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Accuray Incorporated Reports Fiscal 2026 Second Quarter Results

Accuray Incorporated (NASDAQ: ARAY), a pioneer in radiation therapy, announced its financial performance for the second quarter ending December 31, 2025, marked by notable challenges and strategic shifts.

Key Highlights

On December 15, 2025, Accuray revealed the initial phase of an extensive transformation plan designed to enhance operational efficiency and profitability. This initiative aims to boost annual operating profits by approximately $25 million, supporting future growth in revenue. Key components of the strategy include:

• - Organizational realignment to streamline functions.
• - Rightsizing the cost structure to improve margins.
• - Outsourcing certain functions for efficiency.
• - Sales enablement efforts to enhance market competitiveness.

With these changes, around 15% of the global workforce will be affected. The transformation is expected to yield about $12 million in operational profit improvements in fiscal 2026 alone.

Fiscal Q2 Financial Results

For the second quarter, Accuray reported total net revenue of $102.2 million, down 12% from $116.2 million in the same period last year. Breaking down the revenue:

• - Product revenue was $45.0 million, a 26% decrease from $61.2 million the previous year.
• - In contrast, service revenue grew by 4%, reaching $57.2 million, up from $55.0 million.

The net gross profit for the quarter was $24.1 million, which is 23.5% of total revenue, significantly lower than the previous year's gross profit of $41.9 million (36.1%). This dip was largely due to the geographical sales mix and fewer system deliveries from the company's China joint venture.

Despite a reduction in total operating expenses to $35.6 million—down 4% from $37.2 million—with the restructuring charges of $6.1 million incorporated, the company faced a net loss of $13.8 million for the quarter, translating to a diluted net loss of $0.11 per share compared to a profit of $2.5 million or $0.02 per share in the same quarter last year.

Adjusted EBITDA for Q2 was negative at $1.9 million, a significant drop from the positive $9.6 million of the prior year. This reflects the impacts of the ongoing restructuring and transitional adjustments.

Orders and Financial Guidance

Accuray recorded gross product orders at $66.1 million during the second quarter, lower than the $76.8 million achieved the same time last year. The order backlog stood at $383.3 million, down approximately 17% from the previous year.

Looking ahead, Accuray has adjusted its fiscal year 2026 guidance, anticipating total net revenue between $440 million and $450 million, with an expected adjusted EBITDA ranging from $22 million to $25 million.

Conclusion

Accuray is in a transitional phase, aiming to stabilize its financial performance and revitalize growth through an aggressive transformation plan. CEO Steve La Neve expressed confidence in the company’s strategy, emphasizing the importance of aligning resources with strategic goals and enhancing service delivery. The upcoming months will be critical in determining the success of these initiatives amid challenging market conditions.