Accuray Reports 12% Revenue Decline and $13.8 Million Net Loss in Q2 FY26

Accuray Incorporated reported a significant decline in its financial performance for the second quarter of fiscal year 2026, ending December 31, 2025. The company recorded total net revenue of $102.2 million, a decrease of 12% from $116.2 million in the same quarter of the previous year. For the six-month period, revenue fell by 10% to $196.2 million compared to $217.7 million in the prior year. The decline was primarily attributed to a 26% drop in product revenue, which totaled $45.0 million, while service revenue increased by 4% to $57.2 million, reflecting a growing installed base and higher contract revenues.

The company's gross profit also suffered, decreasing to $24.1 million for the quarter, down 43% from $41.9 million a year earlier. This decline was driven by reduced product unit sales and a less favorable product mix. Operating expenses remained relatively stable at $35.6 million, with restructuring costs of $6.1 million included as part of the FY26 Restructuring Plan, which aims to streamline operations and reduce costs. The net loss for the quarter was $13.8 million, compared to a net income of $2.5 million in the prior year, resulting in a loss per share of $0.11.

In terms of operational developments, Accuray's restructuring plan involved a workforce reduction of approximately 15% during the quarter, aimed at improving efficiency and reducing costs. The company also reported a decrease in its customer base, with significant impacts from geopolitical and macroeconomic factors, including inflation and supply chain challenges. The company’s joint venture in China, which previously contributed significantly to revenue, saw a 51% decline in sales, reflecting ongoing market challenges.

Looking ahead, Accuray anticipates continued pressure on its financial performance due to external factors such as inflation, supply chain disruptions, and reduced capital deployment priorities for radiotherapy equipment. The company expects these challenges to persist through at least fiscal year 2026. Despite these headwinds, Accuray believes it has sufficient cash resources and anticipated cash flows to fund operations for the next 12 months, although it remains cautious about the potential impacts of ongoing geopolitical tensions and economic conditions on its business.