Accuray Reports 8% Revenue Growth to $116.2 Million in Q2 FY 2025

Accuray Incorporated reported its financial results for the second quarter of fiscal year 2025, ending December 31, 2024, showing a net revenue of $116.2 million, an increase of 8% from $107.2 million in the same period last year. For the six months ended December 31, 2024, total net revenue reached $217.7 million, up 3% from $211.1 million in the prior year. The company achieved a gross profit of $41.9 million for the quarter, representing a gross margin of 36.1%, compared to 33.5% in the previous year. The net income for the quarter was $2.5 million, a significant turnaround from a net loss of $9.6 million in the same quarter of the previous year.

The company experienced notable changes in its revenue streams, with product revenue increasing by 19% to $61.2 million for the quarter, driven primarily by higher shipments of its CyberKnife systems. However, service revenue decreased slightly by 1% to $55.0 million, attributed to a decline in training revenue. Geographically, Accuray saw a 54% increase in revenue from China, while revenues from the Americas and EIMEA regions declined by 28% and 11%, respectively, reflecting ongoing challenges in capital deployment priorities for radiotherapy equipment in the U.S.

Strategically, Accuray continues to focus on its joint venture in China, which has begun manufacturing and selling the Tomo C radiation therapy system. The joint venture's performance positively impacted Accuray's income from equity method investments, which increased significantly during the quarter. The company also reported a backlog of $463.1 million as of December 31, 2024, down from $492.1 million a year earlier, influenced by cancellations and age-outs of contracts.

Operationally, Accuray's employee headcount increased to 1,200 as of December 31, 2024, reflecting ongoing investments in its workforce to support growth initiatives. The company continues to navigate macroeconomic challenges, including inflation and supply chain disruptions, which have adversely affected its gross margins and net income. Looking ahead, Accuray anticipates that these challenges will persist, impacting its cash flows and operational performance through fiscal year 2025. The company remains committed to reviewing its liquidity and capital requirements in light of these uncertainties, while also expecting to maintain sufficient cash resources to fund operations for at least the next 12 months.