Accuray Reports 12% Revenue Growth in Q3 Fiscal Year 2025, Despite Net Loss

Accuray Incorporated reported its financial results for the third quarter of fiscal year 2025, revealing a total net revenue of $113.2 million for the three months ended March 31, 2025, a 12% increase from $101.1 million in the same period last year. The company's product revenue rose to $57.3 million, up 16% year-over-year, while service revenue increased by 9% to $55.9 million. For the nine months ended March 31, 2025, total net revenue reached $331.0 million, compared to $312.3 million in the prior year, marking a 6% increase. Despite the revenue growth, Accuray reported a net loss of $1.3 million for the quarter, an improvement from a loss of $6.3 million in the same quarter of the previous year.

The company experienced notable changes in its financial performance compared to the previous fiscal period. Gross profit for the third quarter was $31.6 million, representing a gross margin of 27.9%, slightly down from 28.7% in the prior year. Operating expenses decreased to $30.6 million from $33.6 million, primarily due to reduced research and development costs and lower general and administrative expenses. The company’s cash and cash equivalents increased to $77.8 million as of March 31, 2025, up from $68.6 million at the end of the previous fiscal year.

Strategically, Accuray has been focusing on its joint venture in China, which has begun manufacturing and selling the Tomo C radiation therapy system. The joint venture aims to capitalize on the growing demand for radiation oncology systems in China, a market that is considered significantly underserved. The company also received regulatory approvals for several of its products, including the Radixact and CyberKnife systems, which are expected to enhance its market presence in the region.

Operationally, Accuray reported a backlog of $452.4 million as of March 31, 2025, down from $503.2 million a year earlier. The decrease in backlog was attributed to higher age-outs and cancellations, although net orders for the quarter were $46.7 million, reflecting a decrease from $60.8 million in the prior year. The company noted that its customer base continues to grow, with an increase in the installed base of its systems contributing to higher service revenue. However, challenges such as inflation, supply chain disruptions, and geopolitical tensions are expected to impact future performance.

Looking ahead, Accuray anticipates continued pressure on its financial results due to macroeconomic conditions, including inflation and supply chain challenges. The company expects these factors to affect gross margins and net income through calendar year 2025. Additionally, reduced budgets for radiotherapy equipment in the U.S. and longer installation timelines are projected to impact revenue through fiscal year 2026. Despite these challenges, Accuray believes it has sufficient cash resources to fund operations for at least the next 12 months, while closely monitoring its liquidity and capital requirements in light of ongoing uncertainties.