NeuroPace, Inc. Reports Record Revenue and Growth

In a recent earnings call, NeuroPace, Inc. showcased a robust financial performance with strong revenue growth and positive adjusted EBITDA. Despite some challenges, such as the winding down of the DIXI product line and extended timelines for pediatric indication, the overall sentiment was optimistic, driven by strategic progress and positive developments.

Record Revenue and Growth

NeuroPace reported a record total revenue of $27.4 million for Q3 2025, representing a significant 30% year-over-year growth compared to $21.1 million in the previous year. This impressive increase was primarily fueled by the RNS initial implants, with RNS revenue reaching $22.6 million, marking a 31% growth from the prior year.

Positive Adjusted EBITDA

For the first time in its history, NeuroPace achieved a positive adjusted EBITDA, highlighting the company’s strong scalability and disciplined expense management. This milestone reflects the company’s ability to efficiently manage its operations while expanding its market presence.

Increased Revenue and Gross Margin Guidance

NeuroPace raised its full-year revenue guidance to a range of $97 million to $98 million, up from the previous guidance of $94 million to $98 million. This adjustment reflects an anticipated 21% to 23% year-over-year growth. Additionally, the gross margin guidance was increased to 76% to 77%, up from 75% to 76%.

FDA Submission Progress

Progress was reported on the NAUTILUS study and the pediatric indication, with the PMA supplement for NAUTILUS expected to be submitted by the end of the year. This advancement underscores NeuroPace’s commitment to expanding its product offerings and addressing new market segments.

Strong RNS System Performance

The RNS System continued to perform strongly, with a gross margin remaining above 80%. This performance was supported by improved manufacturing efficiency and favorable pricing, contributing to the company’s overall financial success.

Peer Recognition

The RNS System received recognition in the Journal of Clinical Neurophysiology for its unique closed-loop stimulation capabilities, further establishing NeuroPace’s reputation as a leader in neurostimulation technology.

DIXI Product Line Wind Down

The company announced the conclusion of its DIXI product line, with sales amounting to approximately $4 million in the quarter. The distribution agreement officially ended on September 30, and the wind-down period will continue until the end of Q1 2026.

Extended Timeline for Pediatric Indication

The timeline for the pediatric indication submission has been extended beyond 2025 due to the time required to align the protocol and data set. This extension reflects the company’s commitment to ensuring comprehensive and accurate submissions.

Net Loss

NeuroPace reported a net loss of $3.5 million for the quarter, an improvement from the $5.5 million net loss in the same period last year. This reduction in net loss indicates progress towards financial stability.

Forward-Looking Guidance

Looking ahead, NeuroPace has provided updated financial guidance, projecting record quarterly revenue and a 30% year-over-year growth driven by RNS initial implants. The company expects full-year revenue to be between $97 million and $98 million, with gross margins anticipated to be between 76% and 77%. NeuroPace is committed to sustaining a long-term growth trajectory, targeting a minimum of 20% growth in its core RNS business.

In summary, NeuroPace’s earnings call painted a positive picture of the company’s financial health and strategic direction. With record revenue growth, positive adjusted EBITDA, and increased guidance, the company is well-positioned for continued success. Despite some challenges, NeuroPace’s strong performance and forward-looking strategies offer promising prospects for investors and stakeholders.