Accuray (ARAY) investor relations material

Executive summary

• Q1 FY27 revenue was $86.5M, down 8% YoY; service growth, margin improvement and cost efficiencies were offset by weaker product revenue and orders.

• Transformation initiatives delivered ~$13M in YoY cost and margin improvement; execution priorities include converting the commercial pipeline into orders and product revenue while sustaining service growth.

• Net income was $10.1M, including a $59.6M non-cash debt-extinguishment gain and $35.4M non-cash goodwill impairment; excluding both, net loss was $14.0M.

Financial highlights

• Revenue was $86.5M versus $93.9M YoY; gross profit was $26.1M versus $27.0M, and gross margin rose to 30.1% from 28.8%.

• Operating loss was $36.5M versus $11.3M; operating expenses were $62.6M, including $35.4M of goodwill impairment.

• Operating expenses excluding goodwill impairment were $27.2M, down 29% YoY; excluding impairment and restructuring, they were $26.8M, down $8.7M or 25%.

• Adjusted EBITDA was $2.470M versus a $4.110M loss in Q1 FY26.

• Net income was $10.1M, or $0.07 diluted EPS, versus a $21.7M loss, or $(0.18) EPS, YoY.

Outlook and guidance

• No formal FY27 revenue or Adjusted EBITDA guidance was issued; priorities include stronger product orders and shipments, sustained service growth and margin gains, and expense discipline.

• Higher product shipments and revenue are expected to improve fixed-cost absorption and product gross margins.

• Service margins are expected to improve over the next several years through pricing, lower cost to serve and operational efficiencies.

• Material, freight and logistics costs are expected to pressure margins and cash flow through at least FY27; U.S. budget constraints, installation timelines and tariff uncertainty may continue to weigh on sales.