Accuray (ARAY) AI Stock Analysis

• Market Cap: $70.45M
• Dividend Yield: N/A
• Average Volume (3M): 878.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• Revenue Growth: 1.51%
• EPS Growth: 5.07%
• Country: US
• Employees: 987
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.11
• Shares Outstanding: 118,782,630
• 10 Day Avg. Volume: 983,125
• 30 Day Avg. Volume: 878,280
• 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: 3.33
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: -112.64
• 1Y Price Target: $2.00
• Price Target Upside: 70.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.25
• Revenue Forecast (FY): $466.69M

• Rating: 40 Underperform
• Price Target: $0.51 ▼(-56.58% Downside)
• Action: Downgraded Date: 02/07/26
• Date: Action: Downgraded 02/07/26

The score is driven down primarily by weak financial performance (losses, declining revenue, and high leverage with a thin equity cushion) and strongly bearish technicals (below all major moving averages with negative momentum). Valuation offers limited support due to negative earnings and no dividend, while the latest earnings call adds further pressure via lowered guidance and margin/cash deterioration despite some demand and restructuring positives.

Positive Factors

Recurring Service Revenue Growth

Growing, margin-resilient service revenue provides a durable recurring cash stream tied to the installed base. At 26.6% service gross margin and positive YoY growth, services can stabilize top-line volatility from equipment cycles and support long-term cash generation and customer retention.

Strong Order Intake & Backlog

A book-to-bill above 1 and a multi-quarter backlog with no cancellations indicate sustained demand and a near-term revenue runway. Diversified, multi-month backlog supports predictable shipments, service attach opportunities, and revenue visibility over the coming quarters.

Active Transformation & Financing Amendments

Targeted cost takeouts, workforce reduction and financing flexibility are structural moves to restore profitability and extend liquidity. If executed, $25M of annualized improvement plus looser covenants materially raises medium-term margin and refinancing headroom.

Negative Factors

High Leverage

Elevated leverage and a thin equity base limit financial flexibility and increase refinancing and covenant risk. In the event of further revenue pressure, interest and principal obligations could constrain investment, slow strategic initiatives, and raise default risk.

Severe Product Margin Compression

A large, persistent collapse in product gross margins erodes the key profitability lever for a capital-equipment company. Structural geopolitical and tariff-driven margin pressure can reduce lifetime product economics and lower the contribution of new system placements to free cash flow.

Diminished Cash & Working Capital Strain

Material cash decline combined with high inventory ties up liquidity and raises rollover risk during a turnaround. Limited cash plus working-capital consumption could force refinancing, postpone strategic investments, or require deeper cost cuts if order conversion slows.

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

Overall fundamentals are weak: TTM revenue is down (-3.09%) with a return to operating and net losses (net margin ~-4.3%). The balance sheet is the biggest risk with high leverage (debt ~$174M vs equity ~$53M; ~2.9x debt-to-equity) and negative ROE, while cash flow is a partial offset with positive TTM operating cash flow ($8.4M) and free cash flow ($2.5M) despite sharp FCF decline and volatility.

Income Statement

TTM (Trailing-Twelve-Months) results show revenue down (-3.09%) and a return to operating and net losses (net margin about -4.3%). Profitability has been inconsistent across the period: FY2025 was near breakeven net income with positive operating profit, but TTM slipped back into losses. Gross margin remains in the low-30% range, but is below earlier highs (around 40% in FY2021), suggesting less pricing/mix benefit or higher costs.

Balance Sheet

Leverage is the key constraint: TTM debt is $174M against equity of $53M (debt-to-equity ~2.9x), and equity has trended lower versus earlier years (e.g., FY2021). Returns on equity are negative (TTM roughly -32%), reflecting ongoing net losses. While total assets are relatively stable, the thin equity cushion and elevated leverage increase financial risk if operating results weaken further.

Cash Flow

Cash generation is positive but modest in TTM: operating cash flow of $8.4M and free cash flow of $2.5M, with free cash flow down sharply versus the prior period (growth about -78.6%). Cash flow has been volatile historically (negative operating/free cash flow in FY2022 and FY2024), but the latest TTM shows the business is at least generating cash despite reporting a net loss, which is a stabilizing factor.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	436.97M	458.50M	446.55M	447.61M	429.91M	396.29M
Gross Profit	121.23M	146.97M	142.92M	153.96M	159.96M	159.51M
EBITDA	-2.08M	20.24M	5.71M	8.37M	11.64M	18.72M
Net Income	-35.62M	-1.59M	-15.54M	-9.28M	-5.35M	-6.31M
Balance Sheet
Total Assets	448.01M	470.24M	468.63M	479.21M	472.85M	480.10M
Cash, Cash Equivalents and Short-Term Investments	41.30M	57.42M	68.57M	89.40M	88.74M	116.37M
Total Debt	204.41M	176.38M	210.75M	205.04M	199.49M	199.41M
Total Liabilities	394.59M	389.07M	423.54M	425.56M	419.66M	411.26M
Stockholders Equity	53.42M	81.17M	45.08M	53.66M	53.19M	68.84M
Cash Flow
Free Cash Flow	-6.21M	-5.66M	-15.51M	2.86M	-7.12M	36.19M
Operating Cash Flow	4.55M	2.86M	-11.90M	15.54M	-2.40M	38.51M
Investing Cash Flow	-15.25M	-8.52M	-3.60M	-12.68M	-4.72M	-2.40M
Financing Cash Flow	-8.60M	-4.25M	-3.95M	-2.11M	-15.37M	-28.80M

Accuray Technical Analysis

• Technical Analysis Sentiment: Negative
• 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 Negative. The current price of 1.17 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.77, and below the 200-day MA of 1.26, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 69.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARAY.

Accuray Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELMD	76 Outperform	$191.57M	23.28	20.20%	―	16.05%	29.48%
TLSI	54 Neutral	$265.81M	-2.69	―	―	49.52%	19.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
INGN	50 Neutral	$158.55M	-7.01	-13.27%	―	4.68%	55.37%
AVR	50 Neutral	$255.42M	-2.68	-2462.70%	―	-21.10%	-18.32%
LNSR	45 Neutral	$142.74M	-2.77	-422.35%	―	21.02%	-200.88%
ARAY	40 Underperform	$70.45M	―	-70.32%	―	1.51%	5.07%

Accuray Corporate Events

Accuray Releases Updated Investor Presentation Under Regulation FD

On February 17, 2026, Accuray Incorporated posted an updated investor presentation on its investor relations website and made the materials available as an exhibit for reference. Company spokespeople indicated they would use the updated presentation in discussions with analysts and investors on or after that date, positioning the deck as summary information meant to be read alongside Accuray’s existing U.S. Securities and Exchange Commission filings and prior public disclosures. The company emphasized that the furnished materials are not deemed filed for purposes of securities law liability and do not create an obligation for Accuray to update the information, framing the release primarily as a routine investor communication rather than a signal of new material developments.

The most recent analyst rating on (ARAY) stock is a Hold with a $0.52 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.

Accuray Receives Nasdaq Notice Over Minimum Bid Price

On February 2, 2026, Accuray received notice from Nasdaq that its common stock no longer met the exchange’s minimum $1.00 bid price requirement over the prior 30 consecutive business days, putting the company out of compliance with Nasdaq Listing Rule 5550(a)(2). The stock will continue trading under the “ARAY” ticker for now, and the company has until August 3, 2026, to restore its share price to at least $1.00 for ten consecutive business days, with the possibility of an additional 180-day compliance period if it transfers to the Nasdaq Capital Market and meets other listing standards. Failure to regain compliance could ultimately result in delisting, and while Accuray is evaluating options, including a potential reverse stock split, there is no assurance it will satisfy Nasdaq’s continued listing requirements.

The most recent analyst rating on (ARAY) stock is a Hold with a $0.57 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.

Accuray Posts Weaker Q2 Results Amid Ongoing Transformation

On February 4, 2026, Accuray reported weaker fiscal 2026 second-quarter results for the period ended December 31, 2025, with total net revenue down 12% year-on-year to $102.2 million as a 26% decline in product revenue outweighed modest service growth, compressing gross margin to 23.5% and swinging the company from a $2.5 million profit to a $13.8 million net loss. The company is in the early stages of a major transformation announced on December 15, 2025, including organizational realignment, outsourcing, sales enablement initiatives and workforce reductions affecting about 15% of staff, which drove $6.1 million of restructuring charges in the quarter and are expected to total about $13 million this fiscal year, with annualized operating profit improvements targeted at roughly $25 million, about $12 million of which is expected in fiscal 2026. Despite lower gross product orders and a 17% year-on-year decline in backlog to $383.3 million, management emphasized execution on cost cuts—operating expenses would have been down 20% year-on-year excluding restructuring—and reaffirmed its strategic push to enhance competitiveness and long-term profitability, updating full-year 2026 guidance to net revenue of $440–$450 million and adjusted EBITDA of $22–$25 million, even as cash and equivalents fell to $41.9 million.

The most recent analyst rating on (ARAY) stock is a Hold with a $0.76 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.

Accuray announces planned resignation of chief commercial officer

On January 15, 2026, Accuray Incorporated, a company in the medical technology sector, announced that its Senior Vice President and Chief Commercial Officer, Sandeep Chalke, had notified the company of his intent to resign, with the resignation to take effect on March 31, 2026. The company emphasized that Chalke’s departure was not due to any disagreement with management, the board, or issues related to operations, policies, or practices, suggesting a planned leadership transition rather than a sign of internal conflict or strategic shift for stakeholders to interpret negatively.

The most recent analyst rating on (ARAY) stock is a Hold with a $0.80 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.

Accuray announces orderly retirement of board director

On December 27, 2025, Accuray Incorporated announced that Byron C. Scott, a Class II director, will retire from its Board of Directors and all associated committees, effective December 31, 2025. The company stated that Scott’s decision to retire was not the result of any disagreement with Accuray’s management, board, or its operational policies and practices, indicating an orderly governance transition rather than a response to internal conflict.

The most recent analyst rating on (ARAY) stock is a Hold with a $0.96 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.

Accuray Announces Financing Amendments and Workforce Reduction

On December 12 and 15, 2025, Accuray Incorporated announced amendments to its financing agreement, aimed at improving liquidity and financial flexibility. These changes include adjustments to liquidity calculations, removal of leverage conditions, and issuance of warrants to lenders. Concurrently, Accuray initiated a strategic transformation plan, including a 15% workforce reduction, expected to improve annual operating profitability by $25 million. This organizational realignment aims to enhance competitiveness and streamline operations, with restructuring costs estimated at $11 million.

The most recent analyst rating on (ARAY) stock is a Hold with a $0.96 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.