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1. Company Snapshot

1.a. Company Description

RaySearch Laboratories AB (publ), a medical technology company, develops software solutions for cancer treatment worldwide.It develops and markets RayStation, a treatment planning system for treatment activities, such as automated planning, adaptive therapy, multi-criteria optimization, fast and accurate dose computations, OAR dose reduction, robustness, machine learning, VMAT, IMRT, 3D-CRT, virtual simulation, electron beam therapy, tomotherapy, stereotactic, proton therapy, carbon ion therapy, and boron neutron capture therapy.The company also develops RayPlan, a treatment planning system for supporting a range of treatment planning activities for 3D-CRT, IMRT, VMAT, tomotherapy, and electron beam radiation therapy; and RayCare, an oncology information system to support cancer treatment activities.


In addition, it offers RayCommand, a treatment control system that is compatible with various hardware models and supports advanced functionalities of treatment machines and software systems; and RayIntelligence, a cloud-based oncology analytics system that turns patient data into insights.Further, the company provides training courses related to its products.RaySearch Laboratories AB (publ) is headquartered in Stockholm, Sweden.

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1.b. Last Insights on RAY

RaySearch Laboratories AB (publ) recent performance was negatively impacted by the broader European market downturn, with the pan-European STOXX Europe 600 Index declining by 0.98% amid ongoing trade and geopolitical uncertainties. The company's growth prospects may be hindered by the current economic climate, which is characterized by tempered enthusiasm around artificial intelligence investments and shifting interest rate expectations.

1.c. Company Highlights

2. RaySearch Laboratories' Q4 Results Exceed Expectations with 16% Revenue Growth

RaySearch Laboratories reported a strong Q4 2025 with net sales reaching an all-time high of SEK 375 million, representing a 16% increase year-over-year. Adjusting for currency headwinds, the growth would have been 28%. The operating profit rose by 25% to SEK 92 million, resulting in a 24% EBIT margin. For the full year 2025, net sales grew by 13% to SEK 1.34 billion, with organic growth standing at 19%. Earnings per share (EPS) came in at SEK 2, surpassing analyst estimates of SEK 1.57. The company's robust financial performance was driven by strong license sales growth of 15% in Q4 and a 6% increase in support sales.

Publication Date: Mar -02

📋 Highlights
  • Record Revenue Growth:: Q4 net sales hit SEK 375 million (+16%), with organic growth of 28%, while 2025 full-year revenue reached SEK 1.34 billion (+13%)—a company record.
  • Profitability Expansion:: Operating profit rose 25% to SEK 92 million in Q4, achieving a 24% EBIT margin, with full-year profit up 25% to SEK 322 million.
  • Strategic Dividend Policy:: Proposed dividend increased to SEK 4/share from SEK 3/share, aligning with a new policy to distribute 50% of annual post-tax profits.
  • Pinnacle Conversion Momentum:: Q4 license share for Pinnacle was 11%, totaling 23% for the year, with plans to focus on remaining Pinnacle conversions (100-200 clinics) in 2026.
  • AI-Driven Product Innovation:: AI integration (deep learning segmentation/planning) accelerates workflows and improves quality, with RayCare expected to streamline online adaptive radiotherapy in 2026.

Revenue Streams and Order Intake

Nina Gronberg highlighted that order intake increased by 8% in Q4 and 17% for the full year, indicating a healthy demand for RaySearch's products. The company's recurring support revenue stood at SEK 139 million, accounting for 37% of total revenues. Johan Lof noted that AI is a positive force for RaySearch, enabling the automation of time-consuming tasks and improving product quality.

Dividend Policy and Shareholder Returns

The Board of Directors has revised the dividend policy, aiming to distribute 50% of profit after tax annually. For 2025, a dividend of SEK 4 per share is proposed, up from SEK 3 per share in the previous year. This move is expected to enhance shareholder returns and reflects the company's confidence in its financial performance.

Valuation and Outlook

With a P/E Ratio of 28.46 and an EV/EBITDA of 18.0, the market appears to have priced in a significant level of growth for RaySearch. Analysts estimate revenue growth at 11.3% for the next year. Johan Lof expressed confidence in achieving the EBIT margin target of at least 25% in 2026, driven by sales growth. The company's strong order intake and robust financial performance position it well for future growth.

Growth Drivers and Future Prospects

RaySearch is poised to benefit from its expanding product portfolio, including RayCare and RayIntelligence. The company is also making progress in online adaptive radiotherapy, with Royal Marsden's implementation on an Elekta machine being a notable example. Johan Lof emphasized that the adoption of RayCare will enhance the workflow and efficiency of online adaptive treatment, driving future growth.

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.21%)

6. Segments

Licenses

Expected Growth: 10.2%

Growing demand for advanced radiation therapy and increasing adoption of oncology information systems drive the growth of RaySearch Laboratories' licenses. The company's innovative treatment planning systems and strategic partnerships further fuel the segment's expansion.

Support

Expected Growth: 10.2%

Growing demand for advanced radiation therapy and increasing adoption of digital healthcare solutions drive the growth of RaySearch Laboratories' oncology and radiation therapy treatment planning software, supported by its comprehensive customer support and training services.

Hardware

Expected Growth: 10.3%

Growing demand for advanced radiation therapy, increasing adoption of digital healthcare, and rising incidence of cancer drive the growth of RaySearch Laboratories' medical devices and software solutions.

Training and Other

Expected Growth: 10.2%

Growing demand for radiation oncology training and increasing adoption of RaySearch's treatment planning system drive the growth of the training and other services segment.

7. Detailed Products

RayStation

A treatment planning system for cancer treatment, allowing for precise radiation therapy planning and optimization.

RayCare

An oncology information system for managing patient data, treatment plans, and clinical workflows.

RayIntelligence

An artificial intelligence and machine learning platform for radiation oncology, enabling data-driven decision making.

8. RaySearch Laboratories AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

RaySearch Laboratories AB (publ) operates in a niche market with limited substitutes, but the company's products and services can be substituted with other radiation oncology treatment planning systems.

Bargaining Power Of Customers

RaySearch Laboratories AB (publ) has a diverse customer base, and no single customer accounts for a significant portion of the company's revenue, reducing the bargaining power of customers.

Bargaining Power Of Suppliers

RaySearch Laboratories AB (publ) has a diversified supply chain, and the company is not heavily dependent on a single supplier, reducing the bargaining power of suppliers.

Threat Of New Entrants

The radiation oncology treatment planning system market has high barriers to entry, including significant research and development costs, regulatory hurdles, and the need for specialized expertise, making it difficult for new entrants to enter the market.

Intensity Of Rivalry

The radiation oncology treatment planning system market is moderately competitive, with a few established players, including RaySearch Laboratories AB (publ), but the company's strong brand recognition and innovative products and services help to differentiate it from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.86%
Debt Cost 3.95%
Equity Weight 58.14%
Equity Cost 10.00%
WACC 7.46%
Leverage 72.00%

11. Quality Control: RaySearch Laboratories AB (publ) passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nexus

A-Score: 5.0/10

Value: 1.9

Growth: 7.1

Quality: 7.8

Yield: 0.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Equasens

A-Score: 4.7/10

Value: 4.0

Growth: 4.9

Quality: 7.5

Yield: 3.8

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
CompuGroup Medical

A-Score: 4.4/10

Value: 4.5

Growth: 4.3

Quality: 4.1

Yield: 0.6

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Craneware

A-Score: 4.4/10

Value: 2.4

Growth: 6.7

Quality: 7.6

Yield: 1.9

Momentum: 5.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
RaySearch Laboratories

A-Score: 4.0/10

Value: 0.5

Growth: 8.4

Quality: 7.6

Yield: 1.2

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Kneat

A-Score: 3.0/10

Value: 2.4

Growth: 7.8

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

185.6$

Current Price

185.6$

Potential

-0.00%

Expected Cash-Flows