Accuray reported a modestly softer quarter on a revenue basis but delivered meaningful growth in recurring service revenues and a robust backlog that underscores visibility into the company’s long-term growth trajectory. Total net revenue of $102.0 million declined 2% year over year (YoY) and was flat on a constant-currency basis, driven by a 9% drop in product revenue to $48.0 million and a 5% rise in service revenue to $53.0 million. The quarter highlighted regionally diverse dynamics: China grew revenue by 30% YoY as Tomo C shipments begin to contribute and as the company ramps production for the China JV, while APAC saw multiple first-in-country shipments and Europe/Japan experienced softer year-over-year comparisons after record shipments in the prior year. Backlog remained strong at about $469 million, with a book-to-bill ratio of 1.1, supporting revenue visibility over the next several quarters. However, gross margins contracted to 33.9% from 38.0% a year ago, and the company reported a GAAP operating loss of $2.1 million (operating margin of –2.12%), with adjusted EBITDA of $3.1 million (versus $6.5 million a year ago). The company attributes near-term margin volatility to JV margin deferrals in China, which management expects to unwind meaningfully in FY2025, contributing approximately $3–$4 million of incremental EBITDA as the deferral reverses, then normalizing thereafter. Management concluded the quarter with a modest upgrade to full-year guidance, reflecting improving demand in high-growth markets and continued progress on margin expansion initiatives. Looking ahead, Accuray raised its FY2025 revenue guidance to $462–$472 million and adjusted EBITDA guidance to $28–$30 million, contingent on a second-half recovery in the U.S. market and continued strength in emerging markets like China and APAC. The company also highlighted strategic product initiatives (Tomo C in China, Helix for emerging markets), the Adaptive Radixact ecosystem (Cenos, ClearRT, VitalHold), and ongoing ERP-driven productivity gains as catalysts for sustained margin expansion.