Accuray Stock Earnings Reports

Accuray reported Q1 FY2026 revenues of $94.0M, down 7% year-over-year (down 9% on a constant currency basis). Product revenue was $37M (down 23% YoY), while service revenue—a higher-margin, recurring stream—was $57M (up 7% YoY), driven by contract revenue growth of 10% and installed base expansion. Product orders were ~$40M in the quarter (book-to-bill 1.1; trailing 12-month 1.2) and backlog was ~$396M (orders <30 months), representing ~18+ months of product revenue visibility. Gross margin declined to 28.3% (product gross margin 20.3%) mainly due to unfavorable product mix (geography and product), tariffs, and a one-time obsolescence charge. Operating expenses were $37.9M, including $2.8M of restructuring charges; adjusted EBITDA was a loss of $4.1M. Cash and equivalents were $64M; inventory rose as manufacturing ramps. Management launched a transformation plan and expects to reach a high single-digit adjusted EBITDA margin on a run-rate basis within 12 months and double-digit adjusted EBITDA margins over the medium to long term. Fiscal 2026 guidance was reiterated: revenue $471M–$485M and adjusted EBITDA $31M–$35M. Management expects H1 to be roughly 40% of full-year revenue and H2 about 60%, as some product demand shifts into the second half. Key near-term drivers to monitor: execution of the transformation plan, product order conversion from backlog (especially China and EIMEA), service revenue and contract pricing momentum, tariff mitigation efforts, and margin recovery as product mix improves.