Accuray (ARAY) AI Stock Analysis

• Market Cap: $170.14M
• Dividend Yield: N/A
• Average Volume (3M): 753.41K
• Price to Earnings (P/E): 252.5
• Beta (1Y): 1.74
• Revenue Growth: 2.68%
• EPS Growth: 89.63%
• Country: US
• Employees: 987
• Sector: Healthcare
• Sector Strength: 52
• Industry: Medical - Devices
• EPS (TTM): 0.01
• Shares Outstanding: 112,677,150
• 10 Day Avg. Volume: 561,365
• 30 Day Avg. Volume: 753,406
• PEG Ratio: 0.98
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -24.86
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 1.82
• Enterprise Value/Ebitda: 11.73
• 1Y Price Target: $6.00
• Price Target Upside: 287.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: $1.50 ▼(-3.23% Downside)

Accuray's overall stock score reflects significant financial challenges and valuation concerns, offset by a positive earnings call outlook and some technical momentum. The most significant factor is the company's financial instability, which poses risks despite strategic initiatives and market expansion efforts.

Positive Factors

Debt Management

The refinancing agreement addresses investor concerns about near-term debt maturity while preserving a healthy balance sheet.

Market Operations

There haven't been any order cancellations in China.

Negative Factors

Financial Costs

The share dilution and potentially higher interest expense are acknowledged as drawbacks.

Stock Performance

The price target has been trimmed from $5 to $4.

Accuray Business Overview & Revenue Model

Company Description

Accuray Incorporated designs, develops, manufactures, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the United States, Canada, Latin America, Australia, New Zealand, Europe, the Middle East, India, Africa, Japan, China, and rest of the Asia Pacific region. It offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of primary and metastatic tumors outside the brain, including tumors on or near the spine and in the breast, kidney, liver, lung, pancreas, and prostate. The company also provides the TomoTherapy System, including the Radixact System, which allows for integrated radiation treatment planning, delivery, and data management, enabling clinicians to deliver ultra-precise treatments to approximately 50 patients per day; iDMS data management system, a fully integrated treatment planning and data management systems; and Accuray precision treatment planning system, a treatment planning and data management systems. In addition, it offers post-contract customer support, installation, training, and other professional services. The company primarily markets its products directly to customers, including hospitals and stand-alone treatment facilities through its sales organization, as well as to customers through sales agents and group purchasing organizations in the United States; and to customers directly and through distributors and sales agents internationally. Accuray Incorporated was incorporated in 1990 and is headquartered in Madison, Wisconsin.

How the Company Makes Money

Accuray generates revenue primarily through the sale of its radiation therapy systems and related services. Key revenue streams include the initial sale of medical devices, ongoing service agreements, and software upgrades for their systems. The company also earns income from the sale of consumables used in conjunction with its products. Significant partnerships with healthcare institutions and collaborations with research organizations further enhance its market reach and contribute to its earnings. Additionally, as healthcare providers increasingly adopt advanced radiation technologies, Accuray benefits from the growing demand for precise cancer treatments, thereby supporting its overall revenue growth.

Accuray Financial Statement Overview

Summary

Accuray's financial performance is concerning, with declining revenue, negative profitability, high leverage, and cash flow issues. The company faces significant financial challenges, with limited growth prospects and potential risks due to high debt levels and negative cash flow metrics.

Income Statement

Accuray's income statement reveals a challenging financial position with declining revenue growth and negative net profit margins over the years. The gross profit margin has been relatively stable, but the company struggles with profitability as indicated by negative net income and low EBIT and EBITDA margins. The revenue growth rate has been negative in recent years, indicating potential difficulties in market expansion or product sales.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is low, suggesting limited financial stability and a heavy reliance on debt financing.

Cash Flow

Accuray's cash flow statement highlights negative free cash flow growth and a low operating cash flow to net income ratio, indicating cash flow challenges. The free cash flow to net income ratio is also negative, suggesting that the company is not generating sufficient cash from its operations to cover its net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	458.50M	458.50M	446.55M	447.61M	429.91M	396.29M
Gross Profit	146.97M	146.97M	142.92M	153.96M	159.96M	159.51M
EBITDA	22.82M	20.24M	5.71M	8.37M	13.66M	28.62M
Net Income	-1.59M	-1.59M	-15.54M	-9.28M	-5.35M	-6.31M
Balance Sheet
Total Assets	470.24M	470.24M	468.63M	479.21M	472.85M	480.10M
Cash, Cash Equivalents and Short-Term Investments	57.99M	57.99M	68.57M	89.40M	88.74M	116.37M
Total Debt	176.38M	176.38M	210.75M	205.04M	199.49M	199.41M
Total Liabilities	389.07M	389.07M	423.54M	425.56M	419.66M	411.26M
Stockholders Equity	81.17M	81.17M	45.08M	53.66M	53.19M	68.84M
Cash Flow
Free Cash Flow	-4.97M	-5.66M	-15.51M	2.86M	-7.12M	36.19M
Operating Cash Flow	2.86M	2.86M	-11.90M	15.54M	-2.40M	38.51M
Investing Cash Flow	-8.52M	-8.52M	-3.60M	-12.68M	-4.72M	-2.40M
Financing Cash Flow	-4.25M	-4.25M	-3.95M	-2.11M	-15.37M	-28.80M

Accuray Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARAY, the sentiment is Positive. The current price of 1.55 is above the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.42, and below the 200-day MA of 1.72, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 57.37 is Neutral, neither overbought nor oversold. The STOCH value of 46.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARAY.

Accuray Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARAY	53 Neutral	$170.14M	252.54	-2.52%	―	2.68%	89.63%
SEER	52 Neutral	$118.31M	―	-25.25%	―	12.13%	-8.23%
CVRX	52 Neutral	$204.51M	―	-92.33%	―	23.11%	18.06%
Sector *	51 Neutral	$7.95B	-0.38	-43.43%	2.22%	22.30%	-1.83%
SOPH	51 Neutral	$218.96M	―	-74.09%	―	7.31%	-7.49%
TNGX	47 Neutral	$772.15M	―	-76.09%	―	-42.84%	-17.32%
LNSR	47 Neutral	$145.25M	―	-350.22%	―	29.34%	-283.53%

Accuray Corporate Events

Accuray Announces Leadership Changes Amid Executive Departures

On August 19, 2025, Robert C. Kill, a Class I director of Accuray Incorporated, announced his decision not to seek re-election at the company’s annual meeting in November 2025. His decision was not due to any disagreements with the company or its board. Additionally, Jesse Chew, the Senior Vice President, Chief Legal Officer, and Corporate Secretary, submitted his resignation effective September 19, 2025, and will continue to consult for the company until the end of the year. His resignation was also not due to any conflicts or issues with the company.

Accuray Reports Q4 2025 Financial Results Amid Challenges

Accuray reported its financial results for the fourth quarter and fiscal year 2025, noting a 5% decrease in quarterly net revenue to $127.5 million and a 3% increase in annual net revenue to $458.5 million. Despite macroeconomic challenges, the company achieved a net income of $1.1 million for the quarter and a reduced net loss of $1.6 million for the year, alongside completing a debt refinancing. Accuray’s fiscal 2026 guidance anticipates net revenue between $471 million and $485 million, reflecting its strategic focus on innovation and service growth.