ARAY

RadTech

Accuray Incorporated

Radiosurgery & radiation therapy systems (CyberKnife, TomoTherapy)

0.30

▲ 0.08 (+36.36%)

Needs attentionVolume 765.6× the 20-day averageEstimated price 2305% above priceEstimate shown is the peer P/S-implied price, not the DCF: the discounted-cash-flow model is not meaningful for this name (negative terminal-year cash flow). Value it on relative multiples and Level-3 assumptions, not the raw DCF.Net leverage (~6.2x, roughly $107M net debt against TTM EBITDA of -$18.5M) is far above both the 2.5x trigger and the 3.5x escalation threshold; with TTM EBITDA negative, leverage is effectively non-positive and coverage is impaired. The term loan carries a ~23.9% effective rate and the company has relied on covenant amendments, keeping refinancing/covenant risk live.

Price · volume · estimated price

Chart

0.30

Sep 28, 2026 · Vol 374.8M

Thesis

At a glance

Designs and sells precision radiation therapy and radiosurgery systems. Revenue mix of product, service, and a growing installed-base recurring stream; watch backlog and China JV dynamics.

Analyst view · model-derived

The call

Speculative Sell · UnderweightLow conviction

12-mo target

$-3.81

-1372% vs price

Bull case

—

Bear case

—

Accumulate below

$-3.05

ThesisWe see limited upside: at $0.30 the shares sit 1372% above our $-3.81 intrinsic estimate.

ValuationThe DCF is not meaningful here — its terminal year is still cash-flow-negative — so we anchor on the peer EV/EBITDA multiple at $7.21 rather than the raw intrinsic number.

What's priced inAt $0.30, the tape is discounting a contraction our model does not model — the tape is more bearish than our floor.

LevelsHistory is too thin for a scenario band, so we frame value on the $-3.81 point estimate and would look to accumulate below $-3.05 (~25% margin of safety).

Risks to ratingKey risks to the rating: a reliability/distress rule is firing (net leverage n/m exceeds the 4.0× threshold; trailing net income is negative), and the estimate already carries a haircut.

Bottom lineBottom line: sell into strength; downside to our $-3.81 estimate. Low-conviction call.

Model-derived synthesis of the computed valuation — not investment advice.

Market signals · technical

Price & volume signals

Technical signals from price history, for your own read of market timing. These never affect the Estimated Price — they sit apart from the valuation by design.

Trend

Above averages

price vs SMAs

RSI (14)

neutral

Volume trend

rising

+9189% (10 vs 10)

SMA 20

0.25

SMA 50

0.26

SMA 200

n/a

Estimated Price3-level modelrecomputed live

≤ 0.00distressed

DCF implies equity value at or below zero on a trailing-margin forecast. Floored to zero; see the raw figure below.

Beta 1.24: Healthcare Products unlevered 1.12 (Damodaran, Global, Jan 2026) relevered at the INDUSTRY average D/E 13.9% — this company's own market D/E (402%) reflects a collapsed equity value, not its capital structure.

DCF not meaningful (negative terminal-year cash flow), and the peer cross-check is withheld as a headline because this company's distress rule is firing — a sector multiple does not describe a distressed balance sheet. Treat this estimate as unreliable and lead with Level-3 assumptions.

L1DCF core

WACC 7.16% · β 1.24

-2.63

L2Peer check + reliability haircut

-45.00% adj · peer 7.21

-3.81

L3Manual override

none — using the rule

—

WACC build-up

Cost of equity (CAPM)9.46%

After-tax cost of debt3.72%

Equity / debt weight60.00% / 40.00%

WACC7.16%

Level 2 · cross-check

Peer-implied (P/S)7.21

DCF vs peer-136.49%

Reliability haircut 35.00%–55.00%: net leverage n/m exceeds the 4.0× threshold; trailing net income is negative.

Leverage & debt serviceability

Total debt$147.9M

Net debt$107.2M

Debt / revenue36.79%

Interest expense—

Interest expense not ingested — coverage not computed.

Serviceability lens (EBIT ÷ interest) — separate from the WACC and the leverage haircut; never moves the Estimated Price.

Valuation methods · side by side

DCF (intrinsic)low

-2.63

Not meaningful — negative terminal-year cash flow; a single-scenario DCF has broken down here.

Peer P/Smedium

7.21

Shown side by side, never averaged. Headline uses the DCF, with the peer multiple as fallback when the DCF is invalid.

· Interest expense not ingested — cost of debt proxied as risk-free + 2%.
· Market equity weight 19.9% is below the 60% floor — a collapsed share price would otherwise lower the discount rate. Weights floored.
· Year-5 FCF is still negative after the full explicit period — terminal value is unreliable.

Synthesis · cross-lens readlow confidencemixed

The estimate sits +2305% above the market, though the lenses conflict or the data is thin — a low-confidence read, lean on your own judgement.

A reading of the numbers already computed — not a new estimate. It never overrides a method, rule, or approval gate.

DCF (intrinsic)n/a

Not meaningful — the DCF's final year is still cash-flow-negative, so it can't anchor value here.

Peer EV/EBITDAcheap vs price

Peer-implied $7.21 — +2305% vs price; DCF sits -135% vs peer.

Scenario bandn/a

DCF not meaningful — a scenario band on a broken DCF would mislead.

Debt serviceabilityn/a

Interest coverage not computable — no interest figure ingested.

Distress / reliabilitycaution

Reliability rule firing — net leverage n/m exceeds the 4.0× threshold; trailing net income is negative.

Technicals (timing)timing

Price above its moving averages. Timing only — never part of the value read.

Why this read

·DCF is not meaningful (negative terminal-year cash flow); the headline leans on the peer multiple instead.
·Peer multiple implies $7.21 (+2305% vs price) — reads cheap.
·Only one value lens is available — the read rests on a single method, uncorroborated.
·No scenario band — history is too thin to gauge how assumption-sensitive the estimate is.
·A distress/reliability rule is firing — the estimate carries a haircut and the fundamentals themselves are stretched.

Trailing twelve months · from XBRL

Fundamentals

as of Jun 30, 2026

Revenue

$401.9M

Gross margin

27.73%

EBITDA

−$18.5M

EBITDA margin

-4.60%

Net income

−$49.2M

EPS

-0.40

Cash

$40.6M

Total debt

$147.9M

Net debt

$107.2M

Net leverage

—

Book value

$41.7M

Backlog

—

Position

No open position. Record a trade on the Portfolio tab and it flows into this card.

Company status · synthesized

Status

Full history →Sep 28, 2026

What happened

Over the five fiscal years on file, revenue compounded at an average 3.8% per year (mean YoY growth across four transitions) with low volatility (σ=3.1%), while EBITDA margin eroded from 7.2% to 3.1% — a deteriorating profitability path. That steady decline became acute in fiscal 2026: the Q1 FY2026 10-Q (2026-02-17) shows revenue falling to $93.9M from $101.5M and a net loss of $21.7M, and the Q2 FY2026 10-Q (2026-02-17) reports a 12% YoY revenue decline to $102.2M, a net loss of $13.8M, restructuring charges, and a high effective interest rate.

Filings & extraction

10-KAug 27, 2026
Source ↗
Accuray enters fiscal 2027 with a stressed balance sheet: significant credit facility borrowings ($182.0 million term loan, $5.0 million revolver, $18.3 million delayed draw, plus $10.3 million accumulated PIK interest) and a recently completed rescue financing that converted $40 million of debt into preferred equity, granted a covenant holiday through December 2027, and shifted the revolver to asset-based lending. Management's language is cautious, explicitly expecting continued net losses, further gross margin pressure from tariffs and logistics costs through fiscal 2027, and lower China product revenue. The strategic narrative emphasizes portfolio segmentation (Stellar/Radixact/Helix), international expansion, services/recurring revenue, and partnerships, but the priority is execution of the Transformation Plan and covenant compliance. Investors should focus on liquidity runway, China tariff exposure, and the remaining internal control material weakness.
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Guidance
Qualitative expectations only: 'We expect that gross margins and net income (loss) will continue to be adversely affected by increased material costs and freight and logistics expenses through at least fiscal year 2027' and 'we expect the volume of product sales in China to decrease and costs associated with tariffs to increase.' Management also expects reduced budgets and longer customer installation timelines to continue to negatively impact net revenue since fiscal year 2024.
Debt / leverage
As of June 30, 2026, 'we had outstanding borrowings of $182.0 million under our five-year term loan... with borrowings of $5.0 million under our revolving credit facility... and $18.3 million under our delayed draw term loan, each of which will mature on June 6, 2030... Our 3.75% Convertible Senior 2026 Notes... were fully paid off on the maturity date, June 1, 2026.' 'Substantially all of our assets secure the Credit Facilities.' Subsequent to year-end, on July 29, 2026, the Company entered Amendment No. 3 to the Financing Agreement and a Securities Purchase Agreement providing for issuance of $55.0 million of Series A Convertible Preferred Stock, including conversion of $40.0 million of existing indebtedness, modified financial covenants, provided a covenant holiday through December 31, 2027, and converted the revolving credit facility to an asset-based lending structure.
Key risks
·We face risks related to the current global economic environment, which could adversely affect our business, financial condition and results of operations.
·Uncertainty or volatility in trade policy as well as enhanced international tariffs, including tariffs imposed by the United States and China... could decrease the volume of product sales in China and increase our costs and materially and adversely affect our business, financial condition and results of operations.
·Our ability to achieve profitability depends in part on maintaining or increasing our gross margins on product sales and services, which we may not be able to achieve.
·We have substantial indebtedness and may incur other debt in the future, which may adversely affect our financial condition and future financial results. In the past, we have not been in compliance with certain financial covenants relating to our indebtedness and have been required to obtain waivers or amend existing agreements...
·Our industry is subject to intense competition and rapid technological change, which may result in products or new tumor treatments that are superior to the CyberKnife and TomoTherapy platforms.
·We have identified material weaknesses in our system of internal controls as of June 30, 2025, September 30, 2025, December 31, 2025, and March 31, 2026, of which one material weakness remained unremediated as of June 30, 2026.
·There can be no assurance that the Financing Transaction will be successfully consummated or achieve the anticipated results.
Forward-looking · richest in 10-Ks
Outlook / tone
Management's tone is cautious and heavily hedged. The filing states 'we have incurred net losses, and expect to incur net losses in the future' and 'we cannot assure you that we will be able to achieve profitability.' It expects gross margins and net income to remain under pressure through at least fiscal 2027, China product sales to decline due to tariffs, and the Financing Transaction to carry execution risk: 'There can be no assurance that the Financing Transaction will be successfully consummated or achieve the anticipated results.'
Strategic priorities
·Increase physician adoption and patient awareness to drive utilization.
·Continue to expand the radiosurgery market.
·Continue to innovate through clinical development and collaboration.
·Differentiate our portfolio to address a broader range of customer needs.
·Expand sales in international markets.
·Expand services and solutions to drive recurring revenue and customer value.
·Improve operational efficiency and cost competitiveness.
·Strategic partnerships and joint ventures.
Capex / expansion
No explicit capital expenditure plan is disclosed. The Company states: 'We believe our manufacturing facilities will be adequate for our expected growth and foreseeable future demands for at least the next three years.'
Capital allocation
No dividends or share repurchases are disclosed; the Financing Agreement covenants limit the ability to 'pay dividends or make other distributions.' Capital allocation is oriented toward debt refinancing—including the July 2026 Series A Convertible Preferred issuance that converted $40.0 million of existing indebtedness and provided a covenant holiday through December 31, 2027—and strategic partnerships/JVs, as management 'intend[s] to pursue strategic partnerships, interoperability agreements and joint ventures.'
Risk-factor changes
Notable risk factor content includes a new section 'Risks Related to our Financing Transaction,' expanded tariffs/trade policy discussion following the February 2026 U.S. Supreme Court IEEPA ruling and submission of approximately $9.3 million in tariff refund claims, and updated material weakness disclosure: one material weakness was remediated as of June 30, 2026, while one remained unremediated.
Extracted by deepseek-v4-flash · Aug 28, 2026
8-KAug 19, 2026Item 2.02,7.01,9.01
Source ↗
This 8-K is a procedural filing that announces, via Item 2.02 and Item 7.01, the issuance of a press release (Exhibit 99.1) and an investor presentation (Exhibit 99.2) covering Accuray's fourth quarter and fiscal year ended June 30, 2026. The body of the 8-K contains no specific financial or qualitative business details; all substantive content resides in the referenced exhibits, which are not included in the provided text. Therefore, no MD&A highlights, guidance, backlog commentary, debt commentary, key risks, capex plans, strategic priorities, outlook narrative, risk factor changes, or capital allocation information can be extracted from the document itself.
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Extracted by deepseek-v4-flash · Aug 19, 2026
8-KAug 06, 2026Item 3.01
Source ↗
Accuray disclosed that it transferred its common stock listing to the Nasdaq Capital Market effective August 6, 2026, after receiving approval on August 4, 2026. This action follows a failure to satisfy the $1.00 bid price requirement on the Global Select Market; Nasdaq granted the company an additional 180 days, until February 1, 2027, to demonstrate compliance. The filing is a listing-standard event and contains no financial results, guidance, or operational commentary. The key risk is potential delisting if the bid price does not recover above $1.00 by the deadline.
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MD&A highlights
·On August 4, 2026, Accuray received approval from Nasdaq to transfer its common stock listing from The Nasdaq Global Select Market to The Nasdaq Capital Market, effective August 6, 2026. The stock will continue to trade under the symbol 'ARAY.'
Key risks
·The Company has been granted an additional 180 day period, or until February 1, 2027, to demonstrate compliance with the $1.00 bid price requirement of The NASDAQ Capital Market. Failure to do so could result in delisting.
Extracted by deepseek-v4-flash · Aug 06, 2026
8-KJul 29, 2026Item 1.01,3.02,5.02,8.01,9.01
Source ↗
In this 8-K, Accuray announced a $55.0 million recapitalization with existing investors: $15.0 million of new cash and conversion of $40.0 million of existing debt into Series A Convertible Preferred Stock carrying an 8% dividend, a liquidation preference senior to common, and an initial conversion price of approximately $0.50 per share. The transaction also cancels warrants on ~27.6 million common shares while issuing new 7-year warrants for ~15.3 million shares at $0.01 per share. Amendment No. 3 to the Financing Agreement grants a covenant holiday through December 31, 2027, adds $5 million of delayed draw capacity, and converts the revolver to an asset-based facility; failure to obtain stockholder approval would trigger a $15 million fee and reclassify the cash investment as secured debt. The Board shrank to seven members with TCW designating two Preferred Directors, and two directors resigned. The filing is transactional and provides no revenue guidance, backlog, capex plan, or forward-looking outlook.
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MD&A highlights
·On July 29, 2026, Accuray entered into a Securities Purchase Agreement with existing investors to sell 55,000 shares of Series A Convertible Preferred Stock at $1,000 per share for aggregate proceeds of $55.0 million.
·The purchase price consists of $15.0 million in cash and the conversion and extinguishment of $40.0 million of existing indebtedness under the Financing Agreement.
·Upon closing, outstanding warrants to purchase approximately 27.6 million shares of common stock will be automatically cancelled; the Company issued new warrants to purchase approximately 15.3 million shares at $0.01 per share.
·The Series A Preferred Stock carries an 8% per annum accruing dividend, ranks senior to common stock, and is convertible at an initial conversion price of approximately $0.50 per share.
·Amendment No. 3 to the Financing Agreement provides a financial covenant holiday through December 31, 2027, adds $5.0 million of Delayed Draw Term Loans, and converts the revolving loan facility into an asset-based revolver.
·The Board was decreased to seven members, TCW has the right to designate two Preferred Directors, and Beverly Huss and Anne LeGrand resigned from the Board.
Debt / leverage
$40.0 million of existing indebtedness held by the Investors under the Financing Agreement will be converted into Series A Preferred Stock and extinguished. Amendment No. 3 provides a covenant holiday through December 31, 2027 for the Total Leverage Ratio and Fixed Charge Coverage Ratio, modifies the minimum liquidity requirement, increases certain prepayment fees, adds $5.0 million of Delayed Draw Term Loans, and converts the revolving loan facility into an asset-based revolver. If the Purchase Agreement is terminated, the $15.0 million Cash Investment is deemed a secured obligation under the Financing Agreement and is subject to repayment plus a $15.0 million fee upon repayment or acceleration. The Company paid $250,000 in amendment fees.
Key risks
·Closing is subject to stockholder approval of the Issuance and the reverse stock split (ratio between 1-for-15 and 1-for-40); if approval is not obtained, the $15.0 million Cash Investment automatically becomes an Obligation under the Financing Agreement and a $15.0 million fee becomes payable to TCW.
·The Series A Preferred Stock ranks senior to common stock with 8% per annum accruing dividends, and holders have consent rights over certain actions, including issuing pari passu or senior capital stock and changing Board or committee composition.
·The Warrants to purchase 15.3 million shares at $0.01 per share and the conversion rights of the Series A Preferred (initial conversion price ~$0.50, subject to the reverse stock split) may result in significant dilution to existing common stockholders.
·Amendment No. 3 converts the revolving loan facility into an asset-based revolver with related changes to borrowing conditions and covenants, and increases certain prepayment fees, which may affect liquidity and financial flexibility.
Extracted by deepseek-v4-flash · Aug 01, 2026
8-KJun 04, 2026Item 1.02,7.01
Source ↗
Accuray repaid the remaining $18.0 million of its 3.75% Convertible Senior Notes at maturity on June 1, 2026, using cash on hand, eliminating its last major debt obligation. The filing contains no operational or strategic updates.
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MD&A highlights
·Repaid remaining $18.0 million aggregate principal of 3.75% Convertible Senior Notes due 2026 on June 1, 2026, plus $337,500 accrued interest; Indenture satisfied and discharged.
Extracted by deepseek-v4-flash · Jul 22, 2026

View all filings (+14) ▾

10-QMay 06, 2026
Source ↗
Accuray's Q3 fiscal 2026 results reflect deteriorating financial performance, with a net loss of $11.8 million for the quarter and $47.3 million year-to-date, driven by lower revenue, margin compression from supply chain and inflation headwinds, restructuring charges of $15.4 million, and a surge in interest expense to $24.2 million. The company ended the period with $44.4 million in cash and equivalents, but operating cash flow was negative $9.4 million. Debt stood at $145.2 million net, with a 24.5% effective interest rate on its Term Loan Facility, and the company faces ongoing covenant compliance risk. Management provided cautious near-term guidance, expecting continued margin and cash flow pressure through fiscal 2026. The restructuring plan and sale of tariff refund claims for $6.6 million provide modest relief. Key risks include Nasdaq minimum bid price non-compliance, covenant breaches, and prolonged U.S. market weakness.
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MD&A highlights
·Total net revenue decreased to $301.0 million for the nine months ended March 31, 2026 from $331.0 million in the prior year period.
·Gross profit decreased to $76.4 million from $108.0 million.
·Operating loss of $32.0 million compared to operating income of $3.6 million.
·Restructuring charges of $15.4 million incurred in fiscal 2026.
·Interest expense increased to $24.2 million from $8.7 million due to higher debt and PIK interest.
·Net cash used in operating activities was $9.4 million compared to net cash provided of $12.6 million.
Guidance
The Company expects that gross margins and net income (loss) will continue to be adversely affected by increased material costs and freight and logistics expenses through at least fiscal year 2026. It expects inflation and supply chain challenges to impact cash from operations through at least fiscal year 2026. Reduced U.S. budgets and longer installation timelines are expected to continue impacting revenue through fiscal year 2026. Total restructuring charges for the FY26 Restructuring Plan are expected to be approximately $17 million, substantially all paid in cash in fiscal 2026.
Backlog
As of March 31, 2026, total remaining performance obligations amounted to $70.2 million, of which $53.6 million relates to warranty performance obligations. The Company expects to recognize the significant majority of the additional $16.6 million of remaining performance obligations (primarily deferred training and system installations) over the next 12 months. Open system orders, upgrade sales orders, and customer credits are excluded from these balances because they do not meet the definition of a remaining performance obligation under ASC 606.
Debt / leverage
As of March 31, 2026, total debt net was $145.2 million, comprising a $148.8 million Term Loan Facility, $5.0 million drawn on a Revolving Credit Facility, $18.0 million of Convertible Senior Notes due June 1, 2026, and $7.7 million of accumulated paid-in-kind interest. The weighted-average effective interest rate on the Term Loan Facility was 24.5%. The Financing Agreement includes financial covenants (fixed charge coverage ratio, leverage ratio, minimum liquidity); failure to comply could accelerate debt and require replacement financing. The Company sold $9.0 million of IEEPA tariff refund claims for $6.6 million in cash after quarter end.
Key risks
·Adverse impacts from geopolitical and macroeconomic conditions including inflation, high interest rates, foreign currency fluctuations, tightening credit markets, conflicts in Iran/Middle East/Russia-Ukraine, and U.S.-China tensions.
·Supply chain challenges and increased component and logistics costs negatively affecting gross margins and cash flows through at least fiscal 2026.
·Reduced U.S. capital deployment for radiotherapy equipment and longer installation timelines impacting revenue through fiscal 2026.
·Potential non-compliance with Nasdaq minimum bid price rule and risk of delisting.
·Risk of non-compliance with debt covenants in the Financing Agreement, which could accelerate repayment and require new financing.
Forward-looking · richest in 10-Ks
Outlook / tone
Based on the balance of cash and cash equivalents, available debt facilities, current business plan and revenue prospects, the Company believes it will have sufficient cash resources and anticipated cash flows to fund its operations for at least the next 12 months. However, the Company expects ongoing adverse impacts from geopolitical and macroeconomic conditions, supply chain disruptions, inflation, and reduced U.S. capital deployment for radiotherapy equipment through at least fiscal year 2026.
Strategic priorities
·Implementation of the FY26 Restructuring Plan to reduce global workforce by approximately 18% cumulatively and lower operating costs, with estimated total charges of $17 million.
Extracted by deepseek-v4-flash · Jul 22, 2026
8-KMay 06, 2026Item 2.02,7.01,9.01
Source ↗
Accuray filed an 8-K on May 6, 2026, reporting fiscal Q3 2026 results and withdrawing its full-year fiscal 2026 guidance. The filing includes a press release and an investor presentation, but no specific operational or financial details are provided in the 8-K itself. The withdrawal of guidance suggests near-term uncertainty.
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Guidance
Withdrawn for fiscal year 2026.
Forward-looking · richest in 10-Ks
Outlook / tone
The company withdrew its financial guidance for fiscal year 2026.
Extracted by deepseek-v4-flash · Jul 22, 2026
8-KApr 28, 2026Item 5.02,9.01routine
Source ↗
Routine 8-K — kept for the record, not extracted.
8-KApr 07, 2026Item 1.01,9.01unprocessed
Source ↗
Facts ingested; qualitative extraction pending.
8-KApr 06, 2026Item 7.01,9.01routine
Source ↗
Routine 8-K — kept for the record, not extracted.
8-KMar 19, 2026Item 5.02,9.01routine
Source ↗
Routine 8-K — kept for the record, not extracted.
8-KFeb 17, 2026Item 7.01,9.01routine
Source ↗
Routine 8-K — kept for the record, not extracted.
10-KFeb 17, 2026
Source ↗
Accuray's fiscal 2025 10-K/A reveals a company facing persistent operational and macro headwinds: U.S. hospital budget constraints and longer installation cycles are expected to pressure revenue through 2026, while supply chain and inflation continue to weigh on margins and cash flow. The restatement of RPO from $818M to $61M underscores significant disclosure weaknesses and resulted in material internal control deficiencies. Debt levels remain substantial with $188M in borrowings plus $18M in convertible notes, and past covenant compliance issues highlight refinancing risk. Despite these challenges, the absence of MD&A in this filing limits insight into management's near-term playbook. Strategic priorities and capital allocation plans are not explicitly articulated, though the company remains focused on international expansion and product development. Overall, the tone is cautious, with multiple risk factors flagging tariff exposure, IT security, and competitive threats.
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Guidance
Management expects reduced budgets and longer customer installation timelines in the U.S. to continue impacting net revenue through fiscal year 2026, and expects inflation and supply chain challenges to impact cash from operations through at least calendar year 2025.
Backlog
The Company restated its remaining performance obligations (RPO) from $818.2 million to $60.9 million as of June 30, 2025, primarily due to incorrect inclusion of open system orders, upgrade sales orders, and customer credits as RPO. Backlog conversion remains subject to long installation cycles and customer financing delays.
Debt / leverage
As of June 30, 2025, the Company had $150 million term loan, $20 million revolving credit facility, $20 million delayed draw term loan (all maturing June 6, 2030), and $18.0 million of 3.75% Convertible Senior Notes due 2026. The credit facilities contain restrictive covenants including fixed charge coverage ratio and total leverage ratio. The Company has not been in compliance with certain similar covenants in the past and required waivers.
Key risks
·If the CyberKnife or TomoTherapy platforms do not achieve widespread market acceptance, we will not be able to generate the revenue necessary to support our business.
·We have substantial indebtedness and may incur other debt in the future, which may adversely affect our financial condition and future financial results.
·Enhanced international tariffs, including tariffs imposed by the United States and China, other trade barriers or a global trade war could decrease the volume of product sales in China and increase our costs.
·We have identified material weaknesses in our system of internal controls as of June 30, 2025 and are in the process of remediation.
·Disruption of critical information technology systems, infrastructure and data or cyberattacks or other security breaches or incidents could harm our business and financial condition.
Forward-looking · richest in 10-Ks
Outlook / tone
Management's tone is cautious and hedged, citing ongoing headwinds from reduced U.S. hospital capital budgets, longer installation timelines, supply chain disruptions, and tariff uncertainty. For example, they state 'we expect this will continue to have an impact through fiscal year 2026' and note that 'we cannot assure you that we will be able to achieve profitability.' The filing also highlights material weaknesses in internal controls, further tempering confidence.
Capital allocation
The credit agreement restricts the Company's ability to pay dividends or make other distributions. No share buyback programs or M&A appetite are mentioned.
Risk-factor changes
The risk factors were amended to include a new risk regarding material weaknesses in internal control over financial reporting identified after the original filing, specifically related to the review of footnote schedules and inadequate controls for RPO disclosure under ASC 606.
Extracted by deepseek-v4-flash · Jul 22, 2026
10-QFeb 17, 2026
Source ↗
Accuray's Q2 FY2026 results reflect ongoing macro headwinds with revenue declining 12% YoY to $102.2M and a net loss of $13.8M, driven by restructuring charges and lower product sales. The company is executing a restructuring plan to reduce headcount by ~18% and expects total charges of ~$13M. Debt remains high at $135.9M net with an effective interest rate of ~23.9% on the term loan, and the company obtained amendments to delay covenant requirements. Backlog (remaining performance obligations) stands at $59.1M, but open orders are excluded. Management expects continued adverse impacts from inflation, supply chain, and lower US capital spending through FY2026. The company believes it has sufficient liquidity but faces significant covenant compliance risk.
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MD&A highlights
·The Company expects that reduced budgets and lower capital deployment priority for radiotherapy equipment, along with longer customer installation timelines, in the United States will continue to impact net revenue through fiscal year 2026.
·The Company expects that inflation and ongoing supply chain challenges and logistics costs will continue to adversely affect gross margins and net income (loss) through at least fiscal year 2026.
·The Company is subject to risks and uncertainties including geopolitical and macroeconomic impacts such as inflation, high interest rates, foreign currency fluctuations, and the China anti-corruption campaign.
·The Company believes it will have sufficient cash resources and anticipated cash flows to fund its operations for at least the next 12 months, but is unable to predict the impact on covenant compliance.
·During fiscal year 2026, the Company implemented a restructuring plan eliminating approximately 3% of the global workforce in Q1 and approximately 15% in Q2, with total expected charges of approximately $13 million.
Backlog
As of December 31, 2025, total remaining performance obligations amounted to $59.1 million, of which $45.0 million is related to warranties. The Company expects to recognize $14.1 million of other remaining performance obligations over the next 12 months. Open system orders are excluded as they do not include substantive termination penalties.
Debt / leverage
As of December 31, 2025, total debt net was $135.9 million, including $149.2 million term loan and $18.0 million convertible notes. Weighted average effective interest rate on Term Loan is 23.9%. The Company entered into amendments in December 2025 that reduced the delayed draw facility to $18.25 million, delayed the fixed charge coverage ratio requirement to December 31, 2026, and required additional fees. The Company was in compliance with covenants as of December 31, 2025. Warrants issued to lenders include June 2025 Premium and Penny Warrants and December 2025 Super Premium, Premium, and Penny Warrants.
Key risks
·Geopolitical and macroeconomic impacts including inflation, high interest rates, foreign currency fluctuations, and the China anti-corruption campaign.
·Supply chain challenges and logistics costs adversely affecting gross margins and net income.
·Reduced budgets and lower capital deployment priority for radiotherapy equipment in the U.S.
·Risk of non-compliance with debt covenants under the Amended Financing Agreement, which could accelerate debt maturity.
·Potential impairment of goodwill and long-lived assets due to market conditions.
·Uncertainty related to the China stimulus program and tariffs.
Forward-looking · richest in 10-Ks
Outlook / tone
The Company expects that the business of its customers and its own business will continue to be adversely impacted, directly or indirectly, by these macroeconomic and geopolitical issues. The Company expects that gross margins and net income (loss) will continue to be adversely affected by increased material costs and freight and logistics expenses through at least fiscal year 2026. Additionally, reduced budgets and lower capital deployment priority for radiotherapy equipment, along with longer customer installation timelines, in the United States have negatively impacted net revenue since fiscal year 2024, and the Company expects this will continue to have an impact through fiscal year 2026.
Strategic priorities
·The Company implemented a restructuring plan in fiscal 2026 to reduce its global workforce by approximately 18% and expects total charges of approximately $13 million.
Risk-factor changes
Risk factors include recent executive orders to impose new tariffs on global imports and uncertainties regarding impact, retaliations and further escalation, as well as the China anti-corruption campaign and timing of the China stimulus program.
Extracted by deepseek-v4-flash · Jul 22, 2026
10-QFeb 17, 2026
Source ↗
Accuray’s amended 10-Q restates its RPO footnote, cutting reported remaining performance obligations from $866.0 million to $59.3 million because open system orders, upgrades, and customer credits lack substantive termination penalties and are not ASC 606 RPO; the error had no effect on the financial statements. The company disclosed material weaknesses in internal control over financial reporting and ineffective disclosure controls as of September 30, 2025. Operationally, Q1 FY2026 revenue fell to $93.9 million from $101.5 million (services up, products down sharply), gross profit dropped to $26.5 million from $34.5 million, operating loss widened to -$11.3 million, and net loss was -$21.7 million, including restructuring charges and fair-value losses on penny warrants. Debt remains heavy: $167.5 million principal (net $140.2 million) with a 23.8% effective rate on the 2030 term loan, though the company was covenant-compliant at quarter end and cash rose to $69.9 million on $12.2 million of operating cash flow. Management expects supply-chain, inflation, and U.S. radiotherapy capital-spending headwinds to pressure margins and cash flow through FY2026, but believes liquidity is sufficient for at least the next 12 months.
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MD&A highlights
·Restatement: RPO disclosure corrected, reducing gross RPO from $866.0 million as previously reported to $59.3 million; no impact on balance sheet, statements of operations, equity or cash flows.
·Q1 FY2026 total net revenue decreased to $93.9 million from $101.5 million year-over-year; product revenue fell to $37.2 million from $48.4 million while services revenue rose to $56.8 million from $53.2 million.
·Gross profit fell to $26.5 million from $34.5 million; loss from operations widened to $11.3 million from $2.1 million; net loss was $21.7 million ($0.18 per share) versus $4.0 million ($0.04 per share).
·Recorded restructuring charges of $1.5 million for severance related to an approximately 3% global workforce reduction and $1.3 million for third-party consulting; initiative expected to be substantially completed by the fourth quarter of fiscal 2026.
·Cash, cash equivalents and restricted cash increased to $69.9 million from $62.1 million at June 30, 2025, with $12.2 million of operating cash flow in the quarter; inventories rose to $155.5 million from $141.0 million.
Backlog
As restated, total remaining performance obligations at September 30, 2025 were $59.3 million, consisting of $45.0 million of warranty performance obligations and $14.3 million primarily related to deferred training and system installations; the significant majority of the $14.3 million is expected to be recognized over the next 12 months. The restatement excluded $760.7 million of open system sales orders, $22.3 million of open upgrade orders, and $23.8 million of customer credits because they do not include substantive termination penalties at order execution and therefore do not meet the definition of a remaining performance obligation under ASC 606.
Debt / leverage
Total debt principal was $167.5 million at September 30, 2025 ($149.5 million Term Loan Facilities due 2030 and $18.0 million 3.75% Convertible Senior Notes due June 1, 2026), plus $2.9 million of paid-in-kind interest; net debt after unamortized financing costs and warrant discount was $140.2 million. The Financing Agreement due 2030 includes a $150 million term loan, $20 million delayed draw facility, and $20 million revolving credit facility, with covenants on total leverage, fixed charge coverage, and minimum liquidity; the Company was in compliance at September 30, 2025. Weighted-average effective interest rates were 23.8% on the Term Loan Facilities and 4.4% on the 2026 Notes. The Delayed Draw Facility is accessible after delivering fiscal Q2 2026 financial reports if the total leverage ratio is not greater than 5.25:1.00, with proceeds intended to fund the remaining $18.0 million of 2026 Notes.
Key risks
·Supply chain challenges and logistics costs, including difficulties obtaining sufficient component materials and increased component costs, have adversely affected gross margins and net income (loss), and are expected to continue through at least fiscal year 2026.
·Reduced budgets and lower capital deployment priority for radiotherapy equipment, along with longer customer installation timelines in the United States, have negatively impacted net revenue since fiscal year 2024 and are expected to continue through fiscal year 2026.
·Geopolitical and macroeconomic issues (Russia-Ukraine and Middle East conflicts, U.S.-China tension including Taiwan, China anti-corruption campaign and stimulus timing, tariff executive orders) create uncertainty; the related financial impact cannot be reasonably estimated with certainty.
·Failure to comply with Financing Agreement covenants could adversely affect the Company's ability to finance operations or capital needs; substantially all assets are pledged as collateral and subject to foreclosure risk if default occurs, with no assurance replacement financing could be obtained.
·Material weaknesses in internal control over financial reporting were identified related to review of footnote schedules supporting disclosures and inadequate controls to analyze all relevant information for complete and accurate GAAP presentation; disclosure controls and procedures were not effective as of September 30, 2025.
Forward-looking · richest in 10-Ks
Outlook / tone
The Company expects that the business of its customers and its own business will continue to be adversely impacted, directly or indirectly, by macroeconomic and geopolitical issues. 'Ongoing supply chain challenges and logistics costs, including difficulties in obtaining a sufficient supply of component materials and increased component costs, have adversely affected the Company's gross margins and net income (loss), and the Company currently expects that gross margins and net income (loss) will continue to be adversely affected by increased material costs and freight and logistics expenses through at least fiscal year 2026.' It also 'expects inflation and the ongoing supply chain challenges and logistics costs to impact its cash from operations through at least fiscal year 2026.' In the United States, 'reduced budgets and lower capital deployment priority for radiotherapy equipment, along with longer customer installation timelines... have negatively impacted net revenue since fiscal year 2024, and the Company expects this will continue to have an impact through fiscal year 2026.' Based on cash, available debt facilities, current business plan and revenue prospects, management 'believes that it will have sufficient cash resources and anticipated cash flows to fund its operations for at least the next 12 months,' but is 'unable to predict with certainty' the impact on covenant compliance.
Risk-factor changes
This Form 10-Q/A amends Part II, Item 1A to include reference to the material weaknesses identified after the Original Filing. Management concluded disclosure controls and procedures were not effective as of September 30, 2025, with material weaknesses related to the review of the footnote schedules supporting financial statement disclosures and inadequate controls to appropriately analyze all relevant information required for complete and accurate presentation and disclosure under GAAP, principally resulting from incorrect assessment during the initial adoption of ASC 606.
Extracted by deepseek-v4-flash · Aug 01, 2026
8-KFeb 09, 2026Item 4.02unprocessed
Source ↗
Facts ingested; qualitative extraction pending.
8-KFeb 06, 2026Item 3.01,9.01unprocessed
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Facts ingested; qualitative extraction pending.
8-KFeb 04, 2026Item 2.02,7.01,9.01unprocessed
Source ↗
Facts ingested; qualitative extraction pending.
8-KJan 20, 2026Item 5.02,9.01routine
Source ↗
Routine 8-K — kept for the record, not extracted.

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negativemedium magnitudenear-termmanual2d ago
Owner note: channel checks suggest China install timing slips into Q4
Consistent with sub-1.0 book-to-bill; near-term revenue risk but does not change the installed-base thesis.

Illustrative data where noted. Not investment advice.