Accuray 2025 Q4 Earnings Declining Earnings Amid Revenue Drop

Accuray (ARAY) reported its fiscal 2025 Q4 earnings on August 28, 2025, with results falling below expectations, marked by a decline in both revenue and net income. The company issued full-year fiscal 2026 guidance and outlined strategies to navigate ongoing geopolitical and supply chain challenges.

Revenue
Accuray's total revenue in the fiscal 2025 fourth quarter declined by 5.0% year-over-year to $127.54 million, compared to $134.29 million in the prior year’s quarter.

Earnings/Net Income
The company’s earnings per share (EPS) dropped sharply by 70.4% to $0.01 in 2025 Q4, compared to $0.03 in 2024 Q4. Similarly, net income fell by 66.8% to $1.12 million, down from $3.39 million in the previous year, signaling a challenging earnings performance.

Price Action
ARAY’s stock edged down 0.64% during the latest trading day and was flat for the most recent full week. However, it gained 13.87% month-to-date.

Post-Earnings Price Action Review
A post-earnings trading strategy of buying ARAY when revenue beats and selling 30 days later resulted in a -42.87% return, significantly underperforming the benchmark’s 79.85%. The strategy’s compounded annual growth rate (CAGR) was -10.81%, with a Sharpe ratio of -0.17, reflecting poor risk-adjusted returns and weak risk management.

CEO Commentary
Suzanne Winter, President and CEO, emphasized the company’s resilience amid geopolitical challenges and highlighted strong service revenue growth and product innovations such as TomoC in China and Helix internationally. She acknowledged ongoing supply chain issues and regional conflicts but outlined strategic initiatives like ERP rationalization, R&D investments, and logistics optimizations to enhance operational efficiency and service margins.

Guidance
For fiscal 2026, Accuray provided revenue guidance of $471 million to $485 million and adjusted EBITDA guidance of $31 million to $35 million. The company expects the bulk of revenue (55%) and EBITDA (70%) to come in the second half of the fiscal year, with anticipated benefits from a U.S. foreign trade zone designation. Winter emphasized that the guidance accounts for ongoing trade challenges and uncertainties in global market conditions.

Additional News
In recent weeks, Accuray announced the completion of its debt refinancing through a convertible notes exchange, following months of evaluation and private negotiations. The company also confirmed its participation in the Jefferies Global Healthcare Conference 2025, where its management team engaged in a fireside chat. Additionally, Accuray presented new long-term data on the benefits of a 5-session radiotherapy treatment for prostate cancer at ESTRO 2025, highlighting more than 40 clinical studies involving its technology and underscoring its commitment to innovation and educational initiatives in radiation therapy.