Novocure — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total net revenues for the quarter ended September 30, 2026, were $193.4 million, a 16% increase year-over-year compared to $167.2 million in the same period in 2025.
• Revenue growth was primarily driven by a 19% increase in global active patients.
• Gross margin improved to 77% from 73% in the prior year period, driven by higher patient volumes, lower cost per active patient, improved array utilization, and manufacturing efficiencies.
• Net loss for the quarter was $10.4 million ($0.09 per share), compared to a net loss of $37.3 million ($0.33 per share) in the prior year period.
• Adjusted EBITDA for the quarter was $15.7 million, compared to a loss of $3.0 million in the prior year period.
• Cash, cash equivalents, and short-term investments totaled $463.5 million as of September 30, 2026.
• Revenue from Optune Lua and Optune Pax combined was $11.9 million ($8.2 million from Optune Lua and $3.7 million from Optune Pax).
• Revenue from the partnership with Zai Lab in Greater China totaled $4.5 million.
• $4.4 million in net revenue was recognized from one-time benefits in the U.S. and Germany related to increased claims approval rates.
• Research, development, and clinical study expenses were $58.1 million, an 8% increase year-over-year, driven by higher clinical trial expenses for KEYNOTE D58.
• Sales and marketing expenses were $53.3 million, a 9% decrease year-over-year, driven by lower share-based compensation and marketing expenses.
• General and administrative expenses were $43.6 million, a 5% decrease year-over-year, driven by lower share-based compensation.

Guidance and Future Outlook:

• Full-year 2026 total net revenue guidance was raised to $736 million – $743 million (previous guidance: $710 million – $725 million).
• Full-year 2026 Adjusted EBITDA guidance was raised to $24 million – $34 million (previous guidance: $0 million – $15 million).
• Guidance assumes mid-to-high single-digit net revenue growth from Optune Gio, $30 million – $34 million in collective net revenue from Optune Lua and Optune Pax, foreign exchange rates as of September 30, 2026, and quarterly gross margins in the mid-to-high 70s percent.
• Anticipated milestones include a U.S. FDA decision on premarket approval for TTFields therapy for brain metastases from non-small cell lung cancer in Q4 2026.
• Enrollment in the Phase 3 KEYNOTE D58 clinical trial in newly diagnosed glioblastoma is expected to be completed in Q4 2026.

Business Segments and Product Lines:

• Total active patients on TTFields therapy globally reached 5,260 as of September 30, 2026.
• Optune Gio active patients totaled 4,729, an 11% increase year-over-year, with contributions from the U.S. (2,324), Germany (656), France (493), Japan (592), and other markets (664).
• Optune Lua active patients totaled 255, an 83% increase year-over-year, with contributions from the U.S. (97), Germany (42), France (1), Japan (110), and other markets (5).
• Optune Pax received 238 prescriptions in the quarter (209 in the U.S., 29 in Germany) and had 276 active patients as of September 30, 2026 (266 in the U.S., 10 in Germany).
• Optune Pax received approval from Japan's Ministry of Health, Labour and Welfare for the treatment of locally advanced pancreatic cancer.
• Novocure entered a clinical trial collaboration and supply agreement with Verastem Oncology to evaluate TTFields therapy with chemotherapy and VS-7375 for locally advanced pancreatic cancer.

Market and Competitive Landscape:

• The U.S., Germany, France, and Japan were the primary revenue contributors, generating $111.9 million, $24.9 million, $18.7 million, and $14.5 million respectively.
• Other active markets contributed $18.8 million in revenue.

Risks and Challenges:

• The press release includes standard forward-looking statement disclaimers regarding risks such as general financial, economic, environmental, regulatory, and political conditions, as well as specific risks detailed in the Annual Report on Form 10-K.
• Clinical trial results, regulatory approvals, and manufacturing capabilities are subject to uncertainty.

Management Commentary and Tone:

• CEO Frank Leonard stated the strong third quarter was driven by continued growth in Optune Gio and the launch of products in new markets, resulting in a record number of active patients.
• Management noted they achieved record-high quarterly net revenue and are well-positioned to achieve commercial, clinical, and financial goals set in January.
• Management expressed confidence in the path to profitability following the raised guidance.

Other Key Points:

• Novocure's global headquarters is in Baar, Switzerland, with U.S. headquarters in Portsmouth, New Hampshire, and R&D facilities in Haifa, Israel.
• A conference call and webcast were hosted on October 29, 2026, to discuss the results.
• The company utilizes Adjusted EBITDA as a non-GAAP financial measure to evaluate operating performance by removing the impact of capital structure, tax rate, and share-based compensation.