Accuray Incorporated Q4 FY2025 earnings call

• Navigated turbulent geopolitical environment with revenue growth despite challenges. - Service revenue and margin grew, with new product innovations like Tomo C for China and Helix. - Completed debt refinancing, securing strategic partner. - Mitigation actions for tariffs: executed drawback of duties, adjusted logistics, established dual-source capabilities, planned foreign trade zone. - Fiscal Q4 revenue: down 5% YOY due to China and EIMEA declines, but APAC up 22% and Americas up 24%. - Service business: $56.9M in Q4, up 4% YOY, installed base growth except US. - Full year performance: total revenue up 3%, international markets strong, China product revenue up 20%, APAC over 200% YOY growth. - Accuray care service initiative with R&D investment to improve system uptime, service parts life, etc.

Total revenue for the fourth quarter was approximately $128 million, down 5% year-over-year. Product revenue was $71 million, down 11% year-over-year. Service revenue was $56.9 million, up 4% year-over-year. For the full fiscal year, total revenue reached a record $459 million, up 3% from the prior year. Product revenue for the full year was $238 million, up 1.5% from the prior year. Service revenue for the full year was $221 million, up 4% from the prior year. International business represents 80% of total revenue.

Fiscal 2026 revenue guidance: $471 million to $485 million. Adjusted EBITDA guidance: $31 million to $35 million. Anticipate growth in APAC and EIMEA, recovery in US market, focus on adjusted EBITDA margin expansion.

• Geopolitical and macroeconomic uncertainties, including tariff volatility affecting regions like China and EIMEA. - Uncertainty regarding tariff extensions and their impact on margins.

Q: Marie Thibault asks about China's current situation, customer sentiment, and impact on guidance.

A: Suzanne says better than Q3 but not normal, demand strong but funding for licenses slower. Ali mentions monitoring tariff extensions.

Q: Jason Wittes asks about US outlook and Helix in emerging markets.

A: Suzanne says US improvement expected, Helix launched in India with interest in surrounding areas and Latin America.

Q: Jason Wittes asks about tariff impact run rate.

A: Ali says ~$4M cash impact, half mitigated via drawback, half capitalized into inventory, assumed in guidance.