Accuray (ARAY) Q3 2025 earnings summary

Executive summary

• Q3 FY25 net revenue increased 12% year-over-year to $113.2M, with net loss narrowing to $1.3M from $6.3M and Adjusted EBITDA rising to $6.0M from $1.1M, driven by higher shipments in APAC and China and service revenue growth.

• 27 systems delivered globally in Q3, a 23% increase year-over-year.

• Operating expenses declined 9% year-over-year, reflecting cost controls and lower R&D and G&A spending.

• Cash position improved to $79M, up $15M sequentially from the previous quarter.

• China JV contributed $2.3M in equity income, up 124% year-over-year, supporting local sales growth.

Financial highlights

• Q3 FY25 net revenue: $113.2M (+12% YoY); YTD: $331.0M (+6% YoY).

• Product revenue: $57.3M (+16% YoY); service revenue: $55.9M (+9% YoY).

• Gross margin for Q3 FY25 was 27.9%, down from 28.7% prior year; nine-month gross margin at 32.6%.

• Q3 FY25 operating income was $1.0M, reversing a $4.6M loss in the prior year quarter.

• Cash and equivalents at quarter-end: $77.8M–$79M, up $14.8M–$15M sequentially.

Outlook and guidance

• FY25 revenue guidance revised to $452M–$460M due to tariff impacts; Adjusted EBITDA guidance reaffirmed at $28.5M–$31M.

• Q4 revenue expected in the range of $121M–$129M; Q4 Adjusted EBITDA guidance is $9.5M–$12M.

• Management expects sufficient liquidity for at least 12 months but highlights refinancing needs for $167M in debt maturing in 2026.

• Mitigation efforts underway to offset tariff impacts, with greater positive effects expected in the second half of FY 2026.

• Guidance for non-GAAP measures excludes depreciation, amortization, stock-based comp, interest, and taxes.