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

NeuroPace (NASDAQ:NPCE) issued its quarterly earnings data on Tuesday. The company reported ($0.18) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.22) by $0.04, FiscalAI reports. NeuroPace had a negative return on equity of 108.20% and a negative net margin of 21.67%.The firm had revenue of $22.83 million during 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 Trading Up 1.0%

Shares of NeuroPace stock traded up $0.14 during mid-day trading on Wednesday, hitting $15.20. 23,565 shares of the stock were exchanged, compared to its average volume of 204,651. The stock has a market capitalization of $518.00 million, a price-to-earnings ratio of -23.15 and a beta of 1.92. The company has a current ratio of 5.38, a quick ratio of 4.35 and a debt-to-equity ratio of 4.08. NeuroPace has a twelve month low of $7.56 and a twelve month high of $19.60. The company has a 50-day simple moving average of $15.56 and a 200 day simple moving average of $15.41.

Hedge Funds Weigh In On NeuroPace

A number of hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. raised its stake in shares of NeuroPace by 4.9% during the third quarter. Vanguard Group Inc. now owns 1,435,850 shares of the company’s stock valued at $14,804,000 after purchasing an additional 66,574 shares during the period. Armistice Capital LLC lifted its stake in shares of NeuroPace by 12.6% in the third quarter. Armistice Capital LLC now owns 1,298,000 shares of the company’s stock worth $13,382,000 after acquiring an additional 145,665 shares in the last quarter. Kotler Kevin purchased a new position in NeuroPace in the fourth quarter valued at about $9,750,000. Geode Capital Management LLC grew its stake in NeuroPace by 6.5% during 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 grew its stake in NeuroPace by 9.8% during the 4th 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 in the last quarter. Hedge funds and other institutional investors own 78.83% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Guggenheim reissued a “neutral” rating on shares of NeuroPace in a report on Wednesday, July 29th. Mizuho initiated coverage on NeuroPace in a report on Thursday, July 23rd. They set an “outperform” rating and a $22.00 price target for the company. Weiss Ratings restated a “sell (d-)” rating on shares of NeuroPace in a report on Wednesday, June 24th. Finally, HC Wainwright reiterated a “buy” rating and set a $20.00 target price on shares of NeuroPace in a report on Wednesday, July 29th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $19.29.

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.