Accuray (ARAY) Q2 2026 earnings summary

Executive summary

• Announced and began executing a comprehensive transformation plan focused on cost control, accountability, operational efficiency, and a 15% workforce reduction to drive $25 million in annualized operating profitability improvement.

• Initiatives include organizational realignment, prioritization of high ROI programs, and expanded service offerings.

• 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 impacted by tariffs and geopolitical tensions.

• Accounts receivable improved, with Days Sales Outstanding at 43 days, 27 days lower than the prior year.

Financial highlights

• Q2 FY26 net 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% year-over-year to $57.2 million; product revenue was $45.0 million, down 26%.

• Gross margin for Q2 was $24.1 million (23.5%), down from $41.9 million (36.1%) last year.

• Adjusted EBITDA for Q2 was a loss of $1.9 million, compared to a positive $9.6 million last year; 1H Adjusted EBITDA was $(6.0) million.

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

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 macroeconomic headwinds, but assumes no material worsening.

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