Table of Contents ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) Commission file number 001-33301 ACCURAY INCORPORATED (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incor ...

Core Insights - Accuray Incorporated (ARAY) reported breakeven earnings per share (EPS) for the fourth quarter of fiscal 2025, missing the Zacks Consensus Estimate by 100% compared to the previous year's EPS of 3 cents [1][5] - The company's quarterly revenues were $127.5 million, a decrease of 5% year over year, but exceeded the Zacks Consensus Estimate by 2.5% [2][5] Revenue Breakdown - Product revenues fell by 11.3% year over year to $70.7 million, primarily due to weaker sales in China, EIMEA, and Japan [4][10] - Service revenues increased by 4.1% year over year to $56.8 million, supported by a growing installed base and improved service contract capture rates [4][10] Financial Performance - Gross profit improved by 1.3% year over year to $38.9 million, with gross margin expanding by 200 basis points to 30.6% [6] - Operating profit was $4.2 million, down from $6.8 million in the prior-year quarter [7] Financial Position - At the end of the fourth quarter, Accuray had cash and cash equivalents of $57.4 million, down from $77.8 million at the end of the previous quarter [8] - Total debt decreased to $136.5 million from $173.8 million in the prior quarter [8] Future Guidance - For fiscal 2026, Accuray expects revenues in the range of $471 million to $485 million, which is above the current consensus estimate of $452.7 million [9][10] Market Dynamics - The company faced challenges from lower product revenue in China and EIMEA due to tariff disruptions and geopolitical unrest, but saw a 22% sales surge in APAC and a 24% rebound in the Americas [10][11] - The book-to-bill ratio remained healthy at 1.2, indicating sustained demand despite regional challenges [11] Tariff Impact and Mitigation Strategies - Tariffs had a notable impact, costing approximately $4 million during the quarter, with half mitigated through a duty drawback program [12][13] - Long-term strategies include establishing a manufacturing site as a foreign trade zone and accelerating dual-sourcing for key components to cushion profitability from tariff volatility [13]

Accuray (ARAY) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.03. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -100.00%. A quarter ago, it was expected that this radiation oncology company would post a loss of $0.05 per share when it actually produced a loss of $0.01, delivering a surprise of +80%. Over the last four quarters, the company has su ...

Financial Data and Key Metrics Changes - Total revenue for Q4 was approximately $128 million, down 5% year over year, driven by lower product revenue in China and EIMEA [10][21] - For the full fiscal year, total revenue reached a record $459 million, up 3% from last year, with international business growing 4% year over year [22] - Adjusted EBITDA for Q4 was $9.4 million, and for the full year, EBITDA was $28.3 million, up 44% year over year [26] Business Line Data and Key Metrics Changes - Product revenue in Q4 was $71 million, down 11% year over year, while service revenue was $57 million, up 4% year over year [22][23] - Full year service revenue was $221 million, up 4% from last year, with contract revenue now making up about 90% of total service revenue [23][16] - Service gross margins improved by nine points driven by lower parts consumption and successful pricing initiatives [25] Market Data and Key Metrics Changes - Revenue in China declined 14% year over year, while EIMEA saw a 34% decline [10] - APAC region revenue was up 22%, and The Americas saw a 24% increase, indicating strong performance outside the challenged regions [11] - For the full year, China product revenue grew 20% year over year, while EIMEA was down 32% [15] Company Strategy and Development Direction - The company aims to penetrate emerging markets and improve operational models with a focus on adjusted EBITDA and profitability [36] - A significant focus is on driving further adjusted EBITDA margin expansion through cost productivity and pricing actions [35] - The company is working on establishing a foreign trade zone to mitigate tariff impacts and enhance operational efficiency [32][29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the U.S. market, expecting gradual improvement in fiscal year 2026 [19][50] - The geopolitical environment has created challenges, but the company has successfully navigated these through strategic actions [5][10] - Guidance for fiscal year 2026 includes a revenue range of $471 million to $485 million and an adjusted EBITDA range of $31 million to $35 million [39] Other Important Information - The company completed a comprehensive debt refinancing, enhancing financial flexibility and supporting long-term growth initiatives [28][19] - The company incurred approximately $4 million in cash tariffs in Q4, with half mitigated through various initiatives [34][54] Q&A Session Summary Question: Update on China market conditions - Management indicated that conditions in China have improved but have not fully returned to normal, with strong customer demand still present [42][43] Question: U.S. market improvement assumptions - Management noted that Q4 performance in The Americas was strong, with a focus on converting backlog and accelerating installations [50] Question: Outlook for Helix in India and other emerging markets - Management confirmed solid performance for Helix in its first year and expects growth in India and surrounding regions [52][53] Question: Tariff impact run rate for the upcoming fiscal year - Management confirmed a $4 million cash impact from tariffs, with expectations for similar run rates in fiscal year 2026 [54][55]

Q4'FY25 Earnings Call Supplemental Presentation August 13, 2025 Safe Harbor Statement Statements in this presentation (including the oral commentary that accompanies it) 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 presentation relate, but are not limited, to: expectations regarding adjusted EBITDA and revenue; our ability to execute on our ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Accuray's fiscal Q4 and full-year 2025 results show mixed revenue performance but improved profitability and strategic advancements [Key Fiscal Fourth Quarter Highlights](index=1&type=section&id=Key%20Fiscal%20Fourth%20Quarter%20Highlights) Accuray reported a decrease in total net revenue for Q4 FY25, primarily due to a decline in product revenue, while service revenue saw an increase. Net income and Adjusted EBITDA also decreased compared to the prior year, with a book-to-bill ratio of 1.2 | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | | :------------------- | :----------------- | :----------------- | :--------- | | Total Net Revenue | $127.5 | $134.3 | -5% | | Product Revenue | $70.7 | $79.7 | -11% | | Service Revenue | $56.8 | $54.6 | +4% | | Net Income | $1.1 | $3.4 | -67.6% | | Adjusted EBITDA | $9.4 | $10.1 | -6.9% | | Order Book-to-Bill | 1.2 | N/A | N/A | [Key Fiscal Year 2025 Highlights](index=1&type=section&id=Key%20Fiscal%20Year%202025%20Highlights) For the full fiscal year 2025, Accuray achieved an increase in total net revenue driven by growth in both product and service revenues. The company significantly reduced its net loss and improved Adjusted EBITDA compared to the prior fiscal year, maintaining a book-to-bill ratio of 1.2 | Metric | FY25 (Millions) | FY24 (Millions) | Change (%) | | :------------------- | :-------------- | :-------------- | :--------- | | Total Net Revenue | $458.5 | $446.6 | +3% | | Product Revenue | $237.6 | $234.2 | +1% | | Service Revenue | $220.9 | $212.4 | +4% | | Net Loss | $1.6 | $15.5 | -89.7% | | Adjusted EBITDA | $28.3 | $19.7 | +43.6% | | Order Book-to-Bill | 1.2 | N/A | N/A | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted the company's strategic advancements in innovation, access, and service growth, successfully navigating a challenging environment. They emphasized annual revenue growth, strong service performance, adjusted EBITDA margin expansion, and the successful completion of debt refinancing - CEO Suzanne Winter noted the advancement of the company's strategy of innovation, access, and service growth, along with annual revenue growth, strong service performance, adjusted EBITDA margin expansion, and successful debt refinancing[4](index=4&type=chunk) - CFO Ali Pervaiz highlighted the team's resilience despite macroeconomic challenges and tariff uncertainty, steady operational progress, customer adoption through product portfolio expansion, and the announcement of refinancing plans[14](index=14&type=chunk) [Fiscal Fourth Quarter 2025 Financial Results](index=1&type=section&id=Fiscal%20Fourth%20Quarter%202025%20Financial%20Results) Accuray's Q4 FY25 financial results detail revenue, profitability, and cash position, showing mixed performance [Revenue Performance (Q4 FY25)](index=1&type=section&id=Revenue%20Performance%20%28Q4%20FY25%29) Total net revenue for the fourth quarter of fiscal 2025 decreased by 5% year-over-year, primarily driven by an 11% decline in product revenue, while service revenue experienced a 4% increase | Revenue Type | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | | :------------- | :----------------- | :----------------- | :--------- | | Total Net Revenue | $127.5 | $134.3 | -5% | | Product Revenue | $70.7 | $79.7 | -11% | | Service Revenue | $56.8 | $54.6 | +4% | [Profitability and Expenses (Q4 FY25)](index=1&type=section&id=Profitability%20and%20Expenses%20%28Q4%20FY25%29) Gross profit increased slightly in Q4 FY25, improving as a percentage of net revenue. However, operating expenses rose by 10%, leading to a decrease in net income and Adjusted EBITDA compared to the prior year's fourth quarter | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | | :------------------- | :----------------- | :----------------- | :--------- | | Total Gross Profit | $39.0 | $38.5 | +1.3% | | Gross Profit Margin | 30.6% | 28.6% | +2.0 ppts | | Operating Expenses | $34.7 | $31.6 | +10% | | Net Income | $1.1 | $3.4 | -67.6% | | Net Income Per Share | $0.01 | $0.03 | -66.7% | | Adjusted EBITDA | $9.4 | $10.1 | -6.9% | [Order Backlog and Cash Position (Q4 FY25)](index=1&type=section&id=Order%20Backlog%20and%20Cash%20Position%20%28Q4%20FY25%29) Accuray's ending order backlog decreased both quarter-over-quarter and year-over-year. The company's cash, cash equivalents, and short-term restricted cash also saw a sequential decline | Metric | As of June 30, 2025 (Millions) | As of March 31, 2025 (Millions) | As of June 30, 2024 (Millions) | Change QoQ (%) | Change YoY (%) | | :---------------------------------- | :----------------------------- | :------------------------------ | :----------------------------- | :------------- | :------------- | | Ending Order Backlog | $427.0 | N/A | $487.3 | -5.6% | -12.4% | | Cash, Cash Equivalents, Restricted Cash | $58.0 | $78.8 | N/A | -26.4% | N/A | [Fiscal Year 2025 Financial Results](index=2&type=section&id=Fiscal%20Year%202025%20Financial%20Results) Accuray's full fiscal year 2025 financial results detail overall revenue and profitability performance [Revenue Performance (FY25)](index=2&type=section&id=Revenue%20Performance%20%28FY25%29) For fiscal year 2025, Accuray reported a 3% increase in total net revenue, driven by modest growth in both product and service revenues compared to the prior fiscal year | Revenue Type | FY25 (Millions) | FY24 (Millions) | Change (%) | | :------------- | :-------------- | :-------------- | :--------- | | Total Net Revenue | $458.5 | $446.6 | +3% | | Product Revenue | $237.6 | $234.2 | +1% | | Service Revenue | $220.9 | $212.4 | +4% | [Profitability and Expenses (FY25)](index=2&type=section&id=Profitability%20and%20Expenses%20%28FY25%29) Accuray improved its gross profit and gross profit margin for fiscal year 2025, while operating expenses decreased. This led to a significant reduction in GAAP net loss and a substantial increase in Adjusted EBITDA compared to the previous fiscal year | Metric | FY25 (Millions) | FY24 (Millions) | Change (%) | | :------------------- | :-------------- | :-------------- | :--------- | | Total Gross Profit | $147.0 | $142.9 | +2.9% | | Gross Profit Margin | 32.1% | 32.0% | +0.1 ppts | | Operating Expenses | $139.1 | $142.4 | -2% | | GAAP Net Loss | $1.6 | $15.5 | -89.7% | | GAAP Net Loss Per Share | $0.02 | $0.16 | -87.5% | | Adjusted EBITDA | $28.3 | $19.7 | +43.6% | [Fiscal Year 2026 Financial Guidance](index=2&type=section&id=Fiscal%20Year%202026%20Financial%20Guidance) Accuray's FY26 guidance projects increased total net revenue and Adjusted EBITDA, based on current expectations and market conditions | Metric | FY26 Guidance (Millions) | | :------------------- | :----------------------- | | Total Net Revenue | $471 to $485 | | Adjusted EBITDA | $31 to $35 | [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Accuray hosted a conference call on August 13, 2025, to discuss Q4 and FY25 results, with webcast and replay details provided - Accuray hosted a conference call on August 13, 2025, at 1:30 p.m. PT/4:30 p.m. ET to discuss Q4 FY25 results and corporate developments[16](index=16&type=chunk) - Live access was available via the Investor Relations section of Accuray's website (www.accuray.com), with a slide presentation also accessible[16](index=16&type=chunk) - A taped replay of the conference call was available for seven days, with specific dial-in numbers for USA and International callers, and an archived webcast on the company's website[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Use of Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Accuray supplements GAAP with non-GAAP measures like Adjusted EBITDA, excluding specific items, for performance comparison, acknowledging their limitations - Accuray uses non-GAAP financial measures, such as Adjusted EBITDA, to supplement its GAAP financial results[20](index=20&type=chunk) - Adjusted EBITDA excludes depreciation and amortization, stock-based compensation expense, interest expense, provision for income taxes, changes to the fair value of warrant liability, ERP and ERP related expenditures, restructuring charges, and certain non-recurring items[21](index=21&type=chunk) - Management believes non-GAAP measures provide useful supplemental information for investors and facilitate meaningful comparisons, but acknowledges their limitations as they are not GAAP-compliant and should not be considered in isolation[21](index=21&type=chunk)[22](index=22&type=chunk) [About Accuray](index=4&type=section&id=About%20Accuray) Accuray Incorporated advances radiation therapy with unique oncology and neuro-radiosurgery solutions, headquartered in Madison, Wisconsin - Accuray Incorporated (Nasdaq: ARAY) is committed to expanding the potential of radiation therapy to improve lives[23](index=23&type=chunk) - The company invents unique, market-changing solutions for radiation treatments in oncology, neuro-radiosurgery, and beyond, addressing the full spectrum of patient needs[23](index=23&type=chunk) - Accuray is headquartered in Madison, Wisconsin, with facilities worldwide[23](index=23&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) Forward-looking statements on future results, guidance, and strategies are subject to risks like macroeconomic factors, supply chain, and tariffs, with no obligation to update - Statements in the press release that are not historical facts are forward-looking and subject to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995[24](index=24&type=chunk) - Forward-looking statements relate to future results, guidance (total net revenue, adjusted EBITDA), strategy execution, impact of tariffs, debt refinancing, supply chain, macroeconomic challenges, China joint venture, strategic partnerships, new product introductions, and service growth[24](index=24&type=chunk) - Risks and uncertainties include the global macroeconomic environment, supply chain disruptions, market acceptance of products, outstanding indebtedness, international tariffs, benefits of the China joint venture, gross margins, regulatory approvals, credit facility covenants, and backlog conversion[24](index=24&type=chunk)[25](index=25&type=chunk) - The company assumes no obligation to update forward-looking statements to reflect actual performance or changes in assumptions, except as required by applicable securities laws[26](index=26&type=chunk) [Financial Tables](index=7&type=section&id=Financial%20Tables) This section presents detailed financial statements, including operations, balance sheets, order data, and non-GAAP reconciliations [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This table provides a detailed breakdown of Accuray's revenues, costs, gross profit, operating expenses, and net income (loss) for the three and twelve months ended June 30, 2025, and 2024, highlighting changes in profitability metrics | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Twelve Months Ended June 30, 2025 | Twelve Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :-------------------------------- | | Net revenue: | | | | | | Products | $70,702 | $79,673 | $237,580 | $234,164 | | Services | $56,841 | $54,616 | $220,925 | $212,387 | | Total net revenue | $127,543 | $134,289 | $458,505 | $446,551 | | Gross profit | $38,979 | $38,452 | $146,967 | $142,921 | | Total operating expenses | $34,745 | $31,635 | $139,128 | $142,417 | | Income from operations | $4,234 | $6,817 | $7,839 | $504 | | Net income (loss) | $1,123 | $3,387 | $(1,591) | $(15,545) | | Net income (loss) per share - basic | $0.01 | $0.03 | $(0.02) | $(0.16) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table presents Accuray's financial position as of June 30, 2025, and June 30, 2024, detailing assets, liabilities, and stockholders' equity. Notable changes include a decrease in cash and accounts receivable, an increase in inventories, and a significant increase in total stockholders' equity | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Assets: | | | | Cash and cash equivalents | $57,416 | $68,570 | | Accounts receivable, net | $83,192 | $92,001 | | Inventories | $141,020 | $138,324 | | Total current assets | $317,465 | $323,236 | | Total assets | $470,239 | $468,627 | | Liabilities: | | | | Accounts payable | $34,033 | $50,020 | | Deferred revenue (current) | $82,306 | $71,649 | | Short-term debt, net | $15,583 | $7,756 | | Total current liabilities | $195,428 | $195,267 | | Long-term debt, net | $120,937 | $164,400 | | Total liabilities | $389,070 | $423,543 | | Stockholders' Equity: | | | | Total stockholders' equity | $81,169 | $45,084 | [Summary of Orders and Backlog](index=9&type=section&id=Summary%20of%20Orders%20and%20Backlog) This table provides a summary of Accuray's gross orders, net orders, and order backlog for the three and twelve months ended June 30, 2025, and 2024, along with the book-to-bill ratio | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Twelve Months Ended June 30, 2025 | Twelve Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :-------------------------------- | | Gross orders | $84,741 | $95,472 | $288,035 | $342,148 | | Net orders | $45,282 | $63,773 | $177,233 | $210,914 | | Order backlog | $426,972 | $487,319 | $426,972 | $487,319 | | Book to bill ratio (a) | 1.2 | N/A | 1.2 | 1.5 | [Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20%28Loss%29%20to%20Adjusted%20EBITDA) This table reconciles GAAP net income (loss) to Adjusted EBITDA for the three and twelve months ended June 30, 2025, and 2024, by adding back non-cash and non-operating expenses such as depreciation, stock-based compensation, interest, and other specific adjustments | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Twelve Months Ended June 30, 2025 | Twelve Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :-------------------------------- | | GAAP net income (loss) | $1,123 | $3,387 | $(1,591) | $(15,545) | | Depreciation and amortization | $1,598 | $1,507 | $6,150 | $5,905 | | Stock-based compensation | $2,818 | $2,042 | $10,201 | $9,483 | | Interest expense, net | $3,937 | $2,686 | $11,762 | $10,676 | | Provision for income taxes | $948 | $471 | $2,725 | $3,725 | | Adjusted EBITDA | $9,448 | $10,093 | $28,271 | $19,692 | [Forward-Looking Guidance Reconciliation](index=9&type=section&id=Forward-Looking%20Guidance%20Reconciliation) This table provides a reconciliation of projected GAAP net loss to projected Adjusted EBITDA for the fiscal year ending June 30, 2026, outlining the adjustments for non-GAAP items | Metric (in thousands) | Twelve Months Ending June 30, 2026 (From) | Twelve Months Ending June 30, 2026 (To) | | :-------------------- | :---------------------------------------- | :-------------------------------------- | | GAAP net loss | $(12,000) | $(8,000) |\ | Depreciation and amortization | $6,000 | $6,000 |\ | Stock-based compensation | $10,500 | $10,500 |\ | Interest expense, net | $23,500 | $23,500 |\ | Provision for income taxes | $3,000 | $3,000 |\ | Adjusted EBITDA | $31,000 | $35,000 |

Core Insights - Accuray Incorporated reported a total net revenue of $127.5 million for the fourth quarter of fiscal 2025, a decrease of 5% compared to $134.3 million in the same quarter of the previous fiscal year [3] - The company achieved a total net revenue of $458.5 million for fiscal 2025, reflecting a 3% increase from $446.6 million in the prior fiscal year [7] - Accuray successfully completed a refinancing of its debt, which is expected to support its long-term growth strategy [2][11] Fiscal Fourth Quarter Highlights - Product revenue for the fourth quarter was $70.7 million, down 11% from $79.7 million in the prior year [3] - Service revenue increased by 4% to $56.8 million, compared to $54.6 million in the previous year [3] - The company reported a net income of $1.1 million, or $0.01 per share, down from $3.4 million, or $0.03 per share, in the prior year [5] Fiscal Year 2025 Highlights - Total gross profit for fiscal 2025 was $147.0 million, representing 32.1% of net revenue, compared to $142.9 million or 32.0% in the previous fiscal year [8] - Operating expenses decreased by 2% to $139.1 million for fiscal 2025, down from $142.4 million in the prior year [10] - The company reported a net loss of $1.6 million for fiscal 2025, significantly improved from a net loss of $15.5 million in the previous fiscal year [10] Order Backlog and Financial Guidance - The ending order backlog as of June 30, 2025, was $427.0 million, a decrease of 5.6% from the third quarter and 12.4% from the prior year [6] - For fiscal year 2026, the company expects total net revenue in the range of $471 million to $485 million and adjusted EBITDA between $31 million and $35 million [17][28]

About Accuray The conference call dial-in numbers are 1-888-999-5318 (USA) or 1-848-280-6460 (international). In addition, a dial-up replay of the conference call will be available approximately one hour after the call's conclusion for one week. The replay number is 1-877-344-7529 (USA) or 1-412-317-0088 (international), conference ID: 3326908. A live webcast of the call will also be available from the Investor Relations section of the company's website at investors.accuray.com. A webcast replay can be acce ...

Core Viewpoint - Accuray Incorporated has entered into agreements to exchange $82 million of its senior convertible notes for shares of common stock and cash, enhancing its capital structure and liquidity [1][8]. Financing Agreements - The company has secured a new senior secured credit agreement providing for $150 million in term loan facilities, a $20 million delayed draw term loan facility, and a $20 million revolving credit facility [3]. - Proceeds from these facilities, along with available cash, will be used to repay all outstanding indebtedness under a previous credit agreement with Silicon Valley Bank [3]. Interest Rates and Terms - Interest on borrowings under the new facilities can be based on either a term SOFR-based rate with a 2.00% floor plus an 8.50% margin, or a base rate with a 3.00% floor plus a 7.50% margin [4]. Governance Changes - A governance agreement has been established with TCW, allowing for the appointment of one director and two non-voting board observers to Accuray's Board [6]. - Steven F. Mayer has been appointed to the Board, bringing extensive governance experience from various industries [7][8]. Warrants Issuance - Accuray has issued warrants to lenders, including 17,180,710 Premium Warrants with an exercise price of $1.68 per share and 6,247,531 Penny Warrants with an exercise price of $0.01 per share [8][9]. - Additional warrants will be issued upon drawing from the delayed draw term loan, with specific terms for exercise prices and anti-dilution protections [10][11]. Strategic Priorities - The company aims to transform radiation therapy care and create long-term shareholder value, supported by the new financing agreement [8].

Accuray (ARAY) 2025 Conference Summary Company Overview - Accuray is a $450 million company operating in the radiation therapy space, with revenue split evenly between product and service offerings [2][3] - Key product lines include Radixact, CyberKnife, Helix, and Tomo C, with the latter two targeting emerging markets and value segments [3][4] Market Position and Strategy - Accuray has doubled its total addressable market through the introduction of Helix and Tomo C, aiming to increase its install base and service contracts [4] - The company holds the number three market share in the radiation oncology industry, with a strong position in Japan where it ranks second [4][5] Tariff Impact and Mitigation Strategies - Recent tariff changes have seen U.S. tariffs on Chinese imports drop from 145% to approximately 30%, while retaliatory tariffs from China have decreased from 125% to 10% [8][10] - Accuray is actively engaging in tariff mitigation strategies, including a duty drawback program and exploring the establishment of a free trade zone in Madison [12][13] - The company is also assessing dual sourcing suppliers to minimize tariff impacts [14][15] Service Revenue and Pricing - Accuray anticipates minimal impact on its service business from current tariff rates, with plans to pass on tariff-related pricing to customers [22][23] - The service segment is viewed as a significant area for margin expansion, with a focus on reducing parts consumption and enhancing service pricing [24] Regional Market Dynamics - The EIMEA region is the largest backlog market for Accuray, with significant growth potential in Japan and emerging markets [26][27] - The company is optimistic about its joint venture in China, which has maintained a high market share in the premium segment [30] Product Performance and Future Markets - The Helix product has performed in line with expectations since its launch, with potential growth anticipated in India and South America [34][35] - Accuray sees India as a key market for future growth, with a significant need for radiation therapy equipment [37][38] U.S. Market Conditions - The U.S. market is currently experiencing pressures due to high interest rates affecting capital equipment decisions [39] - Both the U.S. and Western Europe are primarily replacement markets, with opportunities to upgrade aged systems [42] Service Model Transition - Accuray is in the early stages of transitioning its service offerings towards a subscription model, which is expected to align with customer needs [44] Investor Insights - Key misconceptions about Accuray include its differentiation in technology and the significance of its annuity revenue, which constitutes about half of its total revenue [46] - The company is focused on margin expansion and cost reduction strategies, with hopes that macroeconomic conditions will improve to reflect these efforts in financial performance [47]