NovoCure Ltd. (NVCR)
NASDAQ:NVCR
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NovoCure
(NASDAQ:NVCR)
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Rating:55Neutral
Price Target:
$15.50
▲(20.81% Upside)
Action:Reiterated
Date:05/01/26
The score is held back primarily by weak financial performance (ongoing losses and negative TTM operating/free cash flow) despite improved leverage. Offsetting this, the latest earnings call reflected strengthening fundamentals (raised revenue guidance, improving margins, and better adjusted EBITDA), and technicals indicate a solid uptrend, though momentum looks near overbought. Valuation remains constrained by negative earnings and no stated dividend yield.
Positive Factors
High gross margins and consumables-led model
Sustained ~75%+ gross margins reflect a high-value, device-plus-consumables model where recurring array sales generate annuity-like revenue. High product margins provide structural operating leverage potential as patient base and utilization scale, supporting long-term margin sustainability.
Negative Factors
Persistent operating losses and negative cash flow
Despite improving gross margins, the company records ongoing operating losses and negative TTM operating and free cash flow. Continued cash burn raises dependence on external financing, limits reinvestment capacity, and creates dilution or liquidity risk if negative cash flow persists over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins and consumables-led model
Sustained ~75%+ gross margins reflect a high-value, device-plus-consumables model where recurring array sales generate annuity-like revenue. High product margins provide structural operating leverage potential as patient base and utilization scale, supporting long-term margin sustainability.
Read all positive factors
NovoCure (NVCR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.00B
Dividend YieldN/A
Average Volume (3M)1.73M
Price to Earnings (P/E)―
Beta (1Y)1.36
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. Volume1,370,634
30 Day Avg. Volume1,732,531
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 Cap1.06
Enterprise Value/Revenue3.13
Enterprise Value/Gross Profit4.16
Enterprise Value/Ebitda-13.20
Forecast
1Y Price Target
$26.00Price Target Upside102.65% 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, 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, Europe, the Middle East, Africa, Japan...
How the Company Makes Money
NovoCure generates revenue primarily from the sale and ongoing use of its TTFields therapy systems and the associated recurring consumables required to deliver therapy. In practice, revenue is largely driven by (1) reimbursement-funded utilization...
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 | -159.92M | -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
Positive
12.83
Price Trends
14.00
Positive
13.32
Positive
13.00
Positive
Market Momentum
0.96
Positive
56.33
Neutral
19.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVCR, the sentiment is Positive. The current price of 12.83 is below the 20-day moving average (MA) of 17.42, below the 50-day MA of 14.00, and below the 200-day MA of 13.00, indicating a neutral trend. The MACD of 0.96 indicates Positive momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$79.10B | 27.14 | 13.43% | 2.45% | -7.49% | -37.07% | |
66 Neutral | $1.42B | ― | -0.95% | ― | 15.01% | 88.10% | |
65 Neutral | $1.22B | -115.05 | -2.91% | ― | -5.48% | -666.94% | |
55 Neutral | $2.00B | ― | -50.82% | ― | 8.48% | -1.53% | |
55 Neutral | $208.85M | -5.91 | -246.44% | ― | 17.41% | -189.91% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
44 Neutral | $887.85M | ― | -56.31% | ― | -3.87% | -258.96% |
* Healthcare Sector Average
NVCR
NovoCure
17.04
0.00
0.00%
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NovoCure Corporate Events
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.