RaySearch's Strategic Expansion in U.S. Radiation Oncology: A Catalyst for Sustainable Growth and Revenue

In the rapidly evolving landscape of precision oncology, few companies have positioned themselves as effectively as RaySearch Laboratories AB (publ). By leveraging strategic partnerships and innovative software solutions, RaySearch is not only accelerating the adoption of advanced radiation therapy in the U.S. but also unlocking significant long-term revenue potential. The 2025 collaboration with Radiology Oncology Systems, Inc. (ROS) exemplifies this strategy, blending cutting-edge software with refurbished medical equipment to democratize access to life-saving cancer treatments while aligning with global sustainability goals.

Strategic Partnerships: Bridging Technology and Accessibility

RaySearch's partnership with ROS is more than a business transaction—it is a transformative approach to addressing systemic gaps in radiation oncology. By pairing ROS's network of refurbished linear accelerators with RaySearch's RayStation® and RayCare® platforms, the collaboration extends the lifecycle of aging equipment, reducing costs for healthcare providers while maintaining clinical excellence. This model is particularly impactful in underserved regions, where financial constraints often limit access to cutting-edge treatments.

The integration of RayStation with Varian's TrueBeam® system at a U.S. center highlights the immediate value of this partnership. RayStation's advanced features—such as multi-criteria optimization and HDR brachytherapy planning—enable clinicians to deliver highly personalized, adaptive radiation therapy. Meanwhile, RayCare streamlines workflows by centralizing treatment planning, delivery, and data management, reducing administrative burdens and improving efficiency. Together, these tools create a seamless, AI-enhanced ecosystem that elevates both patient outcomes and operational performance.

Market Dynamics: A Booming Sector with RaySearch at the Forefront

The U.S. radiation oncology software market is on a robust growth trajectory. By 2032, the broader cancer radiation therapy software market is projected to reach $6.45 billion, growing at an 8.5% CAGR. This expansion is fueled by rising cancer prevalence, advancements in AI-driven treatment planning, and a shift toward sustainability in healthcare. RaySearch is uniquely positioned to capitalize on these trends.

Financial performance in Q1 2025 underscores this potential. Order intake surged 71.7% year-over-year to SEK 409.6 million, while operating profit jumped 63% to SEK 74.8 million. These figures reflect RaySearch's ability to convert strategic innovation into tangible revenue. With over 1,100 global clinics already using RayStation, the company's market penetration is expanding rapidly, particularly in the U.S., where demand for AI-integrated solutions like RayIntelligence® and RayCommand® is surging.

Long-Term Revenue Potential: A Win-Win for Investors and Patients

The partnership with ROS is not an isolated success but part of a broader strategy to dominate the U.S. radiation oncology software market. By 2029, the treatment planning software segment alone is expected to grow to $3.58 billion, driven by EHR adoption and government initiatives to improve cancer care access. RaySearch's focus on sustainability—repurposing medical equipment instead of scrapping it—aligns with global decarbonization goals, making its solutions increasingly attractive to environmentally conscious healthcare providers.

For investors, the key takeaway is clear: RaySearch is not merely selling software; it is redefining the economics of cancer care. The company's ability to integrate AI, sustainability, and clinical excellence positions it to outperform peers in a sector where margins are tightening and patient access is a critical differentiator.

Investment Thesis: A High-Growth Play in Precision Oncology

RaySearch's strategic expansion into the U.S. offers a compelling investment opportunity. With a market capitalization that reflects its innovative edge but still lags behind its revenue potential, the stock appears undervalued relative to its growth trajectory. The company's partnerships, such as the one with ROS, are not only boosting adoption but also creating recurring revenue streams through software licenses and AI-driven analytics.

Moreover, RaySearch's collaboration with institutions like the University Medical Center Groningen (UMCG) ensures continuous product refinement, reinforcing its leadership in AI-enhanced radiation therapy. As the precision oncology market grows toward $201.96 billion by 2030, RaySearch's integrated solutions are poised to capture a significant share, particularly in the U.S., where healthcare providers are increasingly prioritizing cost-effective, high-impact technologies.

Conclusion: A Strategic Vision with Tangible Rewards

RaySearch's approach to U.S. radiation oncology is a masterclass in strategic innovation. By combining advanced software with refurbished hardware, the company is addressing cost barriers, sustainability challenges, and clinical needs simultaneously. For investors, this translates to a high-conviction opportunity in a sector with explosive growth potential. As the partnership with ROS gains momentum and AI integration accelerates, RaySearch is not just expanding its market footprint—it is reshaping the future of cancer care.

In an industry where access to cutting-edge technology can mean the difference between life and death, RaySearch's integrated solutions are more than a business strategy—they are a lifeline. And for those who recognize the company's vision and execution, the rewards are likely to be substantial.