Accuray Incorporated (NASDAQ: ARAY) reported a 21% year-over-year decline in total revenue for the fourth quarter of fiscal 2026, missing Wall Street’s estimate by 4.6%. The company posted $100.91 million in revenue, down from $127.8 million in the same period a year earlier. Product revenue fell 42% to $40.8 million, with approximately $58 million of the decline attributed to challenges in China, including geopolitical tensions and tariff uncertainty. Service revenue, however, rose 6% to $60.1 million, representing 57% of total revenue compared with 48% in the prior year.
For the full fiscal year 2026, Accuray’s revenue totaled $401.9 million, a 12% decrease from the prior year. Product revenue declined 27% to $172.7 million, while service revenue increased 4% to $229.2 million. The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 36% year-over-year to $12.9 million in the quarter, though full-year adjusted EBITDA fell 63% to $10.6 million.
Gross margins improved to 34.8% in the quarter, up from 30.6% a year earlier, supported by higher service margins. Operating expenses declined 15% to $29.6 million in the quarter and dropped $17.4 million for the full year, excluding $16.2 million in restructuring charges. The company’s net interest expense increased to $32.1 million from $11.8 million in fiscal 2025, contributing to a GAAP net loss of $49.2 million for the year.
Accuray’s cash position strengthened to $48.8 million at quarter-end, up from $44.4 million in the prior quarter. Inventory declined by $9.6 million sequentially to $147.1 million. The company also reported a debt-to-equity ratio of 4.37 as of the quarter-end and converted $40 million of debt into preferred equity as part of a restructuring agreement with TCW, which included a covenant holiday through December 31, 2027.
Chief Executive Steve La Neve highlighted the company’s Synchrony technology platform, which tracks and adapts to patient and tumor motion in real time, as a key differentiator in radiation therapy. Chief Financial Officer Ali Pervaiz noted that service contract pricing actions and a lower labor cost structure drove margin improvements in the segment. The company’s stock fell 6.41% to $0.295 during regular trading before recovering slightly to $0.297 in after-hours trading.
