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 ...

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]