Investment Thesis
Accuray is in severe financial distress with persistent operating losses, negative free cash flow, and deteriorating profitability despite modest revenue. The company is burning cash operationally while carrying excessive debt (2.54x debt-to-equity), leaving minimal financial flexibility for a medical device manufacturer requiring continuous R&D investment.
ARAY Strengths
- Maintains positive gross margin of 26%, indicating viable core product economics
- Adequate current ratio of 1.47x provides short-term liquidity cushion
- Cash position of $41.3M provides runway for operational needs
ARAY Risks
- Deeply negative net margin of -18.1% and operating margin of -11.7% demonstrate fundamental unprofitability
- Negative free cash flow of -$8.7M and negative operating cash flow of -$3.8M indicate cash burn
- Excessive leverage with debt-to-equity ratio of 2.54x and negative interest coverage of -1.5x creates refinancing risk
- Negative ROE of -66.4% and ROA of -7.9% show value destruction for shareholders
- Quick ratio of only 0.71x signals potential liquidity stress if operations continue deteriorating
Key Metrics to Watch
- Operating cash flow trend - must reach positive territory
- Operating margin improvement - currently -11.7% is unsustainable
- Debt-to-equity ratio - need meaningful deleveraging given 2.54x level
- Free cash flow generation - currently deeply negative at -$8.7M
ARAY Financial Metrics
ARAY Profitability Ratios
ARAY Balance Sheet & Liquidity
ARAY 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 Growth Metrics (YoY)
ARAY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q3 2023 | $96.2M | $179.0K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ARAY Capital Allocation
ARAY SEC Filings
Access official SEC EDGAR filings for ACCURAY INC (CIK: 0001138723)