8-K
ACCURAY INC (ARAY)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): August 13, 2025 |
|---|
ACCURAY INCORPORATED
(Exact name of Registrant as Specified in Its Charter)
| Delaware | 001-33301 | 20-8370041 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| 1240 Deming Way | ||
| Madison, Wisconsin | 53717-1954 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s Telephone Number, Including Area Code: 608 824-2800 | ||
| --- |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.001 par value per share | ARAY | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 13, 2025, Accuray Incorporated (the “Company”) issued a press release announcing its financial results for the fourth quarter and fiscal year ended June 30, 2025. A copy of the Company’s press release dated August 13, 2025, titled “Accuray Reports Fourth Quarter and Fiscal 2025 Financial Results” is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The foregoing information (including the exhibit hereto) is being furnished under “Item 2.02 Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
Spokespersons of the Company plan to present the information in the presentation attached hereto as Exhibit 99.2 to analysts and investors from time to time on or after August 13, 2025. The presentation will be available on the Company’s Investor Relations website at: http://investors.accuray.com.
The furnishing of the attached presentation is not an admission as to the materiality of any information therein. The information contained in the presentation is summary information that is intended to be considered in the context of more complete information included in the Company’s filings with the U.S. Securities and Exchange Commission and other public announcements that the Company has made and may make from time to time by press release or otherwise. The Company undertakes no duty or obligation to update or revise the information contained in this report. For important information about forward looking statements, see the slide titled “Forward-Looking Statements” in Exhibit 99.2 attached hereto.
The information set forth under Item 2.02 of this Current Report on Form 8-K is incorporated by reference into this Item 7.01.
The information contained in this Item 7.01 disclosure, including Exhibit 99.1 and Exhibit 99.2, is furnished pursuant to Item 7.01 and shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference into a filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release dated August 13, 2025, titled “Accuray Reports Fourth Quarter and Fiscal 2025 Financial Results” |
| 99.2 | Accuray Fourth Quarter and Fiscal 2025 Earnings Call Presentation |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| ACCURAY INCORPORATED | |||
|---|---|---|---|
| Date | August 13, 2025 | ||
| By: | /s/ Ali Pervaiz | ||
| Ali Pervaiz<br>Senior Vice President & Chief Financial Officer |
EX-99.1
Exhibit 99.1
Accuray Reports Fourth Quarter and Fiscal 2025 Financial Results
Strong Service Growth; Debt Refinancing Complete; Company Issues FY26 Guidance
MADISON, Wisconsin, August 13, 2025 — Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the fourth quarter and fiscal 2025, ended June 30, 2025.
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 of Accuray’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 Kaplan |
|---|---|
| Investor Relations, ICR-Westwicke | Public Relations Director, Accuray |
| +1 (443) 450-4191 | +1 (408) 789-4426 |
| aman.patel@westwicke.com | bkaplan@accuray.com |
Financial Tables to Follow
Accuray Incorporated
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
| Three Months Ended<br>June 30, | Twelve Months Ended<br>June 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 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 | ||||||||
| Cost of revenue: | ||||||||||||
| Cost of products | 51,254 | 55,084 | 162,569 | 161,061 | ||||||||
| Cost of services | 37,310 | 40,753 | 148,969 | 142,569 | ||||||||
| Total cost of revenue | 88,564 | 95,837 | 311,538 | 303,630 | ||||||||
| Gross profit | 38,979 | 38,452 | 146,967 | 142,921 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 11,470 | 9,529 | 47,942 | 49,732 | ||||||||
| Selling and marketing | 11,409 | 10,696 | 43,315 | 42,619 | ||||||||
| General and administrative | 11,866 | 11,410 | 47,871 | 50,066 | ||||||||
| Total operating expenses | 34,745 | 31,635 | 139,128 | 142,417 | ||||||||
| Income from operations | 4,234 | 6,817 | 7,839 | 504 | ||||||||
| Income from equity method investment | 885 | 810 | 4,714 | 1,838 | ||||||||
| Interest 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 | 3,725 | ||||||||
| 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 | ) | ||
| 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 | 98,272 | ||||||||
| Diluted | 108,891 | 101,028 | 102,768 | 98,272 |
Accuray Incorporated
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
| June 30, | June 30, | |||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 57,416 | $ | 68,570 | ||
| Restricted cash | 574 | 485 | ||||
| Accounts receivable, net | 83,192 | 92,001 | ||||
| Inventories | 141,020 | 138,324 | ||||
| Prepaid expenses and other current assets | 33,501 | 23,006 | ||||
| Deferred cost of revenue | 1,762 | 850 | ||||
| Total current assets | 317,465 | 323,236 | ||||
| Noncurrent assets: | ||||||
| Property and equipment, net | 28,658 | 24,774 | ||||
| Investment in joint venture | 4,612 | 9,826 | ||||
| Operating lease right-of-use assets | 33,115 | 33,773 | ||||
| Goodwill | 57,802 | 57,672 | ||||
| Restricted cash | 4,144 | 1,337 | ||||
| Other assets | 24,443 | 18,009 | ||||
| Total assets | $ | 470,239 | $ | 468,627 | ||
| Liabilities and stockholders' equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 34,033 | $ | 50,020 | ||
| Accrued compensation | 14,573 | 17,128 | ||||
| Operating lease liabilities, current | 7,375 | 6,218 | ||||
| Other accrued liabilities | 29,361 | 28,508 | ||||
| Customer advances | 12,197 | 13,988 | ||||
| Deferred revenue | 82,306 | 71,649 | ||||
| Short-term debt, net of unamortized financing costs | 15,583 | 7,756 | ||||
| Total current liabilities | 195,428 | 195,267 | ||||
| Noncurrent liabilities | ||||||
| Operating lease liabilities, non-current | 32,482 | 32,373 | ||||
| Long-term other liabilities | 5,160 | 7,389 | ||||
| Warrant liability | 8,497 | - | ||||
| Deferred revenue | 26,566 | 24,114 | ||||
| Long-term debt, net of unamortized financing costs | 120,937 | 164,400 | ||||
| Total liabilities | 389,070 | 423,543 | ||||
| Stockholders' Equity: | ||||||
| Common stock | 113 | 100 | ||||
| Additional paid-in capital | 602,165 | 566,887 | ||||
| Accumulated other comprehensive loss | (1,837 | ) | (4,222 | ) | ||
| Accumulated deficit | (519,272 | ) | (517,681 | ) | ||
| Total stockholders' equity | 81,169 | 45,084 | ||||
| Total liabilities and stockholders' equity | $ | 470,239 | $ | 468,627 |
Accuray Incorporated
Summary of Orders and Backlog
(in thousands)
(Unaudited)
| Three Months Ended<br>June 30, | Twelve Months Ended<br>June 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 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 | 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 period
Accuray Incorporated
Reconciliation 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<br>June 30, | Twelve Months Ended<br>June 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||||||
| GAAP net income (loss) | $ | 1,123 | $ | 3,387 | $ | (1,591 | ) | $ | (15,545 | ) | |
| Depreciation and amortization (a) | 1,598 | 1,507 | 6,150 | 5,905 | |||||||
| Stock-based compensation | 2,818 | 2,042 | 10,201 | 9,483 | |||||||
| Interest expense, net (b) | 3,937 | 2,686 | 11,762 | 10,676 | |||||||
| Gain on extinguishment of debt | (1,475 | ) | — | (1,475 | ) | — | |||||
| Provision for income taxes | 948 | 471 | 2,725 | 3,725 | |||||||
| Loss from change in fair value of warrant liability | 499 | — | 499 | — | |||||||
| Restructuring charges | — | — | — | 2,633 | |||||||
| ERP and ERP related expenditures | — | — | — | 2,815 | |||||||
| Adjusted 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 Incorporated
Forward-Looking Guidance
Reconciliation of Projected Net Loss to Projected Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, Stock-Based Compensation (Adjusted EBITDA)
(in thousands)
| Twelve Months Ending<br>June 30, 2026 | ||||||
|---|---|---|---|---|---|---|
| From | To | |||||
| GAAP net loss | $ | (12,000 | ) | $ | (8,000 | ) |
| Depreciation and amortization (a) | 6,000 | 6,000 | ||||
| Stock-based compensation | 10,500 | 10,500 | ||||
| Interest expense, net (b) | 23,500 | 23,500 | ||||
| Provision for income taxes | 3,000 | 3,000 | ||||
| Adjusted 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.
Q4’FY25 Earnings Call Supplemental Presentation August 13, 2025
Forward-looking Statements This presentation is intended exclusively for investors. It is not intended for use in Sales or Marketing. 2 Proprietary and Confidential Property of Accuray 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 fiscal focused priorities and strategy to close the gaps to care; expectations regarding China deferred margin release; our ability to deliver on our goals, priorities, and strategic growth plans; expectations regarding our refinancing and refinancing partner; expectations related to our China joint venture; and expectations related to new product innovations and offerings as well as revenue growth and market share going forward. Forward-looking statements generally can be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “projects,” “may,” “will be,” “will continue,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to: risks related to the effect of the global macroeconomic environment on the operations of the company and those of its customers and suppliers; effects related to international tariffs; disruptions to our supply chain, including increased logistics costs; the company's ability to achieve widespread market acceptance of its products; 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 other risks identified under the heading “Risk Factors” in our quarterly report on Form 10-Q, filed with the Securities and Exchange Commission (the “SEC”) on May 2, 2025, and as updated periodically with our 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 Accuray at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Accuray 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 place undue reliance on any forward-looking statements. Non-GAAP Financial Measures This presentation also contains non-GAAP financial measures. Management believes that non-GAAP financial measures provide useful supplemental information to management and investors regarding the performance of the company and facilitates a more meaningful comparison of results for current periods with previous operating results. Additionally, these non-GAAP financial measures assist management in analyzing future trends, making strategic and business decisions, and establishing internal budgets and forecasts. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is provided in the Appendix. 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. Medical Advice Disclaimer Accuray Incorporated as a medical device manufacturer cannot and does not recommend specific treatment approaches. Individual results may vary.
Vision To expand the curative power of radiation therapy to improve as many lives as possible Mission To think, act, and execute beyond expectations every day to deliver better, safer radiation therapy solutions and help patients get back to living their lives, faster
Accuray Product Portfolio Unique Robotic, Dedicated SRS/SBRT System Helical RT System with CT Imaging CyberKnife® System Radixact® System Tomo C® System Accuray Helix™ Helical System Made in China Designed for Patient Access
Our Strategy – Close the Gaps to Care Expand Patient Access in Growth Markets Advance Care Through Innovation Grow and Optimize Service Solutions Connect the Global RT Community
Patient-focused Highlights: Expanding Access to High-Precision Care First Patient Treatments Radixact System and VitalHold™ Technology in Multiple Countries Tomo® C System in China CyberKnife System in Austria Regulatory Milestone NMPA approval for Radixact® SynC™ System and CyberKnife® S7™ System in China
1 Adjusted EBITDA is a non-GAAP measure. Please see Slides 13 and 17 for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure. Total net revenue was $458.5 million for fiscal 2025, a 3% increase year-over-year, and record annual revenue Operating income of $7.8 million compared to $0.5 million in the prior fiscal year period Adjusted EBITDA1 was 28.3 million for fiscal 2025, compared to $19.7 million in the prior fiscal year period Order book-to-bill ratio at 1.2 FY25 Financial Highlights Service revenue growth of 4 percent year-over-year
China Deferred Margin Impact Due to JV accounting rules, 49% of total margin is deferred upon shipment to the JV and margin is released when the JV ships the system to the customer Deferred margin is reflected on the Balance Sheet under Assets as “Investment in JV” Net deferral of $4.0 million in Q4 is largely a result of higher mix of shipments to the JV in Q4 1 Gross Margin % (Excl China Margin Impact) is a non-GAAP measure. Please see Slides 19 - 22 for a reconciliation of Gross Margin % (Excl China Margin Impact) to the most directly comparable GAAP measure. 2 Adjusted EBITDA is a non-GAAP measure. Please see Slides 13 - 17 for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure. FY25 $k Q1 Q2 Q3 Q4 YTD Net China Margin Impact (Deferral) / Release (3,617) 4,735 (4,686) (4,034) (7,602) Gross Margin % Reported 33.9% 36.1% 27.9% 30.6% 32.1% Gross Margin % (Excl China Margin Impact)1 37.5% 32.0% 32.1% 33.7% 33.7% Adjusted EBITDA (Reported)2 3,141 9,634 6,048 9,448 28,271 Adjusted EBITDA %2 3% 8% 5% 7% 6% Adjusted EBITDA (Excl China Margin Impact)2 6,758 4,899 10,734 13,482 35,873 Adjusted EBITDA (Excl China Margin Impact)2 7% 4% 9% 11% 8% Def Margin in Balance Sheet (cumulative) (12,675) (7,940) (12,626) (16,660) (16,660)
Q4’FY25 and FY25 Financials Solid financial performance KEY FINANCIAL METRICS Highlights Strong service revenue growth, in particular in international markets Completed debt refinancing, including securing a strong strategic partner invested in long-term success Solid adjusted EBITDA1 performance over the full year driven by higher volume and focused cost discipline Adjusting for China margin deferral of $7.6 million, full year gross margins were 33.7%2 on a pro forma basis Revenues $127.5M (5%) $458.5 3% Product $70.7M (11%) $237.6 1% Service $56.8M 4% $221.0 4% Op. Expenses $34.7M 10% $139.1 (2%) Adj. EBITDA1 $9.4M (6%) $28.3M 44% $M Q4 Y/Y FY’25 Y/Y 1 Adjusted EBITDA is a non-GAAP measure. Please see Slides 13 - 17 for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure. 2. Gross Margin % (Excl China Margin Impact) is a non-GAAP measure. Please see Slides 19 - 22 for a reconciliation of Gross Margin % (Excl China Margin Impact) to the most directly comparable GAAP measure
FY26 Guidance Total Net Revenue Adjusted EBITDA1 1 Adjusted EBITDA is a non-GAAP measure. Please see Slide 18 for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure. $31M - $35M +10% - 25% $471M - $485M +3% - 6% $ in millions % = YoY Growth FY26 Guidance Range
FY2026 Fiscal Focused Priorities Expand Service Revenue and Margins Revenue Growth and Installed Base Expansion Focused Capital Deployment to Fuel Innovation and Shareholder Value Targeted Initiatives to Meaningfully Expand Adjusted EBITDA
Thank you
$K GAAP net income Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization Three Months Ended June 30, Three Months Ended June 30, 2024 2025 $ $ $ $ 1,123 1,598 2,818 3,937 948 9,448 3,387 1,507 2,042 2,686 471 10,093 Gain on extinguishment of debt - GAAP to Adjusted EBITDA Q4 FY’25 and Q4 FY’24 Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) Loss on change in fair value of warrant liability 499 - (1,475)
$K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Depreciation and amortization Twelve Months Ended June 30, 2025 Gain on extinguishment of debt GAAP to Adjusted EBITDA FY2025 and FY2024 Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) Adjusted EBITDA Loss from change in fair value of warrant liability Restructuring charges ERP and ERP related expenditures $ (15,545) 5,905 9,483 10,676 3,725 - - $ 19,692 $ (1,591) 6,150 10,201 11,762 2,725 499 (1,475) $ 28,271 2024 2,633 - 2,815 -
$K GAAP net loss Stock-based compensation Interest expense, net Restructuring charges Depreciation and amortization Three Months Ended March 31, Three Months Ended March 31, 2024 2025 $ $ (1,297) 1,575 2,745 2,568 0 0 (6,342) 1,601 2,735 2,649 0 0 ERP and ERP related expenditures 457 444 GAAP to Adjusted EBITDA Q3 FY’25 and Q3 FY’24 Reconciliation of Net Loss to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) Adjusted EBITDA $ $ 6,048 1,087 Provision for income taxes
$K GAAP net income (loss) Stock-based compensation Interest expense, net Restructuring charges Depreciation and amortization Nine Months Ended March 31, Nine Months Ended March 31, 2024 2025 $ $ (2,714) 4,552 7,383 7,825 0 0 (18,932) 4,398 7,441 7,990 2,633 2,815 ERP and ERP related expenditures 1,777 3,254 GAAP to Adjusted EBITDA YTD Q3FY’25 and Q3YTD FY’24 Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) Adjusted EBITDA $ $ 18,823 9,599 Provision for income taxes Updated slide
$K GAAP net loss Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization To From $ $ $ $ (12,000) 6,000 10,500 23,500 3,000 31,000 (8,000) 6,000 10,500 23,500 3,000 35,000 GAAP to Adjusted EBITDA FY’26 – Forward Looking Guidance Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) Twelve Months Ended June 30, 2026
$K Total Net Revenue Gross Profit China Margin (Deferral)/Release Gross Margin % excl China Margin Impact Total Cost of Revenue Three Months Ended June 30, Twelve Months Ended June 30, 2025 2025 $ $ 127,543 (88,564) 38,979 (4,034) 33.72% 458,505 (311,538) 146,967 (7,602) 33.71% Gross Profit excl China Margin Impact 43,013 154,569 Gross Margin to Gross Margin Excluding China Margin Impact Reconciliation of Gross margin to Gross margin excluding China Margin Impact $ $
$K Total Net Revenue Gross Profit China Margin (Deferral)/Release Gross Margin % excl China Margin Impact Total Cost of Revenue Three Months Ended March 31, Nine Months Ended March 31, 2025 2025 $ $ 113,243 (81,616) 31,627 (4,686) 32.07% 330,962 (222,974) 107,988 (3,568) 33.71% Gross Profit excl China Margin Impact 36,313 111,556 Gross Margin to Gross Margin Excluding China Margin Impact Reconciliation of Gross margin to Gross margin excluding China Margin Impact $ $
$K Total Net Revenue Gross Profit China Margin (Deferral)/Release Gross Margin % excl China Margin Impact Total Cost of Revenue Three Months Ended December 31, Six Months Ended December 31, 2024 2024 $ $ 116,174 (74,282) 41,892 4,735 31.98% 217,719 (141,358) 76,361 1,118 34.56% Gross Profit excl China Margin Impact 37,157 75,243 Gross Margin to Gross Margin Excluding China Margin Impact Reconciliation of Gross margin to Gross margin excluding China Margin Impact $ $
$K Total Net Revenue Gross Profit China Margin Deferral Gross Margin % excl China Margin Impact Total Cost of Revenue Three Months Ended September 30, 2024 $ 101,545 (67,076) 34,469 (3,617) 37.51% Gross Profit excl China Margin Impact 38,086 Gross Margin to Gross Margin Excluding China Margin Impact Reconciliation of Gross margin to Gross margin excluding China Margin Impact $