Accuray Incorporated (ARAY)
NASDAQ:ARAY
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Accuray
(NASDAQ:ARAY)
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Rating:41Neutral
Price Target:
$0.40
▼(-65.73% Downside)
Action:UpgradedDate:04/07/26
ARAY scores low primarily due to weak financial performance (return to losses and high leverage with a thin equity cushion) and bearish technical trend signals. The latest earnings call further pressures the outlook via a meaningful guidance cut and margin deterioration, partially offset by strong orders/backlog and cost-reduction initiatives. Valuation provides limited support given negative earnings and no dividend yield data.
Positive Factors
Recurring service revenue
Growing, margin-resilient service revenue provides a durable recurring-cash stream tied to the installed base. Over 2–6 months this stabilizes revenue and supports gross-profit mix, enabling better cash conversion and cushioning capital-equipment sales cyclicality while management monetizes installed systems.
Negative Factors
High financial leverage
Elevated leverage and a thin equity cushion raise refinancing and solvency risk if operating results weaken. With cash declining and earnings volatile, high debt limits strategic flexibility, increases interest exposure and could force conservatism on capex or R&D, constraining long-term competitiveness.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring service revenue
Growing, margin-resilient service revenue provides a durable recurring-cash stream tied to the installed base. Over 2–6 months this stabilizes revenue and supports gross-profit mix, enabling better cash conversion and cushioning capital-equipment sales cyclicality while management monetizes installed systems.
Read all positive factors
Accuray (ARAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.31M
Dividend YieldN/A
Average Volume (3M)1.44M
Price to Earnings (P/E)―
Beta (1Y)1.79
Revenue Growth1.51%
EPS Growth5.07%
CountryUS
Employees987
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.11
Shares Outstanding118,782,630
10 Day Avg. Volume1,306,941
30 Day Avg. Volume1,441,095
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)1.73
Price to Sales (P/S)0.31
P/FCF Ratio-24.86
Enterprise Value/Market Cap4.55
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit1.74
Enterprise Value/Ebitda-101.24
Forecast
1Y Price Target
$2.00Price Target Upside70.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.25
Revenue Forecast (FY)$443.20M
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, Jap...
How the Company Makes Money
Accuray generates revenue primarily by selling radiation therapy systems and by providing ongoing services and software associated with those installed systems. Key revenue streams typically include: (1) Product/system revenue: one-time sales of C...
Accuray Key Performance Indicators (KPIs)
Accuray Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: meaningful near-term challenges — including a sizable YoY revenue decline, a steep drop in product margins, a reduction in cash, and lowered full-year revenue and adjusted EBITDA guidance driven largely by China-related delays and tariffs — are balanced by encouraging operational elements such as resilient and growing service revenue, a healthy book-to-bill (1.5), a multi-quarter backlog with no cancellations, early operating-cost reductions (ex-restructuring), and a concrete transformation plan targeting ~$25 million of annualized profit improvement. Management articulated specific initiatives (service monetization, distributor discipline, pricing optimization, engineering reallocation) and expects margin run-rate improvement in the coming quarters, but the near-term financial impact is material.Positive Updates
Service Revenue Growth and Resilience
Service revenue was $57.2 million, up 4% year-over-year (up 3% on a constant currency basis); service is cited as a key recurring-growth pillar and showed margin resilience at 26.6% (only down 1.1 percentage points versus prior year).
Negative Updates
Quarterly Revenue Decline
Net revenue for the quarter was $102.2 million, down 12% year-over-year (down 13% on a constant currency basis), and management lowered full-year fiscal 2026 revenue guidance to $440 million–$450 million from prior $471 million–$485 million.
Read all updates
Q2-2026 Updates
Positive
Negative
Service Revenue Growth and Resilience
Service revenue was $57.2 million, up 4% year-over-year (up 3% on a constant currency basis); service is cited as a key recurring-growth pillar and showed margin resilience at 26.6% (only down 1.1 percentage points versus prior year).
Read all positive updates
Company Guidance
Management revised fiscal 2026 guidance to $440–450 million of revenue (previously $471–485M) and $22–25 million of adjusted EBITDA (previously $31–35M), while reiterating a goal to reach a high single‑digit adjusted EBITDA margin run rate within nine months and double‑digit margins over the medium‑to‑long term. In Q2, net revenue was $102.2M (‑12% YoY, ‑13% constant currency) with product revenue $45.0M (‑26% YoY, ‑28% CC) and service $57.2M (+4% YoY, +3% CC); product gross orders were ~$66M (book‑to‑bill 1.5, TTM 1.2) and reported backlog was ~$33M (orders <30 months, ~18+ months of product revenue). Margins and profitability were pressured—overall gross margin 23.5% vs 36.1% PY, product gross margin 19.7% vs 43.5% PY (impacted by ~8 pts from China margin releases, ~6 pts from tariffs and mix/ship timing including ~5.4 pts from fewer CyberKnife shipments), service GM 26.6% vs 27.7% PY—operating loss was $11.6M vs income $4.7M PY, adjusted EBITDA was a loss of $1.9M vs +$9.6M PY, operating expenses were $35.6M (including $6.1M of Q2 restructuring; ex‑restructuring OpEx down ~21% QoQ), cash was $41.9M (down from $63.9M), net AR $61M and inventory $151M. Management also reiterated transformation targets of ~ $25M annualized operating profit improvement (≈$12M benefit in FY2026), ~15% workforce reduction and ~ $10M of restructuring charges across Q2–Q4.Accuray Financial Statement Overview
Summary
Income Statement
41
Neutral
Balance Sheet
28
Negative
Cash Flow
46
Neutral
| 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
Neutral
1.17
Price Trends
0.50
Negative
0.71
Negative
1.10
Negative
Market Momentum
-0.03
Negative
48.30
Neutral
75.96
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 0.39, above the 50-day MA of 0.50, and above the 200-day MA of 1.10, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 75.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARAY.
Accuray Risk Analysis
Accuray disclosed 50 risk factors in its most recent earnings report. Accuray reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Accuray Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $199.60M | 21.81 | 20.28% | ― | 16.05% | 29.48% | |
56 Neutral | $172.38M | -8.03 | -11.56% | ― | 4.68% | 55.37% | |
56 Neutral | $552.28M | -1.25 | -2462.70% | ― | -21.10% | -18.32% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $258.71M | -6.74 | 137.18% | ― | 49.52% | 19.34% | |
45 Neutral | $68.95M | -4.06 | 197.15% | ― | 21.02% | -200.88% | |
41 Neutral | $46.31M | -1.80 | -57.91% | ― | 1.51% | 5.07% |
* Healthcare Sector Average
ARAY
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Accuray Corporate Events
Business Operations and StrategyExecutive/Board Changes
Accuray Amends Dedication Capital Consulting Agreement, Cuts Fees
Positive
Apr 7, 2026
On April 1, 2026, Accuray amended its consulting agreement with Dedication Capital, an affiliate of director Steven F. Mayer, cutting by 50% the base consulting fee after March 31, 2026, and minimum cash incentive amounts tied to the fiscal year e...
Business Operations and StrategyExecutive/Board Changes
Accuray Names Paul Miele Chief Commercial Officer
Positive
Apr 6, 2026
On April 6, 2026, Accuray appointed veteran medical-technology executive Paul Miele as Senior Vice President and Chief Commercial Officer, adding him to its executive leadership team to lead the global commercial organization. With nearly two deca...
Executive/Board Changes
Accuray Announces Transition of Chief Commercial Officer Role
Neutral
Mar 19, 2026
Accuray announced that Senior Vice President and Chief Commercial Officer Sandeep Chalke will depart the company effective March 31, 2026, under a separation agreement executed on March 13, 2026 that formalizes his transition. Under the agreement,...
Business Operations and StrategyRegulatory Filings and Compliance
Accuray Releases Updated Investor Presentation Under Regulation FD
Neutral
Feb 17, 2026
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 presentati...
Delistings and Listing ChangesRegulatory Filings and ComplianceStock Split
Accuray Receives Nasdaq Notice Over Minimum Bid Price
Negative
Feb 6, 2026
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 Li...
Business Operations and StrategyFinancial Disclosures
Accuray Posts Weaker Q2 Results Amid Ongoing Transformation
Negative
Feb 4, 2026
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 gr...
Executive/Board Changes
Accuray announces planned resignation of chief commercial officer
Neutral
Jan 20, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.