NovoCure Ltd (NVCR)
NASDAQ:NVCR
Top Page
NovoCure
(NASDAQ:NVCR)
Select Model
Select Model
Rating:52Neutral
Price Target:
$11.50
▼(-0.95% Downside)
Action:ReiteratedDate:03/02/26
The score is held back primarily by weak financial performance, driven by persistent losses and negative free cash flow. Offsetting this, the latest earnings call included constructive guidance toward adjusted EBITDA breakeven and highlighted meaningful pipeline and regulatory progress, while technical signals are moderately supportive. Valuation remains constrained by negative earnings and no dividend.
Positive Factors
Recurring consumables revenue model
NovoCure’s business model pairs durable capital devices with single‑use transducer arrays and supplies that must be replaced regularly. That creates a repeat‑purchase, annuity‑like revenue stream tied to patient persistence, improving revenue visibility and unit economics as installed base grows.
Negative Factors
Negative operating and free cash flow
Sustained negative operating and free cash flow forces reliance on balance sheet resources or external financing to fund operations and trials. Even with cash on hand, continued outflows increase dilution or leverage risk and constrain capital allocation until adjusted EBITDA turns sustainably positive.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables revenue model
NovoCure’s business model pairs durable capital devices with single‑use transducer arrays and supplies that must be replaced regularly. That creates a repeat‑purchase, annuity‑like revenue stream tied to patient persistence, improving revenue visibility and unit economics as installed base grows.
Read all positive factors
NovoCure (NVCR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.32B
Dividend YieldN/A
Average Volume (3M)2.46M
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth11.17%
EPS Growth-15.64%
CountryUS
Employees1,488
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.22
Shares Outstanding113,794,395
10 Day Avg. Volume1,142,596
30 Day Avg. Volume2,456,820
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 Cap1.14
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit3.09
Enterprise Value/Ebitda-11.50
Forecast
1Y Price Target
$25.50Price Target Upside119.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)-1.6
Revenue Forecast (FY)$694.68M
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong commercial and clinical progress (record revenue, meaningful active patient growth, FDA approval of Optune Pax, upcoming trial readouts, improved non‑GBM revenue trajectory, solid cash position and convertible note repayment) alongside near‑term profitability and operational challenges (net losses and negative adjusted EBITDA, gross margin compression, increased R&D spend, slower Optune Lua launch, reimbursement timing for Optune Pax, and a resolved Medicare administrative issue). Management provided formal 2026 guidance (revenue growth of 3%–8% and adjusted EBITDA of negative $20 million to breakeven), signifying a clear path toward stabilizing growth and driving to profitability while acknowledging near‑term execution and reimbursement risks.Positive Updates
Record Revenue and Year‑Over‑Year Growth
Full‑year net revenue of $655 million and fourth quarter net revenue of $174 million, each representing 8% year‑over‑year growth versus 2024.
Negative Updates
Continued Net Losses and Negative Adjusted EBITDA
Net loss for Q4 was $24 million (loss per share $0.22) and full‑year net loss was $136 million (loss per share $1.22). Adjusted EBITDA was negative $16 million in Q4 and negative $34 million for the full year.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Year‑Over‑Year Growth
Full‑year net revenue of $655 million and fourth quarter net revenue of $174 million, each representing 8% year‑over‑year growth versus 2024.
Read all positive updates
Company Guidance
NovoCure issued 2026 guidance of $675–$705 million in net revenue at constant FX (up 3%–8% year‑over‑year), assuming Optune Gio growth in the low‑ to mid‑single‑digit range and $15–$25 million of revenue from non‑GBM products (vs. $10 million in 2025), and targeting adjusted EBITDA of negative $20 million to breakeven for the year; they expect gross margin in the mid‑70s percent range and noted a 1–2 year timeline to routine commercial payer coverage for new indications. For context, full‑year 2025 net revenue was $655 million (Q4 $174 million), with FY gross margin 75% (Q4 76%; prior year FY/Q4: 77%/79%), adjusted EBITDA of negative $34 million for FY2025 (Q4 negative $16 million), cash & investments of $448 million, repayment of $561 million of convertible notes in Q4, and no plan to draw beyond the $200 million already accessed on the credit facility. Additional 2025 metrics that inform guidance include Optune Lua revenue of $10.4 million for the year ($3.5 million in Q4, $2.4 million from NSCLC), an FX tailwind of ~$11 million for FY2025 (~$5 million in Q4), R&D spend of $225 million for the year ($61 million Q4), sales & marketing $240 million FY ($69 million Q4), G&A $178 million FY ($43 million Q4), and net loss of $136 million for FY2025 (EPS −$1.22; Q4 net loss $24 million, EPS −$0.22).NovoCure Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
52
Neutral
Cash Flow
33
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 655.35M | 605.22M | 509.34M | 537.84M | 535.03M |
| Gross Profit | 488.47M | 468.04M | 381.06M | 422.97M | 420.15M |
| EBITDA | -119.05M | -109.58M | -177.45M | -67.89M | -38.38M |
| Net Income | -136.23M | -168.63M | -207.04M | -92.53M | -58.35M |
Balance Sheet | |||||
| Total Assets | 804.33M | 1.24B | 1.15B | 1.19B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 457.52M | 959.87M | 910.62M | 969.42M | 938.51M |
| Total Debt | 290.00M | 683.35M | 596.24M | 584.27M | 581.90M |
| Total Liabilities | 463.86M | 880.61M | 783.63M | 750.48M | 729.00M |
| Stockholders Equity | 340.47M | 360.18M | 362.50M | 441.17M | 410.49M |
Cash Flow | |||||
| Free Cash Flow | -75.68M | -69.22M | -100.43M | 9.43M | 58.59M |
| Operating Cash Flow | -49.03M | -26.37M | -73.34M | 30.79M | 82.76M |
| Investing Cash Flow | 437.28M | -140.24M | 184.15M | -139.96M | -144.83M |
| Financing Cash Flow | -451.34M | 90.31M | 15.79M | 15.49M | 25.70M |
NovoCure Technical Analysis
Negative
11.61
Price Trends
12.43
Negative
12.49
Negative
13.30
Negative
Market Momentum
-0.19
Positive
40.33
Neutral
18.16
Positive
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 11.61 is below the 20-day moving average (MA) of 12.81, below the 50-day MA of 12.43, and below the 200-day MA of 13.30, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 18.16 is Positive, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | C$87.11B | 18.28 | 14.75% | 2.45% | -6.18% | -14.06% | |
64 Neutral | $959.24M | -95.19 | -3.40% | ― | -18.82% | 92.56% | |
60 Neutral | $1.47B | -165.01 | -2.43% | ― | 15.80% | 26.94% | |
52 Neutral | $1.32B | -10.58 | -39.11% | ― | 11.17% | -15.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $149.79M | -31.27 | -178.55% | ― | 30.55% | -340.19% | |
45 Neutral | $1.09B | -1.76 | -46.45% | ― | -3.43% | 38.98% |
* Healthcare Sector Average
NVCR
NovoCure
11.61
-6.83
-37.04%
ATRC
Atricure
29.53
-4.09
-12.17%
TSE:IMO
Imperial Oil
180.13
78.13
76.61%
QDEL
QuidelOrtho
16.01
-19.01
-54.28%
BLFS
BioLife Solutions
19.86
-5.64
-22.12%
SMTI
Sanara MedTech
16.34
-13.29
-44.85%
NovoCure Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
NovoCure Has Medicare Billing Privileges Reinstated by CMS
Positive
Feb 24, 2026
On February 2, 2026, Novocure Inc. disclosed that the Centers for Medicare Medicaid Services had revoked its Medicare billing privileges retroactive to December 17, 2025, due to an administrative issue in its triannual re-validation rather than a...
Business Operations and StrategyProduct-Related Announcements
Novocure Wins FDA Approval for Optune Pax in Pancreatic Cancer
Positive
Feb 11, 2026
On February 11, 2026, Novocure announced that the U.S. Food and Drug Administration approved its Optune Pax device for use with gemcitabine and nab-paclitaxel in adult patients with locally advanced pancreatic cancer, marking the first new FDA-app...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
NovoCure Faces CMS Billing Revocation, Revenue Impact Uncertain
Negative
Feb 5, 2026
On January 30, 2026, Novocure Inc. disclosed that CMS had revoked its billing privileges for the company’s products, retroactive to December 17, 2025, due to an administrative issue with its triannual re-validation rather than any substantiv...
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.