Accuray (NASDAQ:ARAY) Issues Quarterly Earnings Results

Accuray (NASDAQ:ARAY) posted its earnings results on Wednesday. The medical equipment provider reported ($0.02) EPS for the quarter, topping the consensus estimate of ($0.03) by $0.01, Zacks reports. The firm had revenue of $100.92 million for the quarter, compared to analysts’ expectations of $105.30 million. Accuray had a negative net margin of 12.24% and a negative return on equity of 92.88%.

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 Stock Down 0.8%

Shares of Accuray stock opened at $0.29 on Friday. Accuray has a 1 year low of $0.22 and a 1 year high of $2.10. The firm has a market cap of $34.78 million, a price-to-earnings ratio of -0.73 and a beta of 1.39. The company has a 50-day moving average of $0.28 and a 200 day moving average of $0.38. The company has a debt-to-equity ratio of 3.21, a current ratio of 1.42 and a quick ratio of 0.66.

Wall Street Analysts Forecast Growth

ARAY has been the subject of a number of recent analyst reports. Jefferies Financial Group downgraded Accuray from a “buy” rating to a “hold” rating in a research note on Tuesday, May 12th. BTIG Research reaffirmed a “neutral” rating on shares of Accuray in a report on Wednesday, July 8th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Accuray in a report on Tuesday, August 4th. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Reduce” and a consensus target price of $2.00.

Institutional Trading of Accuray

Institutional investors and hedge funds have recently bought and sold shares of the company. Public Employees Retirement System of Ohio purchased a new position in Accuray in the 3rd quarter worth about $35,000. Tower Research Capital LLC TRC lifted its holdings in shares of Accuray by 604.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 35,177 shares of the medical equipment provider’s stock valued at $48,000 after buying an additional 30,182 shares during the period. BNP Paribas Financial Markets boosted its stake in shares of Accuray by 32.4% in the 3rd quarter. BNP Paribas Financial Markets now owns 39,369 shares of the medical equipment provider’s stock worth $66,000 after buying an additional 9,633 shares during the last quarter. Ameriprise Financial Inc. bought a new stake in shares of Accuray during the 3rd quarter valued at about $73,000. Finally, Janney Montgomery Scott LLC purchased a new position in shares of Accuray in the fourth quarter worth approximately $41,000. 64.08% of the stock is currently owned by institutional investors.

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.