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NovoCure
(NASDAQ:NVCR)
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Rating:58Neutral
Price Target:
$16.50
▼(-6.52% Downside)
Action:Reiterated
Date:07/25/26
The score is held back primarily by weak financial performance (ongoing losses and negative free cash flow), partially offset by constructive technical trend (price above major moving averages with balanced momentum) and a more encouraging near-term operating trajectory from the latest earnings call (record revenue growth and improved profitability metrics alongside reiterated breakeven ambitions). Valuation remains a risk signal due to negative earnings and no dividend support.
Positive Factors
High Gross Margins and Improved Leverage
Sustained mid-to-high 70s gross margins indicate the TTFields device-plus-consumables model captures value as volumes scale, supporting margin sustainability. Lower debt and improved debt-to-equity boost financial flexibility to fund launches and operations without immediate dilution or distress financing.
Negative Factors
Persistent Net Losses and Negative Free Cash Flow
Despite improving operational metrics, sustained negative margins and TTM negative free cash flow indicate the business still burns cash and relies on capital or improved operations to fund growth. This structural profitability gap constrains reinvestment, increases financing risk, and pressures returns absent durable margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins and Improved Leverage
Sustained mid-to-high 70s gross margins indicate the TTFields device-plus-consumables model captures value as volumes scale, supporting margin sustainability. Lower debt and improved debt-to-equity boost financial flexibility to fund launches and operations without immediate dilution or distress financing.
Read all positive factors
NovoCure (NVCR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.73B
Dividend YieldN/A
Average Volume (3M)1.89M
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth10.95%
EPS Growth16.12%
CountryUS
Employees1,605
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.30
Shares Outstanding116,445,840
10 Day Avg. Volume2,096,710
30 Day Avg. Volume1,887,454
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$29.50Price Target Upside67.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)-1.25
Revenue Forecast (FY)$725.79M
NovoCure Business Overview & Revenue Model
Company Description
NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Germany, France, Japan, Greater China,...
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:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed substantial commercial momentum highlighted by record net revenue (+16% YoY), active patient growth (Optune Gio +11% YoY), successful early launches (Optune Pax and Optune Lua), and a return to positive adjusted EBITDA in the quarter. Management also emphasized disciplined cost-management actions (R&D reductions and LUNAR-2 optimization) and updated full-year guidance reflecting confidence in continued progress. Key challenges include reimbursement and contracting hurdles (EU and Japan), reliance on some one-time benefits in Q2, the need to convert one-time prescribers into repeat prescribers for sustained growth, and clinical trial redesign risks. Overall, the positives — stronger commercial performance, profitability trajectory, regulatory milestones and clear launch progress — meaningfully outweigh the identified lowlights.Positive Updates
Record Quarterly Net Revenue
Net revenue of $184 million in Q2 2026, up 16% year-over-year; company updated full-year revenue guidance to $710 million–$725 million (8%–11% growth).
Negative Updates
Net Loss Still Present Despite Improvement
Company reported a net loss of $16 million in Q2 2026 (improved from $40 million), indicating profitability progress but continued GAAP losses; adjusted EBITDA guidance remains modest at $0 million to $15 million for full-year 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Net Revenue
Net revenue of $184 million in Q2 2026, up 16% year-over-year; company updated full-year revenue guidance to $710 million–$725 million (8%–11% growth).
Read all positive updates
Company Guidance
NovoCure updated full‑year 2026 net revenue guidance to $710–$725 million (8–11% growth, 10% midpoint) and set combined Optune Lua/Optune Pax revenue guidance of $20–$30 million; Q2 net revenue was $184 million (up 16% YoY), including $5.4 million from Lua, $1.6 million from Pax and $3 million of one‑time items. Q2 gross margin was 78% (vs. 74% in Q2 2025) and management expects quarterly gross margins in the mid‑70s through year‑end; R&D was $51 million (down 8% YoY), sales & marketing $62 million (up 8%), and G&A $40 million (down 9%). The company reported Q2 adjusted EBITDA of $11 million (vs. -$10 million a year ago), a net loss of $16 million (EPS -$0.13) vs. $40 million prior, updated full‑year adjusted EBITDA guidance to $0–$15 million, reiterated a goal to achieve adjusted EBITDA breakeven for full‑year 2026, and held $441 million in cash and investments.NovoCure Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
55
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 699.19M | 655.35M | 605.22M | 509.34M | 537.84M | 535.03M |
| Gross Profit | 532.27M | 488.47M | 468.04M | 381.06M | 422.97M | 420.15M |
| EBITDA | -134.40M | -119.05M | -109.58M | -177.45M | -67.89M | -38.38M |
| Net Income | -148.56M | -136.23M | -168.63M | -207.04M | -92.53M | -58.35M |
Balance Sheet | ||||||
| Total Assets | 795.19M | 804.33M | 1.24B | 1.15B | 1.19B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 440.56M | 457.52M | 959.87M | 910.62M | 969.42M | 938.51M |
| Total Debt | 233.42M | 290.00M | 683.35M | 596.24M | 584.27M | 581.90M |
| Total Liabilities | 457.10M | 463.86M | 880.61M | 783.63M | 750.48M | 729.00M |
| Stockholders Equity | 338.09M | 340.47M | 360.18M | 362.50M | 441.17M | 410.49M |
Cash Flow | ||||||
| Free Cash Flow | -21.13M | -75.68M | -69.22M | -100.43M | 9.43M | 58.59M |
| Operating Cash Flow | 1.49M | -49.03M | -26.37M | -73.34M | 30.79M | 82.76M |
| Investing Cash Flow | 409.13M | 437.28M | -140.24M | 184.15M | -139.96M | -144.83M |
| Financing Cash Flow | -454.60M | -451.34M | 90.31M | 15.79M | 15.49M | 25.70M |
NovoCure Technical Analysis
Neutral
17.65
Price Trends
16.36
Negative
15.04
Positive
13.83
Positive
Market Momentum
-0.17
Positive
47.43
Neutral
22.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVCR, the sentiment is Neutral. The current price of 17.65 is above the 20-day moving average (MA) of 16.17, above the 50-day MA of 16.36, and above the 200-day MA of 13.83, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 22.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | C$87.89B | 20.33 | 19.13% | 1.75% | 7.22% | -6.07% | |
72 Outperform | $1.53B | -144.81 | -2.91% | ― | -5.48% | -666.94% | |
69 Neutral | $1.92B | 177.95 | 2.14% | ― | 13.94% | ― | |
67 Neutral | $311.28M | -8.69 | -246.44% | ― | 17.41% | -189.91% | |
58 Neutral | $1.73B | -11.42 | -44.00% | ― | 10.95% | 16.12% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.14B | -0.94 | -56.31% | ― | -3.87% | -258.96% |
* Healthcare Sector Average
NVCR
NovoCure
15.69
4.18
36.32%
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NovoCure Corporate Events
Business Operations and StrategyProduct-Related Announcements
Novocure’s Optune Pax Secures CE Mark for Pancreatic Cancer
Positive
Jun 30, 2026
On June 30, 2026, Novocure announced that its wearable device Optune Pax received a CE Mark for use in adult patients with locally advanced pancreatic cancer of exocrine origin, when used alongside gemcitabine and nab-paclitaxel in line with treat...
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...
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.