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

NeuroPace (NASDAQ:NPCE) issued its quarterly earnings data on Tuesday. The company reported ($0.18) EPS for the quarter, beating the consensus estimate of ($0.22) by $0.04, FiscalAI reports. The business had revenue of $22.83 million during the quarter, compared to the consensus estimate of $22.61 million. NeuroPace had a negative net margin of 21.67% and a negative return on equity of 108.20%.

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

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On NeuroPace

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in 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 acquiring an additional 66,574 shares during the last quarter. Armistice Capital LLC raised its position 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 worth $13,382,000 after acquiring an additional 145,665 shares in the last quarter. Kotler Kevin acquired a new position in shares of NeuroPace in the 4th quarter valued at about $9,750,000. Geode Capital Management LLC lifted its stake 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 during the period. Finally, State Street Corp boosted its position in shares of 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. Institutional investors and hedge funds own 78.83% of the company’s stock.

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.