Accuray (ARAY) Fiscal Q4 2026 Earnings Call: Service Growth, Product Revenue Decline
Source Tradingkey
Key Takeaways
- Fiscal Q4 2026 revenue fell 21% year over year to $100.9 million. Full-year revenue declined 12% to $402 million, primarily due to lower product sales.
- Quarterly service revenue increased 6% to $60.1 million, supported by pricing actions, a larger installed base and higher out-of-contract billings. Service gross margin improved to 36.8% from 34.4%.
- Q4 product revenue dropped 42% to $40.8 million. For fiscal 2026, product revenue decreased 27% to $173 million, with approximately $58 million of the decline attributed to China.
- Q4 adjusted EBITDA rose to $12.9 million from $9.4 million, while full-year adjusted EBITDA fell to $10.6 million from $28.3 million.
- Accuray generated more than $20 million of cost and margin improvements in fiscal 2026, exceeding its $12 million target. Management expects approximately $15 million of incremental annualized improvement in fiscal 2027, subject to demand, costs and macroeconomic conditions.
- The company did not provide formal fiscal 2027 revenue or adjusted EBITDA guidance because of uncertainty surrounding product demand, tariffs, China, the Middle East and broader geopolitical conditions.
Core Financial Data
| Metric | Fiscal Q4 2026 | Year-over-year change | Fiscal 2026 | Year-over-year change |
|---|---|---|---|---|
| Net revenue | $100.9 million | -21% | $402 million | -12% reported; -14% constant currency |
| Service revenue | $60.1 million | +6% | $229 million | +4% |
| Product revenue | $40.8 million | -42% | $173 million | -27% |
| Gross profit | $35.1 million | — | $111 million | — |
| Gross margin | 34.8% | 30.6% a year earlier | 27.7% | 32.1% a year earlier |
| Operating expenses | $29.6 million | $34.7 million a year earlier | $137.9 million | $139.1 million a year earlier |
| Operating income (loss) | $5.5 million | $4.2 million a year earlier | $(26.4) million | $7.8 million income a year earlier |
| Adjusted EBITDA | $12.9 million | $9.4 million a year earlier | $10.6 million | $28.3 million a year earlier |
| Product gross orders | Approximately $38 million | 0.9x book-to-bill | $192 million | 1.1x trailing book-to-bill |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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