Accuray's Q2 2025: Contradictions in U.S. Market Recovery, Chinese Demand, and Service Growth

These are the key contradictions discussed in Accuray's latest 2025 Q2 earnings call, specifically including: U.S. Market Recovery, Demand Sustainability in China, and Service Business Growth:



Revenue Growth and Segment Performance:
- Accuray reported a solid 8% year-over-year revenue growth for Q2 2025, with product revenue performance being outstanding compared to the prior year period.
- This growth was driven by strong demand for solutions across the portfolio, particularly in China and Japan, and the success of the CyberKnife system.

Service Business Expansion:
- Accuray's service contract revenues grew modestly on a comparable basis, and service revenue remains the largest long-term growth opportunity.
- The growth is driven by a growing installed base of global customers, retention of existing customers, and expansion of new solution offerings like CyberComm.

Order Growth and Market Share:
- Accuray achieved a strong 7% orders growth in EIMEA, with key breakthroughs in markets like Pakistan and APAC with the new Accuray Helix platform.
- This growth is attributed to the company's focus on expanding its service solutions business and improving patient access in developing markets.

Operational Efficiency and Margin Improvement:
- The company reported an adjusted EBITDA of $9.6 million, driven by pricing and operational improvements, including Tomo C System deliveries and China margin release.
- These improvements are part of the company's strategy to enhance long-term profitability by advancing operational efficiencies and pricing actions.