Accuray (ARAY) AI Stock Analysis

• Market Cap: $111.82M
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: 1.51%
• EPS Growth: 5.07%
• Country: US
• Employees: 987
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.18
• Shares Outstanding: 113,341,130
• 10 Day Avg. Volume: 1,018,456
• 30 Day Avg. Volume: 1,113,771
• 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: 2.81
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: 35.37
• 1Y Price Target: $4.00
• Price Target Upside: 241.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $0.96 ▼(-18.12% Downside)

Accuray's overall stock score is primarily impacted by its financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to a negative P/E ratio. While the earnings call and corporate events highlight potential for future growth, current financial metrics and market conditions present significant challenges.

Positive Factors

Service Revenue Growth

Growth in service revenue indicates a strong recurring income stream, enhancing revenue stability and supporting long-term financial health.

New Product Launch

The launch of new products like Stellar can drive future revenue growth and strengthen market position in adaptive radiotherapy.

Strategic Partnerships

Partnerships with academic institutions enhance R&D capabilities, fostering innovation and potentially leading to advanced product offerings.

Negative Factors

Declining Revenue

Declining revenue reflects market challenges and could impact the company's ability to invest in growth and innovation.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially affecting long-term sustainability if not managed properly.

Operating Loss Increase

Rising operating losses indicate inefficiencies and financial strain, necessitating strategic adjustments to improve profitability.

Accuray Business Overview & Revenue Model

Company Description

Accuray Incorporated is a global radiation oncology company that specializes in the development of advanced treatment solutions for cancer. Headquartered in Sunnyvale, California, Accuray focuses on innovative technologies that enhance the precision of radiation therapy, primarily through its flagship products, the CyberKnife and TomoTherapy systems. These systems are designed to deliver targeted radiation with high accuracy, thereby minimizing damage to surrounding healthy tissues and improving patient outcomes. Accuray operates within the healthcare sector, specifically addressing the needs of cancer treatment centers and hospitals worldwide.

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 faces financial challenges with declining revenues, negative profitability, and high leverage. The company needs to improve operational efficiency and profitability to enhance financial stability. While cash flow generation remains a concern, maintaining positive operating cash flow is a positive aspect. Strategic measures are required to address these financial issues and improve overall performance.

Income Statement

Accuray's income statement shows a challenging financial position with declining revenue growth and negative net profit margins. The TTM (Trailing-Twelve-Months) data indicates a slight revenue decline of 1.66%, and the company has been unable to achieve profitability, as evidenced by a negative net profit margin of -0.35%. Gross profit margin remains stable at around 32%, but EBIT and EBITDA margins are low, indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.17, indicating significant leverage, which could pose financial risks. Return on equity is negative, reflecting the company's inability to generate profits from shareholder investments. The equity ratio is low, suggesting limited financial stability and reliance on debt financing.

Cash Flow

Cash flow analysis shows volatility, with a significant decline in free cash flow growth at -376.28% TTM. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. However, the company has managed to maintain a positive operating cash flow, which is a positive sign amidst other financial challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	450.90M	458.50M	446.55M	447.61M	429.91M	396.29M
Gross Profit	139.05M	146.97M	142.92M	153.96M	159.96M	159.51M
EBITDA	8.87M	20.24M	5.71M	8.37M	11.64M	18.72M
Net Income	-19.32M	-1.59M	-15.54M	-9.28M	-5.35M	-6.31M
Balance Sheet
Total Assets	456.82M	470.24M	468.63M	479.21M	472.85M	480.10M
Cash, Cash Equivalents and Short-Term Investments	63.92M	57.42M	68.57M	89.40M	88.74M	116.37M
Total Debt	179.11M	176.38M	210.75M	205.04M	199.49M	199.41M
Total Liabilities	394.95M	389.07M	423.54M	425.56M	419.66M	411.26M
Stockholders Equity	61.87M	81.17M	45.08M	53.66M	53.19M	68.84M
Cash Flow
Free Cash Flow	11.80M	-5.66M	-15.51M	2.86M	-7.12M	36.19M
Operating Cash Flow	22.33M	2.86M	-11.90M	15.54M	-2.40M	38.51M
Investing Cash Flow	-11.23M	-8.52M	-3.60M	-12.68M	-4.72M	-2.40M
Financing Cash Flow	-2.55M	-4.25M	-3.95M	-2.11M	-15.37M	-28.80M

Accuray Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARAY, the sentiment is Neutral. The current price of 1.17 is above the 20-day moving average (MA) of 1.02, below the 50-day MA of 1.34, and below the 200-day MA of 1.49, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 45.79 is Neutral, neither overbought nor oversold. The STOCH value of 38.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARAY.

Accuray Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELMD	78 Outperform	$238.21M	31.36	19.02%	―	16.05%	29.48%
TLSI	54 Neutral	$345.25M	―	―	―	49.52%	19.34%
AVR	54 Neutral	$192.39M	―	-2462.70%	―	-21.10%	-18.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ARAY	44 Neutral	$111.82M	―	-36.07%	―	1.51%	5.07%
INGN	43 Neutral	$181.08M	―	-13.27%	―	4.68%	55.37%
LNSR	38 Underperform	$133.78M	―	-422.35%	―	21.02%	-200.88%

Accuray Corporate Events

Accuray Stockholders Approve 2026 Equity Incentive Plan

At the Annual Meeting of Stockholders held on November 13, 2025, Accuray Incorporated’s stockholders approved the 2026 Equity Incentive Plan. The meeting also saw the election of Class I directors, an advisory vote on executive compensation, and the ratification of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending June 30, 2026.

Accuray Appoints New CEO Amidst Revenue Decline

Accuray reported its fiscal 2026 first-quarter financial results, highlighting a 7% decrease in total net revenue compared to the previous year. The company announced significant leadership changes with Steve La Neve appointed as CEO and a restructuring plan aimed at reducing costs and streamlining operations. Despite a decrease in product revenue, service revenue increased by 7%, and the company introduced the Accuray Stellar Solution at the ASTRO annual meeting. Accuray’s net loss widened to $21.7 million, with a decrease in gross profit margin due to geographic sales mix and joint venture accounting. The company reaffirmed its fiscal year 2026 guidance, expecting total net revenue between $471 million and $485 million.

Accuray Appoints Steve La Neve as New CEO

On October 18, 2025, Accuray entered into a consulting agreement with Dedication Capital, appointing Steven F. Mayer as Transformation Board Sponsor to lead strategic initiatives, with compensation including a base fee and equity awards. Additionally, on October 20, 2025, Accuray announced the appointment of Steve La Neve as CEO, succeeding Suzanne Winter, as part of a broader transformation plan aimed at enhancing competitiveness and achieving sustainable growth.

Accuray Announces Consulting Agreement with Departing Executive

On September 19, 2025, Accuray Incorporated entered into a consulting agreement with Jesse Chew, its departing Senior Vice President, Chief Legal Officer, and Corporate Secretary, to assist with the transition of his responsibilities. Mr. Chew will provide consulting services until December 31, 2025, receiving a monthly retainer and continued vesting of his equity awards, indicating a structured transition plan for the company.