-- Reported record quarterly revenue of $27.4 million in Q3 2025 representing 30% growth --
-- Increased full-year 2025 revenue guidance to between $97 million and $98 million and gross margin guidance to between 76% and 77% --
-- Remains on track to submit NAUTILUS PMA Supplement to FDA for IGE indication expansion by year-end 2025 --
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--November 04, 2025--
NeuroPace, Inc. (Nasdaq: NPCE), a medical device company focused on transforming the lives of people living with epilepsy, today reported financial results for the third quarter ended September 30, 2025, and provided a corporate update.
Third Quarter 2025 Financial Highlights
-- Total revenue of $27.4 million, representing growth of 30% compared to
the third quarter of 2024
-- RNS$(R)$ System revenue of $22.6 million, representing growth of 31%
compared to the third quarter of 2024
-- Delivered strong gross margin of 77.4% driven by positive product mix and
manufacturing efficiencies
Third Quarter 2025 Operational & Strategic Highlights
-- Achieved record highs in number of active accounts, prescribers and
utilization
-- Completed Pre-submission meeting with the FDA for the NAUTILUS study
evaluating RNS therapy in idiopathic generalized epilepsy $(IGE)$ and
remains on track to submit a premarket approval supplement (PMA-S) by
year-end 2025
-- Built on Project CARE momentum with an increasing contribution in the
third quarter compared with the second quarter of 2025
-- Submitted Seizure ID$(TM)$, the first of a suite of planned NeuroPace
AI(TM) applications designed to improve clinical outcomes and simplify
and accelerate the iEEG review process, to the FDA for approval. The
product is built on years of proprietary, patient-level brain data
captured through the RNS System
"Our strong third-quarter performance reflects the continued execution of our strategy and the momentum across our business being driven by our team," said Joel Becker, Chief Executive Officer of NeuroPace. "We delivered record revenue growth with strong gross margin, operating and cash discipline while advancing key clinical and product development initiatives that reinforce our leadership in personalized neuromodulation. Our decision to strategically focus our organizational efforts on our differentiated RNS System is reflected in our third quarter results, and with growing awareness of RNS therapy and an expanding base of prescribers, we are encouraged by the progress we are making toward establishing the RNS System as the standard of care in drug-resistant epilepsy."
Third Quarter 2025 Financial Results
Total revenue in the third quarter of 2025 grew 30% to $27.4 million, compared with $21.1 million in the third quarter of 2024. The Company's revenue growth was primarily driven by increased sales of the RNS System, which grew 31% in the third quarter of 2025 compared to the third quarter of 2024.
Gross margin for the third quarter of 2025 was 77.4%, compared with 73.2% in the third quarter of 2024 and 77.1% in the second quarter of 2025. The year-over-year improvement is primarily due to increasing revenue contribution from higher margin RNS revenue, benefit from improved manufacturing efficiency, and favorable pricing.
Total operating expenses in the third quarter of 2025 were $23.8 million, compared with $19.7 million in the third quarter of 2024.
Sales and marketing expense in the third quarter of 2025 was $12.6 million, compared with $9.9 million in the third quarter of 2024. The year-over-year increase was largely due to personnel-related expenses associated with ongoing scaling of commercial activities, investment in direct-to-consumer marketing and other sales related expenses.
Research and development expense in the third quarter of 2025 was $6.6 million, compared with $5.8 million in the third quarter of 2024. The year-over-year increase was primarily driven by personnel-related expenses associated with the development of a next-generation platform, AI-enabled tools, and ongoing clinical trials.
General and administrative expense in the third quarter of 2025 was $4.6 million compared with $4.0 million in the third quarter of 2024. This increase was primarily due to an increase in personnel-related expenses.
Loss from operations was ($2.6) million in the third quarter of 2025, compared with a loss from operations of ($4.2) million in the third quarter of 2024. Net loss was ($3.5) million for the third quarter of 2025 compared with a net loss of ($5.5) million in the third quarter of 2024.
The Company's cash, cash equivalents and short-term investments balance as of September 30, 2025 was $60.0 million compared with $62.1 million at the end of the prior quarter. Long-term borrowings totaled $58.7 million as of September 30, 2025.
Updated Full Year 2025 Financial Guidance
-- Increased total revenue guidance for full year 2025 to between $97
million and $98 million, representing growth of 21% -- 23% versus $79.9
million in 2024, up from previous guidance of between $94 million and $98
million
-- Increased gross margin guidance to between 76% and 77%, up from previous
guidance of 75% and 76%
-- Increased total operating expenses range between $94 million and $95
million, including approximately $11 million in stock-based compensation,
a non-cash expense, up from previous guidance of $92 million to $95
million
Webcast and Conference Call Information
NeuroPace will host a conference call to discuss the third quarter 2025 financial results after market close on Tuesday, November 4, 2025, at 4:30 P.M. Eastern Time. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at (click here). Individuals interested in participating in the call via telephone may access the call by dialing + 1 (800) 715-9871 and referencing Conference ID 8467256. The webcast will be archived on the Company's investor relations website at https://investors.neuropace.com/news-and-events/events and will be available for replay for at least 90 days after the event.
About NeuroPace, Inc.
Based in Mountain View, Calif., NeuroPace is a medical device company focused on transforming the lives of people living with epilepsy by reducing or eliminating the occurrence of debilitating seizures. Its novel and differentiated RNS System is the first and only commercially available, brain-responsive platform that delivers personalized, real-time treatment at the seizure source. This platform can drive a better standard of care for patients living with drug-resistant epilepsy and has the potential to offer a more personalized solution and improved outcomes to the large population of patients suffering from other brain disorders.
Forward Looking Statements
This press release may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "aims," "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "intends," "may," "plans," "possible," "potential," "seeks," "will" and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. NeuroPace may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding: NeuroPace's expectations, forecasts and beliefs with respect to potential indication expansion for its RNS System and its software, technology and other product development efforts; increasing access to and adoption of RNS therapy as the standard of care in drug-resistant epilepsy; NeuroPace's continued execution on its long-term revenue growth strategy, including with respect to sustained revenue growth and long-term value creation; and NeuroPace's anticipated revenue, gross margin and operating expenses for the year ending 2025. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including: actual operating results may differ significantly from any guidance provided; uncertainties related to market acceptance and adoption of NeuroPace's RNS System and impacts to NeuroPace's revenue for 2025 and in the future; risks to future revenue growth as a result of the expiration of the DIXI distribution agreement on September 30, 2025; risks that NeuroPace's operating expenses could be higher than anticipated and that it could use its cash resources sooner than expected; risks that NeuroPace's gross margin may be lower than forecast; risks related to the pricing of the RNS System and availability of adequate reimbursement for the procedures to implant the RNS System and for clinicians to provide ongoing care for patients treated with the RNS System; risks related to regulatory compliance and expectations for regulatory submissions and approvals to expand the market for NeuroPace's RNS System, including risks related to the NAUTILUS clinical trial; risks related to product development, including risks related to the development of AI-powered software, including NeuroPace AI(TM) and Seizure ID(TM) and the next generation device platform; risks related to NeuroPace's reliance on contractors and other third parties, including single-source suppliers and vendors; and other important factors. These and other risks and uncertainties include those described more fully in the section titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in NeuroPace's
public filings with the U.S. Securities and Exchange Commission (SEC), including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, filed with the SEC on November 4, 2025, as well as any other reports that it may file with the SEC in the future. Forward-looking statements contained in this announcement are based on information available to NeuroPace as of the date hereof. NeuroPace undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing NeuroPace's views as of any date subsequent to the date of this press release and should not be relied upon as a prediction of future events. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of NeuroPace.
NeuroPace, Inc.
Condensed Statements of Operations
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- ----------------------------
(in thousands,
except share and
per share
amounts) 2025 2024 2025 2024
---------- ---------- ---------- ----------
Revenue $ 27,354 $ 21,060 $ 73,398 $ 58,440
Cost of goods
sold 6,186 5,640 16,756 15,543
---------- ---------- ---------- ----------
Gross profit 21,168 15,420 56,642 42,897
Operating
expenses
Sales and
marketing 12,598 9,929 35,644 29,718
Research and
development 6,576 5,754 20,861 17,603
General and
administrative 4,594 3,980 14,708 13,594
---------- ---------- ---------- ----------
Total
operating
expenses 23,768 19,663 71,213 60,915
---------- ---------- ---------- ----------
Loss from
operations (2,600) (4,243) (14,571) (18,018)
Interest income 667 754 2,178 2,343
Interest expense (1,645) (2,182) (5,857) (6,606)
Other income
(expense), net 82 219 (486) 390
---------- ---------- ---------- ----------
Net loss and
comprehensive
loss $ (3,496) $ (5,452) $ (18,736) $ (21,891)
========== ========== ========== ==========
Net loss per
share
attributable to
common
stockholders,
basic and
diluted $ (0.11) $ (0.19) $ (0.58) $ (0.76)
========== ========== ========== ==========
Weighted-average
shares used in
computing net
loss per share
attributable to
common
stockholders,
basic and
diluted 33,134,606 29,444,625 32,498,907 28,863,120
========== ========== ========== ==========
NeuroPace, Inc.
Condensed Balance Sheets
(unaudited)
September 30, December 31,
(in thousands, except share and per
share amounts) 2025 2024
---------- ---------
Assets
Current assets
Cash and cash equivalents $ 20,648 $ 13,430
Short-term investments 39,366 39,325
Accounts receivable 14,938 12,851
Inventory 18,135 13,381
Prepaid expenses and other current
assets 2,243 2,352
---------- ---------
Total current assets 95,330 81,339
Property and equipment, net 1,108 1,052
Operating lease right-of-use asset 10,575 11,843
Restricted cash 122 122
Deferred offering costs -- 276
Other assets 120 15
---------- ---------
Total assets $ 107,255 $ 94,647
========== =========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 4,590 $ 2,954
Accrued liabilities 12,317 9,787
Operating lease liability 2,051 1,860
Deferred revenue 649 555
---------- ---------
Total current liabilities 19,607 15,156
Long-term debt 58,748 59,525
Operating lease liability, net of
current portion 10,382 11,953
---------- ---------
Total liabilities 88,737 86,634
---------- ---------
Stockholders' equity
Common stock, $0.001 par value 33 30
Additional paid-in capital 568,171 538,933
Accumulated deficit (549,686) (530,950)
---------- ---------
Total stockholders' equity 18,518 8,013
---------- ---------
Total liabilities and
stockholders' equity $ 107,255 $ 94,647
========== =========
NeuroPace, Inc.
Condensed Statements of Cash Flows
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ----------------------
(in thousands) 2025 2024 2025 2024
------ ------ ------- -------
Cash flows from
operating
activities
Net loss $(3,496) $(5,452) $(18,736) $(21,891)
Adjustments to
reconcile net loss
to net cash used in
operating
activities
Stock-based
compensation
expense 2,628 2,591 8,482 7,679
Depreciation 54 56 158 159
Amortization of
debt discount
and issuance
costs 70 47 174 179
Non-cash interest
expense 73 203 463 743
Loss on debt
extinguishment -- -- 527 --
PIK interest
incurred but not
paid on term
loan -- -- -- 1,389
Amortization of
right-of-use
asset 433 395 1,268 1,159
Gain on
short-term
investments (82) (219) (41) (315)
Inventory
write-downs 47 107 140 196
Loss on disposal
of property and
equipment -- -- 2 --
Changes in
operating assets
and liabilities
Accounts
receivable (1,383) (318) (2,087) 753
Inventory (1,836) (828) (4,894) (1,066)
Prepaid
expenses and
other assets (537) (32) 134 621
Accounts
payable (48) (130) 1,655 (102)
Accrued
liabilities 2,650 2,328 2,530 (1,108)
Deferred
revenue (48) (61) 93 (341)
Operating
lease
liabilities (469) (411) (1,380) (1,207)
------ ------ ------- -------
Net cash
used in
operating
activities (1,944) (1,724) (11,512) (13,152)
------ ------ ------- -------
Cash flows from
investing
activities
Acquisition of
property and
equipment (30) (100) (235) (267)
Proceeds from sale
of short-term
investments -- 1,500 -- 7,300
------ ------ ------- -------
Net cash (used
in) provided
by investing
activities (30) 1,400 (235) 7,033
------ ------ ------- -------
Cash flows from
financing
activities
Proceeds from
issuance of common
stock in follow-on
offering, net of
underwriting
discounts and
commissions (50) -- 69,654 --
Repurchase of common
stock -- -- (49,546) --
Proceeds from
issuance of common
stock under
employee plans 1 34 1,152 1,336
Taxes withheld and
paid related to net
share settlement of
equity awards (53) (68) (455) (789)
Proceeds from
at-the-market
offering, net of
sales commission -- 2,932 232 2,932
Proceeds from debt,
net of discounts
and issuance costs (133) -- 58,435 --
Repayment of debt -- -- (60,507) --
------ ------ ------- -------
Net cash
provided by
financing
activities (235) 2,898 18,965 3,479
------ ------ ------- -------
Net increase
(decrease) in
cash and cash
equivalents (2,209) 2,574 7,218 (2,640)
Cash, cash
equivalents and
restricted cash
Beginning of the
period 22,979 12,966 13,552 18,180
------ ------ ------- -------
End of the period $20,770 $15,540 $ 20,770 $ 15,540
====== ====== ======= =======
Reconciliation of
cash, cash
equivalents and
restricted cash to
balance sheets:
Cash and cash
equivalents $20,648 $15,418 $ 20,648 $ 15,418
Restricted cash 122 122 122 122
------ ------ ------- -------
Cash, cash
equivalents and
restricted cash in
balance sheets $20,770 $15,540 $ 20,770 $ 15,540
====== ====== ======= =======
View source version on businesswire.com: https://www.businesswire.com/news/home/20251104870940/en/
CONTACT: Investor Contact:
Scott Schaper
Head of Investor Relations
sschaper@neuropace.com
investors@neuropace.com
(END) Dow Jones Newswires
November 04, 2025 16:05 ET (21:05 GMT)