Accuray Inc. (ARAY) reported mixed fiscal fourth-quarter and full-year 2026 results, with adjusted earnings per share beating expectations while revenue missed forecasts amid continued pressure in its core markets.
For the quarter ended June 30, the medical device company posted adjusted loss per share of $0.02, beating the Wall Street consensus of a $0.03 loss. Revenue totaled $100.91 million, missing the $105.82 million estimate by 4.6%. On a year-over-year basis, revenue declined 21%, reflecting broad weakness across its product lines. Full-year revenue fell 12% to $402 million.
Product revenue, which includes sales of systems such as CyberKnife and Radixact, declined 42% year-over-year to $40.8 million in Q4 and 27% for the full year to $173 million. Management attributed approximately $58 million of the annual revenue decline to geopolitical tensions and tariff uncertainty, particularly in China. Service revenue, which covers maintenance and support for the installed base, rose 6% year-over-year to $60.1 million in Q4 and 4% for the full year to $229 million, accounting for nearly 90% of active installations.
Gross profit improved to $35.1 million from $30.6 million a year earlier, yielding a gross margin of 34.8%, up from 30.6%. Operating income increased to $5.5 million from $4.2 million in the prior-year period. Adjusted EBITDA rose to $12.9 million from $9.4 million. The company ended the quarter with $48.8 million in cash and equivalents, up from $44.4 million in the prior quarter, while total debt stood at $182.4 million.
Accuray’s transformation program delivered more than $20 million in cost and margin improvements during fiscal 2026, exceeding its initial $12 million target. Phase 2 of the program is expected to yield an additional $15 million in annualized benefits in fiscal 2027. Management declined to provide formal guidance for fiscal 2027, citing ongoing geopolitical uncertainty, trade policy risks, and tariff effects.
Shares of Accuray fell 6.41% in regular trading to $0.295, extending a 79% decline over the past year. The stock has traded between $0.22 and $2.10 over the past 52 weeks.
The company also outlined a financing arrangement with TCW Asset Management Company LLC, involving the conversion of $40 million of debt into preferred equity at a premium to recent share prices, a $15 million cash investment in additional convertible preferred equity, and a delayed draw facility. Certain elements remain subject to shareholder approval and customary closing conditions.
