Accuray Q4 FY26 slides: service gains offset product revenue drop

Accuray Incorporated reported its fourth quarter 2026 earnings on August 19, 2026, showing a challenging period with a 21% year-over-year decline in total revenue to $100.91 million. This drop was mainly due to a 42% reduction in product revenue to $40.8 million. On a positive note, the company's service business grew by 6% to $60.1 million, continuing a trend of increasing recurring revenue.

The service business now accounts for about 57% of total revenue, up from 48% in the previous year. Gross margins improved to 34.8% in the quarter, up from 30.6% in the prior year, driven by service margin expansion, price optimization, and cost controls. Operating expenses decreased by 15% in the quarter, totaling $29.6 million, with a 13% decrease for the full year.

Adjusted EBITDA reached $12.9 million in the fourth quarter, a 36% increase from $9.4 million in the prior year, but fell 63% for the year to $10.6 million. The company's China operations presented complexities due to accounting rules, with deferred margin impacts partially neutralizing the overall effect. Revenue decline attributed to China-related factors was approximately $58 million.

The company's transformation program achieved cost and margin improvements ahead of targets, with a $20 million reduction in expenses. Despite these efforts, Accuray declined to provide guidance for fiscal 2027, citing uncertainty around product demand and margins.