NeuroPace (NASDAQ:NPCE) Announces Earnings Results, Beats Estimates By $0.08 EPS

NeuroPace (NASDAQ:NPCE) released its earnings results on Thursday. The company reported ($0.03) earnings per share for the quarter, beating the consensus estimate of ($0.11) by $0.08, reports. The company had revenue of $23.10 million for the quarter, compared to the consensus estimate of $27.12 million. NeuroPace had a negative return on equity of 105.64% and a negative net margin of 19.34%.

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

• Third-quarter results missed expectations: RNS revenue grew just 1.4% year over year to $22.9 million, while total revenue fell 1.1% to $23.1 million. NeuroPace attributed the shortfall to operational disruptions at large accounts, sales-team transitions and the lagged impact of exiting its SEEG distribution business; it said it is seeing signs of recovery but expects improvement to take several quarters.
• The company cut 2026 revenue guidance to $91 million–$92 million, from $99.5 million–$101.5 million previously, implying full-year RNS growth of 10%–11%. It expects an adjusted EBITDA loss of $8.5 million–$9.5 million for the year, despite raising its gross-margin outlook and reducing expected operating expenses.
• For 2027, NeuroPace expects RNS revenue growth of about 15%, with growth of 10%–15% in the first half and 15%–20% in the second half. The outlook excludes any contribution from an IGE indication expansion and service revenue, and depends on improved commercial execution.
• NeuroPace is advancing several potential growth catalysts: it expects to submit its IGE amendment around year-end, with possible FDA approval by mid-2027; Remote Care was submitted ahead of schedule, with approval possible in the second quarter of 2027. Its adolescent focal epilepsy study is underway, with enrollment expected to finish in early 2027 and potential approval in late 2027 or early 2028; all timelines remain subject to FDA review and study results.

NeuroPace Price Performance

Shares of NASDAQ NPCE traded down $0.50 during midday trading on Thursday, reaching $12.02. The stock had a trading volume of 146,170 shares, compared to its average volume of 182,811. The stock has a 50-day moving average of $13.41 and a 200-day moving average of $14.81. The company has a debt-to-equity ratio of 4.97, a quick ratio of 3.91 and a current ratio of 4.94. The company has a market capitalization of $412.57 million, a price-to-earnings ratio of -21.09 and a beta of 1.98. NeuroPace has a 12-month low of $11.90 and a 12-month high of $19.60.

Wall Street Analyst Weigh In

A number of analysts have commented on NPCE shares. Weiss Ratings cut NeuroPace from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Friday, October 2nd. Guggenheim reaffirmed a “neutral” rating on shares of NeuroPace in a research note on Wednesday, July 29th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of NeuroPace in a research report on Tuesday, September 15th. HC Wainwright reaffirmed a “buy” rating and set a $20.00 price objective on shares of NeuroPace in a research report on Wednesday, July 29th. Finally, KeyCorp assumed coverage on NeuroPace in a research note on Thursday, September 17th. They set an “overweight” rating and a $18.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $20.50.

NeuroPace Company Profile

NeuroPace, Inc. is a medical technology company focused on treating people with drug-resistant epilepsy. Its primary product is the RNS System, an implanted responsive neurostimulation device designed to detect patterns of abnormal electrical activity in the brain and deliver stimulation in response. The RNS System includes a neurostimulator implanted in the skull and leads placed in or near seizure-onset areas of the brain. Clinicians use the system to review brain activity and adjust treatment, while patients can use accompanying tools to record information about their seizures and share it with their care team.