Start here if you're new
what it is
Accuray builds radiation machines that aim treatment at tumors.
how it gets paid
Last year Accuray made $459M in revenue. CyberKnife systems was the main engine at $170M, or 37% of sales.
growth snapshot
Revenue was roughly flat last year at $459M. $128M mattered most because it came in near the high end of FY guidance.
what just happened
Accuray's latest quarter brought $128M of revenue, but EPS was -$0.30.
At a glance
C+ balance sheet — struggling to keep the lights on
35/100 earnings predictability — expect surprises
2.4% return on capital — nothing to write home about
-$0.02 fy2025 eps est
$2B fy2026 rev est
xvary composite: 29/100 — weak
What they do
Accuray builds radiation machines that aim treatment at tumors.
You are not buying a gadget company. You are buying a hospital workflow. CyberKnife treatments need no anesthesia and happen outpatient, so the machine becomes part of the routine. That is hospital process versus surgery room. Accuray still has 990 employees, so every installed system matters.
How they make money
$459M
annual revenue · their business grew +0.0% last year
CyberKnife systems
$170M
flat
TomoTherapy systems
$150M
dn
Services
$139M
+4.0%
The products that matter
robotic radiosurgery system
CyberKnife
core system line
it is one of the flagship platforms behind the company's installed base, but the bigger number on this page is market share: 0.83%. You are not buying the leader here.
sub-scale
radiation therapy platform
Radixact
hardware demand matters
this is the kind of product that drives system placements, and the signal right now is rough: product revenue fell 26% while gross margin dropped to 23.5%.
demand pressure
treatment planning software
Stellar
new platform effort
Stellar is part of the attempt to modernize the offering, but you are still underwriting a company with a C+ balance sheet and $6.1M of restructuring charges already flowing through the income statement.
early fix
Key numbers
$459M
annual revenue
That is the whole year of sales. For a $0.81 stock, the business is still much bigger than the quote.
$128M
quarterly revenue
One quarter delivered almost half a year's sales. That means quarterly results can still move the stock hard.
3.4%
operating margin
This leaves $3.40 on every $100 of sales before interest and taxes. The business is alive, but not comfortable.
$159M
long-term debt
Debt is larger than the prompt's $44M market value. That is a messy balance sheet for a tiny stock.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 10 / 100
- long-term debt $159M (78% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for ARAY right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Accuray's latest quarter brought $128M of revenue, but EPS was -$0.30.
Revenue was up 92% vs. prior year, but earnings stayed negative. Gross margin was 26.0%, which means 26 cents of every sales dollar stayed after direct costs.
$128M
revenue
-$0.30
eps
26.0%
gross margin
the number that mattered
$128M mattered most because it came near the high end of guidance, even while EPS stayed negative at -$0.30.
source: company earnings report, 2026
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What could go wrong
the #1 risk is material weakness in financial reporting controls after the february 2026 restatement.
med
financial controls are already in the penalty box
Accuray filed a 10-K/A in Feb 2026 to restate prior financials and cited material weaknesses in internal controls over financial reporting.
If you cannot trust the reporting cadence, every turnaround milestone deserves a discount. This raises regulatory risk and lowers investor confidence at the same time.
med
margin compression leaves little room for mistakes
Gross margin fell to 23.5% from 36.1%, adjusted EBITDA was -$1.9M in Q2 FY26, and the company also booked $6.1M of restructuring charges.
That combination pressures cash generation and limits how aggressively ARAY can invest against much larger competitors.
med
guidance already moved lower because deals are taking longer
Management cut FY26 revenue guidance to $440M–$450M and cited prolonged deal timelines plus demand disruption in China.
At the midpoint, that points to sales about 4% below last year. For a business trying to prove momentum, that is the wrong direction.
A business guiding to $440M–$450M in revenue with $159M of long-term debt and 23.5% gross margin does not have much shock absorption.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings report
scheduled for april 28, 2026. You want to see whether product revenue is still falling after the 26% drop and whether gross margin lifts from 23.5%.
risk
internal control remediation
the Feb 2026 restatement is not a one-headline problem. You need proof that the material weakness is fixed, not just discussed.
metric
book-to-bill holding above 1.0
the current 1.2 ratio says orders are modestly ahead of revenue. If that slips, the turnaround story loses one of its few measurable supports.
trend
service growth versus hardware weakness
service revenue rose 4% while product revenue fell 26%. If service keeps carrying the business but hardware keeps shrinking, the installed base ages instead of expanding.
Analyst rankings
earnings predictability
35 / 100
low predictability means reported results can swing around more than you want. in human-speak, analysts do not trust the quarter-to-quarter consistency here.
balance sheet grade
C+
that is below the comfort zone for a capital-equipment company with $159M of long-term debt. you are not getting balance-sheet forgiveness.
source: institutional data
Institutional activity
institutional ownership data for ARAY is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$1
current price
n/a
target midpoint · n/a from current
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