense net of interest income. |
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SOURCE Accuray Incorporated