Accuray Incorporated

What they do

Accuray sells radiation therapy systems and related software, including the CyberKnife robotic platform and the Accuray Stellar, Radixact, Accuray Helix and Tomo C Systems. The company also provides treatment planning software, imaging technology such as ClearRT, and services including customer support, installation and training. Its systems are used for treatments such as SRS, SBRT, IMRT, IGRT and adaptive radiation therapy, and the CyberKnife platform is also used by neurosurgeons.

Revenue drivers

• Service revenue — Service revenue totaled $229.2 million in fiscal 2026, an increase of 4 percent year-over-year, representing about 57 percent of total net revenue.
• Product revenue — Product revenue totaled $172.7 million in fiscal 2026, a decrease of 27 percent year-over-year, representing about 43 percent of total net revenue.
• CyberKnife robotic platform — The CyberKnife platform is a robotic radiation therapy system used for precise treatments including radiosurgery for brain and spine tumors.
• Helical portfolio — The helical portfolio includes Accuray Stellar, Radixact, Accuray Helix and Tomo C Systems, positioned for adaptive radiotherapy, flexible solutions and entry-level market access.

Recent performance

Total net revenue for fiscal 2026 was $401.9 million, a decrease of 12 percent from $458.5 million in fiscal 2025. Product revenue fell 27 percent to $172.7 million, while service revenue rose 4 percent to $229.2 million. In the fourth quarter of fiscal 2026, total net revenue was $100.9 million, down 21 percent, with product revenue down 42 percent and service revenue up 6 percent. Net loss for fiscal 2026 was $49.2 million, or $0.40 per diluted share, compared to a net loss of $1.6 million in fiscal 2025. Gross product orders in the fourth quarter were $37.7 million, and order backlog as of June 30, 2026 was $312.5 million, about 27 percent lower than the prior year end.

Strategy

Accuray's strategy includes continued adoption of the CyberKnife robotic platform and a differentiated helical portfolio, with Accuray Stellar positioned for adaptive radiotherapy, Radixact as a flexible tailored solution, and Accuray Helix as an entry point. The company is working to increase physician adoption and patient awareness through symposia, educational meetings, clinical studies and expanded digital presence. Management stated that a transformation plan delivered more than $20 million of cost and margin improvement in fiscal 2026, exceeding the original $12 million target. The company also announced a comprehensive financing transaction with TCW Asset Management to strengthen liquidity, reduce leverage and provide covenant relief through December 2027.

Risks

• Substantial indebtedness and covenant risk — Accuray has substantial indebtedness and has previously not been in compliance with financial covenants, requiring waivers or amendments to avoid default.
• Tariffs and trade policy — Uncertainty in trade policy and enhanced international tariffs, including those affecting products or components, could decrease product sales in China and increase costs.
• Intense competition and technological change — The industry is subject to intense competition and rapid technological change, and Accuray's products may become obsolete or less useful if it fails to keep pace.
• Quarterly fluctuations and unpredictability — Operating results, including cash flows, quarterly orders, revenues and margins, fluctuate from quarter to quarter and may be unpredictable.

Outlook

Management said Accuray enters fiscal 2027 as a stronger company with greater financial flexibility and a clear focus on driving sustainable revenue growth, margin expansion, and long-term shareholder value. The company highlighted continued momentum in service revenue and an expanded ecosystem of strategic partnerships. Chief Executive Officer Steve LaNeve noted ongoing geopolitical uncertainty, tariff pressures, and market volatility, but stated the company remained focused on factors within its control.