Why NovoCure Stock Skyrocketed This Week
Why? The medical technology company reported solid first-quarter results. The company also provided several key updates that investors reacted positively to.
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A key highlight from NovoCure's earnings call was the announcement of European CE Mark approval for OptuneLua in the treatment of metastatic non-small cell lung cancer (NSCLC). The CE Mark allows the company to market the device in Europe. OptuneLua, a medical device that emits an electric field disrupting cancer cells, uses NovoCure's core technology. The launch in Europe is an important milestone in the company's international expansion strategy and will help the company drive revenue growth.
Investors also received promising news regarding NovoCure's Phase 3 clinical trial for patients with a specific type of pancreatic cancer that is particularly hard to treat. The trial data showed a "meaningful survival benefit" and is the first to do so for this particular cancer. The results mean the company could open another major market for NovoCure's tumor treating technology.
NovoCure reported $155 million in net revenue for Q1 2025, representing a 12% increase year over year. This growth was driven by expansion of the company's active patient base, especially in France, Japan, Germany, and the United States. As the company grows, its margins were slightly reduced, from 76% to 75% year over year. The reduction was explained, however, by a lag in reimbursement for some of its treatments.
The company is still operating at a loss, however, losing $34 million this quarter. That's not unusual for a company in NovoCure's position, however. As the company launches in Europe and continues to prove its technology is useful in more indications, its revenue could grow considerably. I think the stock is headed in the right direction and is a solid pick for those with an elevated risk tolerance.
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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NovoCure. The Motley Fool has a disclosure policy.
Why NovoCure Stock Skyrocketed This Week was originally published by The Motley Fool
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9 minutes ago
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CareCloud Reports Second Quarter 2025 Results
Delivers first quarter of positive GAAP EPS in Company's history since going public, announces initial results from AI Initiative SOMERSET, N.J., Aug. 05, 2025 (GLOBE NEWSWIRE) -- CareCloud, Inc. (Nasdaq: CCLD, CCLDO) ('CareCloud' or the 'Company'), a leader in healthcare technology and generative AI solutions, today announced strong financial results for the quarter ended June 30, 2025. CareCloud's strategic execution, AI-driven innovation, and disciplined financial management has positioned the Company for sustained profitability and long-term growth. Management will discuss these results and the Company's 2025 growth strategies in a live conference call today at 8:30 a.m. ET. Second Quarter 2025 Highlights ● GAAP net income of $2.9 million, compared to $1.7 million in Q2 2024, an increase of 73% ● Positive GAAP EPS of $0.04 per share, compared to negative GAAP EPS of ($0.14) per share in Q2 of 2024 ● Adjusted net income of $3.3 million, or $0.07 per share, compared to $3.0 million in Q2 2024 ● Adjusted EBITDA of $6.5 million, compared to $6.4 million in Q2 2024 ● Revenue of $27.4 million, compared to $28.1 million in Q2 2024 Year-to-date 2025 Highlights ● GAAP net income of $4.9 million, compared to $1.4 million in the same period last year, an increase of 238% ● Positive GAAP EPS of $0.02 per share, compared to a negative GAAP EPS of ($0.24) per share in the same period last year ● Adjusted net income of $5.6 million, or $0.13 per share, compared to $3.2 million in the same period last year ● Adjusted EBITDA of $12.1 million, compared to $10.1 million in the same period last year, an increase of 20% ● Free cash flow of $9.0 million, compared to $4.9 million in the same period last year, an increase of 85% ● Revenue of $55.0 million, compared to $54.1 million in the same period last year Recent Strategic Updates ● Financial Achievement: First quarter of positive GAAP EPS in CareCloud's history since going public in 2014 ● AI Center of Excellence: Now live and scaling to 500 team members by year-end, with dedicated teams driving product innovation ● Acquisition Strategy Reignited: Completed two acquisitions so far this year, with additional acquisition opportunities actively under evaluation Management Commentary: 'The launch of our AI Center of Excellence marks a pivotal moment in CareCloud's evolution,' said A. Hadi Chaudhry, Co-CEO of CareCloud. 'By building one of the largest dedicated healthcare AI teams globally, we are creating real-world solutions to automate clinical workflows, optimize revenue cycle management, and improve patient outcomes. This initiative is intended to accelerate our operational efficiency as well as positioning CareCloud at the forefront of intelligent healthcare transformation, driving sustainable profitability and long-term growth for ourselves and the healthcare providers who use our services. We are already using AI to enhance product development, including deploying specialty-specific versions of our EHR, to allow our providers to improve their productivity with cirrusAI Notes, and to automate some follow-up tasks which would otherwise require additional members of our operations team.' 'After record profits and a successful turnaround in 2024, we are excited to announce continued momentum and financial strength as demonstrated by achieving positive GAAP EPS in this quarter, the first time in the Company's history since going public in 2014,' said Co-CEO Stephen Snyder. 'With two recent acquisitions and the launch of our AI Center of Excellence, CareCloud is not just responding to the market shift — we are leading it.' 'We are pleased to announce our fifth consecutive quarter of positive GAAP net income and an increase in year-to-date revenue, adjusted EBITDA and free cash flow year-over-year,' said Norman Roth, Interim CFO and Corporate Controller of CareCloud. 'We continue to pay our preferred stock dividends monthly out of internally generated free cash flow, while generating additional profits and cash flow which we are reinvesting for future growth. We have declared and paid preferred stock dividends every month during 2025.'On June 30, 2025, the Company had 984,530 shares of Series A Preferred Stock and 1,511,372 shares of non-convertible Series B Preferred Stock outstanding. As of June 30, 2025, the Series A and B shares both accrued dividends at the rate of 8.75% per annum, based on the $25.00 per share liquidation preference (equivalent to $2.1875 annually per share), and they are redeemable at the Company's option once the preferred stock dividends are brought current. Also as of June 30, 2025, the Company had 42,322,039 shares of common stock outstanding. 2025 Guidance: Poised for Growth CareCloud is reconfirming its earnings guidance for 2025, expecting: For the Fiscal Year Ending December 31, 2025 Forward-Looking Guidance Revenue $111 – $114 million Adjusted EBITDA $26 – $28 million GAAP Net Income Per Share (EPS) $0.10 – $0.13 The Company continues to anticipate full year 2025 revenue of approximately $111 to $114 million. Revenue guidance is based on management's expectations regarding revenue from existing clients, organic growth in new client additions and anticipated number of small tuck-in acquisitions. Adjusted EBITDA is expected to be $26 to $28 million for the full year 2025 and reflects improvements from the Company's cost reduction efforts. GAAP EPS is expected to be $0.10 to $0.13 for the full year 2025. Conference Call Information CareCloud management will host a conference call today at 8:30 a.m. Eastern Time to discuss the first half of 2025 results. The live webcast of the conference call and related presentation slides can be accessed at An audio-only option is available by dialing 201-389-0920 and referencing 'CareCloud Second Quarter 2025 Results Conference Call.' Investors who opt for audio-only will need to download the related slides at A replay of the conference call and related presentation slides will be available approximately three hours after conclusion of the call at the same link. An audio-only option can also be accessed by dialing 412-317-6671 and providing the access code 13754330. Use of Non-GAAP Financial Measures In our earnings releases, prepared remarks, conference calls, slide presentations, and webcasts, we use and discuss non-GAAP financial measures, as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investor Relations section of our web site at Forward-Looking Statements This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as 'may,' 'might,' 'will,' 'shall,' 'should,' 'could,' 'intends,' 'expects,' 'plans,' 'goals,' 'projects,' 'anticipates,' 'believes,' 'seeks,' 'estimates,' 'forecasts,' 'predicts,' 'possible,' 'potential,' 'target,' or 'continue' or the negative of these terms or other comparable terminology. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management's expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions. These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry's) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company's ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies' products and services competitive with ours, manage and keep our information systems secure and other important risks and uncertainties referenced and discussed under the heading titled 'Risk Factors' in the Company's filings with the Securities and Exchange Commission. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made. About CareCloud CareCloud (Nasdaq: CCLD, CCLDO) brings disciplined innovation and generative AI solutions to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), artificial intelligence (AI), business intelligence (BI), patient experience management (PXM) and digital health, at Follow CareCloud on LinkedIn, X and Facebook. For additional information, please visit our website at To listen to video presentations by CareCloud's management team, read recent press releases and view the latest investor presentation, please visit SOURCE CareCloud Company Contact: Norman RothInterim Chief Financial Officer and Corporate ControllerCareCloud, Investor Contact: Stephen SnyderCo-Chief Executive OfficerCareCloud, CARECLOUD, CONSOLIDATED BALANCE SHEETS($ in thousands, except share and per share amounts) June 30, December 31, 2025 2024 (Unaudited) ASSETS Current assets: Cash $ 10,440 $ 5,145 Accounts receivable - net 13,563 12,774 Contract asset 3,955 4,334 Inventory 523 574 Current assets - related party 16 16 Prepaid expenses and other current assets 2,593 1,957 Total current assets 31,090 24,800 Property and equipment - net 5,828 5,290 Operating lease right-of-use assets 3,058 3,133 Intangible assets - net 15,512 18,698 Goodwill 19,192 19,186 Other assets 564 507 TOTAL ASSETS $ 75,244 $ 71,614 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,215 $ 4,565 Accrued compensation 3,324 1,817 Accrued expenses 4,909 4,951 Operating lease liability (current portion) 1,294 1,287 Deferred revenue (current portion) 1,232 1,212 Notes payable (current portion) 222 310 Contingent consideration (current portion) 330 - Dividend payable 714 5,438 Total current liabilities 16,240 19,580 Notes payable 86 26 Contingent consideration 426 - Operating lease liability 1,785 1,847 Deferred revenue 631 387 Total liabilities 19,168 21,840 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Preferred stock, $0.001 par value - authorized 7,000,000 shares. Series A, issued and outstanding 984,530 and 4,526,231 shares at June 30, 2025 and December 31, 2024, respectively. Series B, issued and outstanding 1,511,372 shares at June 30, 2025 and December 31, 2024. 2 6 Common stock, $0.001 par value - authorized 85,000,000 shares. Issued 43,062,838 and 16,997,035 shares at June 30, 2025 and December 31, 2024, respectively. Outstanding 42,322,039 and 16,256,236 shares at June 30, 2025 and December 31, 2024, respectively 43 17 Additional paid-in capital 122,635 121,046 Accumulated deficit (61,780 ) (66,630 ) Accumulated other comprehensive loss (4,162 ) (4,003 ) Less: 740,799 common shares held in treasury, at cost at June 30, 2025 and December 31, 2024 (662 ) (662 ) Total shareholders' equity 56,076 49,774 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 75,244 $ 71,614 CARECLOUD, CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)($ in thousands, except share and per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 NET REVENUE $ 27,377 $ 28,090 $ 55,009 $ 54,052 OPERATING EXPENSES: Direct operating costs 14,480 15,242 29,944 30,419 Selling and marketing 1,118 1,664 2,249 3,434 General and administrative 4,358 4,028 8,690 7,749 Research and development 1,020 1,055 2,255 1,968 Depreciation and amortization 3,382 3,714 6,719 7,644 Restructuring costs 23 116 137 438 Total operating expenses 24,381 25,819 49,994 51,652 OPERATING INCOME 2,996 2,271 5,015 2,400 OTHER: Interest income 51 24 93 51 Interest expense (68 ) (288 ) (126 ) (653 ) Other expense - net (35 ) (294 ) (49 ) (287 ) INCOME BEFORE PROVISION FOR INCOME TAXES 2,944 1,713 4,933 1,511 Income tax provision 42 39 83 78 NET INCOME $ 2,902 $ 1,674 $ 4,850 $ 1,433 Preferred stock dividend 1,365 3,923 4,176 5,235 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 1,537 $ (2,249 ) $ 674 $ (3,802 ) Net income (loss) per common share: basic and diluted $ 0.04 $ (0.14 ) $ 0.02 $ (0.24 ) Weighted-average common shares used to compute basic and diluted loss per share 42,321,629 16,132,420 33,118,912 16,073,364 CARECLOUD, CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024($ in thousands) 2025 2024 OPERATING ACTIVITIES: Net income $ 4,850 $ 1,433 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,855 7,818 Lease amortization 901 1,008 Deferred revenue 264 (22 ) Provision for expected credit losses 169 123 Foreign exchange loss (gain) 1 (57 ) Interest accretion 219 321 Stock-based compensation expense (benefit) 219 (443 ) Changes in operating assets and liabilities: Accounts receivable (958 ) (1,314 ) Contract asset 411 294 Inventory 51 (32 ) Other assets (838 ) (825 ) Accounts payable and other liabilities 377 41 Net cash provided by operating activities 12,521 8,345 INVESTING ACTIVITIES: Purchases of property and equipment (1,786 ) (425 ) Capitalized software and other intangible assets (1,677 ) (3,046 ) Initial payment for acquisition (40 ) - Net cash used in investing activities (3,503 ) (3,471 ) FINANCING ACTIVITIES: Preferred stock dividends paid (3,317 ) - Settlement of tax withholding obligations on stock issued to employees (22 ) (184 ) Repayments of notes payable (355 ) (328 ) Repayment of line of credit - (5,000 ) Net cash used in financing activities (3,694 ) (5,512 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH (29 ) (76 ) NET INCREASE (DECREASE) IN CASH 5,295 (714 ) CASH - Beginning of the period 5,145 3,331 CASH - End of the period $ 10,440 $ 2,617 SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES: Conversion of preferred stock and accrued dividends to common stock $ 2,435 $ - Dividends declared, not paid $ 714 $ 5 Purchase of prepaid insurance with assumption of note $ - $ 96 Reclass of deposits for property and equipment placed in service $ - $ 296 SUPPLEMENTAL INFORMATION - Cash paid during the period for: Income taxes $ 144 $ 122 Interest $ 44 $ 527 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES (UNAUDITED) The following is a reconciliation of the non-GAAP financial measures used by us to describe our financial results determined in accordance with accounting principles generally accepted in the United States of America ('GAAP'). An explanation of these measures is also included below under the heading 'Explanation of Non-GAAP Financial Measures.' While management believes that these non-GAAP financial measures provide useful supplemental information to investors regarding the underlying performance of our business operations, investors are reminded to consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies, and management may utilize other measures to illustrate performance in the future. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Adjusted EBITDA to GAAP Net Income Set forth below is a reconciliation of our 'adjusted EBITDA' to our GAAP net income. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 ($ in thousands) Net revenue $ 27,377 $ 28,090 $ 55,009 $ 54,052 GAAP net income 2,902 1,674 4,850 1,433 Provision for income taxes 42 39 83 78 Net interest expense 17 264 33 602 Foreign exchange loss / other expense 41 306 60 301 Stock-based compensation expense (benefit) 111 265 219 (443 ) Depreciation and amortization 3,382 3,714 6,719 7,644 Transaction and integration costs 11 11 23 23 Restructuring costs 23 116 137 438 Adjusted EBITDA $ 6,529 $ 6,389 $ 12,124 $ 10,076 Non-GAAP Adjusted Operating Income to GAAP Operating Income Set forth below is a reconciliation of our non-GAAP 'adjusted operating income' and non-GAAP 'adjusted operating margin' to our GAAP operating income and GAAP operating margin. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 ($ in thousands) Net revenue $ 27,377 $ 28,090 $ 55,009 $ 54,052 GAAP net income 2,902 1,674 4,850 1,433 Provision for income taxes 42 39 83 78 Net interest expense 17 264 33 602 Other expense - net 35 294 49 287 GAAP operating income 2,996 2,271 5,015 2,400 GAAP operating margin 10.9 % 8.1 % 9.1 % 4.4 % Stock-based compensation expense (benefit) 111 265 219 (443 ) Amortization of purchased intangible assets 193 586 282 1,426 Transaction and integration costs 11 11 23 23 Restructuring costs 23 116 137 438 Non-GAAP adjusted operating income $ 3,334 $ 3,249 $ 5,676 $ 3,844 Non-GAAP adjusted operating margin 12.2 % 11.6 % 10.3 % 7.1 % Non-GAAP Adjusted Net Income to GAAP Net Income Set forth below is a reconciliation of our non-GAAP 'adjusted net income' and non-GAAP 'adjusted net income per share' to our GAAP net income and GAAP net income per share. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 ($ in thousands) GAAP net income $ 2,902 $ 1,674 $ 4,850 $ 1,433 Foreign exchange loss / other expense 41 306 60 301 Stock-based compensation expense (benefit) 111 265 219 (443 ) Amortization of purchased intangible assets 193 586 282 1,426 Transaction and integration costs 11 11 23 23 Restructuring costs 23 116 137 438 Non-GAAP adjusted net income $ 3,281 $ 2,958 $ 5,571 $ 3,178 For purposes of determining non-GAAP adjusted net income per share, we used the number of common shares outstanding as of June 30, 2025 and 2024. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 GAAP net income (loss) attributable to common shareholders, per share $ 0.04 $ (0.14 ) $ 0.02 $ (0.24 ) Impact of preferred stock dividend 0.03 0.24 0.09 0.33 Net income per end-of-period share 0.07 0.10 0.11 0.09 Foreign exchange loss / other expense 0.00 0.02 0.00 0.02 Stock-based compensation expense (benefit) 0.00 0.01 0.01 (0.03 ) Amortization of purchased intangible assets 0.00 0.04 0.01 0.09 Transaction and integration costs 0.00 0.00 0.00 0.00 Restructuring costs 0.00 0.01 0.00 0.03 Non-GAAP adjusted earnings per share $ 0.07 $ 0.18 $ 0.13 $ 0.20 Net cash provided by operating activities to free cash flow Set forth below is a reconciliation of our non-GAAP 'free cash flow' to our GAAP net cash provided by operating activities. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 ($ in thousands) Net cash provided by operating activities $ 7,408 $ 4,279 $ 12,521 $ 8,345 Purchases of property and equipment (1,162 ) (127 ) (1,786 ) (425 ) Capitalized software and other intangible assets (831 ) (1,476 ) (1,677 ) (3,046 ) Initial payment for acquisition - - (40 ) - Free cash flow $ 5,415 $ 2,676 $ 9,018 $ 4,874 Net cash used in investing activities 1 $ (1,993 ) $ (1,603 ) $ (3,503 ) $ (3,471 ) Net cash used in financing activities $ (1,762 ) $ (4,138 ) $ (3,694 ) $ (5,512 ) 1 Net cash used in investing activities includes purchases of property and equipment and capitalized software and other intangible assets, which are also included in our computation of free cash flow. Explanation of Non-GAAP Financial Measures We report our financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, management believes that, in order to properly understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in frequency and impact on continuing operations. Management also uses results of operations before such items to evaluate the operating performance of CareCloud and compare it against past periods, make operating decisions, and serve as a basis for strategic planning. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management's ability to make useful forecasts. Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. Management uses adjusted EBITDA, adjusted operating income, adjusted operating margin, and non-GAAP adjusted net income to provide an understanding of aspects of operating results before the impact of investing and financing charges and income taxes. Adjusted EBITDA may be useful to an investor in evaluating our operating performance and liquidity because this measure excludes non-cash expenses as well as expenses pertaining to investing or financing transactions. Management defines 'adjusted EBITDA' as the sum of GAAP net income (loss) before provision for (benefit from) income taxes, net interest expense, other (income) expense, stock-based compensation expense, depreciation and amortization, integration costs, transaction costs, impairment charges and changes in contingent consideration. Management defines 'non-GAAP adjusted operating income' as the sum of GAAP operating income (loss) before stock-based compensation expense, amortization of purchased intangible assets, integration costs, transaction costs, impairment charges and changes in contingent consideration, and 'non-GAAP adjusted operating margin' as non-GAAP adjusted operating income divided by net revenue. Management defines 'non-GAAP adjusted net income' as the sum of GAAP net income (loss) before stock-based compensation expense, amortization of purchased intangible assets, other (income) expense, integration costs, transaction costs, impairment charges, changes in contingent consideration, any tax impact related to these preceding items and income tax expense related to goodwill, and 'non-GAAP adjusted net income per share' as non-GAAP adjusted net income divided by common shares outstanding at the end of the period, including the shares which were issued but are subject to forfeiture and considered contingent consideration. Management considers all of these non-GAAP financial measures to be important indicators of our operational strength and performance of our business and a good measure of our historical operating trends, in particular the extent to which ongoing operations impact our overall financial performance. In addition to items routinely excluded from non-GAAP EBITDA, management excludes or adjusts each of the items identified below from the applicable non-GAAP financial measure referenced above for the reasons set forth with respect to that excluded item: Foreign exchange loss/other expense. Other expense is excluded because foreign currency gains and losses and other non-operating expenses are expenditures that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expense is partially outside of our control. Foreign currency gains and losses are based on global market factors which are unrelated to our performance during the period in which the gains and losses are recorded. Stock-based compensation expense (benefit). Stock-based compensation expense (benefit) is excluded because this is primarily a non-cash expenditure that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expenditure is partially outside of our control because it is based on factors such as stock price, volatility, and interest rates, which may be unrelated to our performance during the period in which the expenses are incurred. Stock-based compensation expense includes cash-settled awards based on changes in the stock price. Amortization of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are recorded. Transaction costs. Transaction costs are upfront costs related to acquisitions and related transactions, such as brokerage fees, pre-acquisition accounting costs and legal fees, and other upfront costs related to specific transactions. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Integration costs. Integration costs are severance payments for certain employees relating to our acquisitions and exit costs related to terminating leases and other contractual agreements. Accordingly, management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Restructuring costs. Restructuring costs primarily consist of severance and separation costs associated with the optimization of the Company's operations and profitability improvements. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred. Free cash flow. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net operating results as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, the Company's definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our condensed consolidated statements of cash in to access your portfolio
Yahoo
9 minutes ago
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CAMTEK ANNOUNCES RECORD RESULTS FOR THE SECOND QUARTER OF 2025
Anticipates continued growth in Q3, with revenues of approximately $125 million, representing an annualized run rate of half a billion dollars MIGDAL HAEMEK, Israel, Aug. 5, 2025 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the second quarter ended June 30, 2025. 2025 Second Quarter Financial Highlights Record revenues of $123.3 million, a 20% YoY increase; GAAP gross margin of 50.8% and non-GAAP gross margin of 51.9%; GAAP operating income of $32.0 million (up 24% YoY) and non-GAAP operating income of $37.4 million (up 21% YoY), representing operating margins of 25.9% and 30.3%, respectively; and GAAP net income of $33.7 million (up 20% YoY) and non-GAAP net income of $38.8 million (up 19% YoY); GAAP diluted EPS of $0.69 and non-GAAP diluted EPS of $0.79. Forward-Looking Expectations Management expects continued growth in the third quarter of 2025 with revenue of approximately $125 million, representing an annual run rate of half a billion dollars in revenue. Management Comment Rafi Amit, Camtek's CEO commented, "Camtek continues to deliver record performance in 2025, with 20% year-over-year growth in revenues and strong gross margins at around the 52% level, contributing to record quarterly operating income. Our ongoing growth continues to be driven primarily by the high-performance computing applications for AI." Continued Mr. Amit, "The Advanced Packaging segment is rapidly evolving with technological advancements, to support the requirements of the fast-paced evolution of High-Performance Computers for AI. The market for advanced packaging solutions that enable AI is projected to grow at a rapid rate in the coming years. We anticipate these new requirements to trigger an industry-wide upgrade cycle, fueling demand for next-generation inspection and metrology tools. Our recently introduced Eagle G5 and Hawk systems are built with a view of these new technological requirements and have, to date, been very well received by the market." Concluded Mr. Amit, "Looking ahead, in the third quarter we expect to reach our significant milestone and long-term goal of half a billion dollars in revenue, and we continue to have a healthy order flow and pipeline into the fourth quarter. Camtek has become a market leader in its domain. We believe that the new packaging technologies represent major growth opportunities for us in the coming years." Second Quarter 2025 Financial Results Revenues for the second quarter of 2025 were $123.3 million. This compares to second quarter 2024 revenues of $102.6 million, a year-over-year growth of 20%. Gross profit on a GAAP basis in the quarter totaled $62.2 million (50.8% of revenues), an increase of 22% compared to $51.1 million (49.9% of revenues) in the second quarter of 2024. Gross profit on a non-GAAP basis in the quarter totaled $64.0 million (51.9% of revenues), an increase of 22% compared to $52.4 million (51.0% of revenues) in the second quarter of 2024. Operating income on a GAAP basis in the quarter totaled $32.0 million (25.9% of revenues), an increase of 24% compared to $25.9 million (25.2% of revenues) in the second quarter of 2024. Operating income on a non-GAAP basis in the quarter totaled $37.4 million (30.3% of revenues), an increase of 21% compared to $30.8 million (30.0% of revenues) in the second quarter of 2024. Net income on a GAAP basis in the quarter totaled $33.7 million, or $0.69 per diluted share, an increase of 21% compared to net income of $28.0 million, or $0.57 per diluted share, in the second quarter of 2024. Net income on a non-GAAP basis in the quarter totaled $38.8 million, or $0.79 per diluted share, an increase of 19% compared to a non-GAAP net income of $32.6 million, or $0.66 per diluted share, in the second quarter of 2024. Cash and cash equivalents, short-term and long-term deposits, and marketable securities, as of June 30, 2025, were $543.9 million compared to $522.6 million as of March 31, 2025. During the second quarter, the Company generated an operating cash flow of $23.5 million. Conference Call Camtek will host a video conference call/webinar today via Zoom, on August 5, 2025, at 09:00 ET (16:00 Israel time). Rafi Amit, CEO, Moshe Eisenberg, CFO, and Ramy Langer, COO will host the call and will be available to answer questions after presenting the results. To participate in the webinar, please register using the following link, which will provide access to the video call: For those wishing to listen via phone, following registration, the dial in link will be sent. For any problems in registering, please email Camtek's investor relations a few hours in advance of the call. For those unable to participate, a recording will be available on Camtek's website at within a few hours after the call. A summary presentation of the quarterly results will also be available on Camtek's website. ABOUT CAMTEK LTD. Camtek is a developer and manufacturer of high-end inspection and metrology equipment for the semiconductor industry. Camtek's systems inspect IC and measure IC features on wafers throughout the production process of semiconductor devices, covering the front and mid-end and up to the beginning of assembly (Post Dicing). Camtek's systems inspect wafers for the most demanding semiconductor market segments, including Advanced Interconnect Packaging, Heterogenous Integration, Memory and HBM, CMOS Image Sensors, Compound Semiconductors, MEMS, and RF, serving numerous industries' leading global IDMs, OSATs, and foundries. With manufacturing facilities in Israel and Germany, and eight offices around the world, Camtek provides state of the art solutions in line with customers' requirements. This press release is available at This press release contains statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on Camtek's current beliefs, expectations and assumptions about its business and industry, all of which may change. Forward-looking statements can be identified by the use of words including "believe," "anticipate," "should," "intend," "plan," "will," "may," "expect," "estimate," "project," "positioned," "strategy," and similar expressions that are intended to identify forward-looking statements, including our expectations and statements relating to the compound semiconductors market and our position in this market and the anticipated timing of delivery of the systems. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Camtek to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that may cause our actual results to differ materially from those contained in the forward-looking statements include, but are not limited to, the effects of the evolving nature of the war situation in Israel, and the related evolving regional conflicts; the continued demand and future contribution of HPC, HBM and Chiplet applications and devices to the Company business resulting from, among other things, the field of AI surging worldwide across companies, industries and geographies; formal or informal imposition by countries of new or revised export and/or import and doing-business regulations or sanctions, including but not limited to changes in U.S. trade policies, changes or uncertainty related to the U.S. government entity list and changes in the ability to sell products incorporating U.S. originated technology, which can be made without prior notice, and our ability to effectively address such global trade issues and changes; our dependency on the semiconductor industry and the risk that adverse economic conditions, reduced capital expenditures, or cyclical downturns may negatively impact our results; the concentration of our business in certain Asia Pacific countries, particularly China, Taiwan, and Korea, which may be subject to trade restrictions, regulatory changes, or geopolitical tensions; and those other factors discussed in our Annual Report on Form 20-F as published on March 19, 2025 as well as other documents filed by the Company with the SEC as well as other documents that may be subsequently filed by Camtek from time to time with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Camtek does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law. While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent Camtek's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Camtek does not assume any obligation to update any forward-looking statements unless required by law. This press release provides financial measures that exclude: (i) share based compensation expenses; and (ii) acquisition related expenses and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore felt it is important to make these non-GAAP adjustments available to investors. A reconciliation between the GAAP and non-GAAP results appears in the tables at the end of this press release. Logo: CAMTEK Eisenberg, CFO Tel: +972 4 604 8308 Mobile: +972 54 900 7100 moshee@ INTERNATIONAL INVESTOR RELATIONS EK Global Investor Relations Ehud Helft Tel: (US) 1 212 378 8040 camtek@ Consolidated Balance Sheets (unaudited) (In thousands) June 30, December 31,2025 2024U.S. Dollars AssetsCurrent assets Cash and cash equivalents 192,028 126,224 Short-term deposits 204,000 231,000 Marketable securities 39,965 30,813 Trade accounts receivable, net 112,018 99,471 Inventories 133,709 111,204 Other current assets 21,218 21,347Total current assets 702,938 620,059Long-term deposits 20,000 26,000 Marketable securities 87,867 87,115 Long-term inventory 15,359 11,879 Deferred tax asset, net 3,711 3,090 Other assets, net 2,060 2,001 Property, plant and equipment, net 56,805 54,196 Intangible assets, net 11,656 13,357 Goodwill 74,345 74,345 Total non- current assets 271,803 271,983Total assets 974,741 892,042Liabilities and shareholders' equityCurrent liabilities Trade accounts payable 40,895 46,630 Other current liabilities 89,080 77,280Total current liabilities 129,975 123,910Long-term liabilities Deferred tax liabilities, net 5,210 5,606 Other long-term liabilities 14,600 15,366 Convertible notes 198,472 197,925 Total long-term liabilities 218,282 218,897Total liabilities 348,257 342,807Commitments and contingencies Shareholders' equity Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2025 and at December 31, 2024; 47,794,821 issued shares at June 30, 2025 and 47,541,682 at December 31, 2024; 45,702,445 shares outstanding at June 30, 2025 and 45,449,306 at December 31, 2024 178 177 Additional paid-in capital 223,206 214,931 Accumulated other comprehensive income (loss) 1,170 203 Retained earnings 403,828 335,822628,382 551,133 Treasury stock, at cost (2,092,376 shares as of June 30, 2025 and December 31, 2024) (1,898) (1,898)Total shareholders' equity 626,484 549,235Total liabilities and shareholders' equity 974,741 892,042 Consolidated Statements of Income (unaudited) (in thousands)Six months endedJune 30, Three monthsended June 30, Year endedDecember 31, 2025 2024 2025 2024 2024 U.S. dollars U.S. dollars U.S. dollars Revenues241,955 199,601 123,317 102,591 429,234 Cost of revenues118,780 103,638 60,706 51,447 219,283Gross profit123,175 95,963 62,611 51,144 209,951Operating expenses: Research and development 21,836 18,146 11,474 9,196 38,287 Selling, general and administrative 36,665 30,694 19,163 16,063 63,595 Total operating expenses58,501 48,840 30,637 25,259 101,882Operating income 64,674 47,123 31,974 25,885 108,069Financial income, net10,375 10,624 4,942 5,014 23,169Income before income taxes75,049 57,747 36,916 30,899 131,238Income tax expense(7,043) (4,984) (3,221) (2,935) (12,723)Net income 68,006 52,763 33,695 27,964 118,515 Earnings per share information:Six months endedJune 30, Three monthsended June 30, Year endedDecember 31,2025 2024 2025 2024 2024U.S. dollars U.S. dollars U.S. dollars Basic net earnings per share (in US dollars) 1.49 1.17 0.74 0.62 2.62 Diluted net earnings per share (in US dollars) 1.39 1.08 0.69 0.57 2.63 Weighted average number of ordinary shares outstanding (in thousands):Basic 45,622 45,160 45,682 45,246 45,279 Diluted 49,306 49,283 49,327 49,310 49,369 Reconciliation of GAAP To Non-GAAP results (In thousands, except share data)Six Months endedJune 30, Three Months ended June 30, Year endedDecember 31,2025 2024 2025 2024 2024U.S. dollars U.S. dollars U.S. dollars Reported net income attributable to Camtek Ltd. on GAAP basis 68,006 52,763 33,695 27,964 118,515 Acquisition of FRT related expenses (1) 1,300 4,034 650 650 5,334 Share-based compensation 8,203 7,109 4,493 3,991 14,775 Non-GAAP net income 77,509 63,906 38,838 32,605 138,624 Non–GAAP net income per diluted share 1.57 1.30 0.79 0.66 2.83 Gross margin on GAAP basis 50.9 % 48.1 % 50.8 % 49.9 % 49.6 % Reported gross profit on GAAP basis 123,175 95,963 62,611 51,144 209,951 Acquisition of FRT related expenses (1) 1,220 4,582 610 610 5,802 Share-based compensation 1,344 1,006 763 608 2,197 Non- GAAP gross profit 125,729 101,551 63,984 52,362 217,950 Non-GAAP gross margin 52.0 % 50.9 % 51.9 % 51.0 % 50.8 % Reported operating income attributable to Camtek Ltd. on GAAP basis 64,674 47,123 31,974 25,885 108,069 Acquisition of FRT related expenses (1) 1,856 5,599 928 928 7,455 Share-based compensation 8,203 7,109 4,493 3,991 14,775 Non-GAAP operating income 74,733 59,831 37,395 30,804 130,299 View original content: SOURCE Camtek Ltd. 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RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its 'RiverPark Large Growth Fund' Q2 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets surged in the second quarter, with the S&P 500 Total Return Index rising 10.94% and the Russell 1000 Growth Index returning 17.84%. The fund also surged in the quarter and returned 15.01%. Continued enthusiasm for artificial intelligence, better-than-expected earnings in several large-cap growth sectors, and improving macroeconomic conditions lifted the markets in the quarter. Growth-focused stocks took the lead once more, with the strongest performance coming from sectors like technology, communication services, and certain areas of consumer discretionary. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks such as Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was 7.73%, and its shares gained 57.13% of their value over the last 52 weeks. On August 4, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $776.37 per share, with a market capitalization of $1.95 trillion. RiverPark Large Growth Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2025 investor letter: "Meta Platforms, Inc. (NASDAQ:META): META delivered a strong quarter as improving ad fundamentals and growing AI monetization prospects drove a rebound in the stock. The company reported approximately 20% revenue growth and expanding operating margins. Engagement in Reels and messaging commerce continued to climb, while Meta's May AI event showcased early monetization pilots involving its Llama 3 model across WhatsApp and Instagram. Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 273 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the first quarter, which was 262 in the previous quarter. In the second quarter of 2025, Meta Platforms, Inc. (NASDAQ:META) reported revenue of $47.5 billion, representing a 22% increase, both in reported and constant currency. While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared the list of AI stocks analysts are watching closely. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
