What is the market's earnings forecast for Accuray next quarter?

What were the key takeaways from Accuray's earnings call?

What factors drove the changes in Accuray's revenue and profit?

What does Accuray do and what are its main business segments?

What is the revenue and EPS growth rate for Accuray year over year?

What guidance did Accuray's management provide for the next earnings period?

What is Accuray's gross profit margin?

What were the key takeaways from Accuray’s earnings call?

- **Service revenue growth**: +7% YoY, contract revenue +10%, driving margin focus.
- **EBITDA targets**: High single-digit in 12 months, double-digit long-term, despite Q1 loss of $4.1M.
- **Regional challenges**: EIMEA/China slowdown (-23% product revenue), APAC growth offsetting.
- **Tariff mitigation**: Active programs to recover tariffs, with fluid geopolitical considerations.
- **Backlog visibility**: $396M (18+ months of product revenue), orders timing shifting to H2.

**【Management Opening Remarks】**
- Earnings release for Q1 FY2026 ($94M revenue) and reminder of forward-looking statements.
- Supplemental slide deck available on Investor Relations page.

**【CEO Summary Section】**
- New CEO Steve LaNeve emphasizes transformation plan for EBITDA margin expansion (high single-digit in 12 months, double-digit long-term).
- Focus on restructuring, cost optimization, and collaboration with Board member Steven Mayer.
- Highlights innovation (Stellar product launch) and global market impact of radiation therapy.

**【CFO Financial Commentary】**
- Q1 revenue: $94M (-7% YoY), product revenue $37M (-23% YoY), service revenue $57M (+7% YoY).
- Gross margin 28.3% (-5.6pts YoY) due to product margin decline (20.3% vs 32.9%).
- Operating loss $11.3M; reiterate FY2026 guidance: $471-485M revenue, $31-33M EBITDA.
- Backlog $396M, orders $40M (book-to-bill 1.1), service contract growth 10% YoY.

**【Q&A Key Highlights】**
- Regional performance: U.S. stable, APAC growing, EIMEA/China slower due to macro/geopolitical factors.
- Gross orders $40M (below expectations) due to timing in China and Americas.
- Tariff mitigation: duty drawback program and foreign trade zone consideration.
- Margin outlook: Q2 product margin challenges, improvement in H2 with developed market orders.
- FY2026 revenue split: ~40% H1, 60% H2; service business expected to drive margin expansion.

Accuray Incorporated (ARAY) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ARAY

ARAY fundamentals

You can ask Aime