Transformation Plan (annual context): Announced in December 2025, the FY26 Restructuring Plan eliminated approximately 18% of the global workforce in two phases (~3% in the quarter ended September 2025 and ~15% in the quarter ended December 2025), with tail-end termination dates extending into the quarters ended March 31 and June 30, 2026. The plan was substantially completed by June 30, 2026, with total restructuring charges of $16.2 million (severance $10.5M, third-party implementation $3.3M, asset impairments $2.4M). The plan included streamlining the commercial structure, centralizing core functions globally, elevating global heads of service and product development to report directly to the CEO, outsourcing non-core activities, rationalizing facilities, and reallocating engineering resources to high-ROI programs.
China revenue decline and tariff pressure (annual context): China-region net revenue fell 45% to $68.1 million (from $124.5 million) due to significantly reduced system shipment volume from sustained geopolitical tensions and tariff uncertainty. The 49%-owned CNNC Accuray JV, which manufactures and sells the locally branded Tomo C helical system and distributes Radixact and CyberKnife S7 products in China, represented 16% of total net revenue (vs. 26% in fiscal 2025), with JV revenue declining $54.5 million year-over-year. Section 301 tariffs affect linear accelerator components manufactured in Chengdu, China, and other imported components; the company expects China sales and gross margins to remain adversely impacted through at least fiscal 2027, and stated it would expect minimal shipments to China if existing tariffs increase.
IEEPA tariff-refund monetization (Q4, April 2026): Following the U.S. Supreme Court's February 2026 ruling striking down IEEPA-based tariffs, the company submitted approximately $8.9 million in tariff refund claims to CBP in April 2026 (totaling ~$9.3 million including interest by year-end). On April 13, 2026, it entered a participation agreement selling those refund claims to a third party for $6.6 million, accounted for as a financing arrangement under ASC 860. The company recorded $2.4 million of financing costs in Q4 to accrete the liability and had received $5.5 million in actual refunds by June 30, 2026, which it is contractually required to remit to the purchaser within five business days.
Voluntary CyberKnife recall (Q4, May 2026): The company initiated a voluntary recall of CyberKnife systems related to collimator retention during exchange. No serious adverse health consequences were reported, and the costs associated with the recall were not material. The company stated it will continue to monitor and voluntarily correct product issues in accordance with applicable regulatory requirements.
10-year UW SMPH collaboration (fiscal 2026; specific quarter not stated): Accuray announced a 10-year strategic collaboration agreement with the University of Wisconsin School of Medicine and Public Health to advance personalized cancer treatments using the Accuray Stellar adaptive radiation therapy platform. The agreement supports clinical research, education and training, and development of adaptive therapies, building on a longstanding partnership between the company and the school in precision radiation therapy technology.
(Filed on May 6, 2026)
-7.4%
24.1%
$38.1M
FY26 Restructuring Plan and leadership change: The plan eliminated ~3% of the global workforce in Q2 FY26 and ~15% in Q3 FY26; Q3 FY26 (Jan–Mar 2026) restructuring charges were $6.5M (severance $4.5M, third-party costs $0.9M, asset impairment $1.2M), with total FY26 charges expected at ~$17M, substantially all cash in FY26 and substantially complete by June 30, 2026. The broader Transformation Plan also includes outsourcing non-core activities, rationalizing facilities, and reallocating engineering resources. CEO Sandeep Chalke departed under a separation agreement dated March 13, 2026; Steve La Neve signed the filing as CEO.
Q3 FY26 revenue and backlog decline: Net revenue fell 7% to $104.8M, with product revenue down 13% to $49.7M on lower shipment volume. China revenue dropped 23% to $18.3M and Asia Pacific fell 38% to $9.3M, partially offset by 20% Americas growth to $24.5M. Gross orders were $48.5M (vs. $71.2M a year earlier); order backlog declined to $356.2M from $452.4M; book-to-bill ratio was 1.0.
Nasdaq listing compliance notice: On February 2, 2026, the company received notice that its common stock had closed below the $1.00 minimum bid price for 30 consecutive business days. A 180-calendar-day compliance period runs to August 3, 2026, during which the stock must close at or above $1.00 for 10 consecutive business days.
IEEPA tariff refund actions: Following a February 2026 U.S. Supreme Court ruling striking down IEEPA-based tariffs, the company sold approximately $9.0M in tariff refund claims to a third party for $6.6M in cash on April 13, 2026, and submitted ~$9.0M in refund claims through CBP's Consolidated Administration portal on April 21, 2026 ($8.9M reported as accepted). No refund receivable was recognized as of March 31, 2026.
Geopolitical shipment delays and ongoing supply-chain pressure: Product shipments planned in Q3 FY26 to customers in the Middle East, North Africa, and Pakistan were delayed indefinitely due to regional geopolitical disruption, also impacting service revenue in those regions. Management expects supply-chain cost pressures, higher logistics and duties costs, and reduced U.S. capital deployment for radiotherapy equipment to continue adversely affecting gross margins and revenue through at least FY26.
China joint venture performance: The CNNC Accuray JV represented 17% of Q3 FY26 net revenue (vs. 21% prior year). Accuray's product sales to the JV fell to $11.1M from $32.7M; the JV's net income attributable to Accuray declined 82% to $0.4M. The JV distributes Radixact and CyberKnife S7 systems (NMPA-approved January 2025) and manufactures the locally branded Tomo C radiotherapy system under a Class B license.
(Filed on February 17, 2026)
-12.0%
23.5%
$41.3M
FY26 Restructuring Plan execution: Accuray eliminated approximately 15% of its global workforce during the three months ended December 31, 2025 (following ~3% in the prior quarter), with certain termination dates extending through June 30, 2026. Q2 restructuring charges were $6.1 million (severance $4.1M, implementation $0.8M, asset impairment $1.2M); total expected charges for the plan are approximately $13 million. The plan is described as a comprehensive strategic, operational, and organizational transformation, with new CEO Stephen La Neve (employed October 20, 2025) and board member Steven F. Mayer appointed as 'Transformation Board Sponsor' (October 18, 2025) to lead planning and execution of strategic, organizational, cultural, and operational initiatives. The plan is expected to be substantially completed by June 30, 2026.
Revenue and order dynamics reflected significant China softness and broader mix shifts. Q2 net revenue fell 12% to $102.2 million; product revenue dropped 26% to $45.0 million while services rose 4% to $57.2 million. China revenue fell 51% to $17.7 million (from $36.0 million), partially offset by EIMEA growth of 11% to $43.3 million and Asia Pacific growth of 42% to $13.0 million. Gross orders declined to $66.1 million (from $76.8 million), net orders fell to $32.6 million, and order backlog decreased to $383.3 million (from $463.1 million) driven by $34.4 million in age-outs and no age-ins. Book-to-bill ratio was 1.5. The China JV (CNNC Accuray) represented approximately 17% of total Q2 net revenue (down from 30% a year earlier), with product sales to the JV of $12.8 million. The JV's Radixact SynC and CyberKnife S7 systems received NMPA approval in January 2025, and the locally branded Tomo C system is in the Class B license category.
Gross margin compressed to 23.5% in Q2 (vs. 36.1% a year prior), attributed to lower product unit volumes, unfavorable geographic and product sales mix, and reduced JV sell-through to end customers. Management expects ongoing supply chain challenges, increased material and freight/logistics costs, and U.S. tariff exposure (approximately 70% of raw materials are U.S.-sourced; over 80% of finished products are exported) to continue pressuring gross margins and operating cash flow through at least fiscal 2026. Reduced U.S. capital deployment budgets and longer customer installation timelines are also cited as headwinds expected to persist through fiscal 2026.
Financing amendments in December 2025 provided covenant relief: the First Amendment included certain restricted cash in the liquidity covenant, and the Second Amendment removed the leverage condition for drawing on the Delayed Draw Facility (capacity reduced to $18.25 million), delayed commencement of fixed-charge-coverage-ratio and leverage-ratio tests to December 31, 2026, and reduced available revolving credit to $15.0 million through that date. The company paid an additional $1.9 million in fees and issued new December 2025 detachable warrants (3.06M Super Premium at $1.50, 2.19M Premium at $1.25, and 1.75M Penny at $0.01) to lenders. The company elected maximum 6% payment-in-kind interest on the $150 million Term Loan Facility for its first FY26 interest payment date, driving total Q2 interest expense to $7.7 million (weighted-average effective rate of 23.9%). $18.0 million of 3.75% Convertible Senior Notes remain outstanding and mature June 1, 2026; the company intends to use operating cash and Delayed Draw proceeds to repay them.
Post-quarter, on February 2, 2026, Accuray received a Nasdaq notice that its common stock had closed below the $1.00 minimum bid requirement for 30 consecutive business days, triggering a 180-calendar-day compliance period. Separately, the company disclosed two material weaknesses in internal control over financial reporting (related to footnote disclosure review and incomplete GAAP analysis during initial ASC 606 adoption) that remained unremediated as of December 31, 2025 and resulted in a restatement of prior-period financial statements; remediation controls are in implementation.
(Filed on February 17, 2026)
-7.5%
28.3%
$63.3M
Completed a restructuring in Q1 FY2026 eliminating approximately 3% of global workforce; recorded $1.5M in severance and $1.3M in third-party consulting costs ($0.9M paid in cash, $1.9M remaining accrual). The initiative is planned to be substantially completed by Q4 FY2026.
Product revenue fell 23% year-over-year to $37.2M, driven primarily by a 55% decline in China shipments; total net revenue was $93.9M (down 7%). Backlog declined to $395.7M from $468.6M a year earlier, with $30.0M in age-outs and only $5.9M in net orders for the quarter. Service revenue grew 7% to $56.8M on a larger installed base.
The China JV (CNNC Accuray, 49%-owned) obtained NMPA approval in January 2025 for the Radixact SynC and CyberKnife S7 Systems and continues to manufacture and sell the locally branded Tomo C radiotherapy system. Product sales to the JV dropped from $28.6M to $8.8M quarter-over-year, reducing the JV's share of total revenue from 32% to 15%. The JV declared a $2.5M dividend to Accuray in June 2025, paid in July 2025.
Management stated that U.S.-China tariffs and ongoing supply chain/logistics cost pressures are expected to adversely affect gross margins, net income, and cash from operations through at least fiscal year 2026, and that sales to China will be adversely impacted through at least H1 FY2026. Gross margin compressed to 28.3% from 33.9%, with tariff-related incremental costs cited as a driver.
In October 2025 (subsequent to quarter end), the company announced a significant organizational, strategic, and operational transformation. Suzanne Winter resigned as President/CEO effective October 19, 2025; Stephen La Neve was appointed President and CEO effective October 20, 2025 and added to the Board. Steven F. Mayer (Board member) was named Transformation Board Sponsor for a one-year engagement to lead planning and execution of strategic, organizational, and operational initiatives. FTI Consulting continues to advise on operational execution, and TCW (lender) expressed support for the plan. The transformation is designed to increase operating margins and enhance organizational agility, with most initiatives to be implemented during the current fiscal year.
In June 2025, Accuray entered a new five-year senior secured credit agreement with TCW providing $150M in term loans (due 2030), a $20M delayed-draw facility, and a $20M revolving facility, replacing prior debt. Concurrently, $82M of the 3.75% Convertible Senior Notes due June 2026 were exchanged, leaving $18M outstanding which the company intends to repay with operating cash by the June 1, 2026 maturity. Detachable warrants for 17.2M shares (Premium, $1.68 strike) and 6.2M shares (Penny, $0.01 strike) were issued to lenders, increasing potential dilution.
