RaySearch Laboratories AB (RAY.B) AI Stock Analysis

• Market Cap: kr6.57B
• Dividend Yield: 1.32%
• Average Volume (3M): 196.07K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 0.65
• Revenue Growth: 10.48%
• EPS Growth: 25.19%
• Country: SE
• Employees: 416
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 2.00
• Shares Outstanding: 30,799,536
• 10 Day Avg. Volume: 162,420
• 30 Day Avg. Volume: 196,069
• PEG Ratio: 2.87
• Price to Book (P/B): 7.93
• Price to Sales (P/S): 5.81
• P/FCF Ratio: 21.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 7.77
• Revenue Forecast (FY): kr1.42B

• Rating: 66 Neutral
• Price Target: kr200.00 ▼(-8.68% Downside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is primarily supported by improving fundamentals (growth, profitability, and strong free cash flow) and a positive earnings-call outlook with margin guidance and enhanced shareholder returns. It is held back by weak technicals (price below key moving averages and negative MACD) and a valuation that is not cheap at ~28x earnings, alongside financial watch-outs like the 2025 gross-margin step-down and rising leverage.

Positive Factors

Recurring Revenue Base

A ~39% recurring support revenue share materially improves revenue predictability and reduces reliance on one-off license timing. This durable stream supports steady cash generation, planning visibility, margin stability and underpins the company’s upgraded dividend policy and medium-term investment capacity.

Strong Free Cash Flow

High free cash flow that tracks closely to net income shows the business converts profits into cash sustainably. This strengthens funding for R&D, regulatory processes, dividends and potential buybacks, while providing buffer for operating seasonality or strategic investments over the next several quarters.

AI Adoption and Clinical Momentum

Large-scale AI usage and clinical milestones deliver a structural competitive edge: improved productivity for customers, faster plan workflows, and demonstrable clinical outcomes. These entrenched capabilities increase switching costs, support product differentiation and should help adoption over the medium term.

Negative Factors

RayCare Adoption Lag / Regulatory Timing

Very limited RayCare orders and dependence on regulatory clears (EU online adaptive, US 510(k), chemo module timing) mean expansion of a strategic platform is delayed. Slower regulatory rollout will constrain revenue diversification and the anticipated RayCare ramp for multiple quarters to years.

Rising Leverage

An increased debt-to-equity ratio and rising total debt reduce financial flexibility. With ongoing regulatory and commercialization investments needed, higher leverage raises refinancing and covenant risk and limits optionality for opportunistic M&A or larger buybacks during adverse cycles.

Gross-Margin Pressure

A material gross-margin decline suggests cost pressure or adverse mix shifts that can erode operating leverage. If persistent, this reduces the durability of current EBIT margins and constrains free cash flow expansion, making margin targets and higher shareholder distributions harder to sustain.

RaySearch Laboratories AB Business Overview & Revenue Model

Company Description

RaySearch Laboratories AB (publ), a medical technology company, develops software solutions for cancer treatment worldwide. It develops and markets RayStation, a treatment planning system for treatment activities, such as automated planning, adaptive therapy, multi-criteria optimization, fast and accurate dose computations, OAR dose reduction, robustness, machine learning, VMAT, IMRT, 3D-CRT, virtual simulation, electron beam therapy, tomotherapy, stereotactic, proton therapy, carbon ion therapy, and boron neutron capture therapy. The company also develops RayPlan, a treatment planning system for supporting a range of treatment planning activities for 3D-CRT, IMRT, VMAT, tomotherapy, and electron beam radiation therapy; and RayCare, an oncology information system to support cancer treatment activities. In addition, it offers RayCommand, a treatment control system that is compatible with various hardware models and supports advanced functionalities of treatment machines and software systems; and RayIntelligence, a cloud-based oncology analytics system that turns patient data into insights. Further, the company provides training courses related to its products. RaySearch Laboratories AB (publ) is headquartered in Stockholm, Sweden.

How the Company Makes Money

RaySearch Laboratories generates revenue primarily through the sale of its software products and services, particularly the RayStation treatment planning system. The company employs a subscription model for software licensing, where healthcare facilities pay for access to its software solutions, along with annual maintenance and support fees. Additionally, RaySearch earns income from professional services, including training and consulting for healthcare providers implementing its systems. Significant partnerships with hospitals and cancer treatment centers globally contribute to its revenue, as well as collaborations with hardware manufacturers in the radiation therapy space, expanding the company's reach and enhancing its product offerings.

RaySearch Laboratories AB Financial Statement Overview

Summary

Strong multi-year revenue growth and a clear profitability turnaround with solid free cash flow support the score. Offsetting factors include a sharp 2025 gross-margin drop, rising leverage on the balance sheet versus 2024, and operating cash flow running below EBITDA (weaker cash conversion quality).

Income Statement

Revenue has grown strongly over the last several years (2022–2025), with growth moderating in 2025. Profitability has improved materially versus 2020–2021 losses, with 2025 showing healthy operating and net margins (about 24% and 17%, respectively). A key watch-out is the sharp drop in 2025 gross margin versus 2024, which suggests higher cost pressure or mix changes even as earnings remain solid.

Balance Sheet

The balance sheet shows meaningful leverage: debt-to-equity sits around 0.72 in 2025 (up from 2024), and total debt increased notably year over year. Equity has grown versus prior years, supporting the capital base, but the rising debt load reduces flexibility compared with 2024 and keeps overall balance-sheet risk in the mid-range.

Cash Flow

Cash generation is strong: 2025 free cash flow is high and improved sharply versus 2024, and free cash flow is well-aligned with reported earnings (free cash flow is roughly 93% of net income in 2025). However, operating cash flow is below EBITDA in every year shown (coverage ratio ~0.68 in 2025), indicating some working-capital or non-cash timing effects that temper the quality-of-cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.34B	1.19B	1.02B	843.65M	641.67M
Gross Profit	951.40M	1.09B	915.58M	748.66M	591.28M
EBITDA	612.80M	571.28M	405.94M	340.85M	197.36M
Net Income	227.80M	203.51M	81.57M	23.78M	-47.31M
Balance Sheet
Total Assets	1.99B	2.09B	1.95B	1.88B	1.74B
Cash, Cash Equivalents and Short-Term Investments	407.30M	462.74M	343.68M	160.27M	102.53M
Total Debt	712.10M	471.93M	529.36M	555.39M	561.40M
Total Liabilities	1.01B	1.21B	1.22B	1.22B	1.09B
Stockholders Equity	985.30M	876.71M	735.23M	657.16M	628.31M
Cash Flow
Free Cash Flow	358.90M	267.69M	246.60M	125.28M	-17.06M
Operating Cash Flow	387.00M	485.23M	455.93M	356.78M	238.16M
Investing Cash Flow	-228.10M	-217.54M	-209.33M	-231.50M	-237.63M
Financing Cash Flow	-179.60M	-159.78M	-56.35M	-72.49M	-72.23M

RaySearch Laboratories AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 219.00
• 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 SE:RAY.B, the sentiment is Neutral. The current price of 219 is above the 20-day moving average (MA) of 183.47, above the 50-day MA of 202.97, and below the 200-day MA of 258.42, indicating a neutral trend. The MACD of -4.29 indicates Negative momentum. The RSI at 51.21 is Neutral, neither overbought nor oversold. The STOCH value of 73.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:RAY.B.

RaySearch Laboratories AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAY.B	66 Neutral	kr6.57B	28.81	24.30%	1.32%	10.48%	25.19%
MCAP	64 Neutral	kr7.38B	33.37	15.16%	―	11.30%	-14.49%
SANION	62 Neutral	kr2.57B	8.92	167.77%	―	2687.51%	―
VICO	58 Neutral	kr2.83B	-5.47	-71.87%	―	-91.85%	-6.65%
EKTA.B	55 Neutral	kr22.18B	76.19	3.08%	4.25%	-0.90%	-70.95%
CRAD.B	55 Neutral	kr898.20M	86.36	6.93%	―	-5.80%	-65.99%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

RaySearch Laboratories AB Corporate Events

RaySearch Delivers Record 2025 Results and Raises Dividend as Global Cancer Centers Expand Adoption

RaySearch Laboratories AB, a specialist in radiation therapy planning and oncology software, continued to deepen its presence at major cancer centers in Europe and the U.S. during 2025. New agreements included expanded proton therapy use at Greater Poland Cancer Center, a multi-center RayStation deployment at the University of Pennsylvania, and replacement of a competing system at Germany’s UKGM, alongside clinical milestones such as The Royal Marsden’s first online adaptive treatment on a standard Elekta linear accelerator.

For 2025, the company delivered record revenue and robust profit growth despite adverse currency effects, with net sales rising 13 percent and EBIT up 12 percent, supported by strong organic growth and a sharply improved fourth-quarter cash flow. The board proposed lifting the dividend to SEK 4.00 per share and updated its dividend policy to target a 50 percent payout of annual profit after tax, signaling confidence in earnings strength while a new corporate development and strategy function is established to support the next phase of expansion.

The most recent analyst rating on ($SE:RAY.B) stock is a Buy with a SEK209.00 price target. To see the full list of analyst forecasts on RaySearch Laboratories AB stock, see the SE:RAY.B Stock Forecast page.

RaySearch and Royal Marsden Expand Online Adaptive Radiotherapy to Standard Elekta Linacs

The Royal Marsden NHS Foundation Trust has successfully delivered its first online adaptive radiotherapy treatment on a widely available Elekta C‑arm linear accelerator using RaySearch’s RayStation software, marking a shift from reliance on specialized adaptive machines to standard linacs already common in hospitals. Building on its earlier adoption of RayStation for online adaptive treatments on an Accuray Radixact system, the hospital’s rapid transition of workflows to Elekta equipment demonstrates the clinical readiness, speed and robustness of RayStation’s adaptive replanning module and highlights the potential for broader, routine use of highly precise adaptive radiotherapy. The collaboration between RaySearch and The Royal Marsden aims to further streamline workflows, improve interoperability and extend the technology to additional machine types, strengthening RaySearch’s position as a key enabler of advanced radiotherapy and potentially expanding access to personalized cancer treatments for more patients worldwide.

The most recent analyst rating on ($SE:RAY.B) stock is a Buy with a SEK209.00 price target. To see the full list of analyst forecasts on RaySearch Laboratories AB stock, see the SE:RAY.B Stock Forecast page.

RaySearch Sets Date for 2025 Year-End Report and Investor Webcast

RaySearch Laboratories has announced that it will publish its 2025 year-end report on February 12, 2026, followed by an English-language webcast presentation and Q&A led by founder and CEO Johan Löf and CFO Nina Grönberg. The event, aimed at investors and other stakeholders, will provide detailed commentary on the company’s performance and will be supported by presentation materials, the full report, and a recording made available on RaySearch’s website, underscoring the company’s focus on transparency and active communication with the capital market.

The most recent analyst rating on ($SE:RAY.B) stock is a Buy with a SEK228.00 price target. To see the full list of analyst forecasts on RaySearch Laboratories AB stock, see the SE:RAY.B Stock Forecast page.

RaySearch Adjusts Voting Structure After Major Class A to B Share Conversion

RaySearch Laboratories has reported a change in its share capital structure following the conversion of 2,171,738 Class A shares into an equal number of Class B shares during December. After the conversion, the company’s total number of shares remains 34,282,773, now comprising 3,483,237 Class A shares and 30,799,536 Class B shares, resulting in a total of 65,631,906 votes. The shift reduces the proportion of high-vote Class A shares, slightly altering the company’s voting dynamics and potentially broadening the influence of holders of the more widely traded Class B shares, though without affecting overall share count or immediate operations.

The most recent analyst rating on ($SE:RAY.B) stock is a Buy with a SEK255.00 price target. To see the full list of analyst forecasts on RaySearch Laboratories AB stock, see the SE:RAY.B Stock Forecast page.

RaySearch Hires Former Siemens Healthineers Executive to Lead New Strategy Unit

RaySearch Laboratories has created a new Corporate Development & Strategy department and appointed Jenna Styan, previously a senior executive at Siemens Healthineers (Varian), to lead it as Director from 1 April 2026 and join the group management team. With her extensive experience in global oncology software, treatment planning system sales and clinical solutions across EMEA, along with a clinical background in radiotherapy, Styan’s hire is intended to sharpen RaySearch’s strategic capabilities, support future growth and reinforce its competitive positioning in the oncology software and cancer therapy technology market.

The most recent analyst rating on ($SE:RAY.B) stock is a Buy with a SEK255.00 price target. To see the full list of analyst forecasts on RaySearch Laboratories AB stock, see the SE:RAY.B Stock Forecast page.

RaySearch Expands RayStation Use at Greater Poland Cancer Center

RaySearch Laboratories AB has announced that the Greater Poland Cancer Center (WCO) has expanded its use of the RayStation treatment planning system to include advanced proton therapy. This expansion will allow WCO to integrate photon and proton workflows into a unified system, enhancing efficiency and enabling personalized cancer treatments. The move underscores RaySearch’s leadership in proton treatment planning and its flexibility across multiple radiotherapy techniques, potentially strengthening its market position and offering significant benefits to WCO’s patient care capabilities.

The most recent analyst rating on ($SE:RAY.B) stock is a Buy with a SEK255.00 price target. To see the full list of analyst forecasts on RaySearch Laboratories AB stock, see the SE:RAY.B Stock Forecast page.

RaySearch Laboratories Unveils Cutting-Edge Innovations at RSNA 2025

RaySearch Laboratories AB is set to showcase its latest innovations at RSNA 2025, focusing on advancements in ablation, diagnostic radiology, and radiation oncology. The company will introduce new technologies like an image-guided liver ablation module and the RayImaging radiology workstation, aiming to enhance clinical workflows and improve cancer care. These developments highlight RaySearch’s strategic shift towards comprehensive cancer care, integrating various treatment modalities into a cohesive ecosystem.

The most recent analyst rating on ($SE:RAY.B) stock is a Buy with a SEK255.00 price target. To see the full list of analyst forecasts on RaySearch Laboratories AB stock, see the SE:RAY.B Stock Forecast page.