How did Precise rays (ARAY) manage to boost operating income in Q2 2025 despite rising costs?

Precise Rays (ARAY) was able to boost its operating income in Q2 2025 despite rising costs due to a combination of strategic initiatives and market performance:

1. **Revenue Growth**: Accuray experienced a 12% increase in revenue year-over-year, reaching $113.2 million in Q2 2025. This growth was driven by strong shipments in the APAC and China regions, as well as increased demand for their CyberKnife System in Austria. The company's product revenue surged by 16% to $57 million, and service revenue rose by 9% to $56 million.
2. **Operational Efficiency**: The company reported an income from operations of $1.0 million for the three months ended March 31, 2025, compared to a loss of $4.6 million in the same period in 2024. This improvement was due to reduced inventory levels and a focus on operational efficiency.
3. **Adjusted EBITDA Improvement**: Accuray's adjusted EBITDA improved significantly, reaching $6 million compared to $1.1 million last year. This was primarily due to volume, pricing, and operational improvements.
4. **Market Performance**: Despite global market uncertainties and the impact of tariffs, Accuray's robust market performance in both developed and emerging markets contributed to the revenue growth. The company maintained a healthy book-to-bill ratio of over 1.2, indicating strong customer demand for its solutions.

In summary, Accuray's boost in operating income was driven by revenue growth, operational efficiency, improved adjusted EBITDA, and strong market performance, which collectively helped offset the rising costs.