Accuray Reports $93.9 Million Revenue, Net Loss of $21.7 Million for Q3 2025

Accuray Incorporated reported a net revenue of $93.9 million for the three months ended September 30, 2025, a decrease of 7% compared to $101.5 million in the same period last year. The decline was primarily attributed to a significant drop in product sales, particularly in China, which fell from $48.4 million to $37.2 million. In contrast, service revenue increased to $56.8 million from $53.2 million, reflecting a growing installed base. The company's gross profit also decreased to $26.5 million, representing a gross margin of 28.3%, down from 33.9% in the prior year, largely due to increased costs and a less favorable sales mix.

The company's operating expenses rose to $37.9 million, up 3% from $36.6 million a year earlier. This increase was driven by higher general and administrative costs, which included $1.3 million in consulting fees related to a restructuring initiative aimed at reducing operating expenses. Accuray recorded a net loss of $21.7 million, or $(0.18) per share, compared to a loss of $4.0 million, or $(0.04) per share, in the prior year. The increase in loss was influenced by higher interest expenses, which surged to $8.1 million from $3.0 million, reflecting the costs associated with the company's new financing agreement.

In terms of operational metrics, Accuray's backlog at the end of the reporting period stood at $395.7 million, down from $468.6 million a year ago. The company experienced a decrease in gross orders, which fell to $39.6 million from $55.4 million, primarily due to timing issues in the EIMEA and China regions. However, the book-to-bill ratio remained stable at 1.1, indicating that the company is still generating orders at a rate that supports its revenue goals.

Strategically, Accuray is undergoing a significant transformation, appointing Stephen La Neve as the new CEO effective October 20, 2025, following the resignation of Suzanne Winter. The company is also implementing a cost-saving initiative that includes a workforce reduction of approximately 3%. This restructuring is expected to be completed by the fourth quarter of fiscal year 2026. Additionally, Accuray continues to navigate challenges related to inflation, supply chain disruptions, and geopolitical tensions, particularly concerning its operations in China, which could impact future revenue and profitability.

Looking ahead, Accuray anticipates that macroeconomic conditions will continue to affect its business, particularly in terms of customer budgets and capital deployment priorities for radiotherapy equipment. The company expects these challenges to persist through at least fiscal year 2026, impacting its revenue and operational cash flow. Despite these uncertainties, Accuray believes it has sufficient cash resources to fund its operations for the next 12 months, supported by a cash balance of $63.3 million as of September 30, 2025.