📊 ARAY Key Takeaways
Is Accuray Inc. (ARAY) a Good Investment?
Accuray is in financial distress with persistent operating losses (-10.6% margin), negative cash flow generation (-$14.8M FCF), and dangerously high leverage (3.48x debt-to-equity). While EPS improved 87.5% YoY, the company cannot cover interest from operations and faces liquidity pressure with only $38.1M cash against $145.2M long-term debt and negative interest coverage of -1.4x.
Accuray’s fundamentals remain weak: the company is unprofitable at the operating and net levels, free cash flow is negative, and returns on equity and assets are deeply negative. While the business still generates meaningful revenue and maintains a current ratio above 1.0x, high leverage, thin equity, weak interest coverage, and limited cash generation reduce financial flexibility and make any turnaround reliant on improved margin execution.
Why Buy Accuray Inc. Stock? ARAY Key Strengths
- EPS improved 87.5% YoY, suggesting turnaround momentum from very negative base
- Gross margin of 25.4% demonstrates some product pricing power in medical device sector
- Current ratio of 1.42x provides near-term liquidity buffer despite negative cash flow
- Meaningful revenue base with positive gross profit generation
- Current ratio of 1.47x suggests near-term obligations are not yet under acute pressure
- Diluted EPS showed notable year-over-year improvement, indicating losses may be narrowing
ARAY Stock Risks: Accuray Inc. Investment Risks
- Operating losses of $32M and negative operating cash flow (-$9.4M) indicate core business is destroying value
- Debt-to-equity of 3.48x with negative interest coverage (-1.4x) creates existential solvency risk
- Free cash flow negative at -$14.8M while cash reserves ($38.1M) insufficient relative to debt burden—potential covenant violation or refinancing crisis risk
- Negative operating margin and net margin show the core business is still not sustainably profitable
- High leverage with debt/equity of 2.54x and negative interest coverage increases balance-sheet risk
- Negative operating cash flow and free cash flow limit self-funding capacity and reduce resilience
Key Metrics to Watch
- Operating cash flow trajectory—must reach positive to validate turnaround; negative FCF unsustainable
- Interest coverage ratio and debt reduction progress—negative coverage is crisis-level
- Operating margin expansion path—company must reach operational profitability to de-risk leverage
- Operating margin and gross margin progression
- Operating cash flow and free cash flow trend
Accuray Inc. (ARAY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Accuray Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ARAY Profit Margin, ROE & Profitability Analysis
ARAY vs Healthcare Sector: How Accuray Inc. Compares
How Accuray Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Accuray Inc. Stock Overvalued? ARAY Valuation Analysis 2026
Based on fundamental analysis, Accuray Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Accuray Inc. Balance Sheet: ARAY Debt, Cash & Liquidity
ARAY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Accuray Inc.'s revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $-0.16 indicates the company is currently unprofitable.
ARAY Revenue Growth, EPS Growth & YoY Performance
ARAY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $104.8M | -$1.3M | N/A |
| Q2 2026 | $102.2M | -$1.4M | $-0.01 |
| Q3 2025 | $101.1M | -$1.3M | $-0.01 |
| Q2 2025 | $107.2M | -$1.4M | $-0.01 |
| Q1 2025 | $93.9M | -$4.0M | $-0.04 |
| Q3 2024 | $101.1M | $599.0K | $0.01 |
| Q2 2024 | $107.2M | -$1.9M | $-0.02 |
| Q1 2024 | $96.5M | -$3.0M | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Accuray Inc. Dividends, Buybacks & Capital Allocation
ARAY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Accuray Inc. (CIK: 0001138723)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ARAY
What is the AI rating for ARAY?
Accuray Inc. (ARAY) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARAY's key strengths?
Claude: EPS improved 87.5% YoY, suggesting turnaround momentum from very negative base. Gross margin of 25.4% demonstrates some product pricing power in medical device sector. ChatGPT: Meaningful revenue base with positive gross profit generation. Current ratio of 1.47x suggests near-term obligations are not yet under acute pressure.
What are the risks of investing in ARAY?
Claude: Operating losses of $32M and negative operating cash flow (-$9.4M) indicate core business is destroying value. Debt-to-equity of 3.48x with negative interest coverage (-1.4x) creates existential solvency risk. ChatGPT: Negative operating margin and net margin show the core business is still not sustainably profitable. High leverage with debt/equity of 2.54x and negative interest coverage increases balance-sheet risk.
What is ARAY's revenue and growth?
Accuray Inc. reported revenue of $301.0M.
Does ARAY pay dividends?
Accuray Inc. does not currently pay dividends.
Where can I find ARAY SEC filings?
Official SEC filings for Accuray Inc. (CIK: 0001138723) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARAY's EPS?
Accuray Inc. has a diluted EPS of $-0.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ARAY a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Accuray Inc. has a SELL rating with 86% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ARAY stock overvalued or undervalued?
Valuation metrics for ARAY: ROE of -113.3% (sector avg: 15%), net margin of -15.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ARAY stock in 2026?
Our dual AI analysis gives Accuray Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARAY's free cash flow?
Accuray Inc.'s operating cash flow is $-9.4M, with capital expenditures of $5.4M. FCF margin is -4.9%.
How does ARAY compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -15.7% (avg: 12%), ROE -113.3% (avg: 15%), current ratio 1.42 (avg: 2).
Is Accuray Inc. carrying too much debt?
ARAY has a debt-to-equity ratio of 3.48x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 1.42 suggests adequate short-term liquidity.