Accuray Incorporated (ARAY)
Accuray Incorporated develops and sells radiosurgery and radiation therapy systems for tumor treatment. Their CyberKnife and TomoTherapy systems offer precise radiation delivery, complemented by comprehensive service offerings.
Company Overview
Accuray Incorporated (ARAY) pioneers robotic radiosurgery with CyberKnife and TomoTherapy platforms, delivering precise cancer treatments globally. Targeting a growing market with innovative technology and comprehensive service offerings, ARAY presents a compelling opportunity for investors seeking exposure to advanced radiation therapy solutions.
Investment Thesis
Accuray presents a compelling investment opportunity based on its innovative technology and growing market demand for precise radiation therapy solutions. The company's CyberKnife and TomoTherapy systems address a critical need in cancer treatment, offering non-invasive alternatives to traditional surgery. Key value drivers include increasing adoption of these systems in emerging markets and continued innovation in treatment planning and delivery. The company's focus on comprehensive service offerings enhances customer loyalty and generates recurring revenue. With a market capitalization of approximately $0.07 billion and a gross margin of 27.8%, Accuray is positioned for growth as it expands its global footprint and capitalizes on the increasing prevalence of cancer worldwide. Upcoming product enhancements and strategic partnerships could further accelerate revenue growth and improve profitability.
Key Highlights
- Market capitalization of $0.07 billion reflects potential undervaluation in a growing market.
- Gross margin of 27.8% indicates solid profitability in system sales and service contracts.
- CyberKnife and TomoTherapy systems offer advanced radiation therapy solutions, differentiating Accuray from competitors.
- Global presence with sales in North America, Latin America, Europe, Asia Pacific, and other regions provides diversified revenue streams.
- Focus on post-contract customer support and training fosters long-term customer relationships and recurring revenue.
Competitors
Strengths
- Innovative CyberKnife and TomoTherapy systems.
- Global presence and distribution network.
- Strong focus on customer support and training.
- Proprietary technology and intellectual property.
Weaknesses
- Relatively small market capitalization.
- Negative profit margin.
- High dependence on capital equipment sales.
- Limited financial resources compared to larger competitors.
Catalysts
- Upcoming: New product launches and technology upgrades for CyberKnife and TomoTherapy systems.
- Ongoing: Expansion of sales and marketing efforts in emerging markets.
- Ongoing: Strategic partnerships with leading cancer centers and research institutions.
- Upcoming: Positive clinical trial results demonstrating the efficacy of Accuray's technology.
Risks
- Potential: Competition from larger medical device companies with greater resources.
- Potential: Technological obsolescence and the emergence of new treatment modalities.
- Potential: Regulatory changes and healthcare reforms impacting reimbursement rates.
- Ongoing: Economic downturns affecting hospital capital spending and equipment purchases.
- Ongoing: Negative profit margins and the need for improved financial performance.
Growth Opportunities
- Expansion in Emerging Markets: The increasing prevalence of cancer in emerging markets like China and India presents a significant growth opportunity for Accuray. These regions are investing heavily in healthcare infrastructure, including advanced radiation therapy equipment. By establishing strategic partnerships and tailoring its products to meet local needs, Accuray can capture a substantial share of these rapidly growing markets. This expansion could contribute significantly to revenue growth within the next 3-5 years.
- Technological Innovation: Continued investment in research and development to enhance the capabilities of the CyberKnife and TomoTherapy systems is crucial for maintaining a competitive edge. Developing new treatment planning software, improving radiation delivery precision, and expanding the range of treatable conditions can attract new customers and drive adoption of Accuray's products. These innovations can lead to increased market share and revenue growth over the next 2-3 years.
- Strategic Partnerships: Collaborating with leading cancer centers and research institutions can accelerate the adoption of Accuray's technology and generate valuable clinical data to support its efficacy. These partnerships can also facilitate the development of new treatment protocols and expand the applications of the CyberKnife and TomoTherapy systems. Such collaborations can enhance Accuray's reputation and drive sales growth in the coming years.
- Service and Support Expansion: Expanding the company's service and support offerings can generate recurring revenue and enhance customer loyalty. Providing comprehensive training programs, maintenance services, and software updates can create a sticky customer base and drive long-term revenue growth. This focus on customer satisfaction can also lead to positive word-of-mouth referrals and attract new customers.
- Integration with AI and Machine Learning: Integrating artificial intelligence (AI) and machine learning (ML) into treatment planning and delivery can optimize treatment outcomes and improve efficiency. AI-powered tools can assist clinicians in developing personalized treatment plans, predicting treatment response, and minimizing side effects. This integration can differentiate Accuray's products and attract customers seeking the most advanced radiation therapy solutions. The timeline for significant impact is estimated at 3-5 years.
Opportunities
- Expansion in emerging markets.
- Development of new treatment applications.
- Strategic partnerships with cancer centers.
- Integration of AI and machine learning.
Threats
- Competition from established medical device companies.
- Technological obsolescence.
- Regulatory changes and healthcare reforms.
- Economic downturns affecting hospital capital spending.
Competitive Advantages
- Proprietary technology in CyberKnife and TomoTherapy systems.
- Strong brand reputation for precision and innovation.
- Extensive installed base of systems generating recurring service revenue.
- High switching costs for customers due to training and integration requirements.
About
Accuray Incorporated, founded in 1990 and headquartered in Madison, Wisconsin, is a global leader in the development, manufacture, and sale of radiosurgery and radiation therapy systems. The company's flagship products, the CyberKnife and TomoTherapy systems, are designed for the treatment of tumors using precise radiation delivery. The CyberKnife System is a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for treating tumors throughout the body, including those in the brain, spine, breast, kidney, liver, lung, pancreas, and prostate. The TomoTherapy System, including the Radixact System, integrates treatment planning, delivery, and data management, enabling clinicians to deliver ultra-precise treatments efficiently. Accuray also offers iDMS data management and Accuray precision treatment planning systems, enhancing treatment workflows. Beyond hardware, Accuray provides comprehensive post-contract customer support, installation, training, and other professional services. The company markets its products directly to hospitals and treatment facilities, as well as through sales agents and group purchasing organizations in the United States, and through distributors and sales agents internationally, reaching markets in North America, Latin America, Europe, the Middle East, India, Africa, Japan, China, and the rest of the Asia Pacific region.
What They Do
- Designs and develops radiosurgery and radiation therapy systems.
- Manufactures CyberKnife systems for precise tumor treatment.
- Offers TomoTherapy systems, including the Radixact System, for integrated radiation treatment.
- Provides iDMS data management systems for treatment planning.
- Delivers Accuray precision treatment planning systems.
- Offers post-contract customer support and training services.
- Markets products directly to hospitals and treatment facilities.
- Sells products through sales agents and distributors internationally.
Business Model
- Sells CyberKnife and TomoTherapy systems to hospitals and treatment centers.
- Generates revenue from post-contract customer support and maintenance services.
- Provides training and installation services for its systems.
- Offers software updates and upgrades for treatment planning and data management systems.
Industry Context
Accuray operates in the medical devices industry, specifically within the radiation therapy equipment segment. The market is driven by the increasing prevalence of cancer and the growing demand for non-invasive treatment options. The competitive landscape includes companies like ANIK (Analogic Corporation), AVR (Varex Imaging Corporation), LNSR (Lantronix, Inc.), MIST (Milestone Scientific Inc.), and MXCT (MaxCyte, Inc.), each offering different technologies and approaches to cancer treatment. Accuray's CyberKnife and TomoTherapy systems provide unique capabilities in precision and flexibility, positioning the company to capture a significant share of the expanding radiation therapy market.
Key Customers
- Hospitals and medical centers.
- Stand-alone treatment facilities.
- Oncologists and radiation therapists.
- Group purchasing organizations.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2025 | $102M | -$14M | $0.00 |
| Q3 2025 | $94M | -$22M | $0.00 |
| Q2 2025 | $128M | $1M | $0.00 |
| Q1 2025 | $113M | -$1M | $0.00 |
Source: Company filings
Chart & Info
Price Chart
Accuray Incorporated (ARAY) stock price: $0.51 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in the company's future, indicating that executives believe in the potential for growth.
- •Positive community sentiment has emerged recently, with discussions highlighting advancements in Accuray's cancer treatment technology.
- •Analysts are increasingly optimistic about the company's strategic partnerships, which could enhance its market position.
- •The focus on innovative solutions in radiation therapy aligns well with healthcare trends, positioning Accuray favorably in a growing market.
Why Bear
- •Concerns have been raised about the competitive landscape, with larger players potentially overshadowing Accuray's market share.
- •Social sentiment has shown some skepticism regarding the company's ability to scale operations effectively in a challenging environment.
- •Recent quarterly performance may not have met community expectations, leading to a cautious outlook among traders.
- •Market perception remains mixed, with some investors questioning the long-term sustainability of Accuray's business model.
Latest News
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Accuray Receives Nasdaq Noncompliance Notice, Gets Time Through Aug. 3 To Regain Compliance
benzinga · Feb 6, 2026
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Accuray Q2 Earnings Call Highlights
defenseworld.net · Feb 6, 2026
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12 Health Care Stocks Moving In Thursday's Intraday Session
benzinga · Feb 5, 2026
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12 Health Care Stocks Moving In Thursday's Pre-Market Session
benzinga · Feb 5, 2026
Technical Analysis
Rationale
AI-generated technical analysis for ARAY including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for ARAY.
Make a Prediction
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Current price: $0.51
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ARAY.
Price Targets
Wall Street price target analysis for ARAY.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 2.7% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 6/100
Gross margin of 27.8% is acceptable but leaves limited room for R&D and marketing investment.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 8/100
Moderate net insider buying of +$0.10M suggests management sees value at current price levels.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates ARAY's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Accuray Receives Nasdaq Noncompliance Notice, Gets Time Through Aug. 3 To Regain Compliance
Accuray Q2 Earnings Call Highlights
12 Health Care Stocks Moving In Thursday's Intraday Session
12 Health Care Stocks Moving In Thursday's Pre-Market Session
Frequently Asked Questions
What does Accuray Incorporated do?
Accuray Incorporated specializes in the design, development, manufacture, and sale of radiosurgery and radiation therapy systems. Its primary products, the CyberKnife and TomoTherapy systems, are used for precise tumor treatment. The CyberKnife system offers robotic stereotactic radiosurgery, while the TomoTherapy system allows for integrated treatment planning and delivery. Accuray also provides related software and support services, catering to hospitals and treatment facilities worldwide. The company's focus is on providing innovative solutions for cancer treatment through advanced radiation therapy technologies.
Is ARAY stock a good buy?
ARAY stock presents a mixed investment profile. While the company offers innovative technology in a growing market, its negative profit margin and relatively small market capitalization pose risks. Potential investors should consider Accuray's growth opportunities in emerging markets, its strategic partnerships, and its focus on recurring service revenue. However, they should also be aware of the competitive landscape and the company's financial challenges. A thorough analysis of Accuray's financial performance and future growth prospects is essential before making an investment decision.
What are the main risks for ARAY?
Accuray faces several key risks, including intense competition from larger medical device companies with greater resources. Technological obsolescence and the emergence of new cancer treatment modalities also pose a threat. Regulatory changes and healthcare reforms could impact reimbursement rates and market access. Economic downturns could affect hospital capital spending and equipment purchases, reducing demand for Accuray's systems. Additionally, the company's negative profit margins and reliance on capital equipment sales create financial vulnerability.
Is ARAY a good stock to buy?
Whether ARAY is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the ARAY MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is ARAY data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for ARAY?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to Accuray Incorporated.
Who are ARAY's main competitors?
Accuray Incorporated's competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how ARAY compares.
What do analysts say about ARAY?
Analyst ratings and price targets for ARAY are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is ARAY's market cap?
Market capitalization reflects the total market value of ARAY's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has ARAY stock performed recently?
Check the Chart & Info tab for ARAY's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in ARAY?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for ARAY-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling ARAY?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for ARAY.
Is ARAY a good stock for beginners?
Accuray Incorporated (ARAY) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is ARAY for first-time investors?
Every stock carries risk, including Accuray Incorporated (ARAY). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like ARAY.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Stock data pending update. Financial data based on publicly available information.