NovoCure Surpasses Q1 Expectations

 NovoCure (NVCR 1.86%), a leader in oncology treatments using Tumor Treating Fields (TTFields) therapy, released its first-quarter results on April 24, 2025. The company reported notable gains with revenue rising to $155 million (GAAP) in Q1 2025, surpassing Wall Street’s estimate of $146 million.

GAAP earnings per share (EPS) were a negative $0.31, beating expectations of a negative $0.46 per share. The quarter was marked by robust patient growth and progress in clinical trials, though challenges in gross margins remain.

Metric	Q1 2025	Q1 2025 Estimate	Q1 2024	Y/Y Change
EPS (Non-GAAP)	$(0.31)	$(0.46)	$(0.36)	N/A
Revenue (GAAP)	$155.0M	$146.0M	$138.5M	+12.0%
Gross Margin (GAAP)	75%	N/A	76%	-1.0 pp
Active Patients on Therapy	4,268	N/A	3,845	+11.0%
Adjusted EBITDA (Non-GAAP)	$(5.0)M	N/A	$(4.6)M	N/A

Source: Analyst estimates for the quarter provided by FactSet.

Business Overview

Founded to bring a novel approach to cancer treatment, NovoCure utilizes TTFields therapy, which uses electric fields to disrupt cancer cell division. The company focuses on expanding its reach with current therapies and pursuing new indications. Regulatory approvals play a crucial role in its strategy, ensuring products reach patients globally. Current success hinges on growing patient numbers and progressing the research pipeline.

Recently, NovoCure has targeted multi-oncology indications—particularly in non-small cell lung cancer and pancreatic cancer—by leveraging its regulatory and R&D successes. The emphasis on securing reimbursement in new markets and maintaining financial health is equally pivotal.

The first quarter was marked by considerable revenue growth for NovoCure. GAAP revenue reached $155 million in Q1 2025, up 12% from the previous year, primarily due to an increase in active patients. In Q1 2025, the U.S., Germany, France, and Japan were significant markets, contributing $93.2 million, $18.7 million, $17.9 million, and $8.7 million, respectively. This expansion highlights a strengthened presence in existing markets.

Despite these gains, gross margins contracted to 75% in Q1 2025, down from 76% in Q1 2024. This was largely due to investments in launching new, higher-cost therapeutic arrays for NSCLC—non-small cell lung cancer—without full-fledged reimbursement support, slightly pressuring the gross margin in 2025.

https://www.fool.com/data-news/2025/04/24/novocure-surpasses-q1-expectations/