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

Key Points

• NeuroPace beat EPS estimates but missed on revenue: It reported a quarterly loss of $0.03 per share, $0.08 better than expected, while revenue of $23.1 million fell short of analysts’ $27.12 million forecast.
• The company cut its 2026 revenue outlook to $91 million–$92 million from $99.5 million–$101.5 million, citing commercial and operational challenges. It expects an adjusted EBITDA loss of $8.5 million–$9.5 million for the year.
• NeuroPace projects RNS revenue growth of about 15% in 2027 and is advancing potential growth drivers, including planned FDA submissions for its IGE indication expansion and Remote Care.

NeuroPace (NASDAQ:NPCE - Get Free Report) released its quarterly earnings data 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 firm had revenue of $23.10 million during the quarter, compared to analysts' expectations of $27.12 million. NeuroPace had a negative net margin of 19.34% and a negative return on equity of 105.64%.

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 Stock Performance

NASDAQ NPCE traded down $0.50 during trading hours on Thursday, hitting $12.02. 146,170 shares of the company's stock traded hands, compared to its average volume of 182,811. The business's fifty day moving average price is $13.41 and its two-hundred day moving average price is $14.81. The company has a current ratio of 4.94, a quick ratio of 3.91 and a debt-to-equity ratio of 4.97. The firm has a market capitalization of $412.57 million, a P/E ratio of -21.09 and a beta of 1.98. NeuroPace has a 52 week low of $11.90 and a 52 week high of $19.60.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Guggenheim reissued a "neutral" rating on shares of NeuroPace in a report on Wednesday, July 29th. Weiss Ratings lowered NeuroPace from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, October 2nd. Raymond James Financial set a $21.00 price objective on NeuroPace in a research report on Tuesday, September 15th. HC Wainwright reiterated a "buy" rating and set a $20.00 price objective on shares of NeuroPace in a research report on Wednesday, July 29th. Finally, Cantor Fitzgerald reissued an "overweight" rating on shares of NeuroPace in a report on Tuesday, September 15th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $20.50.

About NeuroPace

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.

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