NeuroPace (NASDAQ:NPCE) Releases Earnings Results, Beats Estimates By $0.04 EPS

NeuroPace (NASDAQ:NPCE) announced its earnings results on Tuesday. The company reported ($0.18) EPS for the quarter, beating analysts’ consensus estimates of ($0.22) by $0.04, FiscalAI reports. NeuroPace had a negative net margin of 19.34% and a negative return on equity of 97.34%. The business had revenue of $22.83 million for the quarter, compared to analysts’ expectations of $22.61 million.

Here are the key takeaways from NeuroPace’s conference call:

• NeuroPace reported second-quarter revenue of $22.8 million, with RNS System revenue up 21.3% year over year to $22.5 million. Active prescribers, accounts, and the patient pipeline reached all-time highs, supporting continued adoption and utilization.
• The company raised full-year 2026 revenue guidance to $99.5 million-$101.5 million and adjusted EBITDA loss guidance improved to $7.5 million-$8.5 million. Adjusted gross-margin guidance also increased to 82%-83%, while underlying RNS growth remains forecast at 21%-23%.
• The FDA found NeuroPace’s PMA supplement for an expanded idiopathic generalized epilepsy indication not approvable in its current form and requested additional clinical information. Management expects to pursue a submission issue request meeting and believes approval remains possible, but the timing and labeling outcome remain uncertain.
• NeuroPace launched ECoG Assistant, an AI-based tool designed to streamline intracranial EEG review and support treatment decisions. Management believes the tool can improve physician efficiency, broaden adoption in community settings, and increase RNS utilization, although it is currently bundled with the RNS System rather than sold separately.
• The company ended the quarter with $51.9 million in cash, short-term investments, and restricted cash, down from $54.8 million in the prior quarter, against $59.0 million of long-term borrowings. NeuroPace plans to continue investing in AI, remote care, and its next-generation platform, prioritizing growth over faster profitability.

NeuroPace Stock Down 3.3%

NeuroPace stock opened at $14.56 on Thursday. The company has a debt-to-equity ratio of 4.08, a current ratio of 5.38 and a quick ratio of 4.35. NeuroPace has a 1-year low of $7.56 and a 1-year high of $19.60. The company has a market cap of $496.35 million, a PE ratio of -25.54 and a beta of 1.92. The stock’s 50 day moving average price is $15.54 and its 200 day moving average price is $15.39.

Analyst Upgrades and Downgrades

NPCE has been the topic of a number of recent research reports. HC Wainwright restated a “buy” rating and issued a $20.00 price objective on shares of NeuroPace in a research note on Wednesday, July 29th. Mizuho initiated coverage on shares of NeuroPace in a research note on Thursday, July 23rd. They set an “outperform” rating and a $22.00 target price for the company. Weiss Ratings reissued a “sell (d-)” rating on shares of NeuroPace in a report on Wednesday, June 24th. Finally, Guggenheim restated a “neutral” rating on shares of NeuroPace in a research report on Wednesday, July 29th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $19.29.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in shares of NeuroPace by 4.9% during the 3rd quarter. Vanguard Group Inc. now owns 1,435,850 shares of the company’s stock worth $14,804,000 after purchasing an additional 66,574 shares in the last quarter. Armistice Capital LLC increased its holdings in shares of NeuroPace by 12.6% in the 3rd quarter. Armistice Capital LLC now owns 1,298,000 shares of the company’s stock valued at $13,382,000 after purchasing an additional 145,665 shares in the last quarter. Kotler Kevin purchased a new position in shares of NeuroPace in the 4th quarter valued at about $9,750,000. Geode Capital Management LLC increased its holdings in shares of NeuroPace by 6.5% in the 4th quarter. Geode Capital Management LLC now owns 596,248 shares of the company’s stock valued at $9,208,000 after purchasing an additional 36,516 shares in the last quarter. Finally, State Street Corp lifted its stake in shares of NeuroPace by 9.8% in the fourth quarter. State Street Corp now owns 447,864 shares of the company’s stock valued at $6,915,000 after purchasing an additional 40,025 shares during the period. Hedge funds and other institutional investors own 78.83% of the company’s stock.

NeuroPace Company Profile

NeuroPace, Inc is a medical device company based in Mountain View, California, that develops innovative neuromodulation systems for the treatment of neurological disorders. Founded in the late 1990s out of research at Stanford University, the company’s mission centers on delivering closed-loop, “smart” therapies that monitor and respond to electrical activity in the brain. In 2020, NeuroPace completed its initial public offering and now trades on the NASDAQ under the ticker NPCE.

The company’s flagship product, the RNS® System, is an implantable device designed for adults with medically refractory focal epilepsy.