Accuray Reports Fiscal Second Quarter Financial Results
Accuray Incorporated (NASDAQ: ARAY) has shared its financial results for the second quarter ending on December 31, 2025, showcasing crucial developments in their ongoing strategy and performance metrics.
Key Highlights
The company initiated a significant transformation plan on December 15, 2025, aiming to boost annual operating profitability by approximately $25 million. This multi-phase strategy is set to enhance competitiveness and lay the groundwork for long-term revenue growth. The key elements of this plan include:
- Organizational restructuring to optimize resources and increase efficiency.
- Approximately 15% of the workforce will be affected by optimization measures.
- Projected realization of about $12 million in operational profit improvement within fiscal year 2026.
Restructuring Charges and Financial Overview
In the second quarter, Accuray initiated a restructuring plan that led to a recording of $6.1 million in charges. These charges included $4.1 million in severance, $0.7 million in implementation costs, and $1.2 million resulting from impairments associated with the restructuring. Overall, the company anticipates total restructuring charges to reach around $13 million for fiscal year 2026.
CEO Steve La Neve remarked, "In the past 90 days, I engaged with Accuray teams and customers globally, gathering valuable insights that directly influenced our strategic actions. These include reorganizing our commercial structure and adjusting our product and service investment directions." He added confidence in the momentum gained from these steps.
Fiscal Second Quarter Results
Accuray's total net revenue for the second quarter was $102.2 million, reflecting a decrease of 12% compared to $116.2 million in the same quarter of the previous fiscal year. Product revenue stood at $45 million, a 26% decline, while service revenue rose to $57.2 million, marking a 4% increase year-over-year.
Gross profit was reported at $24.1 million, with a gross margin of 23.5%, down from 36.1% in the same quarter last year. This decline primarily stemmed from geographical sales mix issues and decreased shipments from the company's China joint venture compared to the prior year.
Operating expenses totaled $35.6 million, down 4% from $37.2 million year-over-year, including the aforementioned restructuring charges. Excluding these charges, the operating expenses would have decreased by 20% compared to the previous fiscal year.
Accuray posted a net loss of $13.8 million, translating to a diluted net loss of $0.11 per share, in stark contrast to a net income of $2.5 million, or $0.02 per share, from the previous year. Adjusted EBITDA was negative $1.9 million.
Workforce and Orders Insights
The total gross product orders during this quarter reported were $66.1 million. The book-to-bill ratio improved to 1.5, up from 1.3 in the previous year’s second quarter. The order backlog as of December 31, 2025, reached $383.3 million, reflecting a decrease of approximately 17% from the end of the same quarter last year.
As of December 31, 2025, Accuray's cash, cash equivalents, and short-term restricted cash amounted to $41.9 million, a decrease of $16.1 million since June 30, 2025.
Fiscal Year 2026 Guidance
The company revised its financial guidance for FY 2026, projecting total net revenue between $440 million and $450 million with an expected adjusted EBITDA ranging from $22 million to $25 million. This forecast excludes various non-GAAP measures as detailed in their financial statements.
Conference Call Insights
Accuray hosted a conference call to delve deeper into their financial results and recent corporate developments. A live webcast was available on their Investor Relations section for stakeholders interested in further insights.
About Accuray
Accuray Incorporated (NASDAQ: ARAY) is revolutionizing radiation therapy to improve patient lives through innovative solutions designed to treat complex cases effectively. They are dedicated to enhancing the oncology field through ongoing collaborations with healthcare providers, focusing on empowering patients throughout their treatment journeys.
Frequently Asked Questions
What are Accuray's financial results for Q2 2026?
Accuray reported total net revenue of $102.2 million, a 12% decrease compared to the previous year.
What is the main focus of Accuray's transformation plan?
The transformation plan aims to improve operating profitability by approximately $25 million and includes organizational restructuring and optimization strategies.
How has Accuray's profitability changed over the years?
The company reported a net loss of $13.8 million in Q2 2026, contrasting with a net income of $2.5 million in Q2 2025.
What is Accuray's adjusted EBITDA for the latest quarter?
The adjusted EBITDA for Q2 2026 was negative $1.9 million, down from a positive $9.6 million the previous year.
What guidance has Accuray provided for FY 2026?
Accuray projects total net revenue in the range of $440 million to $450 million for FY 2026.
