Accuray Incorporated (NASDAQ: ARAY) reported a 21% year-over-year decline in quarterly revenue to $100.9 million for the fourth quarter of fiscal 2026, though adjusted EBITDA rose 36% to $12.9 million. The company’s GAAP net loss narrowed to $1.9 million from $5.8 million in the same period last year.
Full-year fiscal 2026 revenue fell 12% to $401.9 million, with product revenue down 27% to $172.7 million and service revenue up 4% to $229.2 million. Service revenue now accounts for 57% of total revenue, up from 49% a year earlier. Adjusted EBITDA for the year declined 63% to $10.6 million, while gross margin improved to 34.8% in the quarter.
Cost-cutting initiatives delivered approximately $20 million in savings during fiscal 2026, exceeding the original $12 million target. The company expects an additional $15 million in annualized cost and margin improvements from ongoing transformation efforts. Operating expenses fell 13% year-over-year, excluding restructuring expenses, which totaled $16.2 million for the full year.
Accuray’s stock closed at $0.295 on August 19, down 6.41% for the day, before rising 5.16% in after-hours trading to $0.31. The shares remain down 79% over the past 12 months, trading near a 52-week low of $0.22 after peaking at $2.10.
The company secured a covenant holiday through December 31, 2027, as part of a debt restructuring agreement with TCW, which also involved converting $40 million of debt into preferred equity. Total debt stood at $182.4 million as of June 30, with a debt-to-equity ratio of 4.37 and a current ratio of 1.42.
Accuray’s China joint venture accounted for a largely neutral net margin impact in fiscal 2026, with a $36,000 net release for the year. Deferred margin on the balance sheet totaled $17.5 million as of June 30, while product revenue tied to China fell by approximately $58 million due to geopolitical tensions. Inventory declined by $9.6 million to $147.1 million during the quarter.
The company revised its remaining performance obligations disclosure, reporting $60.7 million under the updated methodology, excluding system sales orders, upgrade orders, and prepaid customer credits. The previous methodology had reported $821.2 million.
Accuray’s gross margin improved to 34.8% in the quarter, while service revenue rose 6% year-over-year to $60.1 million, representing nearly 60% of quarterly revenue.
