RaySearch Reports Record Revenues and Strategic Growth

RaySearch Laboratories AB Class B (($SE:RAY.B)) has held its Q3 earnings call. Read on for the main highlights of the call.

RaySearch Laboratories AB Class B recently held an earnings call that painted a picture of a robust quarter, marked by record revenues and improved profitability. The company reported significant interest in its solutions, although it acknowledged challenges with cash flow and temporary high gross margins. Despite these hurdles, the positive developments and strategic plans for expansion into new areas like chemotherapy and surgery suggest a promising future for RaySearch.

Record High Net Sales and Improved Profitability

Q3 2025 was a milestone quarter for RaySearch, with net sales reaching a record high of SEK 332 million, marking a 13% increase. This achievement represents the highest revenue the company has ever recorded. Additionally, operating profit surged by 44% to SEK 89 million, with an EBIT margin of 27%, underscoring the company’s improved profitability.

Strong Interest and Orders from Major Particle Centers

RaySearch reported strong interest in its solutions, securing deliveries to six major particle centers in Asia. This contributed to a 70% increase in order intake, driven by significant expansions from existing customers, highlighting the growing demand for RaySearch’s offerings.

RayIntelligence Platform Launch

The company launched a new version of its oncology analytics platform, RayIntelligence. This cloud-based platform features interactive dashboards and a powerful SQL scripting interface for data exploration, enhancing its capabilities in oncology analytics.

Celebration of 25 Years and Strong Company Culture

RaySearch celebrated its 25th anniversary by hosting an internal conference aimed at strengthening company culture and engagement. This milestone reflects the company’s commitment to fostering a strong organizational environment.

New RayCare and RayStation Orders

RaySearch received new orders from prestigious institutions such as Stanford Healthcare in the U.S. and Keimyung University in South Korea. The company also saw expansions in New Zealand and Germany, among others, indicating a broadening customer base.

Future Expansion into Chemotherapy and Surgery

Looking ahead, RaySearch plans to integrate chemotherapy planning and management into its RayStation and RayCare platforms, with future support for surgical planning. This strategic expansion underscores the company’s commitment to comprehensive cancer care.

Cash Flow Challenges

Despite the positive financial performance, RaySearch faced cash flow challenges in Q3, with a negative cash flow of SEK 82 million. This was impacted by higher working capital due to prepayments from Asian sales and longer payment terms for certain sales.

Temporary High Gross Margin

The company reported a temporary high gross margin of 96% in Q3, attributed to fewer hardware sales. However, this level is not expected to continue in future quarters.

Forward-Looking Guidance

RaySearch’s forward-looking guidance highlights a record high in net sales with a 13% growth, reaching SEK 332 million. The operating profit increased by 44% to SEK 89 million, with an adjusted EBIT margin of 31% after accounting for global employee conference costs. The company emphasized the importance of maintaining a long-term perspective on its financial performance, despite quarterly fluctuations, and reiterated its strategy to expand its oncology software solutions.

In summary, RaySearch Laboratories AB Class B’s earnings call reflected a strong quarter with record revenues and improved profitability. The company is poised for future growth with strategic expansions into new areas like chemotherapy and surgery, despite facing challenges with cash flow and temporary high gross margins. Overall, the sentiment from the call was optimistic, with a clear focus on long-term growth and innovation.