Accuray Incorporated (ARAY) Q2 2025 Earnings Report

Accuray reported a solid QQ2 2025 (fiscal Q2 ended December 31, 2024) with 8% year-over-year revenue growth to $116.2 million and a notable acceleration in product revenue (+19% YoY) driven by China, Japan, and APAC markets. Gross margin rose to 36.1% (from 33.5% prior year) fueled by a China margin release tied to JV shipments and favorable manufacturing pricing; operating income reached $4.7 million and adjusted EBITDA was $9.6 million, up meaningfully from a year ago. Management highlighted aggressive progress in China (over 50% revenue growth YoY, 10-point market-share gain in 2024 calendar year per Ipsos), new Helix orders (12 in the quarter), and continued Tomo C adoption in Type B markets, supported by a CE mark and product improvements in the Type A segment. The company raised full-year guidance for FY25 to $463–$475 million in revenue and $28.5–$31.0 million in adjusted EBITDA, framing a second-half cadence with seasonality and expects margin expansion to continue via pricing actions, product mix, and service growth. Net cash flow from operations was modest at $1.8 million, with free cash flow of $0.9 million, and liquidity remains manageable with cash and equivalents around $64 million against total debt of ~$213.5 million and net debt of ~$150.9 million. A key narrative is Accuray’s pivot toward higher-margin service offerings and recurring revenue, complemented by a growing installed base and strategic partnerships in high-potential markets. Investors should monitor: (1) execution of China/JV normalization post-approval and margin realization, (2) U.S. market recovery timing, (3) FX exposure, particularly the yen, and (4) the sustainability of China and India demand drivers as Helix/CyberKnife/Synchrony/ClearRT across Radixact platforms mature in emerging markets.