NovoCure LtdNVCR

NovoCure Ltd Revenue Disclosure

10-KFiled Feb 26, 20262 min read
Revenue recognition
a.     Net revenues
The Company’s net revenues by geographic region, based on the patient’s location are summarized as follows:
Year ended December 31,
 202520242023
United States$385,632 $391,801 $349,743 
International markets:
Germany79,407 65,263 60,210 
France
76,189 55,730 11,736 
Japan37,786 32,569 31,668 
Other international markets
56,898 42,471 32,757 
International markets - Total
250,280 196,033 136,371 
Greater China (1)19,441 17,386 23,224 
Total net revenues$655,353 $605,220 $509,338 
(1)    For additional information, see c below.

The company's net revenues by performance period are as follows:
Year ended December 31,
 202520242023
Net revenues recognized in the reporting period from performance obligations satisfied in:
Reporting period$632,358 $568,819 $492,089 
Previous periods22,995 36,401 17,249 
Total net revenues$655,353 $605,220 $509,338 
b.     Contract balances
The following table provides information about trade receivables, unbilled receivables and contract liabilities from contracts with customers::
December 31,
 20252024
Trade receivables$81,648 $68,501 
Unbilled receivables$7,787 $5,725 
Deferred revenues (short-term contract liabilities)$(15,948)$(14,225)
During the years ended December 31, 2025, 2024 and 2023, the Company recognized $14,225, $16,224 and $18,028, respectively, which were included in the deferred revenues (short-term contract liability) balance at January 1, 2025 , 2024 and 2023.
c.     Zai agreement:
The Company recognizes revenue pursuant to the License Agreement with Zai (see Note 12) in accordance with ASC 606, "Revenue Recognition from Customers." The License Fee was deferred and recognized over the performance period commencing September 10, 2018 ("Zai Performance Period"). The potential development and regulatory milestones will be included in the transaction price when the Company concludes that achievement of the milestones is probable, and that recognition of revenue related to the milestones will not result in a significant reversal in amounts recognized in future periods, and as such have been excluded from the transaction price until such probability is achieved. Revenue from royalty payments are estimated and recognized in accordance with ASC 606. Revenues from sales of product or rendering services are recognized upon shipping the products or rendering the services and satisfying the performance obligation.
During the year ended December 31, 2020, the Company triggered milestone payments of $10,000 in the aggregate, which, along with the License Fee, were deferred and recognized over the remainder of the Zai Performance Period on a straight-line basis. For the three years ended December 31, 2025, no additional milestones were included in the transaction price.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 22, 2024
2022Feb 23, 2023

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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