NovoCure (NVCR) shares plummeted 23.99% in Thursday's trading session following the release of its second-quarter 2025 financial results. Despite reporting revenue growth, the company's widening losses and declining gross margins have sparked investor concerns about its path to profitability.

The oncology company, known for developing noninvasive methods to treat solid-tumor cancers, reported Q2 revenue of $158.8 million, up 6% year-over-year and beating analyst estimates of $154.2 million. However, NovoCure's net loss widened to $0.36 per share from $0.31 in the same quarter last year, although it was slightly better than the expected loss of $0.38 per share.

Investors appear to be focusing on NovoCure's declining gross margins, which fell from 77% in Q2 2024 to 74% in Q2 2025. The company attributed this decline to increased costs associated with ongoing clinical trials and the rollout of new products. Research, development, and clinical studies expenses for the quarter totaled $55.8 million, up 2% from the previous year. While NovoCure reported growth in its total active patient base, up 9% to 4,331 patients, the market seems concerned about the company's ability to translate this growth into profitability. The stock's sharp decline reflects growing uncertainty about NovoCure's financial outlook, despite its potential in the cancer treatment field.