Accuray (NASDAQ:ARAY) Announces Quarterly Earnings Results, Misses Expectations By $0.03 EPS

by · The Markets Daily

Accuray (NASDAQ:ARAY – Get Free Report) issued its quarterly earnings data on Wednesday. The medical equipment provider reported ($0.10) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.03), FiscalAI reports. Accuray had a negative net margin of 12.24% and a negative return on equity of 97.85%. The firm had revenue of $86.52 million during the quarter, compared to the consensus estimate of $95.80 million.

Here are the key takeaways from Accuray’s conference call:

  • Revenue fell 8% year over year to $86.5 million, as product revenue declined 26% to $27.3 million amid China market and geopolitical headwinds. Product orders were $19.8 million, with a quarterly book-to-bill ratio of 0.7, below the company’s stated 1.2 healthy level.
  • Services provided a brighter spot: revenue grew 4% to $59.2 million, and service gross margin rose to 35.1% from 31% for fiscal 2026. Accuray cited pricing, labor efficiencies and a growing installed base of more than 1,100 systems as drivers of recurring revenue and further margin opportunity.
  • Excluding goodwill impairment and restructuring costs, operating expenses fell 25% year over year to $26.8 million; adjusted EBITDA improved to $2.5 million from a $4.1 million loss. Management said annualized cost savings from its transformation have exceeded its initial $25 million target.
  • Accuray received a $15 million investment from TCW, and shareholders approved proposals to advance a transaction that includes exchanging $40 million of debt for preferred equity. The company expects the deal to reduce leverage and interest burden and improve financial flexibility.
  • The company announced a RaySearch collaboration on online adaptive radiation therapy and advanced work with Samsung NeuroLogica on CyberKnife imaging capabilities. Accuray sees these partnerships as ways to differentiate its products, though it provided no financial guidance and emphasized that stronger product orders and shipments remain essential.

Accuray Stock Performance

Shares of ARAY traded up $0.01 during mid-day trading on Wednesday, hitting $0.15. The company’s stock had a trading volume of 4,531,441 shares, compared to its average volume of 1,948,636. Accuray has a fifty-two week low of $0.12 and a fifty-two week high of $1.46. The firm has a 50-day moving average price of $0.22 and a 200 day moving average price of $0.36. The company has a debt-to-equity ratio of 3.51, a quick ratio of 0.74 and a current ratio of 1.50.

Analysts Set New Price Targets

ARAY has been the topic of a number of recent analyst reports. BTIG Research dropped coverage on Accuray in a report on Wednesday, July 8th. They set a “neutral” rating on the stock. Weiss Ratings downgraded Accuray from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Tuesday, September 1st. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Reduce”.

Read Our Latest Stock Report on ARAY

Accuray Company Profile

(Get Free Report)

Accuray Incorporated develops, manufactures and supports radiation oncology systems used to treat cancer. The company focuses on precision radiotherapy technologies designed to deliver targeted radiation while helping clinicians manage treatment complexity and limit exposure to surrounding healthy tissue.

Its principal product platforms include the CyberKnife System, a robotic, image-guided radiation therapy system used for radiosurgery and stereotactic body radiation therapy, and the Radixact System, an image-guided tomotherapy platform designed to deliver highly conformal radiation treatments.

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