RaySearch Laboratories AB (publ) (Nasdaq Stockholm: RAY‑B.ST) announced on July 21, 2025, that AKSM/Oncology has chosen its RayCare® oncology information system and RayStation® treatment planning system for a new Advanced Radiation Therapeutics (ART) cancer center in San Luis Obispo, California. The facility, developed in partnership with Urology Associates of The Central Coast, is scheduled to open in March 2026 and will integrate Varian TrueBeam linear accelerators with RaySearch’s latest workflow solutions. The deal, recorded in Q2 2025, will contribute revenue recognition over the next eight months as RaySearch continues expanding its footprint in integrated radiation therapy solutions across the United States.
How does RaySearch’s historical expansion into the U.S. oncology software market strengthen the significance of the San Luis Obispo deal?
RaySearch Laboratories, founded in 2000 as a Karolinska Institute spin-off and publicly listed since 2003, has steadily built its presence in radiation oncology, with more than 1,100 clinical installations across 47 countries. In the United States, AKSM/Oncology has been one of its major strategic partners, deploying RayCare and RayStation in over 20 freestanding radiotherapy facilities. This new San Luis Obispo site reinforces RaySearch’s ongoing strategy to deepen its market penetration in North America, a region that accounts for a significant portion of its recurring service revenues.
Historically, RaySearch has leveraged its integrated workflow model as a differentiator against larger rivals by focusing on interoperability with multiple hardware platforms, including Varian TrueBeam and other linear accelerator systems. Analysts view this partnership as another milestone in solidifying RaySearch’s position in the mid-tier oncology clinic segment, which continues to adopt integrated digital platforms to reduce manual intervention and improve treatment precision.
How will the integration of RayCare 2024A and RayStation with Varian TrueBeam improve workflow, efficiency, and clinical safety at Advanced Radiation Therapeutics?
The integration of RayCare 2024A, which is U.S. market-cleared, will establish a fully unified workflow from treatment prescription to delivery, minimizing manual actions that can introduce human error. Interoperability with Varian TrueBeam linear accelerators allows ART to operate multiple treatment modalities, including IMRT, VMAT, 3D conformal planning, electron beam therapy, and deformable image registration.
RayStation’s role in this setup is critical, offering robust treatment planning capabilities that integrate seamlessly with RayCare’s scheduling and information systems. According to institutional experts, this type of integration significantly improves clinical efficiency and patient safety, which are key operational challenges for smaller regional cancer centers. By reducing redundant steps in planning and verification, ART expects to achieve faster turnaround times for treatment initiation, potentially improving patient throughput without compromising quality.
Scott Neal, President of AKSM/Oncology and a Board Member at ART, emphasized that this partnership aligns with a broader mission to enhance patient outcomes in community settings by bringing academic-level technology to freestanding centers. While his statement was framed in terms of patient-centric care, institutional investors interpret such investments as critical to driving recurring software and service revenues for RaySearch in the U.S. market.
What is the financial impact of the Q2 2025 order for RaySearch and how will revenue recognition align with the center’s opening?
The order, booked in Q2 2025, will be recognized progressively over the next eight months, aligning with ART’s preparation and the expected March 2026 go-live. Although specific contract value details were not disclosed, analysts suggest that these types of integrated software and service agreements typically involve multi-year maintenance contracts that contribute to predictable recurring revenue streams.
Historically, RaySearch has reported gross margins above 90% on software sales, with long-term revenue growth supported by updates, training, and technical support tied to such installations. Institutional investors anticipate that this Q2 order will strengthen backlog visibility ahead of the company’s Q2 FY2025 interim report scheduled for August 8, 2025.
What are institutional investors and analysts indicating about RaySearch’s stock performance and valuation ahead of Q2 earnings?
Institutional sentiment toward RaySearch Laboratories remains cautiously optimistic. Analysts generally view the stock as a growth-oriented play in precision oncology technology, supported by strong gross margins and a robust order backlog. The stock has been trading around SEK 330–340, with some institutional investors projecting an upside potential toward SEK 355–360 if Q2 revenue guidance meets expectations.
However, valuation concerns persist. Some analysts believe the stock is overvalued by approximately 25–30% compared to intrinsic value models, citing RaySearch’s aggressive growth assumptions and the cyclical nature of capital spending in radiotherapy centers. Yet, investor enthusiasm remains buoyed by expectations of 83% revenue growth over the next two years, largely driven by North American adoption of RayCare 2024A and expanded integration with third-party hardware platforms.
How does the San Luis Obispo cancer center reflect broader U.S. trends in integrated oncology information systems adoption?
The ART project highlights a broader U.S. trend toward digitally integrated oncology workflows in community-based cancer centers. With reimbursement pressures and staff shortages pushing clinics to seek more efficient workflows, integrated systems like RayCare and RayStation are gaining ground against legacy, siloed systems.
Market analysts believe that RaySearch’s ability to maintain hardware-agnostic integration with systems like Varian TrueBeam and Elekta Infinity is a strategic advantage, as it allows mid-tier centers to adopt incremental digital upgrades without replacing entire hardware ecosystems. The ART deployment may serve as a case study for other regional clinics considering similar upgrades, positioning RaySearch as a preferred vendor in this segment.
What is the future outlook for RaySearch following the Advanced Radiation Therapeutics partnership?
The future outlook for RaySearch Laboratories hinges on its ability to convert pilot projects like ART into larger-scale partnerships across the U.S. Analysts expect further freestanding center contracts to be announced in the second half of 2025 as RayCare 2024A gains wider regulatory clearance and clinical validation.
The San Luis Obispo project also sets the stage for potential expansion into Latin American markets, where RaySearch has been targeting growth through strategic alliances with regional hardware distributors. Institutional investors will closely watch Q2 earnings for updated guidance on backlog growth, recurring software maintenance revenues, and new partnership announcements.
If RaySearch successfully demonstrates measurable clinical efficiency gains at ART within the first six months of operation, analysts believe it could accelerate multi-center adoption, thereby supporting double-digit revenue growth into FY2026.
Overall investor sentiment toward RaySearch remains positive but cautious. Growth-oriented institutional investors are focusing on revenue visibility and high-margin recurring services, while value-focused investors continue to flag valuation concerns. The ART deal strengthens RaySearch’s credibility in the U.S. market, but its impact on near-term earnings will depend on execution and timely revenue recognition over the next two quarters.
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