NeuroPace (NASDAQ:NPCE) Posts Earnings Results

NeuroPace (NASDAQ:NPCE) issued its earnings results on Tuesday. The company reported ($0.18) EPS for the quarter, beating the consensus estimate of ($0.22) by $0.04, FiscalAI reports. NeuroPace had a negative net margin of 21.67% and a negative return on equity of 108.20%. The company had revenue of $22.83 million for the quarter, compared to the consensus estimate 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 Price Performance

Shares of NPCE stock traded up $0.15 during trading hours on Tuesday, hitting $15.03. 248,094 shares of the company’s stock were exchanged, compared to its average volume of 205,910. NeuroPace has a 52 week low of $7.56 and a 52 week high of $19.60. The stock has a market cap of $512.37 million, a price-to-earnings ratio of -23.12 and a beta of 1.92. The company has a debt-to-equity ratio of 4.08, a current ratio of 5.38 and a quick ratio of 4.35. The stock’s 50-day moving average is $15.59 and its 200-day moving average is $15.42.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD grew its holdings in NeuroPace by 23.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 14,836 shares of the company’s stock worth $230,000 after acquiring an additional 2,778 shares during the last quarter. Aquatic Capital Management LLC bought a new position in shares of NeuroPace in the third quarter worth about $229,000. Man Group plc bought a new position in shares of NeuroPace in the third quarter worth about $203,000. BNP Paribas Financial Markets lifted its position in shares of NeuroPace by 176.5% during the third quarter. BNP Paribas Financial Markets now owns 18,756 shares of the company’s stock worth $193,000 after purchasing an additional 11,972 shares in the last quarter. Finally, Engineers Gate Manager LP bought a new stake in shares of NeuroPace during the fourth quarter valued at approximately $188,000. Institutional investors and hedge funds own 78.83% of the company’s stock.

Wall Street Analysts Forecast Growth

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

About NeuroPace

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.