Accuray Reports 7% Revenue Decline in Q3 Fiscal Year 2026

Accuray Incorporated reported a decline in financial performance for the third quarter of fiscal year 2026, with total net revenue of $104.8 million, down 7% from $113.2 million in the same period last year. For the nine months ending March 31, 2026, revenue decreased by 9% to $301.0 million compared to $331.0 million in the prior year. The company's product revenue fell by 13% to $49.7 million for the quarter and by 21% to $131.9 million for the nine-month period, primarily due to lower shipment volumes. Service revenue remained relatively stable, totaling $55.1 million for the quarter and $169.1 million for the nine months, reflecting a slight increase in contract revenues from an expanded installed base.

The company experienced significant changes in its financial metrics compared to the previous fiscal period. Gross profit for the quarter was $25.3 million, a decrease of 20% from $31.6 million a year earlier, while gross profit margins also fell from 27.9% to 24.1%. Operating expenses increased by 12% to $34.4 million, driven by restructuring charges related to a comprehensive transformation plan aimed at enhancing operational efficiency. The net loss for the quarter was $11.8 million, compared to a loss of $1.3 million in the prior year, reflecting the impact of increased interest expenses and restructuring costs.

Strategically, Accuray has been implementing a transformation plan that includes workforce reductions, with approximately 15% of its global workforce eliminated in late 2025. This restructuring is part of a broader initiative to streamline operations and improve accountability. The company also continues to navigate challenges related to supply chain disruptions and inflation, which have adversely affected gross margins and net income. As of March 31, 2026, Accuray's cash and cash equivalents stood at $38.1 million, down from $57.4 million at the end of the previous fiscal year, indicating a tightening liquidity position.

Operationally, Accuray's backlog at the end of the quarter was $356.2 million, a decrease from $452.4 million a year earlier, influenced by cancellations and age-outs of orders. The company reported a book-to-bill ratio of 1.0 for the quarter, indicating that new orders matched revenue recognized, but this was a decline from the previous year's ratio of 1.2. The company continues to focus on its joint venture in China, which is expected to be a significant growth area, although geopolitical tensions and tariff uncertainties pose risks to its operations in that region.

Looking ahead, Accuray anticipates ongoing challenges from macroeconomic conditions, including inflation and supply chain issues, which are expected to impact its financial performance through at least fiscal year 2026. The company is actively evaluating its liquidity and capital requirements in light of these uncertainties and remains committed to executing its transformation plan to position itself for sustainable growth.