NovoCure Limited reported fourth‑quarter and full‑year 2025 results that included net revenues of $174 million for the quarter and $655 million for the year, a 3% decline from the $178 million and $673 million reported in the same periods a year earlier. The company posted a net loss of $24.5 million, or $0.22 per share, for the quarter, a significant improvement over the $65.9 million loss ($0.61 per share) reported in Q4 2024. Gross margin contracted to 76% in Q4 2025 from 79% in Q4 2024, reflecting higher costs associated with the rollout of the Head Flexible Electrode (HFE) array and increased tariff charges.
The revenue miss of $2.8 million—below the consensus estimate of $176.8 million—was driven by a 5% year‑over‑year rise in active patient counts in the core glioblastoma business, but offset by slower uptake of the new pancreatic and lung cancer indications. The company’s expansion into these indications incurred one‑time inventory and tariff charges that weighed on the quarter’s top line. Despite the revenue shortfall, the company’s cost‑control program and the stabilization of gross margins in the mid‑70s helped narrow the loss margin and support the EPS beat.
The $0.22 per share loss represents a $0.20 improvement over the consensus estimate of a $0.42 loss, a beat of $0.20 or 48%. The improvement was largely due to disciplined operating expenses and the absence of the large one‑time inventory and tariff charges that impacted the prior year. Management noted that the loss reflects investment in the platform pivot, but that gross margins are expected to stabilize in the mid‑70s as new‑indication launches mature.
For 2026, NovoCure guided for net revenues of $675 million to $705 million, a 3%‑8% year‑over‑year increase from the 2025 full‑year revenue of $655 million. The company also revised its adjusted EBITDA guidance to a range of negative $20 million to breakeven ($0 million), correcting the earlier $0 million to $20 million range. This conservative outlook signals management’s focus on achieving profitability while continuing to invest in the multi‑indication platform. CFO Christoph Brackmann emphasized that the guidance reflects a cautious view of demand and cost expectations as the company scales new indications.
Market reaction to the results was negative, with investors focusing on the revenue miss and the conservative 2026 guidance. The EPS beat was insufficient to offset concerns about top‑line growth and the company’s continued investment in new indications. The market’s response underscores the importance placed on revenue trajectory and guidance clarity for a company transitioning from a single‑indication to a multi‑indication platform.
Strategically, NovoCure’s FDA approval of Optune Pax for pancreatic cancer and the ongoing launch of Optune Lua for lung cancer position the company to broaden its addressable market. Headwinds include higher tariff costs, the rollout of the HFE array, and slower uptake of new indications, while tailwinds include strong patient growth in ex‑U.S. markets and the potential for margin stabilization as the platform matures. The company’s focus on achieving breakeven in 2026 reflects confidence in its cost‑control program and the expected revenue lift from new indications, but the revenue miss and guidance caution suggest that investors will closely monitor execution in the coming quarters.
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