Accuray (NASDAQ:ARAY) Announces Quarterly Earnings Results

Key Points

• Accuray missed Q3 estimates: reported EPS of ($0.09) vs consensus ($0.05) and revenue of $104.8M versus $111.9M consensus, with negative ROE and compressed gross margin to 24.1%.
• Guidance withdrawn due to indefinite shipment delays in the Middle East/North Africa/Pakistan region and persistent China/tariff headwinds, making near‑term revenue and installations unpredictable.
• Restructuring underway: about a 15% workforce reduction and other cost actions target $25M of annualized operating improvements (≈$10M realized so far), while management pushes partnerships and commercial hires to boost service monetization.

Accuray (NASDAQ:ARAY - Get Free Report) posted its earnings results on Wednesday. The medical equipment provider reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.04), FiscalAI reports. Accuray had a negative return on equity of 59.81% and a negative net margin of 8.15%.The firm had revenue of $104.85 million during the quarter, compared to the consensus estimate of $111.90 million.

Here are the key takeaways from Accuray's conference call:

• Withdrew financial guidance due to indefinite shipment delays in the Middle East/North Africa/Pakistan and persistent China/tariff headwinds, making near-term revenue and installations unpredictable.
• Q3 net revenue was $104.8 million (down 7% YoY, up 3% sequentially); product revenue drove most of the decline, while book-to-bill was 1.0 and reported backlog was roughly $356 million.
• The Transformation Plan is progressing—~15% workforce reduction and other cost actions target $25 million of annualized operating improvements, with about $10 million realized to date and management on track to exceed the $12 million FY2026 target.
• Gross margin compressed to 24.1% from 27.9% YoY, primarily driven by a sharp drop in service margins due to higher parts consumption, logistics/duties and tariff impacts that reduced profitability.
• Management is strengthening differentiation via strategic partnerships and clinical evidence efforts—leveraging its large motion-tracked treatment dataset and a multi-center registry, and adding Paul Miele as Chief Commercial Officer to accelerate commercial execution and service monetization.

Accuray Trading Up 3.5%

Shares of Accuray stock opened at $0.48 on Thursday. Accuray has a 52-week low of $0.33 and a 52-week high of $2.10. The stock's 50-day simple moving average is $0.44 and its 200 day simple moving average is $0.78. The stock has a market capitalization of $56.66 million, a P/E ratio of -1.64 and a beta of 1.43. The company has a debt-to-equity ratio of 2.34, a quick ratio of 0.71 and a current ratio of 1.47.

Hedge Funds Weigh In On Accuray

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Virtu Financial LLC bought a new stake in shares of Accuray in the fourth quarter valued at approximately $137,000. Invesco Ltd. boosted its holdings in Accuray by 52.7% in the 4th quarter. Invesco Ltd. now owns 245,000 shares of the medical equipment provider's stock worth $202,000 after buying an additional 84,528 shares during the period. Mackenzie Financial Corp boosted its holdings in Accuray by 76.5% in the 4th quarter. Mackenzie Financial Corp now owns 1,918,086 shares of the medical equipment provider's stock worth $1,538,000 after buying an additional 831,220 shares during the period. Oxford Asset Management LLP purchased a new position in Accuray in the 4th quarter valued at approximately $44,000. Finally, Bridgeway Capital Management LLC grew its stake in Accuray by 34.8% in the 4th quarter. Bridgeway Capital Management LLC now owns 174,425 shares of the medical equipment provider's stock valued at $144,000 after buying an additional 45,025 shares in the last quarter. Institutional investors own 64.08% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on ARAY shares. Wall Street Zen lowered Accuray from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. BTIG Research lowered their price target on shares of Accuray from $4.00 to $2.00 and set a "buy" rating on the stock in a report on Thursday, February 5th. One equities research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $2.00.

About Accuray

Accuray Incorporated NASDAQ: ARAY is a global medical device company that develops, manufactures and markets innovative radiation therapy solutions for the treatment of cancer. The company's flagship products include the CyberKnife® System, a robotic radiosurgery platform offering sub-millimeter precision, and the TomoTherapy® System, which combines helical computed tomography (CT) imaging with intensity-modulated radiation therapy (IMRT). More recently, Accuray introduced the Radixact® System, an advanced iteration of its TomoTherapy technology designed to enhance treatment speed and clinical workflow.

Accuray's suite of products enables clinicians to deliver highly targeted radiation doses while minimizing exposure to surrounding healthy tissue.