Accuray (ARAY) investor relations material

Executive summary

• Announced a comprehensive transformation plan focused on cost control, accountability, and operational efficiency, including a 15% workforce reduction and organizational realignment, targeting $25 million in annualized operating profitability improvement.

• Initiated restructuring in Q2 FY26, incurring $6.1 million in charges, with total expected restructuring charges of up to $13 million for FY26.

• Q2 FY26 revenue was $102.2 million, down 12% year-over-year; 1H FY26 revenue was $196.2 million, down 10% year-over-year.

• Service revenue grew 4% in Q2 and 5% in 1H, driven by install base growth and favorable pricing.

• Product revenue declined 26% in Q2 and 25% in 1H, mainly due to lower China sales and JV shipments impacted by tariffs and geopolitical tensions.

Financial highlights

• Q2 FY26 net revenue was $102.2 million, down 12% year-over-year; product revenue fell 26%, while service revenue rose 4%.

• Q2 FY26 gross profit was $24.1 million (23.5% margin), down from $41.9 million (36.1% margin) year-over-year.

• Adjusted EBITDA for Q2 FY26 was a loss of $1.9 million, compared to a positive $9.6 million last year.

• Net loss for Q2 FY26 was $13.8 million, compared to net income of $2.5 million in Q2 FY25.

• Cash, cash equivalents, and short-term restricted cash totaled $41.9 million at quarter end, down from $63.9 million last quarter.

Outlook and guidance

• FY26 revenue guidance revised to $440–$450 million, down from $471–$485 million.

• Adjusted EBITDA guidance lowered to $22–$25 million from $31–$35 million.

• Guidance reflects continued volatility in China, persistent tariffs, and other headwinds, but not a material worsening.

• Targeting a high single-digit adjusted EBITDA margin run rate within nine months, aiming for double digits longer term.