NovoCure Q2 Revenue Jumps 6 Percent

NovoCure (NVCR -3.99%), the oncology device firm advancing Tumor Treating Fields therapy, released its second quarter 2025 results on July 24, 2025. GAAP revenue totaled $158.8 million in Q2 2025, an increase of 6% year over year and surpassing the $154.16 million analyst consensus (GAAP). GAAP net loss per share was $0.36, also better than the estimated GAAP loss of $0.38. Operating losses and a decline in gross margin (GAAP) persisted due to the costs of new product launches and tariffs. The quarter showed strong patient growth and pipeline progress, but short-term profitability remains a challenge as NovoCure invests for the future.

Source: Analyst estimates for the quarter provided by FactSet.

Company Focus and Business Background

NovoCure is an oncology technology company that develops and markets Tumor Treating Fields (TTFields) therapy—an electrical field-based device treatment for solid tumor cancers. Its primary products, Optune Gio and Optune Lua, are wearable medical devices designed for continuous use by patients to slow or stop cancer cell division.

The business centers on expanding TTFields adoption across multiple cancer types, beginning with glioblastoma (an aggressive brain cancer) and now building out to other indications such as non-small cell lung cancer and pancreatic cancer. The company’s growth depends on gaining regulatory approvals, achieving solid clinical trial results, securing reimbursement, and scaling up patient adoption in new and existing markets.

Quarterly Developments: Patient Growth, Launch Progress, and Margins

The total number of patients on therapy climbed to 4,331 from 3,963 the previous year, a 9.3% increase year over year. This growth was driven by established adoption in glioblastoma and initial uptake in newly launched indications, notably NSCLC. Optune Gio, the TTFields device for glioblastoma, ended the quarter with 4,194 active patients, a 7% increase year over year. Optune Lua—designed for NSCLC and malignant pleural mesothelioma—had 137 active patients as of June 30, 2025, up from 26 as of June 30, 2024.

The company highlighted commercial traction in the NSCLC launch in both the U.S. and Germany. NSCLC prescriptions reached 121, supporting revenue recognized from Optune Lua of $2.4 million ($1.1 million for NSCLC, $1.3 million for mesothelioma). The expansion also extended geographic reach, with the U.S. accounting for $94.3 million in GAAP revenue, followed by Germany ($19.1 million), France ($18.4 million), Japan ($9.5 million), and Greater China ($4.6 million, through a partner).

Financial performance reflected successful launches and growing demand, but costs increased as well. Gross margin dropped to 74 % from 77 % last year. The company attributed this decline in gross margin to the rollout of its new Head Flexible Electrode (HFE) transducer array—which initially carries higher production cost—tariff impacts, and the launch of NSCLC, where upfront costs are absorbed before broad reimbursement is achieved. Operating expenses rose across all categories: research and development (up 2%), sales and marketing (up 1%), and general and administrative costs (up 17%, in part due to a staffing build-out for recent and upcoming launches).

The company advanced its clinical pipeline, with the pivotal PANOVA-3 Phase 3 trial in pancreatic cancer meeting its main goal and showing meaningful survival benefits, as presented at the 2025 ASCO Annual Meeting. PANOVA-3 results received top recognition at a major cancer conference and publication in a leading medical journal. Regulatory progress continued as the company prepared Premarket Approval (PMA) submissions for both pancreatic cancer and brain metastases from NSCLC. Management indicated these filings are on track for later in 2025. The company also held a strong cash position, reporting $911.5 million in cash and investments, supporting ongoing expenses and investments in new patient populations.

Product Families: Defining and Expanding Indications

Optune Gio is a wearable device for glioblastoma—a fast-growing type of brain cancer—delivering TTFields treatment directly to tumor areas and achieving dominant share in NovoCure’s overall active patients and revenue. Optune Lua, launched more recently, is the TTFields system for patients with malignant pleural mesothelioma and non-small cell lung cancer. Active adoption in these groups is supported by expanding regulatory approvals, such as the European CE Mark for NSCLC.

The launch strategy in new markets relies on a targeted approach, prioritizing high-potential prescribers, reimbursement readiness, and building up a base of case-by-case claims—particularly in Germany and the U.S. For example, NovoCure reported that in Germany, its team with prior mesothelioma experience is positioned to leverage their network for lung cancer as well. Growth in the prescriber base and depth of engagement (doctors prescribing multiple patients) are both shaping future market penetration.

Looking Ahead: Pipeline Milestones and Financial Outlook

Management did not provide specific revenue or earnings guidance for the rest of fiscal 2025. The company reaffirmed that gross margin (GAAP) is likely to remain in the low seventies percent for 2025 due to ongoing tariff impacts and product rollouts. NovoCure pointed to anticipated regulatory milestones—particularly PMA submissions for pancreatic cancer and brain metastases from NSCLC—as key upcoming events for the business.

Investors will be watching several factors in coming quarters. These include the speed of uptake in new indications—especially whether reimbursement broadens for new cancer types—as well as the pace of prescription growth and the potential for further margin pressure from tariffs or higher launch costs. NovoCure’s robust cash reserves provide a financial cushion to support these investments and absorb ongoing losses. NVCR does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.