Neuropace, Inc. ((NPCE)) has held its Q2 earnings call. Read on for the main highlights of the call.
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In the latest earnings call, NeuroPace, Inc. demonstrated a strong performance with record revenue and improved gross margins, despite facing challenges such as increased operating expenses and a higher net loss. The company also shared positive clinical trial data, although the NAUTILUS trial did not meet its primary effectiveness endpoint.
Record Revenue Growth
NeuroPace reported a record revenue of $23.5 million for the second quarter of 2025, marking a 22% growth compared to $19.3 million in the previous year. This impressive growth underscores the company’s expanding market presence and successful sales strategies.
Strong Gross Margin Performance
The company achieved a total gross margin above 77%, with the RNS gross margin exceeding 80%. This robust performance led to an upward revision of the full-year gross margin guidance to a range of 75% to 76%.
Successful Debt Refinancing
NeuroPace successfully refinanced its existing debt, securing more favorable terms that enhance its financial flexibility. This strategic move is expected to support the company’s growth initiatives and operational stability.
Positive Clinical Trial Results
The Post-Approval Study yielded promising results, showing a 100% median percent seizure reduction at 24 and 36 months post-implant for patients with generalized tonic-clonic seizures. This data highlights the effectiveness of NeuroPace’s treatments.
Encouraging NAUTILUS Trial Data
The NAUTILUS trial data revealed highly statistically significant and clinically meaningful reductions in seizure frequency, with a median seizure reduction better than 80% at 18 and 24 months. This indicates strong potential for future therapeutic applications.
Increased Operating Expenses
Operating expenses rose to $25 million in Q2 2025 from $20.4 million in Q2 2024, largely due to one-time expenses related to executive transition. Despite this increase, the expenses remained below the revenue growth rate.
Net Loss Increased
NeuroPace reported a net loss of $8.7 million for Q2 2025, compared to a net loss of $7.5 million in Q2 2024. This increase is attributed to higher operating expenses and strategic investments.
NAUTILUS Trial Primary Endpoint Not Met
The NAUTILUS trial did not meet its primary effectiveness endpoint, as the prespecified analysis method could not account for a small subset of patients with highly variable seizure frequencies. This highlights the complexities involved in clinical trials.
Forward-Looking Guidance
NeuroPace provided updated financial guidance, reflecting its strong performance. The company adjusted its full-year revenue guidance to a range of $94 million to $98 million, up from the prior range of $93 million to $97 million. The gross margin guidance was also raised to between 75% and 76%. NeuroPace expressed confidence in its growth trajectory, supported by clinical data, strategic partnerships, and planned innovations.
In conclusion, NeuroPace, Inc.’s earnings call conveyed a positive sentiment, driven by record revenue and strong gross margins. Despite challenges such as increased operating expenses and a higher net loss, the company remains optimistic about its future, bolstered by successful debt refinancing and encouraging clinical trial results.