RaySearch: A Disappointing Quarter, but the Pipeline Is Talking

U.S. deal slippage drives a miss, yet a Dana-Farber win and the first TrueBeam adaptive case put Q3 on a firmer footing.

RAY-B.ST · Earnings Call · 2026-08-13

The Quarter That Wasn't

Q2 2026 was a rude wake-up for RaySearch. Net sales fell 11% to SEK 272 million, organic growth went negative at -8%, and EBIT margin compressed to 10%. CEO Johan Löf was candid: “The weaker development in net sales and operating profit during the quarter was, of course, disappointing. It was primarily due to poor performance in the U.S., where several deals were postponed compared to our expectations.” — Johan Löf, CEO and Founder · 2026-08-13 The recurring support revenue became the ballast, rising to 49% of total revenue (SEK 133 million). Still, the quarter's softness is largely a timing story — order intake surged 23%, albeit off a low base, and the book-to-bill ratio held at 1.1 with backlog at SEK 1.69 billion.

Order Momentum and a Signature Win

The real news is what arrived in July: nine RayStation orders worth roughly USD 5 million, from institutions like University of Florida Health Proton Therapy Institute and Emory Proton Therapy Center. Even more striking, Dana-Farber Cancer Institute — a top-15 cancer center — selected both RayStation and RayCare for its proton program, a SEK 29 million order that will contribute about a third of its value to Q3 revenue. CFO Nina Grönberg noted the order intake was “up 23% and did include orders of strategic importance” — Nina Grönberg, CFO · 2026-08-13. This signals that the U.S. deferrals are not cancellations; they are procurement slowdowns. As Johan put it, “the administration around procurement... has become much more cautious... but nothing has been canceled so far.” — Johan Löf, CEO and Founder · 2026-08-13 The Pinnacle conversion opportunity remains the near-term growth engine. In the prior quarter, management said “there will be a strong focus during 2026” — Johan Löf, CEO and Founder · 2026-02-12 on converting the remaining clinics, and Germany's Pinnacle end-of-life is contributing five new RayStation orders. The tailwind is real, and while it will fade, the company is already winning Eclipse and Monaco replacements.

Adaptive Treatments: The TrueBeam Milestone

The most strategically important event was the first online adaptive treatment on a Varian TrueBeam using RayStation and RayCare, performed at Iridium Netwerk in Belgium. This is a bolt for RayCare's adoption — it opens up adaptive therapy to any clinic with the world's most common linac. Johan emphasized the significance:

So we are adding interoperability to RayCare to a large number of machines right now.
Johan Löf, CEO and Founder · 2026-08-13

This milestone builds on the earlier integration with Elekta and strengthens the case for online adaptive treatments as a recurring, higher-value workflow that RayCare is uniquely positioned to serve.

Outlook: H2 Must Deliver

Management remains confident that the full-year EBIT margin target of at least 25% is achievable, but that requires a “very strong comeback” in Q3 and Q4. The order backlog conversion is on track, and the early Q3 orders—including the Dana-Farber win—provide a clear starting point. Johan's confidence is rooted in a stable demand environment, even if the timing is choppy. As he said in the Q&A, “given the pipeline that we have now, we are confident that we will deliver on the promise for the entire year.” — Johan Löf, CEO and Founder · 2026-08-13 The company also took steps to reward shareholders, completing SEK 200 million in buybacks and instituting a long-term incentive program. With a new rolling credit facility, RaySearch is positioned for both organic growth and opportunistic deals. The order intake is the metric to watch: if the July momentum persists, the H2 recovery is credible. But the risk of further slippage remains real, especially in the U.S. The next quarter will be decisive.