0001437749-26-015199
SEC filingQ3 FY2026 delivered revenue of $104.8 million, down 7.4% year-over-year, primarily from TomoTherapy order weakness, with gross margin contracting to 24.1% due to higher parts consumption and logistics costs, resulting in an operating loss of $9.1 million amid macroeconomic uncertainty.
Operating income swung to a $9.1 million loss from a $1.0 million profit, yielding an -8.7% operating margin, as revenue shortfalls and gross margin compression overwhelmed efficiencies. The Transformational Plan initiatives aim to enhance operating margins, organizational agility, and sustainable growth, though near-term results show the impact of order declines. Net income deteriorated to a $11.8 million loss or -$0.09 diluted EPS from a $1.3 million loss or -$0.01 EPS.
Cash flow reflected heightened liquidity demands, with net cash from operating activities at -$9.4 million versus +$12.6 million prior year, and capital expenditures rising to $5.4 million from $3.0 million, yielding free cash flow of -$14.8 million. Future capital needs hinge on multiple factors, prompting management to scrutinize liquidity, monitor customers and suppliers, and assess performance amid macroeconomic uncertainties that cloud business impacts, operations, and funding access.