Executive Summary
Accuray Incorporated reported Q3 2025 revenue of $113.243 million, up 11.98% year-over-year but down 2.52% quarter-over-quarter. The quarter delivered a gross profit of $31.627 million, a gross margin of 27.93%, and an operating income of $1.047 million (operating margin of 0.92%). Net income was a small loss of $1.297 million, an improvement on a year-over-year basis but a material sequential deterioration. The company generated positive operating cash flow of $18.061 million and free cash flow of $15.63 million, strengthening its liquidity profile to approximately $80.244 million in cash at period-end. Balance sheet metrics show a leveraged profile with total debt of $214.368 million and net debt of $136.544 million, against total assets of $484.291 million and total stockholders’ equity of $49.583 million. Relative to the prior year period, Accuray benefited from higher revenue, aided by improved gross profitability, yet profitability remains constrained by relatively high fixed costs and a lean operating scale. The QoQ decline in gross profit and EBITDA-driven metrics suggests near-term pressure from product mix and utilization of installed base, even as cash generation supports near-term liquidity. Investors should monitor trajectory of product cycles (e.g., Radixact/TomoTherapy platforms), service revenue contribution, and ongoing efforts to optimize operating expense and working capital. No management call transcripts were provided in the dataset, so quotes are not corroborated by a verbatim management transcript in this analysis.
Key Performance Indicators
QoQ: -77.76% | YoY:122.95%
QoQ: -151.12% | YoY:79.55%
QoQ: -150.40% | YoY:80.28%
Key Insights
Revenue: QQ3 2025 revenue of $113.243 million, YoY +11.98%, QoQ -2.52%. Gross Profit: $31.627 million, gross margin 27.93%, YoY margin +8.78%, QoQ -24.50%. Operating Income: $1.047 million, operating margin 0.92%, YoY +122.95%, QoQ -77.76%. EBITDA: $3.625 million, EBITDARatio ~3.21%. Net Income: -$1.297 million, net margin -1.15%, YoY improvement from -$6.342 million, QoQ -151.12%. EPS: -$0.0126, YoY +80.28%, QoQ -150.40%. Cash Flow: Net cash from operations $18.061 million; free cash flow $15.6...
Financial Highlights
Revenue: QQ3 2025 revenue of $113.243 million, YoY +11.98%, QoQ -2.52%. Gross Profit: $31.627 million, gross margin 27.93%, YoY margin +8.78%, QoQ -24.50%. Operating Income: $1.047 million, operating margin 0.92%, YoY +122.95%, QoQ -77.76%. EBITDA: $3.625 million, EBITDARatio ~3.21%. Net Income: -$1.297 million, net margin -1.15%, YoY improvement from -$6.342 million, QoQ -151.12%. EPS: -$0.0126, YoY +80.28%, QoQ -150.40%. Cash Flow: Net cash from operations $18.061 million; free cash flow $15.63 million; net change in cash $14.856 million; cash at end of period $80.244 million. Balance Sheet: total assets $484.291 million; total liabilities $434.708 million; stockholders’ equity $49.583 million; debt total $214.368 million; long-term debt $199.561 million; net debt $136.544 million. Liquidity metrics: current ratio 1.639; quick ratio 0.919; cash ratio 0.383. Key efficiency metrics: DSO 62.14 days; DIO 161.49 days; DPO 51.08 days; CCC 172.55 days. Valuation/Multiples: P/S 1.625; P/B 3.71; P/E negative due to loss; EV/Revenue ~306.21; FCF yield implied by price-to-FCF ~10.76x. Revenue mix drivers reflect ongoing capex cycles in radiotherapy platforms and services.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
113.24M |
11.98% |
-2.52% |
| Gross Profit |
31.63M |
8.78% |
-24.50% |
| Operating Income |
1.05M |
122.95% |
-77.76% |
| Net Income |
-1.30M |
79.55% |
-151.12% |
| EPS |
-0.01 |
80.28% |
-150.40% |
Key Financial Ratios
operatingProfitMargin
0.93%
operatingCashFlowPerShare
$0.18
freeCashFlowPerShare
$0.17
priceEarningsRatio
-35.48
Management Commentary
No earnings call transcript was provided in the dataset. As a result, this section cannot quote management verbatim or summarize management commentary beyond what is contained in the filed financials. If a transcript becomes available, highlights could cover strategy execution (platform roadmap like CyberKnife/TomoTherapy/Radxact adoption), service-revenue trajectory, geographic expansion, and commentary on utilization and service mix.
Forward Guidance
A formal forward guidance figure was not included in the provided data. Given the Q3 2025 performance—modest revenue growth year over year but a net loss and a steep QoQ decline in gross profit—the near-term outlook hinges on: (1) stabilization or acceleration of demand for radiotherapy platforms in H2 2025 and into 2026, (2) improvement in product mix toward higher-margin service and maintenance revenue, and (3) ongoing cost discipline. Investors should monitor management commentary on backlog, installed-base utilization, international market penetration, reimbursement dynamics, and any updates to capital expenditure plans among hospital systems. Absent explicit guidance, a cautious stance is warranted until operating leverage improves and free cash flow sustains at higher levels.