Accuray Swings to $13.8M Loss in Q2 FY2026 as Revenue Drops 12%

Accuray Inc reported a net loss of $13.8 million for the three months ending December 31, 2025, a sharp reversal from net income of $2.5 million in the same quarter a year earlier. Revenue for the quarter fell 12% to $102.2 million from $116.2 million. Read more earnings reports.

For the six months ending December 31, 2025, the medical device maker posted a net loss of $35.4 million on revenue of $196.2 million, compared with a loss of $1.4 million on revenue of $217.7 million in the prior-year period. The company's half-year revenue declined 10%.

Product and Service Revenue Mix

Product revenue dropped 27% to $36.7 million in the first half of fiscal 2026 from $55.4 million in the prior-year period. Revenue from products sold directly declined to $32.9 million from $70.0 million, while service revenue rose 20% to $77.6 million from $64.8 million.

Within the service category, warranty and service contract revenue increased to $41.7 million from $38.0 million, while other service revenue gained to $23.2 million from $20.1 million. Installation revenue fell sharply to $20.7 million from $24.8 million.

Operating Expenses and Margins

Operating expenses for the six-month period totaled $74.0 million, essentially flat compared with $73.8 million a year earlier. The company reported an operating loss of $22.9 million for the half, compared with operating income of $2.6 million in the prior-year period.

Gross profit for the first half of fiscal 2026 came in at $51.1 million on cost of revenue of $145.1 million, compared with gross profit of $76.4 million on cost of revenue of $141.4 million in the same period last year. Research and development expenses declined to $21.9 million from $25.8 million.

Balance Sheet and Cash Position

Cash and cash equivalents stood at $41.3 million as of December 31, 2025, down from $57.4 million at the end of the prior fiscal year on June 30, 2025. Total assets decreased to $448.0 million from $470.2 million over the same period.

Accounts receivable fell to $61.0 million from $83.2 million, while inventory rose to $151.0 million from $141.0 million. Accounts payable increased to $43.5 million from $34.0 million at the end of fiscal 2025.

Long-term debt stood at $124.8 million as of December 31, 2025, up slightly from $123.8 million six months earlier. Total liabilities rose to $394.6 million from $389.1 million.

Stockholders' Equity and Share Count

Total stockholders' equity declined to $53.4 million as of December 31, 2025, from $81.2 million as of June 30, 2025. Retained deficit widened to $554.7 million from $519.3 million. Additional paid-in capital increased to $609.4 million from $602.2 million.

Common shares outstanding rose to 118.8 million as of December 31, 2025, from 112.6 million at the end of fiscal 2025. The company reported basic and diluted loss per share of $0.11 for the December quarter, compared with earnings per share of $0.03 and $0.02, respectively, in the year-ago quarter.

Cash Flow

Cash used in operations totaled $3.8 million for the six months ending December 31, 2025, an improvement from $5.5 million used in the prior-year period. Cash used in investing activities increased to $9.4 million from $2.7 million, while cash from financing activities shifted to an outflow of $757,000 from an inflow of $3.6 million.