This article first appeared on GuruFocus .
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Net Sales (Q2 2026):SEK272 million, a decrease of 11% year-over-year, with organic growth of negative 8%.
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Net Sales (Last 12 Months):SEK1.27 billion, with organic growth of 9%.
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Operating Profit (Q2 2026):SEK28 million, with an operating margin of 10%.
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Operating Profit (Last 12 Months):SEK277 million, with an EBIT margin of 22%.
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Recurring Support Revenue (Q2 2026):SEK133 million, representing 49% of total revenue.
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Recurring Support Revenue (Last 12 Months):Accounted for 41% of total revenue.
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License Sales (Q2 2026):Decreased 18% in the quarter.
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Hardware Sales (Q2 2026):Down 38%.
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Support Sales (Q2 2026):Increased 1%.
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Order Intake:Increased by 23% in the quarter, with a book-to-bill ratio of 1.1.
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Order Backlog:SEK1.691 billion at end of June, with SEK670 million expected to convert to net sales in the next 12 months.
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Free Cash Flow (Q2 2026):SEK50 million, an improvement compared to last year.
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Cash Balance:SEK213 million at end of quarter, affected by a SEK137 million dividend payment and SEK142 million in share buybacks.
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Share Buybacks:Totaled SEK200 million, representing 995,558 shares or 2.9% of total registered shares.
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Dana-Farber Order:SEK29 million order value for RayStation and RayCare, with approximately one-third expected to be recognized as revenue in Q3.
Release Date: August 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Order intake increased by 23% in Q2, with several postponed US deals already recovered in early Q3, including nine RayStation orders worth approximately USD 5 million.
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Secured a major customer win with Dana-Farber Cancer Institute, a top-15 global clinic, selecting both RayStation and RayCare for its proton therapy program (SEK29 million order).
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Recurring support revenue remained stable at SEK133 million (49% of total revenue) in Q2, providing a solid base and contributing to a 41% share over the last 12 months.
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Achieved a clinical milestone with the first online adaptive treatments using RayStation and RayCare on Varian TrueBeam, expanding market potential for adaptive therapy.
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Maintained a strong long-term growth trajectory with 9% organic growth over the last 12 months and an EBIT margin of 22%, despite the weak quarter.
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Expanded global footprint with first RayStation order in Vietnam and additional orders in South Korea and Germany, driven by Pinnacle end-of-life conversions.
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Strengthened proton therapy expertise by recruiting Antony Lomax, a world-renowned expert, and launched new software versions to enhance adaptive and personalized treatments.
Negative Points
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Net sales decreased 11% to SEK272 million in Q2, with organic growth at negative 8%, primarily due to postponed deals in the US.
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Operating profit fell to SEK28 million with an EBIT margin of 10%, down from SEK36 million and 12% in the prior year.
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License sales declined 18% and hardware sales dropped 38% in the quarter, reflecting weak demand and timing issues.
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The stronger Swedish krona created headwinds, negatively impacting organic growth and support revenue growth (which would have been 4% without currency effects).
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Order intake on licenses was down 14% in Q2, and the company experienced two consecutive weak quarters, raising concerns about sales volatility.
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US market faced delays due to more cautious procurement processes and lower reimbursement levels, which could persist and affect future quarters.
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R&D amortization is expected to increase in Q3 due to the later release of RayStation, potentially pressuring margins.
Q & A Highlights
Q: How much of the Q2 miss in the US has been recovered in early Q3, and do you expect to recover all of it? A: Johan Lof, CEO: A big part of the slipped orders has been recovered, but not everything. We are quite confident that we will recover all of the expected Q2 orders during Q3. Despite having two quarters with delays, particularly in the US, we are confident in our pipeline and our ability to deliver on our promises for the entire year, which requires a strong comeback in both Q3 and Q4.
Q: When you say you will deliver on what you have promised for the year, are you referring to the EBIT margin target, and is it fair to assume double-digit sales growth for the year? A: Johan Lof, CEO: We did not set a sales growth target, so I am referring to the EBIT margin target of at least 25% for 2026. To achieve that margin target, it requires significant growth, and double-digit sales growth is definitely our aim.
Q: Can you provide background on why the industry is experiencing more delays, specifically in the US? A: Johan Lof, CEO: We have some theories and data points. Reimbursement levels have gone down in the US this year, and we hear from customers that hospital procurement departments have become much more cautious, slowing down the process to ensure purchases are really needed. Nothing has been canceled so far, but the process is slower. These delays are US-specific and not seen in other regions.
Q: Are your customers showing interest in moving from upfront license purchases to a subscription or SaaS model? A: Johan Lof, CEO: We do offer subscriptions and have some subscription customers, but the overwhelming buying behavior is still to view this as a CapEx investment, as it is a very long-term investment. However, we believe a hybrid model is the future, where the core framework is purchased, and functionality that changes over time, like treatment techniques, can be subscription-based. We are investigating moving into that field.
Q: With the consolidation of large health systems and the shift towards smaller outpatient clinics, how does RaySearch position its product offering and sales strategy in the US? A: Johan Lof, CEO: We work on both fronts, with small and medium-sized clinics as well as bigger networks, without prioritizing one over the other. Historically, the largest and most renowned clinics, like Dana-Farber, come to us eventually. However, the bulk of the US market is smaller clinics, so we have to work harder to break into the one, two, or three linac centers.
Q: How is RaySearch navigating the regulatory push in China for hospitals to source domestic medical equipment? A: Johan Lof, CEO: Regulatory-wise, it is a heavy headwind with a very heavy regulatory process. China aims to purchase more domestic healthcare equipment. One way we address this is by working closely with several new Chinese machine vendors, such as Shinva, IntelliRay, and OWL, to bundle our software with their machines.
Q: Can you provide an update on the Ortega project and the expected delivery and revenue recognition for RayStation and RayCare? A: Johan Lof, CEO & Nina Groenberg, CFO: We have delivered two clinics and expect at least two more deliveries this year, bringing the total to four. The remaining five are expected to be delivered within 2027-2028. Revenue for RayCare has been recognized for the first two sites in Q2, and we expect almost all of it to be recognized before the end of 2028.
Q: Are there any reclassifications in cost items that explain the high selling expenses and lower admin costs in Q2? A: Nina Groenberg, CFO: The lower admin costs are mainly due to comparison items from last year. The increase in selling costs is primarily related to increased staff. We also had extra activities and costs related to the ESTRO Congress in Stockholm, and we moved patent costs from admin to sales, which is a minor effect.
Q: Will R&D amortization pick up in the third quarter after being down in the first half? A: Nina Groenberg, CFO: Yes, the main reason for lower amortization in Q2 is the later release of RayStation (June this year vs. April last year). The capitalization rate is back to approximately 70%, and we expect amortization to go up again in the third quarter.
Q: Are Europe and APAC performing in line with your initial expectations so far this year? A: Johan Lof, CEO: Yes, Europe has been performing very well so far. APAC is a little bit behind, but they also have a very strong H2 projected.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
