Accuray Incorporated

Net revenue was $100.9 million in Q4, down 21% year over year on both reported and constant-currency basis. Full-year revenue was $402 million, down 12% year over year and down 14% on a constant-currency basis. Q4 service revenue was $60.1 million, up $3.2 million or 6%; full-year service revenue was $229 million, up $8.3 million or 4%. Q4 product revenue was $40.8 million, down $29.9 million or 42%; full-year product revenue was $173 million, down $65 million or 27%. Q4 gross profit was $35.1 million with gross margin of 34.8% versus 30.6% a year ago; full-year gross profit was $111 million with gross margin of 27.7% versus 32.1% a year ago. Q4 operating income was $5.5 million versus $4.2 million last year; full-year operating loss was $26.4 million versus income of $7.8 million. Q4 adjusted EBITDA was $12.9 million versus $9.4 million last year; full-year adjusted EBITDA was $10.6 million versus $28.3 million. Product gross orders were about $38 million in Q4 with a 0.9x book-to-bill; full-year gross orders were $192 million with a 1.1x trailing 12-month book-to-bill; order backlog ended at about $313 million. For fiscal 2027, management gave no formal revenue or adjusted EBITDA guidance, but said it expects continued growth in service revenue, improved service margins, ongoing operating expense discipline, and roughly $15 million of incremental annualized cost and margin improvement from transformation actions.

Stephen R. LaNeve framed fiscal 2026 as a year of broad operational reset: streamlining the organization, tightening accountability, reducing costs, and building a more focused partnership ecosystem. He emphasized that the company is entering a “Phase 2” focused on differentiated innovation, lower cost structure, expanded market reach, and service revenue and margin expansion. His tone was constructive but cautious, noting persistent uncertainty from geopolitics, tariffs, China, and the Middle East that makes product demand and margin trends hard to predict.

Ali Pervaiz led with the numbers: Q4 revenue of $100.9 million, service revenue of $60.1 million, product revenue of $40.8 million, Q4 gross margin of 34.8%, and full-year revenue of $402 million with gross margin of 27.7%. He highlighted service margin progress from pricing actions and lower labor costs, while product margins were hurt by lower China shipments, tariff expense, mix, and an obsolete component write-down. On the balance sheet, cash, cash equivalents and restricted cash were $48.8 million, net receivables were $67.4 million, inventory was $147.1 million, and $5 million was outstanding on the revolver. He also detailed the TCW transaction: $40 million of debt to preferred equity, a $15 million convertible preferred equity investment, up to $5 million of delayed-draw liquidity, 8% dividends on preferred shares, and a covenant holiday through 12/31/2027 with first testing on 03/31/2028.

There were no analyst questions; management said no questions were received and moved directly to closing remarks. As a result, there was no Q&A color on demand trends, margins, China, or the TCW deal beyond what management covered in prepared remarks.