Loading...
•
Dec 31, 2024
Accuray Q2 2025 Earnings Report
Accuray reported a net income of $2.537 million for Q2 2025, a significant improvement from a net loss in the prior year, driven by increased product revenue and gross profit.
Key Takeaways
Accuray Incorporated reported a net income of $2.537 million for the three months ended December 31, 2024, a substantial improvement compared to a net loss of $9.621 million in the same period last year. This positive shift was primarily driven by a 19% increase in product revenue, reaching $61.189 million, and a 17% increase in gross profit. The company's total net revenue grew by 8% to $116.174 million, despite a slight decrease in service revenue. Operating expenses decreased by 7%, contributing to the improved profitability.
Net income significantly improved to $2.537 million from a net loss of $9.621 million in the prior year.
Product revenue increased by 19% to $61.189 million, driven by higher shipments of CyberKnife System units and system upgrades.
Gross profit rose by 17% to $41.892 million, attributed to increased net deferred gross profit recognized on sales to the joint venture and a favorable product mix.
Operating expenses decreased by 7% due to lower headcount and severance costs from restructuring initiatives.
Accuray
Accuray
Accuray Revenue by Segment
Revenue by Segment
Products Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
Accuray anticipates continued challenges from macroeconomic conditions, supply chain issues, and inflation impacting gross margins and net income through fiscal year 2025 and net revenue through fiscal year 2026. The company expects to have sufficient cash resources for the next 12 months but acknowledges uncertainties.
Positive Outlook
- The company believes it will have sufficient cash resources and anticipated cash flows to fund operations for at least the next 12 months.
- Management is committed to addressing and remediating material weaknesses in internal controls over financial reporting.
- The company continues to invest in research and development to introduce new products and enhancements.
- The company is actively evaluating its liquidity position and monitoring customer and supplier actions.
- The company aims to maintain compliance with debt covenants and explore additional financing if market conditions are favorable.
Challenges Ahead
- Inflation and ongoing supply chain challenges are expected to adversely affect gross margins and net income (loss) through fiscal year 2025.
- Reduced budgets and lower capital deployment priority for radiotherapy equipment are expected to negatively impact net revenue through fiscal year 2026.
- The extent of the ongoing impact of macroeconomic events on the business, markets, and global economic activity is uncertain and cannot be reasonably estimated.
- The company's ability to maintain compliance with debt covenants is uncertain and depends on future operating performance.
- There is no guarantee that the company would be able to satisfy its obligations if any of its indebtedness is accelerated.
Revenue & Expenses
Visualization of income flow from segment revenue to net income