MADISON, Wis., May 6, 2026 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the third quarter ended March 31, 2026.
Key Highlights
- Transformation plan delivering ahead of expectations, with approximately $10 million of cost and margin improvements achieved through the fiscal third quarter, positioning the company to exceed the $12 million FY26 target.
- Commercial leadership strengthened with the appointment of Paul Miele as Chief Commercial Officer, bringing deep global experience in scaling capital medical device businesses and accelerating profitable growth.
- Strategic partnerships gaining momentum, expanding Accuray's ecosystem across imaging, software, workflow, clinical research, and operational execution in collaboration with many leading organizations to further amplify the company's strengths.
- Company withdraws fiscal 2026 financial guidance due to geopolitical uncertainty in the Middle East, which continues to materially impact product shipments and service revenue, with installations in several of the markets within the region delayed.
- At the upcoming European Society for Radiotherapy and Oncology ("ESTRO") Congress in Stockholm, Sweden on May 15 – 19, 2026, the Company will showcase a series of practical, customer‑driven product enhancements that reinforce their commitment to clinical excellence, workflow efficiency, and continuous innovation.
"During the quarter, we made meaningful progress executing against the transformation plan we launched in December," said Steve LaNeve, President and Chief Executive Officer of Accuray. "We are already seeing tangible benefits from these initiatives, including approximately $10 million in realized margin improvements through the fiscal third quarter, positioning us ahead of our original expectations. We have also strengthened our leadership team with experienced talent in key strategic areas and continue to enhance our technology platform through highly strategic partnerships focused on advancing real-time adaptation to patient and tumor motion during treatment, a core differentiator of Accuray's technology. Taken together, we believe these actions will improve execution, strengthen profitability, and create meaningful long-term value for our shareholders."
Mr. LaNeve continued, "Overall, we are encouraged by the progress we are making and remain confident in our strategy and our ability to execute on the areas within our control. However, the current geopolitical environment has created significant unpredictability around the timing of installations in several key Middle Eastern markets. Given these uncertainties, we believe it is prudent to withdraw financial guidance at this time, specifically as it relates to total net revenue and Adjusted EBITDA, and revisit our outlook when we report fiscal fourth quarter results."
Fiscal Third Quarter Results
Total net revenue was $104.8 million in the third quarter of fiscal 2026, or a decrease of 7 percent, as compared to $113.2 million in the prior fiscal year third quarter. Product revenue was $49.7 million in the third quarter of fiscal 2026, or a decrease of 13 percent, as compared to $57.3 million in the prior fiscal year third quarter. Service revenue was $55.1 million in the third quarter of fiscal 2026, or a decrease of 1 percent, as compared to $55.9 million in the prior fiscal year third quarter.
Total gross profit was $25.3 million in the third quarter of fiscal 2026, or 24.1 percent of total net revenue, as compared to a total gross profit of $31.6 million, or 27.9 percent of total net revenue, in the prior fiscal year third quarter. The decrease in gross margin rate was primarily due to higher net parts consumption of $3.2 million, as well as higher than average logistics and duties costs.
Operating expenses were $34.4 million in the third quarter of fiscal 2026, or an increase of 12 percent, as compared to $30.6 million in the prior fiscal year third quarter. Operating expenses in the third quarter of fiscal 2026 include $6.5 million in restructuring charges. Excluding restructuring charges, operating expenses would have decreased by $2.8 million, or 9 percent, as compared to the prior fiscal year third quarter. Additionally, the prior year third quarter benefited from a $3.2 million reversal of accrued compensation from the first half of fiscal year 2025. Adjusting for these two discrete items, third quarter 2026 operating expenses decreased $6.0 million, or 18%, versus prior year.
Net loss was $11.8 million in the third quarter of fiscal 2026, or a diluted net loss of $0.09 per share, as compared to a net loss of $1.3 million, or a diluted net loss of $0.01 per share, in the prior fiscal year third quarter. Adjusted EBITDA was $3.8 million in the third quarter of fiscal 2026, as compared to an adjusted EBITDA of $6.0 million in the prior fiscal year third quarter.
Gross product orders were $48.5 million in the third quarter of fiscal 2026 as compared to $71.2 million in the prior fiscal year third quarter. The book to bill ratio was 1.0 in the third quarter of fiscal 2026, as compared to 1.2 the prior fiscal year third quarter. Order backlog as of March 31, 2026 was $356.2 million, which is approximately 21% percent lower than at the end of the prior fiscal year third quarter.
Total cash, cash equivalents and restricted cash as of quarter end amounted to $44.4 million compared to $47.9 million at the end of last fiscal quarter and compared to $62.1 million at June 30, 2025.
First Nine Months Results
Total net revenue was $301.0 million in the first nine months of fiscal 2026, or a decrease of 9 percent, as compared to $331.0 million in the prior fiscal year period. Product revenue was $131.9 million in the first nine months of fiscal 2026, or a decrease of 21 percent, as compared to $166.9 million in the prior fiscal year period. Service revenue was $169.1 million in the first nine months of fiscal 2026, or an increase of 3 percent, as compared to $164.1 million in the prior fiscal year period.
Total gross profit was $76.4 million in the first nine months of fiscal 2026, or 25.4 percent of total net revenue, as compared to a total gross profit of $108.0 million, or 32.6 percent of total net revenue, in the prior fiscal year period.
Operating expenses were $108.3 million in the first nine months of fiscal 2026, or an increase of 4 percent, as compared to $104.4 million in the prior fiscal year period. Operating expenses in the first nine months of fiscal 2026 include $15.4 million in restructuring charges. Excluding restructuring charges, operating expenses would have decreased by $11.5 million, or 11% percent as compared to the prior fiscal year period.
Net loss was $47.3 million in the first nine months of fiscal 2026, or a diluted net loss of $0.39 per share, as compared to a net loss of $2.7 million, or a diluted net loss of $0.03 per share, in the prior fiscal year period. Adjusted EBITDA was a negative $2.3 million in the first nine months of fiscal 2026, as compared to a positive adjusted EBITDA of $18.8 million in the prior fiscal year period.
Gross product orders was $154.2 million in the first nine months of fiscal 2026 as compared to $203.3 million in the prior fiscal year period. The book to bill ratio was 1.2 in the first six months of fiscal 2026, as compared to 1.2 in the prior fiscal year period.
Conference Call Information
Accuray will host a conference call beginning at 1:30 p.m. PT/4:30 p.m. ET today to discuss results for the third quarter of fiscal 2026 as well as recent corporate developments. Conference call dial-in information is as follows:
- U.S. callers: (833) 316-0563
- International callers: (412) 317-5747
Individuals interested in listening to the live conference call via the Internet may do so by logging on to the Investor Relations section of Accuray's website, www.accuray.com. There will be a slide presentation accompanying today's event which can also be accessed on the company's Investor Relations page at www.accuray.com.
In addition, a taped replay of the conference call will be available beginning approximately one hour after the call's conclusion and will be available for seven days. The replay number is (855) 669-9658 (USA), or (412) 317-0088 (International), Conference ID: 4178502. An archived webcast will also be available on Accuray's website until Accuray announces its results for the fourth quarter of fiscal 2026.
Use of Non-GAAP Financial Measures
Accuray reports its financial results in accordance with generally accepted accounting principles in the United States ("GAAP") and the rules of the SEC. To supplement its financial statements prepared and presented in accordance with GAAP, Accuray uses certain non-GAAP financial measures, such as adjusted EBITDA.
Accuray has supplemented its GAAP net income (loss) with a non-GAAP measure of adjusted earnings before interest, taxes, depreciation, amortization, stock-based compensation, and (gain) loss from change in fair value of warrant liability ("adjusted EBITDA"). The calculation of adjusted EBITDA also excludes certain non-recurring, irregular and one-time items. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the company and facilitates a meaningful comparison of results for current periods with previous operating results. A reconciliation of GAAP net loss (the most directly comparable GAAP measure) to non-GAAP adjusted EBITDA is provided in the schedules below.
There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP.
About Accuray
Accuray Incorporated (Nasdaq: ARAY) is committed to expanding the powerful potential of radiation therapy to improve as many lives as possible. We invent unique, market-changing solutions that are designed to deliver radiation treatments for even the most complex cases—while making commonly treatable cases even easier—to meet the full spectrum of patient needs. We are dedicated to continuous innovation in radiation therapy for oncology, neuro-radiosurgery, and beyond, as we partner with clinicians and administrators, empowering them to help patients get back to their lives, faster. Accuray is headquartered in Madison, Wisconsin, with facilities worldwide.
Forward-Looking Statements
Statements made in this press release that are not statements of historical fact are forward-looking statements that are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release relate, but are not limited, to the company's future results of operations and financial position, including expectations regarding: the company's backlog, age-ins and age-outs, cancellations of contracts and foreign currency impacts; the anticipated drivers of the company's future capital requirements; expectations of the company's strategy in China and the company's China joint venture as well as its expected impact on the company's business; expectations regarding the market in China for radiation oncology systems; expectations regarding the effects of the global macroeconomic conditions on the company's financial results and business as well as the business of the company's customers and suppliers; expectations regarding the impact of changes in government administration policy positions; expectations regarding delays in deliveries and installations and its impact on the company's business; expectations regarding inflation, supply chain challenges and heightened logistics costs and its impact on the company's business, including gross margins and net income (loss); expectations regarding the timing of deliveries and revenue conversion; the company's expectations regarding the adequacy of its manufacturing facilities; the anticipated risks associated with the company's foreign operations and fluctuations in the U.S. Dollar and foreign currencies as well as its ability to mitigate such risks; potential changes in tariffs, export controls, trade sanctions and other trade policies; expectations related to the company's convertible notes and credit facilities; expectations related to the company's leases; the sufficiency of the company's cash, cash equivalents and investments to meet the company's anticipated cash needs for working capital and capital expenditures and the company's business strategy, plans and objectives; the expected benefits from the transformation plan, including expected improvement in annualized operating profit and cost and margin improvements; the ability to achieve the objectives of the transformation plan; expected restructuring charges for fiscal year 2026; the company's ability to deliver sustained performance and execute on its strategies and objectives, including related to its transformation efforts and restructuring plans; the company's ability to improve sales and drive margin expansion; opportunities to accelerate top-line growth and expand profitability; expectations related to management, including the new chief commercial officer; expectations regarding the impact of tariffs as well as mitigation efforts by the company; the company's ability to navigate supply chain, logistics, macroeconomic, and foreign exchange challenges; expectations related to the amount and timing of realizing deferred margin from the company's China joint venture; expectations with respect to strategic partnerships and collaborations; expectations related to the markets and regions in which the company operates; expectations regarding new product introductions and innovations; expectations regarding installed base growth; and the company's ability to improve execution, drive sustainable, profitable growth, while creating long-term value for patients, providers and shareholders. Forward-looking statements generally can be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "may," "will be," "will continue," "will likely result," and similar expressions. These forward-looking statements involve risks and uncertainties. If any of these risks or uncertainties materialize, or if any of the company's assumptions prove incorrect, actual results could differ materially from the results expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the effect of the global macroeconomic environment on the operations of the company and those of its customers and suppliers; effects related to international tariffs; disruptions to our supply chain, including increased logistics costs; the company's ability to achieve widespread market acceptance of its products; substantial outstanding indebtedness and its ability to maintain compliance with financial covenants related to its debt; the effect of enhanced international tariffs on the company; the company's ability to realize the expected benefits of the China joint venture and other partnerships; risks inherent in international operations; geopolitical uncertainty, including armed conflict or political instability in the Middle East or other regions in which the company or its customers operate, and the effect of such conditions on the timing of system installations, customer site readiness, service revenue recognition, and the ability to complete transactions in affected markets; the company's ability to maintain or increase its gross margins on product sales and services; delays in regulatory approvals or the development or release of new offerings; the company's ability to meet the covenants under its credit facilities; the company's ability to convert backlog to revenue; and such other risks identified under the heading "Risk Factors" in the company's Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (the "SEC") on February 17, 2026, and as updated periodically with the company's other filings with the SEC.
Forward-looking statements speak only as of the date the statements are made and are based on information available to the company at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The company assumes no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Accordingly, investors should not place undue reliance on any forward-looking statements.
Aman Patel, CFA | Steve Monroe |
Investor Relations, ICR-Westwicke | Vice President, Financial Planning & Analysis - Accuray |
investor.relations@accuray.com | investor.relations@accuray.com |
Financial Tables to Follow
Accuray Incorporated Condensed Consolidated Statements of Operations (in thousands, except per share data) (Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Net revenue: | ||||||||||||||||
Products | $ | 49,714 | $ | 57,320 | $ | 131,880 | $ | 166,878 | ||||||||
Services | 55,131 | 55,923 | 169,148 | 164,084 | ||||||||||||
Total net revenue | 104,845 | 113,243 | 301,028 | 330,962 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of products | 38,829 | 44,301 | 104,402 | 111,315 | ||||||||||||
Cost of services | 40,722 | 37,315 | 120,249 | 111,659 | ||||||||||||
Total cost of revenue | 79,551 | 81,616 | 224,651 | 222,974 | ||||||||||||
Gross profit | 25,294 | 31,627 | 76,377 | 107,988 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 8,178 | 10,712 | 30,046 | 36,472 | ||||||||||||
Selling and marketing | 8,439 | 9,110 | 28,986 | 31,906 | ||||||||||||
General and administrative | 11,225 | 10,758 | 33,886 | 36,005 | ||||||||||||
Restructuring | 6,539 | — | 15,425 | — | ||||||||||||
Total operating expenses | 34,381 | 30,580 | 108,343 | 104,383 | ||||||||||||
Income (loss) from operations | (9,087) | 1,047 | (31,966) | 3,605 | ||||||||||||
Income from equity method investment, net | 408 | 2,297 | 1,318 | 3,829 | ||||||||||||
Interest expense | (8,446) | (2,890) | (24,207) | (8,728) | ||||||||||||
Gain from change in fair value of warrant liability | 3,359 | — | 7,198 | — | ||||||||||||
Other income (expense), net | 2,429 | (1,294) | 1,916 | 357 | ||||||||||||
Loss before provision for income taxes | (11,337) | (840) | (45,741) | (937) | ||||||||||||
Provision for income taxes | 468 | 457 | 1,512 | 1,777 | ||||||||||||
Net loss | $ | (11,805) | $ | (1,297) | $ | (47,253) | $ | (2,714) | ||||||||
Net loss per share - basic and diluted | $ | (0.09) | $ | (0.01) | $ | (0.39) | $ | (0.03) | ||||||||
Weighted average common shares used in computing net loss per | ||||||||||||||||
Basic and diluted | 124,304 | 102,825 | 121,396 | 101,462 | ||||||||||||
Accuray Incorporated Condensed Consolidated Balance Sheets (in thousands) (Unaudited) | ||||||||
March 31, 2026 | June 30, 2025 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 38,067 | $ | 57,416 | |||||
Restricted cash | 467 | 574 | ||||||
Accounts receivable, net | 64,573 | 83,192 | ||||||
Inventories, net | 156,626 | 141,020 | ||||||
Prepaid expenses and other current assets | 33,463 | 33,501 | ||||||
Deferred cost of revenue | 20 | 1,762 | ||||||
Total current assets | 293,216 | 317,465 | ||||||
Property and equipment, net | 29,002 | 28,658 | ||||||
Investment in joint venture | 6,321 | 4,612 | ||||||
Operating lease right-of-use assets, net | 28,898 | 33,115 | ||||||
Goodwill | 57,882 | 57,802 | ||||||
Long-term restricted cash | 5,909 | 4,144 | ||||||
Other assets | 26,374 | 24,443 | ||||||
Total assets | $ | 447,602 | $ | 470,239 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 52,805 | $ | 34,033 | ||||
Accrued compensation | 16,972 | 14,573 | ||||||
Operating lease liabilities, current | 8,228 | 7,375 | ||||||
Other accrued liabilities | 26,370 | 29,361 | ||||||
Customer advances | 11,365 | 12,197 | ||||||
Deferred revenue | 78,944 | 82,306 | ||||||
Short-term debt | 11,160 | 12,734 | ||||||
Total current liabilities | 205,844 | 192,579 | ||||||
Operating lease liabilities, non-current | 28,989 | 32,482 | ||||||
Long-term other liabilities | 6,925 | 5,160 | ||||||
Warrant liability | 3,119 | 8,497 | ||||||
Deferred revenue, non-current | 26,998 | 26,566 | ||||||
Long-term debt | 134,020 | 123,786 | ||||||
Total liabilities | 405,895 | 389,070 | ||||||
Stockholders' equity: | ||||||||
Common stock | 119 | 113 | ||||||
Additional paid-in capital | 610,784 | 602,165 | ||||||
Accumulated other comprehensive loss | (2,671) | (1,837) | ||||||
Accumulated deficit | (566,525) | (519,272) | ||||||
Total stockholders' equity | 41,707 | 81,169 | ||||||
Total liabilities and stockholders' equity | $ | 447,602 | $ | 470,239 | ||||
Accuray Incorporated Summary of Orders and Backlog (in thousands, except book to bill ratio) (Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Gross orders | $ | 48,524 | $ | 71,167 | $ | 154,158 | $ | 203,294 | ||||||||
Net orders | $ | 22,604 | $ | 46,656 | $ | 61,144 | $ | 131,951 | ||||||||
Order backlog | $ | 356,235 | $ | 452,392 | $ | 356,235 | $ | 452,392 | ||||||||
Book to bill ratio (a) | 1.0 | 1.2 | 1.2 | 1.2 | ||||||||||||
(a) Book to bill ratio is defined as gross orders for the period divided by product revenue for the period. |
Accuray Incorporated Reconciliation of GAAP Net Loss to Adjusted EBITDA (in thousands) (Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
GAAP net loss | $ | (11,805) | $ | (1,297) | $ | (47,253) | $ | (2,714) | ||||||||
Depreciation and amortization (a) | 2,078 | 1,575 | 5,917 | 4,552 | ||||||||||||
Stock-based compensation | 1,378 | 2,745 | 4,775 | 7,383 | ||||||||||||
Interest expense, net (b) | 8,265 | 2,568 | 23,508 | 7,825 | ||||||||||||
Provision for income taxes | 468 | 457 | 1,512 | 1,777 | ||||||||||||
Gain from change in fair value of warrant liability | (3,359) | — | (7,198) | — | ||||||||||||
Restructuring charges | 6,539 | — | 15,425 | — | ||||||||||||
Post-financing costs | 199 | — | 1,031 | — | ||||||||||||
Adjusted EBITDA | $ | 3,763 | $ | 6,048 | $ | (2,283) | $ | 18,823 | ||||||||
(a) Consists of depreciation on property and equipment and amortization of capitalized software and intangibles. |
(b) Consists of interest expense net of interest income. |
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SOURCE Accuray Incorporated
