Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33301 ACCURAY INCORPORATED (Exact name of registrant as specified in its charter) Delaware 20-8370041 (State or other ...

Core Insights - Accuray Incorporated reported an earnings miss with an EPS of -$0.11, below the estimated -$0.02, and revenue of $102.24 million, falling short of the expected $121.19 million [1][6] Financial Performance - The company has a price-to-sales ratio of 0.19, indicating that investors are paying 19 cents for every dollar of sales [3][6] - The enterprise value to sales ratio is 0.45, suggesting a moderate valuation relative to its sales [3][6] - Accuray's enterprise value to operating cash flow ratio is 9, indicating efficient cash flow generation relative to its enterprise value [4] Debt and Liquidity - The debt-to-equity ratio is approximately 2.90, indicating a higher reliance on debt financing [4][6] - The current ratio stands at 1.55, suggesting that the company has adequate liquidity to cover its short-term liabilities [5][6] Strategic Initiatives - CEO Steve La Neve emphasized four key pillars for the company's focus: commercial simplification, global functional alignment, elevation of service and product development, and optimization of cost structure and footprint [2]

La Neve emphasized that cost actions are intended to support longer-term strategies, including efforts to strengthen commercial execution and create a more predictable, higher-margin growth model. He said Accuray has tightened weekly and monthly financial and operating reviews around orders, revenue, margins, service performance, and cash, with an emphasis on faster corrective actions and greater accountability.Management reiterated that the plan targets an approximately $25 million improvement in annualize ...

Financial Data and Key Metrics Changes - Net revenue for the second quarter was $102.2 million, down 12% year-over-year and down 13% on a constant currency basis [16] - Product revenue decreased by 26% overall and 28% on a constant currency basis, primarily due to lower-than-expected product revenue in China [16] - Service revenue was $57.2 million, up 4% from the prior year and up 3% on a constant currency basis [16] - Overall gross margin for the quarter was 23.5%, down from 36.1% in the prior year, with product gross margins at 19.7% compared to 43.5% in the prior year [18] - Operating loss for the quarter was $11.6 million compared to an income of $4.7 million in the prior year [21] - Adjusted EBITDA for the quarter was a loss of $1.9 million compared to positive $9.6 million in the prior year [21] Business Line Data and Key Metrics Changes - Product gross orders for the second quarter were approximately $66 million, with a book-to-bill ratio of 1.5x [17] - Service gross margins were 26.6%, down from 27.7% in the prior year, primarily due to higher net parts consumption [19] Market Data and Key Metrics Changes - The company ended the second quarter with a reported order backlog of approximately $383 million, representing over 18 months of product revenue [17] - The decline in product revenue was significantly impacted by ongoing geopolitical tensions and tariffs affecting the China market [13][16] Company Strategy and Development Direction - The company announced a comprehensive strategic, operational, and organizational transformation plan aimed at improving accountability, cost control, and execution [6] - The transformation plan targets an approximately $25 million improvement in annualized operating profitability, including a workforce reduction of about 15% [7] - The company is shifting towards a comprehensive solutions-oriented service offering to increase customer uptime and drive higher-margin recurring revenue [8][10] Management's Comments on Operating Environment and Future Outlook - The management acknowledged that external pressures, including tariffs and geopolitical instability, have affected demand patterns and commercial activity [13][14] - The revised revenue guidance for fiscal 2026 is now in the range of $440 million-$450 million, with adjusted EBITDA guidance of $22 million-$25 million [14] - Despite external headwinds, the company remains focused on delivering against transformation commitments and strengthening its foundation for sustained, profitable growth [15] Other Important Information - The company expects approximately $10 million of restructuring charges across the second, third, and fourth fiscal quarters related to workforce reductions and other implementation costs [8] - The leadership team emphasizes the need for teamwork, cross-functional collaboration, and data-driven decision-making to create a performance-driven environment [12] Q&A Session Summary Question: Revenue guidance cut details - The company clarified that the revenue guidance cut was influenced by ongoing tariffs and an unstable geopolitical environment, particularly in China, which has affected demand patterns and commercial activity [26][27][28] Question: Future product gross margins expectations - Product gross margins are expected to be impacted by tariffs and inflation, with projections indicating they may range between 20%-30% depending on product mix and timing of releases [30][32] Question: New initiatives for returning to growth - The company is focusing on solutions-oriented service offerings and restructuring distributor partnerships to drive growth, with expectations for positive results from these initiatives [36][39]

Accuray (NasdaqGS:ARAY) Q2 2026 Earnings call February 04, 2026 04:30 PM ET Company ParticipantsAli Pervaiz - SVP and CFOSteve La Neve - CEOSteve Monroe - VP of Financial Planning and AnalysisConference Call ParticipantsMarie Thibault - Managing Director and Medical Technology and Digital Health AnalystYoung Li - SVP and Equity Research AnalystOperatorGood afternoon and welcome to Accuray's conference call to review financial results for the second quarter of fiscal year 2026, which ended December 31st of 2 ...

Accuray (NasdaqGS:ARAY) Q2 2026 Earnings call February 04, 2026 04:30 PM ET Speaker0Good afternoon and welcome to Accuray's conference call to review financial results for the second quarter of fiscal year 2026, which ended December 31st of 2025. All participants will be in a listen-only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press s ...

Q2'FY26 Earnings Call Supplemental Presentation February 4, 2026 Forward-looking Statements This presentation is intended exclusively for investors. It is not intended for use in Sales or Marketing. 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 i ...

Exhibit 99.1 Accuray Reports Fiscal 2026 Second Quarter Financial Results MADISON, Wis, February 4, 2026 — Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the second quarter ended December 31, 2025. Key Highlights "Over the past 90 days, I've met extensively with Accuray teams and customers across all major regions. Their insights have directly informed the decisive actions we've already taken — from reorganizing our commercial structure to refining our near‑term product and service ...

MADISON, Wis., Feb. 4, 2026 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the second quarter ended December 31, 2025. Key Highlights "Over the past 90 days, I've met extensively with Accuray teams and customers across all major regions. Their insights have directly informed the decisive actions we've already taken — from reorganizing our commercial structure to refining our nearterm product and service investment priorities. We moved quickly and with discipline acr ...

Core Viewpoint - Accuray Incorporated will report its financial results for the second quarter of fiscal year 2026 on February 4, 2026, following the end of the quarter on December 31, 2025 [1]. Group 1: Financial Reporting - The financial results conference call will be hosted by company management at 1:30 p.m. PT/4:30 p.m. ET [1]. - Dial-in numbers for the conference call are provided for both the USA and international participants [2]. - A replay of the conference call will be available approximately one hour after its conclusion for one week [2]. Group 2: Webcast Information - A live webcast of the conference call will be accessible from the Investor Relations section of the company's website [3]. - The webcast replay will remain available until Accuray announces its results for the third quarter of fiscal 2026 [3]. Group 3: Company Overview - Accuray is focused on advancing radiation therapy to improve patient lives, offering innovative solutions for complex cases and enhancing treatment for commonly treatable cases [4]. - The company is dedicated to continuous innovation in radiation therapy for oncology and neuro-radiosurgery, collaborating with clinicians and administrators [4]. - Accuray is headquartered in Madison, Wisconsin, and has facilities worldwide [4].