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Accuray Reports First Quarter Financial Results for Fiscal 2026

Accuray Incorporated (NASDAQ: ARAY) recently released its financial performance metrics for the first quarter ended September 30, 2025. This quarter marks the beginning of a pivotal transformation for the company, led by newly appointed president and CEO, Steve La Neve, who takes over from Suzanne Winter, who has served for six years.

Key Highlights

On October 20, 2025, Accuray disclosed ambitious transformation plans aimed at revitalizing the organization. These include the appointment of Steven F. Mayer as the Transformation Board Sponsor, tasked with steering strategic initiatives and operational enhancements alongside CEO La Neve. As part of these changes, the company undertook a restructuring strategy aimed at aligning resources with strategic initiatives, ultimately hoping to realize efficiencies in operations and cost savings.

In the financial report for the first quarter of fiscal 2026, Accuray acknowledged restructure charges amounting to $2.8 million. This figure comprises $1.5 million in severance costs and $1.3 million incurred for consulting services directly tied to the overhaul. Despite these challenges, the introduction of the Accuray Stellar™ Solution was highlighted, launched at the American Society for Radiation Oncology (ASTRO) annual meeting for the U.S. market. This solution is expected to enhance the use of the Radixact® Treatment Delivery System.

Additionally, Accuray established a memorandum of understanding with the University of Wisconsin School of Medicine and Public Health to promote online adaptive radiotherapy technology using its advanced helical radiation treatment system.

Financial Results Overview

Analyzing the financial specifics, Accuray reported total net revenue of $93.9 million, which represents a 7% decrease compared to $101.5 million for the same quarter of the previous fiscal year. Product revenue experienced a substantial drop of 23%, hitting $37.2 million, whereas service revenue rose by 7% to $56.8 million.

The total gross profit for the quarter was $26.5 million, accounting for approximately 28.3% of net revenue, contrasting with 33.9% from the same period last year. The decline in gross margin was linked to a mix of geographic sales and factors from joint venture accounting that adversely affected product gross margins. Operating expenses saw an increase of 3%, reaching $37.9 million. Notably, the net loss for this quarter amplified to $21.7 million or $0.18 per share, in stark comparison to a loss of $4 million or $0.04 per share in the first quarter of the previous fiscal year. Adjusted EBITDA reflected a loss of $4.1 million, also a decline from a gain of $3.1 million reported before.

The gross product orders amounted to $39.6 million, dipping from $55.4 million in the previous fiscal year, as the backlog decreased to $395.7 million, a decline of about 16% from the end of last fiscal year's first quarter.

As of September 30, 2025, Accuray maintained a solid cash position with $63.9 million in cash and cash equivalents, witnessing an increase of $5.9 million from $57.4 million at the prior quarter's end.

Fiscal Year 2026 Forecast

For the ongoing fiscal year 2026, Accuray is maintaining its revenue guidance in the range of $471 million to $485 million. The adjusted EBITDA is projected between $31 million and $35 million. As the management transitions into major restructuring, expectations are set on operational improvements that will significantly enhance the company’s financial health.

Upcoming Conference Call

A conference call hosted by Accuray will take place today to discuss the results, along with the ongoing strategic initiatives. Investors can connect via the Investor Relations section of Accuray's website.

Conclusion

While the first quarter results present a challenge for Accuray, with losses greater than previous years, the strategic initiatives and innovation promise to pave the road ahead towards recovery and expansion. With new leadership endeavors and a focus on product development, Accuray appears poised for potential growth in the evolving landscape of cancer treatment technology.