Accuray’s revenue mix shifted sharply toward recurring service revenue during its fiscal fourth quarter of 2026 as product sales declined 42% while service revenue continued growing. Fourth-quarter total revenue fell 21% to $100.9 million from $127.5 million.
Product revenue dropped to $40.8 million from $70.7 million, while service revenue increased 6% to $60.1 million from $56.8 million.
As a result, service represented approximately 59.6% of total quarterly revenue, compared with about 44.5% in the prior-year period.
The shift makes Accuray’s recurring service operation increasingly important to the company’s financial profile as equipment sales remain under pressure from geopolitical conditions, tariff uncertainty and weakness in certain international markets.
Despite the 21% revenue decline, quarterly profitability showed meaningful improvement in several areas.
Gross margin expanded to 34.8% from 30.6%, an increase of approximately 420 basis points. Operating expenses declined 15% to $29.6 million, including $700,000 of restructuring charges.
Excluding restructuring charges, operating expenses would have declined approximately 17%.
Adjusted EBITDA increased approximately 37% to $12.9 million from $9.4 million.
Accuray nevertheless reported a GAAP net loss of $1.9 million, or $0.02 per share, compared with net income of $1.1 million, or $0.01 per share, a year earlier.
The company said its fiscal 2026 transformation plan generated more than $20 million of cost and margin improvement, substantially exceeding its original $12 million target.
Order trends remained a significant area of weakness.
Fourth-quarter gross product orders fell to $37.7 million from $84.7 million, a decline of approximately 55%. Book-to-bill decreased to 0.9 from 1.2, while backlog fell 27% to $312.5 million.
For the full fiscal year, service revenue increased 4% to $229.2 million even as product revenue declined 27% to $172.7 million.
Accuray is not providing formal fiscal 2027 revenue or adjusted EBITDA guidance because of continued uncertainty involving international trade policy, tariffs, China, the Middle East and broader economic conditions.
KEY QUOTE:
“While product demand in certain regions remained impacted by geopolitical developments and tariff uncertainty, we continued to expand service revenue, improve operating efficiency, and execute our transformation initiatives ahead of expectations.”
Ali Pervaiz, Chief Financial Officer of Accuray
