Financial Analysis

COMMITMENTS AND CONTINGENT LIABILITIES Operating Leases. The facilities of the Company are leased under various operating lease agreements for periods, including options for extensions, ending no later than 2044. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2031. Pledged deposits and bank guarantees. As of June 30, 2026 and December 31, 2025, the Company pledged bank deposits of $5,586 and $5,114, respectively, to cover bank guarantees in respect of its leases of operating facilities and obtained bank guarantees for the fulfillment of the Companys lease and other contractual commitments of $6,061 and $5,554, respectively. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"LONG-TERM DEBT, NET a. Senior secured credit facility, net On May 1, 2024 Novocure Luxembourg S.a.r.l. (""Borrower""), a wholly-owned subsidiary of the Company, entered into a five-year senior secured credit facility of up to $400,000 (the ""Facility"") with BPCR Limited Partnership and BioPharma Credit Investments V (Master) LP (collectively, the ""Lenders""), BioPharma Credit PLC, as collateral agent for the Lenders, and the guarantors party to such agreement (the ""Loan Agreement""). The Facility could be drawn in up to four drawings. The Loan Agreement provides for an initial term loan in the principal amount of $100,000 (the ""Tranche A Loan""), which was funded to the Borrower on May 1, 2024 (the ""Tranche A Funding Date""). Under the Loan Agreement, the Borrower was required to draw $100,000 on the Facility on or before September 30, 2025 (the ""Tranche B Loan""), which was drawn down on that date. Not later than December 31, 2025, the Borrower had the option to draw an additional $100,000 of the Facility (the ""Tranche C Loan""). In addition, not later than March 31, 2026, the Borrower had the option to draw an additional $100,000 of the Facility (the ""Tranche D Loan""). As of June 30, 2026, the Company has borrowed the Tranche A Loan and the Tranche B Loan in the aggregate principal amount of $200,000. The Company did not did not give notice of its intent to borrow the Tranche C Loan. As a result, the Company no longer has the ability to borrow the Tranche C or Tra …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Recently adopted accounting pronouncements In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This amendment introduces a practical expedient for the application of the current expected credit loss (CECL) model to current accounts receivable and contract assets. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company adopted ASU 2025-05 on January 1, 2026, on a prospective basis, and elected the practical expedient provided by ASU 2025-05. Under this expedient, the Company assumes that economic conditions as of the balance sheet date remain unchanged for the remaining life of all current accounts receivable and current contract assets arising from transactions under ASC 606. The Company continues to estimate expected credit losses for non-current receivables and contract assets in accordance with ASC 326. The adoption of ASU 2025-05 did not have any material impact on the consolidated financial statements. Recently announced accounting pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categorie …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION a. Net revenues The Companys net revenues by geographic region, based on the patients location are summarized as follows: Three months ended June 30, Six months ended June 30, Year ended Year ended December 31, 2026 2025 2026 2025 2025 United States $ 102,955 $ 94,261 $ 198,911 $ 187,415 $ 385,632 International markets: Germany 23,341 19,074 47,845 37,792 79,407 France 21,347 18,416 44,225 36,275 76,189 Japan 11,780 9,484 22,023 18,193 37,786 Other international markets 18,205 12,979 33,884 24,916 56,898 International markets - Total 74,673 59,953 147,977 117,176 250,280 Greater China (1) 5,956 4,591 10,751 9,208 19,441 Total net revenues $ 183,584 $ 158,805 $ 357,639 $ 313,799 $ 655,353 (1) For additional information, see Notes 12 and 13 to the Consolidated Financial Statements in the 2025 10-K. The Company's net revenues by performance period are as follows: Three months ended June 30, Six months ended June 30, Year ended December 31, 2026 2025 2026 2025 2025 Net revenues recognized in the reporting period from performance obligations satisfied in: Reporting period $ 174,813 $ 150,954 $ 343,986 $ 296,970 $ 632,358 Previous periods 8,771 7,851 13,653 16,829 22,995 Total net revenues $ 183,584 $ 158,805 $ 357,639 $ 313,799 $ 655,353 b. Contract balances The following table provides information about trade receivables, unbilled receivables and contract liabilities from contracts with customers: June 30, 2026 December 31, 2025 Unaudited Audited Trade receiva …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SUPPLEMENTAL INFORMATION The Company operates in a single reportable segment. The following table presents long-lived assets by location: June 30, 2026 December 31, 2025 Unaudited Audited United States $ 66,036 $ 65,669 Switzerland 46,068 48,125 Israel 12,999 14,059 Others 20,637 19,146 Total long lived assets $ 145,740 $ 146,999

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