Accuray (NASDAQ:ARAY) Posts Earnings Results, Beats Expectations By $0.01 EPS

Accuray (NASDAQ:ARAY) posted its earnings results on Wednesday. The medical equipment provider reported ($0.02) EPS for the quarter, topping analysts’ consensus estimates of ($0.03) by $0.01, Zacks reports. The business had revenue of $100.92 million for the quarter, compared to analysts’ expectations of $105.30 million. Accuray had a negative net margin of 10.76% and a negative return on equity of 79.43%.

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

• Fiscal 2026 revenue fell 12% to $402 million, including a 27% decline in product revenue; fourth-quarter revenue decreased 21% year over year to $100.9 million. China accounted for approximately $58 million of the full-year product revenue decline amid geopolitical and tariff uncertainty.
• Service revenue increased 4% for the full year to $229 million, with fourth-quarter service gross margin improving to 36.8% due to pricing actions, lower labor costs, and operational efficiencies. Accuray expects continued service revenue growth and margin expansion in fiscal 2027.
• The company reported more than $20 million of cost and margin improvement in fiscal 2026, exceeding its $12 million target, and expects approximately $15 million of incremental annualized benefit in fiscal 2027, subject to demand and macroeconomic conditions.
• A proposed transaction with TCW would convert $40 million of debt into convertible preferred equity, add a $15 million investment, provide up to $5 million of additional borrowing capacity, and waive certain covenants through 2027, strengthening liquidity and extending Accuray’s financial runway. The transaction remains subject to shareholder approval and other closing conditions.
• Accuray is not providing fiscal 2027 revenue or adjusted EBITDA guidance, citing geopolitical developments, tariffs, China and Middle East conditions, macroeconomic uncertainty, and the long sales cycle. Fourth-quarter product gross orders were $38 million with a 0.9 book-to-bill ratio, below the company’s 1.2 target for a healthy growing backlog.

Accuray Trading Down 6.4%

Shares of NASDAQ ARAY opened at $0.29 on Thursday. Accuray has a 12-month low of $0.22 and a 12-month high of $2.10. The company has a current ratio of 1.42, a quick ratio of 0.66 and a debt-to-equity ratio of 3.21. The stock’s 50 day simple moving average is $0.28 and its 200 day simple moving average is $0.39. The company has a market cap of $35.07 million, a price-to-earnings ratio of -0.80 and a beta of 1.39.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Accuray in a research report on Tuesday, August 4th. BTIG Research reissued a “neutral” rating on shares of Accuray in a report on Wednesday, July 8th. Finally, Jefferies Financial Group downgraded Accuray from a “buy” rating to a “hold” rating in a report on Tuesday, May 12th. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Accuray has an average rating of “Reduce” and a consensus price target of $2.00.

Institutional Investors Weigh In On Accuray

Several large investors have recently made changes to their positions in ARAY. Public Employees Retirement System of Ohio acquired a new stake in Accuray in the 3rd quarter valued at approximately $35,000. Janney Montgomery Scott LLC acquired a new position in Accuray during the 4th quarter valued at about $41,000. Oxford Asset Management LLP bought a new stake in shares of Accuray during the 4th quarter worth about $44,000. Tower Research Capital LLC TRC lifted its stake in shares of Accuray by 604.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 35,177 shares of the medical equipment provider’s stock worth $48,000 after acquiring an additional 30,182 shares during the period. Finally, BNP Paribas Financial Markets boosted its holdings in shares of Accuray by 32.4% in the third quarter. BNP Paribas Financial Markets now owns 39,369 shares of the medical equipment provider’s stock valued at $66,000 after acquiring an additional 9,633 shares in the last quarter. Institutional investors and hedge funds own 64.08% of the company’s stock.

Accuray Company Profile

Accuray Incorporated (NASDAQ: ARAY) is a global medical device company that develops, manufactures and markets innovative radiation therapy solutions for the treatment of cancer. The company’s flagship products include the CyberKnife® System, a robotic radiosurgery platform offering sub-millimeter precision, and the TomoTherapy® System, which combines helical computed tomography (CT) imaging with intensity-modulated radiation therapy (IMRT). More recently, Accuray introduced the Radixact® System, an advanced iteration of its TomoTherapy technology designed to enhance treatment speed and clinical workflow.

Accuray’s suite of products enables clinicians to deliver highly targeted radiation doses while minimizing exposure to surrounding healthy tissue.