Accuray Q4 2025 Earnings Call Transcript

Quartr
Provided by Quartr
August 13, 2025

Key Takeaways

  • Negative Sentiment: In Q4, total revenue fell 5% year-over-year to $128 million, driven by a 14% drop in China sales due to tariffs and a 34% decline in EMEA shipments amid geopolitical unrest.
  • Positive Sentiment: Service revenue rose 4% to $56.9 million with a nine-point margin improvement, reflecting pricing initiatives and lower parts consumption.
  • Positive Sentiment: Accuray completed a debt refinancing securing $190 million in new financing with TCW, extending debt maturity by five years and boosting liquidity.
  • Positive Sentiment: Book-to-bill stood at 1.2 in Q4 with a backlog of $427 million (over 18 months of product revenue), underpinning strong near-term revenue visibility.
  • Neutral Sentiment: Guidance for FY 2026 calls for revenue of $471–485 million and adjusted EBITDA of $31–35 million, with about 55% of sales expected in the second half of the year.
AI Generated. May Contain Errors.
Earnings Conference Call
Accuray Q4 2025
00:00 / 00:00

Transcript Sections

Skip to Participants
Operator

Welcome to the Accuray Fourth Quarter Fiscal twenty twenty five Financial Results Conference Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Steve Monroe, Vice President of Corporate Financial Planning and Analysis. Please go ahead.

Executive

Thank you, and good afternoon, everyone. Welcome to Accurious conference call to review financial results for the 2025, which ended 06/30/2025. During our call this afternoon, management will review recent corporate developments. Joining us on today's call are Suzanne Winter, Accuray's President and Chief Executive Officer and Ali Purvais, Accuray's Chief Financial Officer. Before we begin, I would like to remind you that our call today includes forward looking statements.

Executive

Actual results may differ materially from those contemplated or implied by these forward looking statements. Factors that could cause these results to differ materially are outlined in the press release we issued just after the market closed this afternoon as well as in our filings with the Securities and Exchange Commission. We base the forward looking statements on this call on the information available to us as of today's date. We assume no obligation to update any forward looking statements as a result of new information or future events, except to the extent required by applicable securities laws. Accordingly, you should not put undue reliance on any forward looking statements.

Executive

A few housekeeping items for today's call. First, during the Q and A session, we request that participants limit themselves to two questions and then re queue with any follow ups. Second, all references to a specific quarter in the prepared remarks are to our fiscal year quarters. For example, statements regarding our fourth quarter refer to our fiscal fourth quarter ended 06/30/2025. Additionally, there will be a supplemental slide deck to accompany this call, which you can access by going directly to Accuray's Investor Relations page at investors.accuray.com.

Executive

With that, let me turn the call over to Accuray's Chief Executive Officer, Suzanne Winter. Suzanne?

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Thanks, Steve, and welcome to our fourth quarter earnings call, and thank you all for joining today. Overall, I'm pleased with our performance in the fourth quarter, especially how we navigated a turbulent geopolitical environment, which impacted several key regions at various points in the quarter. Our solid revenue growth overcoming these obstacles was a testament to the resilience and flexibility of our operations and commercial teams to deliver product and provide service to the markets that were open during various periods within the quarter. Service was a highlight for the quarter with solid service revenue and margin growth as well as the continued positive customer response to our new product innovations like TomoC for China and Helix in the international markets, both of which have been a central part of our growth strategy. Finally, we put a major milestone behind us by successfully completing refinancing of our debt and securing a strong strategic partner that has invested in our long term success.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Before I go into the specifics of the quarter, I'd like to review the macroeconomic and geopolitical backdrop we continue to navigate through and provide some context on the guidance we provided last quarter and the resulting impact on our performance. Recall that in early April trade negotiations escalated between The U. S. And China. The U.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

S. Government announced a 145% tariff on goods from China entering The U. S. And China imposed a 125% tariff on goods coming from The U. S.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

After evaluating the potential impact to our business, we provided guidance during our fiscal third quarter financial results to reflect these developments in trade policy, which included revenue adjustments to account for an anticipated stall in China revenue, which at the time we expected would be partially offset by other regions like EIMEA. Fast forwarding to May, The U. S. And China came to an agreement and each announced reduced 10% reciprocal tariffs, a significant improvement from the original April announcements. These actions reopened the China markets for us allowing us to resume shipments.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Weeks later in June, there was an unexpected unrest in The Middle East, which affected trade in a significant portion of the EIBA region, essentially halting shipments to several countries within the region. All of these events created significant challenges within our supply chain as we pivoted several times within the quarter to deliver product to different regions of the world. The net result of all of this was that we were able to shift a portion of sales back into China in May, us to deliver our overall revenues in line with our expectations. However, due to this regional shift of revenues into China and out of EIMEA, we had a $1,700,000 higher margin deferral into future quarters, which impacted adjusted EBITDA. We expect to realize this margin as a positive adjusted EBITDA impact starting in the 2026 as these products are delivered to their end customers.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Despite these dynamics, I'm incredibly proud of how our team stepped up in a major way to mitigate the impact of the tariff volatility through focused actions, which Ali will speak to in greater detail. These include first, executing a drawback of duties paid on components, which were subsequently exported second, managing logistics to drop ship service parts directly to bonded warehouses and customer sites directly third, establishing dual source capabilities for key components and most importantly, advancing progress in our plans to establish our Madison manufacturing sites as a foreign trade zone in the second half of the fiscal 2026, which is expected to mitigate a significant portion of future tariffs. Now turning to the fiscal fourth quarter, total revenue for the quarter was approximately $128,000,000 down 5% year over year, driven by lower product revenue in our China and EIMEA businesses. As I alluded to earlier, reduced sales in China were linked to the tariff impacts in May, resulting in a 14% decline versus last year. And later in the quarter, the escalating tensions in The Middle East, which impacted our EIMEA business, resulting in a 34% decline versus last year.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Additionally, Japan declined 11% in the quarter. Outside of these regions, we saw outstanding revenue performance in our APAC region, which was up 22% driven by improved demand and we were pleased to see a return to revenue growth in The Americas at 24% with a solid conversion of backlog. Service revenue was a highlight for the quarter at 56,900,000 up 4% versus the prior year. We see tremendous opportunity in our service business for both revenue and margin expansion as we grow our installed base of customers. All regions showed installed base growth with the exception of The U.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

S, which essentially remained flat. A key area of focus in the quarter was driving improvement in service margins. I was encouraged to see service margins up nicely both year over year This will be a continued area of focus for us in the future and we believe that we have laid out the foundation including strategic pricing, development of high value support and education offerings and finally, driving efficiencies in our cost to service. Over the last two years, we have focused R and D investment in making our current designs more robust and have started to realize more substantial benefits here.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

One of the biggest factors in improving service margin is reducing service parts consumption and we are now positioned well to execute on this initiative and feel it is a big opportunity for us over the next few years. Additionally, order trends continue to support our target book to bill ratio of 1.2, a level which we believe to be a healthy balance to grow our company. From a regional perspective, the biggest highlights were 50% growth in orders in APAC and 34% year over year growth in Japan, followed by a 15% growth in China and a 12% growth in EMEA. These were partly offset by slower order demand in The U. S, which was down as the replacement market has yet to recover in a meaningful way.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Growth in the emerging markets where we have introduced new products like the Helix and Tomassee in China are seeing strong demand. These are among the highest growth markets in the world, which we are actively targeting and are an integral part of our growth plan in the next few years. Reflecting on our fiscal full year performance, I remain proud of what our team has accomplished this year and remained humbled by our mission, which is centered around advancing care through innovation, expanding patient access to radiotherapy globally and delivering superior service to our customers. Global revenue for the year grew 3%. I'm very pleased by the strong performance in our international markets.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

China product revenue grew 20% year over year, whereas the rest of APAC grew over 200% year over year. Offsetting growth in these regions was a decline in product revenues in some of the developed markets, which had a substantial impact on the year over year EIMEA growth, which was down 32% and a decline in our Japan region where the economy has slowed over the past few quarters and was down 19%. Service was strong with revenue up 4% for the full fiscal year, which represents the highest annual growth we've seen of the last several years and over nearly all regions. Growth was primarily driven by three factors, including expansion of our installed base, increased service contract capture rates following warranty and additional value added service offerings like CyberComm, all of which demonstrated meaningful results in nearly all regions. Leading the way here was China, where we saw 21% year over year growth in service revenue.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

This was followed by 10% growth in Japan, 7% growth in the EIMEA regions and 3.5% growth in APAC, which were partly offset by The Americas, which declined 7%. While region product revenue varies from quarter to quarter, the growing contribution from our service business, particularly service contract revenue provides greater revenue predictability and a phase to expand margin. During the year, we also kicked off the Accuray Care service initiative with focused R and D investment to further strengthen our existing platform designs to improve system uptime performance, extend service parts life and improve our customer response times and time to repair. We're leveraging system data, AI and predictive analytics to improve costs to serve by reducing parts consumption with a goal of no patient having to be rescheduled for treatment due to system downtime. In summary, I'm proud of what we've accomplished this year.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

We've built a strong foundation for top line growth driven by international markets, achieved a strong market position in key markets like Japan and China. We grew our installed base of customers as well as delivered strong growth in our service business. Despite the near term challenges and capital equipment budget cycles, we believe that the long term potential of developed markets like The U. S. Remain intact with the advanced age of installed base of radiotherapy systems providing a catalyst for upgrade and replacement opportunities.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

We were pleased to see revenue growth in Q4 from The U. S. And expect to see a gradual improvement from this region accelerating in fiscal year twenty twenty six. Before I hand it over to Ali, who will provide more details, I want to take a moment to talk about the refinancing transaction that closed during the quarter and what this means for our company in the long run. This transaction was driven by our desire to find the right partner for the business and create financial flexibility.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

We are looking forward to working with TCW and our newly appointed independent Board member. I believe they're going to be a tremendous asset to us as we grow our business in the upcoming years. I'll now turn it over to Ali, who will cover our financial performance in Singapore.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

Thank you, Suzanne, and good afternoon, everyone. I'd like to begin by recognizing our global cross functional teams for their unwavering dedication and execution. Their efforts enabled us to deliver a strong fiscal year twenty twenty five performance while navigating a challenging macroeconomic environment. Turning to our financial results for the fourth quarter and full year. Net revenue for Q4 was 128,000,000 down 5% year over year or $126,000,000 on a constant currency basis, a 6% decrease.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

For the full fiscal year, total revenue reached a record $459,000,000 up 3% from last year with foreign exchange having minimal impact. While U. S. Revenue was affected by softer macroeconomic conditions, our international business remained strong, growing 4% year over year and now representing 80% of total revenue, a clear sign of our global momentum. Product revenue in Q4 was $71,000,000 down 11% year over year and 12% on a constant currency basis, reflecting the regional dynamics Suzanne described earlier.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

For the full year, revenue was $238,000,000 up 1.5% from the prior year with foreign exchange having a negligible impact. Service revenue for the quarter was $57,000,000 up 4% year over year and 2% on a constant currency basis. Notably, contract revenue within our service business grew 3% in Q4 and 2% for the full year as our installed base continues to expand globally. Full year service revenue was $221,000,000 up 4% from last year with contract revenue now making up about 90% of total service revenue. Gross orders for Q4 were approximately $85,000,000 resulting in a book to bill ratio of 1.2.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

For the full year, gross orders totaled $288,000,000 also with a book to bill of $1,200,000 We ended Q4 with a backlog of about $427,000,000 which represents over eighteen months of product revenue, giving us strong visibility and confidence in future revenue conversion. As part of our ongoing diligence, we proactively canceled one unit about $3,000,000 to maintain a high quality backlog. Gross margin for the quarter was 30.6%, up 200 basis points year over year. Product gross margin declined 3.4 points, primarily due to higher margin deferral from China shipments, a timing issue we expect to reverse in the 2026. Excluding China margin deferrals, product gross margins would have been 33.2%, nearly flat with the prior year period.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

On a full year basis, product gross margins would have been 34.8%, a one point increase over the prior year when excluding the China margin deferrals. Service gross margins improved by nine points driven by lower parts consumption and successful pricing initiatives. For the full year, gross margin had a slight increase of 10 basis points from 32% to 32.1%. Adjusting full year gross margin for the China margin deferral would have resulted in 33.7% gross margin, which would have been 60 basis points higher than the same adjustment for the prior year. Operating expenses in Q4 were $34,700,000 up from $31,600,000 last year, mainly due to the timing of R and D and marketing investments.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

For the full year, operating expenses were $139,100,000 down 2% year over year, reflecting our ongoing focus on cost control and ROI. Operating income for Q4 was $4,200,000 down $2,600,000 last year due to the timing of investments. But for the full year, operating income improved to $7,800,000 from $500,000 in fiscal year twenty twenty four. Adjusted EBITDA for Q4 was $9,400,000 For the full year, EBITDA was $28,300,000 up 44 year over year. It's important to note that the China JV accounting treatment had a deferred $7,600,000 of margin related to FY 2025 shipments into future quarters.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

Turning to the balance sheet highlights. Accounts receivable were $83,000,000 up $5,000,000 sequentially. Inventory was $141,000,000 down $5,000,000 versus prior quarter. Accounts payable were $34,000,000 down $12,000,000 versus prior quarter as we prioritize key supplier payments. Total cash and cash equivalents were $62,000,000 down from $80,000,000 last quarter, reflecting $80,900,000 in refinancing fees and working capital investments that we spoke about earlier.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

As Suzanne mentioned, in early June, we completed a comprehensive debt refinancing that we believe better positions Acurate for long term growth and financial flexibility. The transaction itself has several key elements. The company exchanged approximately $82,000,000 of its 3.75% senior convertible notes due in 2026 for approximately 8,900,000.0 shares of common stock at $68,600,000 in cash. Concurrently, I3 entered into a new senior secured credit agreement with TCW securing $190,000,000 in new financing costs across three facilities, dollars 150,000,000 five year term loan, dollars 20,000,000 delayed draw term loan and a $20,000,000 revolving credit facility. The proceeds were used to fully repay existing debt with Silicon Valley Bank.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

This refinancing extends our debt maturity by five years and adds meaningful liquidity to support high return initiatives. Importantly, it consolidates our capital structure under a single counterparty, allowing us to focus on execution with greater clarity and confidence. We view this transaction as a critical milestone that enhances our ability to invest in innovation, drive margin improvement and deliver long term value to our shareholders. Turning to tariffs. As Suzanne noted earlier, we are working on several initiatives to mitigate the potential impact of tariffs on our global business.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

Our operations and trade compliance and commercial teams have quickly responded to both challenges and opportunities and have already activated work in a variety of mitigating action plans. Firstly, there's a significant portion of tariffs on imported goods that can be refunded back by the authorities if the product does not remain in The United States. This is referred to as a duty drawback program and requires an application process and documentation verification with the Customs and Border Protection agencies that we have already started to engage with and begin to process. This will give us the ability to recoup this tariff costs for products that will not remain in The United States and reclaim the associated cash. This is important given that greater than 80% of our product sales occur outside The U.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

S. And having the ability to recapture any tariffs made of those can lessen the impact of these costs. In the near term, this will be an incremental use of cash given an upfront payment to the Customs and Border Protection associated with these duties. Secondly, we are working with multiple government agencies to establish a foreign trade zone for Accuray. The foreign trade zone is a designated area within The United States, often near a U.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

S. Port of entry, where goods are considered to be outside of U. S. Customs territory. This allows companies to import goods, process them and potentially re export them without paying immediate U.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

S. Customs duties or following standard customs procedures. This would give the company the ability to only pay tariffs for goods remaining in The United States and will therefore only limit any cash outlay to those products. Third, we are working with our supply partners to accelerate dual sourcing capabilities for material currently procured outside The United States. Lastly, our commercial teams are working diligently to adjust prices for both product and service to combat the impact of tariffs and protect our profitability and cash flow.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

As the only pure play radiation therapy company headquartered in The United States, we are also working with state and federal government to ensure that Accurates position well to weather the impact of these challenging exogenous factors impacting our business. In the fourth quarter, the company incurred approximately $4,000,000 of cash tariffs approximately 50% of those tariffs were mitigated through the initiatives described above. Looking ahead, we are well positioned to accelerate top line growth in APAC and EIAMEA, while anticipating a recovery in The U. S. Market.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

As we go into fiscal year twenty twenty six, we are focused on driving further adjusted EBITDA margin expansion through cost productivity, process efficiency and pricing actions. We look forward to sharing more of these initiatives as we progress through the coming quarters. I will now turn it over to Suzanne for comments on our fiscal year twenty twenty six outlook. Suzanne?

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

We're proud of our progress in fiscal twenty twenty five. We grew revenues, particularly from the service portion of our business, which represents a more predictable revenue stream and growing part of our focus. We also refinanced our debt, which brings additional flexibility to our balance sheet as we enter the next phase of our operational improvement, where we will be able to further our efforts in high return on investment projects and pursue some targeted areas of improvement. Additionally, when Ali and I took over a few years ago, our biggest initiatives were to penetrate emerging markets and improve Accuray's operational model with a big focus on adjusted EBITDA and profitability. We're already seeing the benefits of our initiatives.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Today, the majority of our revenue comes from emerging markets. And over the last three years, we grew revenues from these markets at a CAGR of approximately 9%. On the operational side, we've completed our ERP, rationalized many areas of our business, including several restructurings and identified commercial actions that will allow us to attain the highest growth on both top line and margins. Looking ahead, fiscal twenty twenty six represents a new chapter for the company. We're looking forward to ASTRO in October, where we will showcase new solutions around adaptive radiotherapy.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

This offering is targeted for The U. S. And developed markets and is designed to provide our aged installed base with a premium solution that delivers the most advanced radiotherapy capabilities to care for their patients. The CyberKnife S7 momentum is expected to continue to gain traction as the only robotic dedicated SRS SBRT system. Additionally, we'll have a full year of our TomoC products in China and plan to enter other high growth emerging markets with Helix.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

We expect our installed base to grow substantially in FY 2026 as we are carrying in a strong backlog of installations that were in process from fiscal year twenty twenty five. This IB growth will feed directly into our service business with installation and training revenue and will serve as a strong growth driver for revenue and margins long term. Finally, as a company, we have launched a focused internal initiative to help us accelerate margin expansion by simplifying our processes and harnessing GenAI tools in all aspects of our operations, reducing our indirect costs and optimizing pricing tied to customer value so that we're well prepared for the next cycle of growth. Despite these initiatives, we remain cautious to continued market uncertainties and macro and geopolitical dynamics, which have historically been a headwind to our performance. As we gain greater clarity throughout the year, we will adjust our guidance accordingly and we'll keep you informed of our progress.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Therefore, our guidance for fiscal year twenty twenty six, we are guiding to a revenue range of $471,000,000 to $485,000,000 and an adjusted EBITDA range of $31,000,000 to 35,000,000 In closing, we couldn't be more excited about our next phase of operational performance where we will further penetrate the fastest growing markets in the world, expand patient access globally, execute on further operational efficiencies and improve our profitability while focusing on increasing our cash flow generation. This concludes my prepared remarks. I will now pass it on to the operator for Q and A. Operator?

Operator

And our first question today will come from Marie Thibault with BTIG.

Marie Thibault
MD & Medical Technology and Digital Health Analyst at BTIG

Hi, good evening. Thanks for taking the questions. Suzanne and Ali congrats on a good quarter despite all the external factors you had to navigate through. I wanted to ask a little bit more detail on China. Certainly encouraging to see the tariff rates come down.

Marie Thibault
MD & Medical Technology and Digital Health Analyst at BTIG

Where are we now in terms of the temperature on the ground? Are customers eager to take shipments? Are they still hesitant? We see further improvement from here? How would you sort of characterize that anecdotally?

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Yes. I would say we are in a better position than we were at the end of Q3 earnings call, obviously, but I don't think it's completely returned back to normal. And that is baked into guidance that we have. I think the demand the customer demand for our products is still very strong. Chelsea had a very solid year, so we're really pleased with the traction.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

We believe our Type B strategy is working. Additionally, we know we have been awarded licenses for the CK, the Type A market, but we also see that the funding is a little bit slower coming from the government to fund those licenses. And so I would say we are in a better position, but we are cautiously guiding, I think, on our China growth for FY 2026. And hopefully, we think it will improve throughout the year as conditions improve.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

And Marie, as you know, the tariffs were extended for another ninety days. And so that's obviously something that we continue to monitor as well because that is that can change at any point. And we certainly don't know how that's going to end up and take shape throughout the fiscal year.

Marie Thibault
MD & Medical Technology and Digital Health Analyst at BTIG

Yes, that makes sense and thanks for that. Now I heard you say that the guidance you will keep us updated as things progress given all the various dynamics going on, on the macroeconomic front. So heard that, but also heard that you are hoping to have this foreign trade exemption zone in place for the second half of your fiscal twenty twenty six. Is that being assumed in the guidance today? Or could that be further upside to the margin as we think about that exemption being put in place?

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

That is assumed in the guidance.

Marie Thibault
MD & Medical Technology and Digital Health Analyst at BTIG

Okay. All right. I appreciate it. I'll jump back in queue.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Thanks, Marie.

Operator

Our next question will come from Jason Wittes with ROTH Capital.

Jason Wittes
MD & Senior Research Analyst at Roth Capital Partners, LLC

Hi, thanks for taking the questions and also congrats on a solid quarter given all the macro headwinds here. I'll start with actually a domestic question. You did mention some optimism about The U. S. Improving throughout the fiscal year.

Jason Wittes
MD & Senior Research Analyst at Roth Capital Partners, LLC

Can you just enlighten us in terms of what's behind those assumptions?

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Yes. Yes, yes. We were very pleased with Q4 performance in The Americas and really a big focus on our teams working with customers to convert our backlog and get installations accelerated at key customer sites. So I think that's the good news, and I think we expect to see that going into FY 2026. Where we do want to see more uptick is on the orders side.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

I think there was some cautiousness in The U. S. Market still. We still haven't seen sort of that meaningful uptick from an orders perspective. However, we're very excited going into RO here in the fall.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

We've got some new solutions that we're going to be showing that are targeted for the premium developed markets. And so we expect that, that will be an additional catalyst, especially for some of the older aged IV in our developed markets, specifically in The U. S. And in Western Europe.

Jason Wittes
MD & Senior Research Analyst at Roth Capital Partners, LLC

Okay. Great. That's helpful. And also for Helix, I believe it's launched in India now. A, can you give us sort of kind of what the outlook is for that region?

Jason Wittes
MD & Senior Research Analyst at Roth Capital Partners, LLC

And also just other emerging markets that might be applicable to? Thanks. Yes,

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

absolutely. So yes, this was the first year of Helix, and I think we had a very solid year with Helix. And I think it is similar to what we saw in the first year of Tunglass Sea in China. So we're excited about that. The regulatory approval, the local regulatory approval in India took a little bit longer, but we do now have that in place.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

And they're on the Board with Helix, and we do expect in FY 2026, we're going see more Helix. In India, the surrounding areas like Bangladesh, Morocco also was ordered Helix in Northern Africa. And we also think there's tremendous interest in Latin America for Helix. So it's great that we have a full comprehensive portfolio from premium to the value segments that we can really address all customer needs.

Jason Wittes
MD & Senior Research Analyst at Roth Capital Partners, LLC

Okay. If I could sneak in one last clarification question. I think you said this quarter there's about a $4,000,000 impact from tariffs, which I believe you said half you mitigated. Is that the kind of run rate we should expect for fiscal twenty twenty fiscal oncoming fiscal year? Or how should we be thinking about the impact on tariffs, again, understanding that it's a moving target?

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

Yes, that's exactly right, Jason. So we had $4,000,000 of a cash impact. And as we sort of stated half of that we were able to mitigate through the actions that we've taken in terms of a duty drawback and the other half is actually capitalized into inventory and that's going to come hit the P and L over the course of the next couple of quarters. But that's exactly I think how we are thinking about it from a run rate basis as we go into fiscal year twenty twenty six and that's what we've assumed in our guidance as well. And speaking about guidance, as we sort of think about next year and we've spoken about this in greater detail Jason.

Ali Pervaiz
Ali Pervaiz
SVP & CFO at Accuray

When we think about our revenue profile, we're really thinking our first half of revenue is going to be roughly about 45% of our total guidance and then the second half is really going to be about 55% of our total guidance. And I think it's also important to note that from an EBITDA standpoint and contribution to EBITDA that really comes really based upon how our volume trends. And so since the volume is more towards the back half that's when our EBITDA is going to also come into the back half. So the way that we're thinking about is roughly 30% of EBITDA coming in the first half and 70% coming in the back half.

Jason Wittes
MD & Senior Research Analyst at Roth Capital Partners, LLC

Great. I appreciate that color. I'll jump back in queue.

Operator

And this concludes our question and answer session. I would like to turn the conference back over to management for closing remarks.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

Thank you, and I want to thank everyone for joining the call. We look forward to updating all of you on our fiscal first quarter earnings conference call this fall. Thank you.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Suzanne Winter
Suzanne Winter
President, CEO & Director at Accuray

The host has ended this call. Goodbye.

Executives
Analysts
    • Executive
    • Marie Thibault
      MD & Medical Technology and Digital Health Analyst at BTIG
    • Jason Wittes
      MD & Senior Research Analyst at Roth Capital Partners, LLC
Powered by Quartr