NeuroPace (NASDAQ:NPCE) Posts Earnings Results, Beats Estimates By $0.06 EPS

NeuroPace (NASDAQ:NPCE) posted its quarterly earnings data on Tuesday. The company reported ($0.08) earnings per share for the quarter, beating the consensus estimate of ($0.14) by $0.06, FiscalAI reports. NeuroPace had a negative net margin of 25.28% and a negative return on equity of 136.60%. The firm had revenue of $26.59 million for the quarter, compared to analysts’ expectations of $24.79 million.

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

• Q4 revenue was $26.6 million, up 24% year‑over‑year, driven by RNS System sales of $22.4 million (up 26%); second‑half 2025 RNS growth was 29% and management reiterated a long‑term core RNS growth target of at least 20%.
• Profitability and cash metrics improved — gross margin >77% (RNS >80%), second consecutive quarter of positive adjusted EBITDA, positive operating cash flow, and $61.1 million in cash and short‑term investments at year‑end.
• The company submitted a PMA supplement for an expanded IGE indication supported by NAUTILUS (77% median seizure reduction at 18 months); the FDA accepted the filing, started the 180‑day review, and NeuroPace holds Breakthrough Device designation.
• Product and AI roadmap advancing — SeizureID (AI seizure detection) and cloud clinician platform submitted with expected approval in H1 2026, plus remote programming and a foundation model leveraging >24 million iEEG recordings to improve workflow and outcomes.
• 2026 guidance reflects front‑loaded investments — non‑GAAP operating expense of $90M–$92M (ex‑SBC) and an expected adjusted EBITDA loss of $9M–$10M, with weaker profitability likely in H1 before improvement in H2.

NeuroPace Price Performance

Shares of NeuroPace stock opened at $13.83 on Wednesday. The company’s fifty day simple moving average is $15.68 and its two-hundred day simple moving average is $13.26. NeuroPace has a 12-month low of $7.56 and a 12-month high of $18.98. The firm has a market cap of $460.68 million, a PE ratio of -18.20 and a beta of 1.86. The company has a quick ratio of 3.94, a current ratio of 4.86 and a debt-to-equity ratio of 3.17.

Key Stories Impacting NeuroPace

Here are the key news stories impacting NeuroPace this week:

• Positive Sentiment: Q4 beats and healthy top‑line growth — NeuroPace reported EPS of ($0.08) vs. consensus (~($0.16)) and revenue of $26.6M versus ~$24.8M, with total revenue up ~24% year‑over‑year and RNS system revenue up ~26%. These beats and durable device revenue growth support the company’s commercialization momentum. Business Wire: NeuroPace Reports Fourth‑Quarter Results
• Positive Sentiment: Beats confirmed by multiple writeups and transcripts — Market and press coverage (Zacks, MarketBeat) and full call transcripts reiterate the beat and management commentary on commercial execution. Zacks: Q4 Loss, Beats Revenue Estimates
• Neutral Sentiment: FY2026 revenue range largely in line with Street — Company gave FY2026 revenue guidance of roughly $98.0M–$100.0M, which is roughly aligned with analyst consensus (~$98.7M), so full‑year expectations were not materially revised downward. Business Wire: Guidance Details
• Neutral Sentiment: Investors can review the full earnings call for color on commercialization cadence and margin drivers; transcripts are available. Yahoo Finance: Earnings Call Transcript
• Negative Sentiment: Soft Q1 2026 revenue guide versus consensus — management guided Q1 revenue of $21.0M–$22.0M, well below the Street (~$25.3M). That near‑term shortfall is the main catalyst pressuring the stock despite the Q4 beat. Business Wire: Q1 Guidance
• Negative Sentiment: Capital structure and profitability remain concerns — NeuroPace remains unprofitable (negative net margin/ROE) and carries leverage that could limit flexibility; investors may view weaker near‑term guidance through that lens. MarketBeat: Financial Snapshot

Institutional Investors Weigh In On NeuroPace

A number of large investors have recently made changes to their positions in NPCE. Marshall Wace LLP purchased a new stake in NeuroPace in the fourth quarter worth $479,000. Walleye Capital LLC raised its holdings in NeuroPace by 344.6% in the 4th quarter. Walleye Capital LLC now owns 228,847 shares of the company’s stock worth $3,533,000 after purchasing an additional 177,375 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of NeuroPace by 4.9% in the 3rd quarter. Vanguard Group Inc. now owns 1,435,850 shares of the company’s stock worth $14,804,000 after purchasing an additional 66,574 shares during the period. BNP Paribas Financial Markets boosted its stake in shares of NeuroPace by 176.5% during the 3rd quarter. BNP Paribas Financial Markets now owns 18,756 shares of the company’s stock valued at $193,000 after purchasing an additional 11,972 shares in the last quarter. Finally, UBS Group AG increased its position in shares of NeuroPace by 141.3% during the third quarter. UBS Group AG now owns 65,237 shares of the company’s stock valued at $673,000 after buying an additional 38,203 shares during the period. 78.83% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have issued reports on NPCE. HC Wainwright lifted their price target on NeuroPace from $18.00 to $19.00 and gave the stock a “buy” rating in a research note on Tuesday, January 27th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of NeuroPace in a research note on Monday, December 29th. Leerink Partners reissued an “outperform” rating and set a $19.00 price target on shares of NeuroPace in a research note on Wednesday, November 5th. UBS Group restated a “buy” rating on shares of NeuroPace in a report on Wednesday, January 14th. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and set a $16.00 target price on shares of NeuroPace in a report on Wednesday, November 5th. Six research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $18.67.

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.