NovoCure Ltd. (NVCR)
NASDAQ:NVCR
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NovoCure
(NASDAQ:NVCR)
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Rating:52Neutral
Price Target:
$18.00
▲(40.30% Upside)
Action:Reiterated
Date:06/19/26
The score is primarily constrained by weak financial performance—ongoing losses and negative TTM operating/free cash flow despite strong gross margins—creating profitability and funding risk. Technicals are constructive with price above major moving averages and positive MACD, and the earnings call was net positive on raised revenue guidance and improved adjusted EBITDA trajectory. However, valuation remains challenged due to losses and no dividend support, and the TRIDENT Phase 3 miss is a meaningful corporate-event overhang.
Positive Factors
High gross margins
Sustained gross margins (~75%–78%) driven by lower array costs and supplier improvements provide durable product-level profitability. High margins on recurring consumables create structural operating leverage as active patient counts grow, supporting long-term cash generation potential if fixed costs are controlled.
Negative Factors
Negative operating and free cash flow
Persistent negative operating and free cash flow despite improving gross margins implies structural funding risk. Continued cash burn necessitates external financing or material margin/profitability improvement, which can dilute shareholders or constrain investments in launches and large trials over the next several quarters if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins (~75%–78%) driven by lower array costs and supplier improvements provide durable product-level profitability. High margins on recurring consumables create structural operating leverage as active patient counts grow, supporting long-term cash generation potential if fixed costs are controlled.
Read all positive factors
NovoCure (NVCR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.65B
Dividend YieldN/A
Average Volume (3M)1.64M
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth8.48%
EPS Growth-1.53%
CountryUS
Employees1,488
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-1.53
Shares Outstanding115,820,940
10 Day Avg. Volume1,809,972
30 Day Avg. Volume1,636,625
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)4.23
Price to Sales (P/S)2.20
P/FCF Ratio-19.05
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue3.27
Enterprise Value/Gross Profit4.35
Enterprise Value/Ebitda-14.19
Forecast
1Y Price Target
$25.60Price Target Upside99.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-1.59
Revenue Forecast (FY)$703.91M
NovoCure Business Overview & Revenue Model
Company Description
NovoCure Limited operates as an oncology enterprise specializing in the development, manufacturing, and global commercialization of its proprietary Tumor Treating Fields (TTFields) technology. These innovative devices are engineered to treat solid...
How the Company Makes Money
NovoCure primarily makes money by selling and supporting its TTFields therapy systems for approved cancer indications. Revenue is generated from providing patients access to the TTFields device and related components (e.g., arrays and other consum...
NovoCure Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive commercial and clinical outlook anchored by a strong start to 2026: double-digit revenue growth (12% YoY), rapid Optune Pax FDA approval and early U.S. launch traction, encouraging PANOVA-4 data, gross margin improvement, and tightened adjusted EBITDA versus prior year. These positives are tempered by a sizable one-time GAAP share‑based compensation charge that materially widened GAAP net loss and drove a large G&A increase, modest near-term revenue contribution from new indications, remaining reimbursement timing uncertainty, and ongoing trial strategy work for LUNAR-2. On balance, the company demonstrated substantive commercial momentum and multiple upcoming catalysts that outweigh the near-term accounting-driven losses and operational uncertainties.Positive Updates
Net Revenue Growth
Net revenue of $174 million in Q1 2026, up 12% year-over-year; company raised full-year revenue guidance to $690M–$710M (5%–8% growth), citing strong Q1 momentum.
Negative Updates
Widening GAAP Net Loss
Reported net loss of $71 million in Q1 2026 vs $34 million in Q1 2025; loss per share of negative $0.62. The GAAP loss was materially impacted by a $43 million share‑based compensation charge tied to Optune Pax approval.
Read all updates
Q1-2026 Updates
Positive
Negative
Net Revenue Growth
Net revenue of $174 million in Q1 2026, up 12% year-over-year; company raised full-year revenue guidance to $690M–$710M (5%–8% growth), citing strong Q1 momentum.
Read all positive updates
Company Guidance
NovoCure updated its 2026 financial outlook, raising full‑year net revenue guidance to $690–$710 million (5–8% YoY growth, $700M midpoint) while keeping combined Optune Lua/Optune Pax revenue at $15–$25 million, and setting adjusted EBITDA guidance to a range of negative $15 million to breakeven; management cited a strong Q1 (net revenue $174M, +12% YoY; Q1 gross margin 78% vs. 75% in Q1‑2025; expected full‑year gross margin in the mid‑70s), Q1 adjusted EBITDA of negative $0.3M (vs. negative $5M in Q1‑2025), Q1 net loss $71M (or $28M excluding a $43M one‑time share‑based compensation), loss per share $0.62, cash & investments $432M (3/31/26), and Q1 operating spend of R&D $58M (+8% YoY), sales & marketing $58M (+5% YoY) and G&A $86M (+92% YoY).NovoCure Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
56
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 674.41M | 655.35M | 605.22M | 509.34M | 537.84M | 535.03M |
| Gross Profit | 507.13M | 488.47M | 468.04M | 381.06M | 422.97M | 420.15M |
| EBITDA | -155.38M | -119.05M | -109.58M | -177.45M | -67.89M | -38.38M |
| Net Income | -173.05M | -136.23M | -168.63M | -207.04M | -92.53M | -58.35M |
Balance Sheet | ||||||
| Total Assets | 787.93M | 804.33M | 1.24B | 1.15B | 1.19B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 441.80M | 457.52M | 959.87M | 910.62M | 969.42M | 938.51M |
| Total Debt | 234.94M | 290.00M | 683.35M | 596.24M | 584.27M | 581.90M |
| Total Liabilities | 457.21M | 463.86M | 880.61M | 783.63M | 750.48M | 729.00M |
| Stockholders Equity | 330.72M | 340.47M | 360.18M | 362.50M | 441.17M | 410.49M |
Cash Flow | ||||||
| Free Cash Flow | -48.07M | -75.68M | -69.22M | -100.43M | 9.43M | 58.59M |
| Operating Cash Flow | -26.88M | -49.03M | -26.37M | -73.34M | 30.79M | 82.76M |
| Investing Cash Flow | 451.50M | 437.28M | -140.24M | 184.15M | -139.96M | -144.83M |
| Financing Cash Flow | -456.76M | -451.34M | 90.31M | 15.79M | 15.49M | 25.70M |
NovoCure Technical Analysis
Negative
12.83
Price Trends
15.63
Negative
13.75
Positive
13.35
Positive
Market Momentum
0.17
Positive
36.84
Neutral
47.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVCR, the sentiment is Negative. The current price of 12.83 is below the 20-day moving average (MA) of 17.13, below the 50-day MA of 15.63, and below the 200-day MA of 13.35, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 36.84 is Neutral, neither overbought nor oversold. The STOCH value of 47.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVCR.
NovoCure Risk Analysis
NovoCure disclosed 40 risk factors in its most recent earnings report. NovoCure reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NovoCure Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$76.50B | 24.61 | 13.38% | 2.45% | -7.49% | -37.07% | |
69 Neutral | $1.27B | -120.22 | -2.91% | ― | -5.48% | -666.94% | |
66 Neutral | $1.46B | -303.07 | -0.95% | ― | 15.01% | 88.10% | |
53 Neutral | $201.79M | -5.71 | -246.44% | ― | 17.41% | -189.91% | |
52 Neutral | $1.65B | -9.42 | -50.82% | ― | 8.48% | -1.53% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $932.17M | -0.77 | -56.31% | ― | -3.87% | -258.96% |
* Healthcare Sector Average
NVCR
NovoCure
14.28
-2.33
-14.03%
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NovoCure Corporate Events
Business Operations and Strategy
NovoCure Reports Phase 3 TRIDENT Trial Topline Results
Negative
Jun 18, 2026
On June 17, 2026, Novocure reported topline data from its Phase 3 TRIDENT trial, which tested starting Tumor Treating Fields therapy at the beginning of chemoradiation versus during the maintenance phase in newly diagnosed glioblastoma. The study ...
Executive/Board ChangesShareholder Meetings
NovoCure Shareholders Approve Directors, Auditor and Incentive Plan
Positive
Jun 5, 2026
On June 3, 2026, NovoCure Limited held its annual general meeting of shareholders, at which investors holding approximately 81.01% of eligible ordinary shares were represented in person or by proxy. Shareholders elected eleven directors, including...
Business Operations and StrategyExecutive/Board Changes
NovoCure Expands Executive Role, Adjusts CMO Compensation
Neutral
Apr 9, 2026
On April 8, 2026, NovoCure Limited adjusted the compensation of senior executive Uri Weinberg, M.D., Ph.D., following his appointment as Chief Medical Officer in addition to his existing role as Chief Innovation Officer. Under a letter agreement d...
Business Operations and StrategyProduct-Related Announcements
NovoCure Announces Positive Phase 2 PANOVA-4 Pancreatic Cancer Data
Positive
Mar 26, 2026
On March 26, 2026, Novocure reported positive topline data from its Phase 2 PANOVA-4 trial evaluating Tumor Treating Fields therapy in combination with atezolizumab, gemcitabine and nab-paclitaxel as first-line treatment for metastatic pancreatic ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.