Accuray Reports Fourth Quarter and Fiscal 2025 Financial Results

Strong Service Growth; Debt Refinancing Complete; Company Issues FY26 Guidance

Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the fourth quarter and fiscal 2025, ended June 30, 2025.

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Key Fiscal Fourth Quarter Highlights

— Net revenue was $127.5 million, a decrease of 5 percent from the prior year period.

— Net income was $1.1 million compared to net income of $3.4 million in the prior year period.

— Adjusted EBITDA was $9.4 million compared to $10.1 million in the prior year period.

— Order book-to-bill at 1.2

Key Fiscal Year 2025 Highlights

— Net revenue was $458.5 million, an increase of 3 percent from the prior fiscal year

— Net loss was $1.6 million, compared to net loss of $15.5 million in the prior fiscal year

— Adjusted EBITDA was $28.3 million compared to $19.7 million in the prior fiscal year

— Order book-to-bill at 1.2

“We continued to advance our strategy of innovation, access and service growth within the quarter and I am proud of how we navigated a challenging environment both within the quarter and for the fiscal year,” said Suzanne Winter, President and Chief Executive Officer. “In addition to annual revenue growth, strong service performance and adjusted EBITDA margin expansion, we successfully completed a refinancing of our debt with a strong partner that is invested in our long-term success.”

Fiscal Fourth Quarter Results

Total net revenue was $127.5 million for the fourth quarter of fiscal 2025, or a decrease of 5 percent, as compared to $134.3 million in the prior fiscal year fourth quarter. Product revenue totaled $70.7 million, or a decrease of 11 percent, as compared to $79.7 million in the prior fiscal year fourth quarter, while service revenue totaled $56.8 million, or an increase of 4 percent, as compared to $54.6 million in the prior fiscal year fourth quarter.

Total gross profit in the fourth quarter of fiscal 2025 was $39.0 million, or 30.6 percent of net revenue, as compared to total gross profit of $38.5 million, or 28.6 percent of net revenue in the prior fiscal year fourth quarter.

Operating expenses were $34.7 million in the fourth quarter of fiscal 2025, or an increase of 10 percent, as compared to $31.6 million in the prior fiscal year fourth quarter.

Net income was $1.1 million, or $0.01 per share, in the fourth quarter of fiscal 2025, as compared to a net income of $3.4 million, or $0.03 per share, in the prior fiscal year fourth quarter. Adjusted EBITDA was $9.4 million in the fourth quarter of fiscal 2025 compared to $10.1 million in the prior fiscal year fourth quarter.

Ending order backlog as of June 30, 2025 was $427.0 million, 5.6 percent lower from the third quarter of fiscal 2025, and 12.4 percent lower than at the end of the prior fiscal year fourth quarter.

Cash, cash equivalents, and short-term restricted cash were $58.0 million as of June 30, 2025, a decrease of $20.8 million from March 31, 2025.

Fiscal Year 2025 Highlights

Total net revenue was $458.5 million for fiscal 2025, or an increase of 3 percent, as compared to $446.6 million in the prior fiscal year period. Product revenue totaled $237.6 million, or an increase of 1 percent, as compared to $234.2 million in the prior fiscal year period. Service revenue totaled $220.9 million, or an increase of 4 percent, as compared to $212.4 million in the prior fiscal year period.

Total gross profit was $147.0 million for fiscal 2025, or 32.1 percent of net revenue, as compared to total gross profit of $142.9 million, or 32.0 percent of net revenue in the prior fiscal year period.

Operating expenses were $139.1 million for fiscal 2025, or a decrease of 2 percent, as compared to $142.4 million for the prior fiscal year period.

GAAP net loss was $1.6 million, or $0.02 per share, for the fiscal 2025, as compared to a net loss of $15.5 million, or $0.16 per share, in the prior fiscal year period. Adjusted EBITDA was $28.3 million for fiscal 2025, as compared to $19.7 million in the prior fiscal year period.

“Our fourth quarter and full year financial results demonstrate the resilience of our team despite macroeconomic challenges and continuing tariff uncertainty. We made steady operational progress while continuing to drive customer adoption through the expansion of our product portfolio. We also announced refinancing plans with a partner committed to advancing our global business. I look forward to working with them, together with the global Accuray team, to execute on our core strategies for driving consistent growth,” said Ali Pervaiz, Chief Financial Officer at Accuray.

Fiscal Year 2026 Financial Guidance

Accuray's financial guidance is based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market and economic conditions, supply chain disruption, and the factors set forth under “Safe Harbor Statement” below.

The Company is introducing guidance for fiscal year 2026 as follows:

— Total net revenue is expected in the range of $471 million to $485 million.

— Adjusted EBITDA is expected in the range of $31 million to $35 million.

Guidance for Adjusted EBITDA, a non-GAAP financial measure excludes depreciation and amortization, stock-based compensation expense, interest expense and provision for income taxes. For more information regarding the non-GAAP financial measures discussed in this press release, please see “Use of Non-GAAP Financial Measures” below.

Conference Call Information

Accuray will host a conference call beginning at 1:30 p.m. PT/4:30 p.m. ET today to discuss results for the fourth quarter of fiscal 2025 as well as recent corporate developments. Conference call dial-in information is as follows:

— U.S. callers: (888) 999-5318

— International callers: (848) 280-6460

Individuals interested in listening to the live conference call via the Internet may do so by logging on to the Investor Relations section ofAccuray's website, www.accuray.com. There will be a slide presentation accompanying today's event which can also be accessed on the company's Investor Relations page at www.accuray.com.

In addition, a taped replay of the conference call will be available beginning approximately one hour after the call's conclusion and will be available for seven days. The replay number is (877) 344-7529 (USA), or (412) 317-0088 (International), Conference ID: 3326908. An archived webcast will also be available on Accuray's website until Accuray announces its results for the first quarter of fiscal 2026.

Use of Non-GAAP Financial Measures

Accuray reports its financial results in accordance with generally accepted accounting principles in the United States (“GAAP”) and the rules of the SEC. To supplement its financial statements prepared and presented in accordance with GAAP, Accuray uses certain non-GAAP financial measures, such as adjusted EBITDA.

Accuray has supplemented its GAAP net income (loss) with a non-GAAP measure of adjusted earnings before interest, taxes, depreciation, amortization, stock-based compensation, changes to the fair value of warrant liability, ERP and ERP related expenditures and restructuring charges (“adjusted EBITDA”). The calculation of adjusted EBITDA also excludes certain non-recurring, irregular and one-time items. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the company and facilitates a meaningful comparison of results for current periods with previous operating results. A reconciliation of GAAP net income (loss) (the most directly comparable GAAP measure) to non-GAAP adjusted EBITDA is provided in the schedules below.

There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP.

About Accuray

Accuray Incorporated (Nasdaq: ARAY) is committed to expanding the powerful potential of radiation therapy to improve as many lives as possible. We invent unique, market-changing solutions that are designed to deliver radiation treatments for even the most complex cases-while making commonly treatable cases even easier-to meet the full spectrum of patient needs. We are dedicated to continuous innovation in radiation therapy for oncology, neuro-radiosurgery, and beyond, as we partner with clinicians and administrators, empowering them to help patients get back to their lives, faster. Accuray is headquartered in Madison, Wisconsin, with facilities worldwide.

Safe Harbor Statement

Statements made in this press release that are not statements of historical fact are forward-looking statements and are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release relate, but are not limited, to the company's guidance and future results of operations, including expectations regarding: total net revenue and adjusted EBITDA; the company's ability to deliver sustained performance and execute on its strategies; expectations regarding the impact of tariffs as well as mitigation efforts by the company; expectations regarding the company's refinancing and refinancing partner; the company's ability to navigate supply chain, logistics, macroeconomic, and foreign exchange challenges; the company's ability to achieve its longer-term goals; expectations regarding the company's China joint venture; expectations related to the amount and timing of realizing deferred margin from the company's China joint venture; expectations with respect to strategic partnerships and collaborations; expectations related to the markets and regions in which the company operates; expectations regarding new product introductions and innovations; expectations regarding service business growth and its ability to serve as a growth driver; expectations regarding installed base growth; and the company's ability to advance patient care and offer value to its customer. These forward-looking statements involve risks and uncertainties. If any of these risk or uncertainties materialize, or if any of the company's assumptions prove incorrect, actual results could differ materially from the results express or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the effect of the global macroeconomic environment on the operations of the company and those of its customers and suppliers; disruptions to our supply chain, including increased logistics costs; the company's ability to achieve widespread market acceptance of its products; substantial outstanding indebtedness and its ability to maintain compliance with financial covenants related to its debt; the effect of enhanced international tariffs on the company; the company's ability to realize the expected benefits of the China joint venture and other partnerships; risks inherent in international operations; the company's ability to maintain or increase its gross margins on product sales and services; delays in regulatory approvals or the development or release of new offerings; the company's ability to meet the covenants under its credit facilities; the company's ability to convert backlog to revenue; and such other risks identified under the heading “Risk Factors” in the company's Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (the “SEC”) on May 2, 2025, and as updated periodically with the company's other filings with the SEC.

Forward-looking statements speak only as of the date the statements are made and are based on information available to the company at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The company assumes no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Accordingly, investors should not put undue reliance on any forward-looking statements.

Aman Patel, CFA Beth KaplanInvestor Relations, ICR-Westwicke Public Relations Director, Accuray+1 (443) 450-4191 +1 (408) 789-4426aman.patel@westwicke.com bkaplan@accuray.com

Financial Tables to Follow

Accuray IncorporatedCondensed Consolidated Statements of Operations(in thousands, except per share data)(Unaudited) Three Months Ended Twelve Months Ended June 30, June 30, 2025 2024 2025 2024Net revenue:Products $ 70,702 $ 79,673 $ 237,580 $ 234,164Services 56,841 54,616 220,925 212,387Total net revenue 127,543 134,289 458,505 446,551Cost of revenue:Cost of products 51,254 55,084 162,569 161,061Cost of services 37,310 40,753 148,969 142,569Total cost of revenue 88,564 95,837 311,538 303,630Gross profit 38,979 38,452 146,967 142,921Operating expenses:Research and development 11,470 9,529 47,942 49,732Selling and marketing 11,409 10,696 43,315 42,619General and administrative 11,866 11,410 47,871 50,066Total operating expenses 34,745 31,635 139,128 142,417Income from operations 4,234 6,817 7,839 504Income from equity method investment 885 810 4,714 1,838Interest expense (4,226) (2,895) (12,954) (11,624)Gain on extinguishment of debt 1,475 – 1,475 -Loss from change in fair value of warrant liability (499) – (499) -Other income (expense), net 202 (874) 559 (2,538)Income (loss) before provision for income taxes 2,071 3,858 1,134 (11,820)Provision for income taxes 948 471 2,725 3,725Net income (loss) $ 1,123 $ 3,387 $ (1,591) $ (15,545)Net income (loss) per share – basic $ 0.01 $ 0.03 $ (0.02) $ (0.16)Net income (loss) per share – diluted $ 0.01 $ 0.03 $ (0.02) $ (0.16)Weighted average common shares used in computing income(loss) per share:Basic 106,702 99,585 102,768 98,272Diluted 108,891 101,028 102,768 98,272Accuray IncorporatedCondensed Consolidated Balance Sheets(in thousands)(Unaudited) June 30, June 30, 2025 2024AssetsCurrent assets:Cash and cash equivalents $ 57,416 $ 68,570Restricted cash 574 485Accounts receivable, net 83,192 92,001Inventories 141,020 138,324Prepaid expenses and other current assets 33,501 23,006Deferred cost of revenue 1,762 850Total current assets 317,465 323,236Noncurrent assets:Property and equipment, net 28,658 24,774Investment in joint venture 4,612 9,826Operating lease right-of-use assets 33,115 33,773Goodwill 57,802 57,672Restricted cash 4,144 1,337Other assets 24,443 18,009Total assets $ 470,239 $ 468,627Liabilities and stockholders' equityCurrent liabilities:Accounts payable $ 34,033 $ 50,020Accrued compensation 14,573 17,128Operating lease liabilities, current 7,375 6,218Other accrued liabilities 29,361 28,508Customer advances 12,197 13,988Deferred revenue 82,306 71,649Short-term debt, net of unamortized financing costs 15,583 7,756Total current liabilities 195,428 195,267Noncurrent liabilitiesOperating lease liabilities, non-current 32,482 32,373Long-term other liabilities 5,160 7,389Warrant liability 8,497 -Deferred revenue 26,566 24,114Long-term debt, net of unamortized financing costs 120,937 164,400Total liabilities 389,070 423,543Stockholders' Equity:Common stock 113 100Additional paid-in capital 602,165 566,887Accumulated other comprehensive loss (1,837) (4,222)Accumulated deficit (519,272) (517,681)Total stockholders' equity 81,169 45,084Total liabilities and stockholders' equity $ 470,239 $ 468,627Accuray IncorporatedSummary of Orders and Backlog(in thousands)(Unaudited) Three Months Ended Twelve Months Ended June 30, June 30, 2025 2024 2025 2024Gross orders $ 84,741 $ 95,472 $ 288,035 $ 342,148Net orders 45,282 63,773 177,233 210,914Order backlog 426,972 487,319 426,972 487,319Book to bill ratio (a) 1.2 1.2 1.2 1.5(a) Book to bill ratio is defined as gross orders for the period divided by product revenue for the periodAccuray IncorporatedReconciliation of GAAP Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation,Amortization, Stock-Based Compensation and Other (Adjusted EBITDA)(in thousands) Three Months Ended Twelve Months Ended June 30, June 30, 2025 2024 2025 2024GAAP net income (loss) $ 1,123 $ 3,387 $ (1,591) $ (15,545)Depreciation and amortization (a) 1,598 1,507 6,150 5,905Stock-based compensation 2,818 2,042 10,201 9,483Interest expense, net (b) 3,937 2,686 11,762 10,676Gain on extinguishment of debt (1,475) – (1,475) -Provision for income taxes 948 471 2,725 3,725Loss from change in fair value of warrant liability 499 – 499 -Restructuring charges – – – 2,633ERP and ERP related expenditures – – – 2,815Adjusted EBITDA $ 9,448 $ 10,093 $ 28,271 $ 19,692(a) Consists of depreciation, primarily on property and equipment, as well as amortization of intangibles.(b) Consists primarily of interest expense associated with outstanding debt.Accuray IncorporatedForward-Looking GuidanceReconciliation of Projected Net Loss to Projected Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization,Stock-Based Compensation (Adjusted EBITDA)(in thousands) Twelve Months Ending June 30, 2026 From ToGAAP net loss $ (12,000) $ (8,000)Depreciation and amortization (a) 6,000 6,000Stock-based compensation 10,500 10,500Interest expense, net (b) 23,500 23,500Provision for income taxes 3,000 3,000Adjusted EBITDA $ 31,000 $ 35,000(a) Consists of depreciation, primarily on property and equipment as well, as amortization of intangibles.(b) Consists primarily of interest expense associated with outstanding debt.

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SOURCE Accuray Incorporated

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