Accuray Reports $401.9 Million Revenue Decline and $49.2 Million Net Loss for Fiscal Year Ended June 30, 2026

Accuray Incorporated reported a net revenue of $401.9 million for the fiscal year ended June 30, 2026, a decrease of 12% compared to $458.5 million in the prior fiscal year. This decline was primarily driven by a 27% decrease in product revenue, which fell to $172.7 million from $237.6 million, largely due to reduced system shipment volumes in the China region. Services revenue saw a modest increase of 4% to $229.2 million from $220.9 million, attributed to a growing installed base and higher contract renewal rates. The company's gross profit decreased by 24% to $111.5 million, with gross profit as a percentage of net revenue declining to 27.7% from 32.1%, impacted by non-IEEPA tariff expenses and an unfavorable product and region mix, particularly fewer CyberKnife System shipments to China.

The company's operating expenses remained relatively stable, decreasing by 1% to $137.9 million for the fiscal year ended June 30, 2026, compared to $139.1 million in the prior year. This stability was largely due to cost reduction actions implemented under the company's Transformation Plan and FY26 Restructuring Plan, which resulted in a 21% decrease in research and development expenses and an 11% decrease in selling and marketing expenses. General and administrative expenses also decreased by 5%. However, the company recorded $16.2 million in restructuring charges during the fiscal year, primarily related to severance and employee-related costs, third-party implementation, and asset impairments.

Accuray experienced a net loss of $49.2 million for the fiscal year ended June 30, 2026, a significant increase from a net loss of $1.6 million in the prior fiscal year. This widened net loss was influenced by the decrease in net revenue, lower gross profit, increased interest expense of $32.9 million compared to $13.0 million, and the aforementioned restructuring charges. The company's income from its equity method investment in the joint venture decreased by 76% to $1.1 million, reflecting reduced revenues from the JV.

Looking ahead, Accuray continues to navigate a challenging macroeconomic and geopolitical environment, including ongoing supply chain disruptions, inflation, and tariff uncertainty, particularly concerning trade with China. These factors are expected to continue impacting gross margins and cash flow through at least fiscal year 2027. The company has implemented a comprehensive Transformation Plan and FY26 Restructuring Plan aimed at improving operating margins, enhancing organizational agility, and positioning the company for sustainable growth. Accuray also recently completed a significant financing transaction, including the issuance of Series A Convertible Preferred Stock and modifications to its credit facilities, to enhance liquidity and financial flexibility. The company believes it has sufficient cash resources to fund operations for at least the next twelve months, but acknowledges the ongoing uncertainties in the global economic landscape.