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

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

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

Analyst Ratings Changes

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

Accuray Company Profile

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.