Accuray Announces First Phase Of Its Comprehensive Strategic, Operational, And Organizational Transformation Plan; Workforce Optimization Actions Will Affect ~ 15% Of Company's Employees; Expects To Incur Restructuring Charges In Its Fiscal Second, Third And Fourth Quarters Totaling ~ $11M; Continues To Maintain Its Forecasts For Full Year Fiscal 2026

Accuray Incorporated (NASDAQ:ARAY) today announced the first phase of its comprehensive strategic, operational, and organizational transformation plan. This phase is designed to realign its organization to produce sharper accountability, tighter cost control, and faster execution. The plan also right-sizes Accuray's cost structure, outsources selected non-core activities while building internal global centers of excellence, reallocates engineering resources, and better positions the commercial organization to drive sales growth and enhance competitiveness. Once fully implemented, this phase is expected to improve operating profitability by approximately $25 million on an annualized, run-rate basis.

The organizational realignment element of the plan focuses on four major areas: streamlining Accuray's commercial structure, centralizing and globalizing core functions, elevating the global heads of service and product development to report directly to the CEO, and optimizing the company's workforce and footprint. In parallel, the company is outsourcing selected non-core activities, rationalizing facilities, implementing programs to improve direct and indirect spend efficiency, and reallocating engineering resources to focus on high ROI programs and integration of third party solutions. These actions reduce global headcount by approximately 15%, with savings from compensation and benefits representing the majority of the expected profit improvement, of which roughly $12 million is anticipated to be realized in fiscal 2026, with virtually all initiatives expected to be fully implemented by fiscal 2026 year-end. In connection with this phase of the plan, the Company expects to incur restructuring charges in its fiscal second, third and fourth quarters totaling approximately $11 million, most of it in cash, primarily related to workforce reductions, facility consolidation, contract terminations, and other non-recurring implementation costs. Accuray continues to maintain its forecasts for full year fiscal 2026.

"As a team, we are laser focused on a clear corporate, product and service strategy, and the phase one initiatives, which have been driven by the transformation leaders we announced at the time of our first fiscal quarter earnings release, are designed to set the stage for that strategy. The changes sharpen our focus on sales and service in every region around the world, establish a faster, more efficient operating rhythm, and create an efficient, higher-margin cost structure. All of these initiatives will increase our competitiveness, ensure our teams are poised to deliver growth in each market, and, frankly, make us a better company. At the same time, our commitment to innovation, quality, reliability, customer satisfaction, and patient care remains paramount. By simplifying our structure, strengthening accountability, and aligning resources with the areas of greatest strategic impact, we are better positioned to continue delivering exceptional value to patients, providers, employees, and shareholders," said Steve La Neve, Chief Executive Officer of Accuray.

Accuray's strategic lending partner TCW has informed the company that they support the company and its strategic decisions, which TCW believes are essential to strengthening Accuray's foundation for future growth, margin expansion, and positioning itself for long-term success.

Accuray expects to give further updates concerning its transformation plan from time to time as material developments occur.