Accuray (ARAY) AI Stock Analysis

• Market Cap: $181.48M
• Dividend Yield: N/A
• Average Volume (3M): 948.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: 2.68%
• EPS Growth: 89.63%
• Country: US
• Employees: 987
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.01
• Shares Outstanding: 112,719,900
• 10 Day Avg. Volume: 1,300,249
• 30 Day Avg. Volume: 948,708
• 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: 1.47
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 1.82
• Enterprise Value/Ebitda: 11.73
• 1Y Price Target: $6.00
• Price Target Upside: 272.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $1.50 ▼(-6.83% Downside)

Accuray's overall stock score reflects significant financial challenges, including negative profitability and high leverage. Technical analysis shows mixed signals, with potential short-term weakness. Valuation is concerning due to ongoing losses. The earnings call provided some positive guidance, but geopolitical and market challenges remain significant risks.

Positive Factors

Leadership Change

The appointment of Steve La Neve as CEO, with his extensive experience in medical technology, is expected to drive strategic transformation, enhance competitiveness, and improve financial performance, providing a strong foundation for future growth.

Service Revenue Growth

Consistent growth in service revenue indicates strong customer retention and satisfaction, which can lead to a stable and recurring revenue stream, supporting long-term financial health and operational stability.

Debt Refinancing

The successful debt refinancing enhances Accuray's financial flexibility, allowing it to focus on strategic investments and growth initiatives without the immediate pressure of high-interest obligations.

Negative Factors

Revenue Decline

The decline in revenue, particularly in key regions like China and EIMEA, suggests challenges in market penetration and competitive pressures, potentially impacting long-term growth prospects and market share.

High Leverage

High leverage poses a risk to financial stability, as it increases the burden of debt servicing and limits the company's ability to invest in growth opportunities, potentially affecting long-term sustainability.

Geopolitical Challenges

Ongoing geopolitical tensions and tariffs can disrupt supply chains and hinder revenue growth in affected regions, posing a persistent risk to Accuray's global operations and strategic expansion plans.

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'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: Negative
• Last Price: 1.61
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.61 is below the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.62, and below the 200-day MA of 1.68, indicating a bearish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.77 is Neutral, neither overbought nor oversold. The STOCH value of 13.47 is Positive, 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	70 Outperform	$207.14M	29.13	17.18%	―	16.97%	48.56%
INGN	56 Neutral	$239.31M	-8.45	-13.46%	―	5.15%	73.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVR	51 Neutral	$229.00M	―	-615.48%	―	-2.44%	-40.08%
ARAY	48 Neutral	$181.48M	-91.91	-2.52%	―	2.68%	89.63%
TLSI	47 Neutral	$256.32M	―	―	―	45.50%	53.07%
LNSR	42 Neutral	$146.32M	―	-350.22%	―	29.34%	-283.53%

Accuray Corporate Events

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.

The most recent analyst rating on (ARAY) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.

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.

The most recent analyst rating on (ARAY) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.

Accuray’s Earnings Call: Growth Amid Challenges

Accuray Incorporated’s recent earnings call painted a mixed picture, with notable achievements in service revenue growth and successful debt refinancing. However, these positives were tempered by revenue declines in key regions, geopolitical challenges, and a sluggish U.S. market. The company has managed to mitigate some tariff impacts, but ongoing geopolitical uncertainty remains a significant concern.

Accuray Faces Stock Dilution Risk as Warrant Exercises Loom, Threatening Share Value

Accuray Incorporated faces a significant business risk due to the potential exercise of outstanding warrants, which could lead to an increase in the number of shares available for resale in the public market, thereby diluting the value of existing stockholders’ shares. As of June 30, 2025, a total of 23,428,241 shares could be issued through the exercise of Premium and Penny Warrants, potentially exerting downward pressure on the stock price. This dilution risk might prompt current stockholders to sell their shares, further depressing the stock price and encouraging short selling. Additionally, the anti-dilution provisions in the Warrants could complicate future equity financing efforts, making it challenging for the company to raise funds under favorable conditions.

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.

The most recent analyst rating on (ARAY) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.

Accuray Incorporated Reports Mixed Fiscal 2025 Results

Accuray Incorporated is a company specializing in radiation therapy solutions, focusing on innovative treatments for complex and common cases in the oncology and neuro-radiosurgery sectors. Headquartered in Madison, Wisconsin, Accuray operates globally, partnering with clinicians and administrators to enhance patient care.

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.

The most recent analyst rating on (ARAY) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.