Education
About Us
Working with TipRanks
Follow Us
NeuroPace (NPCE)
NASDAQ:NPCE
Top Page
NeuroPace
(NASDAQ:NPCE)
Select Model
Select Model
Rating:61Neutral
Price Target:
$14.00
▼(-16.22% Downside)
NeuroPace's overall stock score is driven by strong earnings call results and technical momentum, despite financial performance challenges and valuation concerns. The company's growth potential and positive EBITDA are significant strengths, while profitability and leverage remain key risks.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.
Positive Adjusted EBITDA
Achieving positive adjusted EBITDA demonstrates improved operational efficiency and scalability, enhancing financial stability.
Strong Gross Margins
Sustained high gross margins reflect effective cost management and pricing power, contributing to long-term profitability.
Negative Factors
High Leverage
High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.
Negative Profitability
Ongoing profitability challenges may hinder reinvestment in innovation and expansion, affecting long-term competitive positioning.
Extended Timeline for Pediatric Indication
Delays in regulatory submissions can slow product diversification and market expansion, impacting future revenue streams.
NeuroPace (NPCE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$556.57M
Dividend YieldN/A
Average Volume (3M)217.36K
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth24.08%
EPS Growth24.08%
CountryUS
Employees184
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.11
Shares Outstanding33,307,735
10 Day Avg. Volume191,908
30 Day Avg. Volume217,362
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)40.67
Price to Sales (P/S)4.08
P/FCF Ratio-17.85
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue6.40
Enterprise Value/Gross Profit8.34
Enterprise Value/Ebitda-40.05
Forecast
1Y Price Target
$19.17Price Target Upside14.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NeuroPace Business Overview & Revenue Model
Company DescriptionNeuroPace, Inc. operates as a medical device company in the United States. It develops and sells RNS system, a brain-responsive neuromodulation system for treating medically refractory focal epilepsy by delivering personalized real-time treatment at the seizure source. The company's RNS system also records continuous brain activity data; and enables clinicians to monitor patients in person and remotely. It sells its products to hospital facilities for initial RNS system implant procedures and for replacement procedures. The company was incorporated in 1997 and is headquartered in Mountain View, California.
How the Company Makes MoneyNeuroPace generates revenue primarily through the sale of its RNS System and its associated services. The company sells its devices to hospitals, clinics, and healthcare providers, who then implant them into eligible patients. Key revenue streams include the initial sale of the RNS System, which comprises the implantable device and the external components, as well as ongoing revenues from patient monitoring services and device maintenance. Partnerships with healthcare institutions and neurologists play a significant role in driving adoption of the RNS System, while reimbursement from insurance providers for the device and its implantation also contributes to the company’s earnings. Additionally, NeuroPace may benefit from research collaborations and clinical studies that validate the effectiveness of its technology, further enhancing its market position.
NeuroPace Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 10, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, positive adjusted EBITDA, and increased guidance. There were challenges, including the winding down of the DIXI product line and extended timelines for pediatric indication, but these were outweighed by positive developments and strategic progress.Q3-2025 Updates
Positive Updates
Record Revenue and Growth
NeuroPace achieved a total revenue of $27.4 million in Q3 2025, marking a 30% year-over-year growth compared to $21.1 million in the prior year quarter. This was driven by RNS initial implants, with RNS revenue at $22.6 million, representing a 31% year-over-year growth.
Positive Adjusted EBITDA
NeuroPace generated positive adjusted EBITDA for the first time in its history, reflecting strong scalability and disciplined expense management.
Increased Revenue and Gross Margin Guidance
Full year revenue guidance was raised to $97 million to $98 million, up from $94 million to $98 million, reflecting a 21% to 23% year-over-year growth. Gross margin guidance was also increased to 76% to 77%, up from 75% to 76%.
FDA Submission Progress
Progress was made with the NAUTILUS study and the pediatric indication. The PMA supplement for NAUTILUS is on track to be submitted before year-end.
Strong RNS System Performance
RNS System gross margin remained above 80%, benefiting from improved manufacturing efficiency and favorable pricing.
Peer Recognition
The RNS System was featured in the Journal of Clinical Neurophysiology, highlighting its unique closed-loop stimulation capabilities.
Negative Updates
DIXI Product Line Wind Down
DIXI sales, which amounted to approximately $4 million in the quarter, are ending with the distribution agreement officially concluded on September 30. The wind-down period lasts 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 taken to align the protocol and data set.
Net Loss
Net loss for the quarter was $3.5 million, compared to a net loss of $5.5 million in the prior year period.
Company Guidance
During the Q3 2025 earnings call, NeuroPace provided updated financial guidance, highlighting record quarterly revenue of $27.4 million, a 30% year-over-year growth driven primarily by RNS initial implants. The RNS revenue reached $22.6 million, marking a 31% increase from the previous year, with broad-based growth across geographies and programs. The company improved its full-year revenue guidance to $97-$98 million, anticipating a 21%-23% annual growth. Gross margins were also strong at 77.4%, up from 73.2% the previous year, with expectations for full-year margins to be between 76% and 77%. Notably, NeuroPace achieved positive adjusted EBITDA for the first time, attributed to disciplined expense management and operational efficiency. The company remains committed to a long-term growth trajectory, targeting a minimum of 20% growth in its core RNS business.NeuroPace Financial Statement Overview
Summary
NeuroPace shows revenue growth potential but struggles with profitability, high leverage, and negative return on equity. Cash flow improvements are positive, yet operational cash flow remains a challenge.Income Statement
NeuroPace shows a positive revenue growth trend with a 7.1% increase in TTM, indicating potential market expansion. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is strong at 76.8%, but the negative net profit margin of -21.6% highlights ongoing challenges in cost management and operational efficiency.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 3.84, indicating significant leverage and potential financial risk. Return on equity is negative, reflecting losses and inefficiencies in generating shareholder value. The equity ratio stands at 17.3%, suggesting a moderate reliance on equity financing.40
Negative
Cash Flow
Cash flow analysis shows improvement in free cash flow growth, with a notable increase of 91.3% in TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 94.86M | 79.91M | 65.42M | 45.52M | 45.18M | 41.14M |
| Gross Profit | 72.83M | 59.09M | 48.12M | 32.49M | 33.44M | 30.27M |
| EBITDA | -15.16M | -16.57M | -22.83M | -36.57M | -28.37M | -12.48M |
| Net Income | -23.99M | -27.14M | -32.96M | -47.08M | -36.08M | -24.28M |
Balance Sheet | ||||||
| Total Assets | 107.25M | 94.65M | 107.65M | 114.11M | 133.56M | 55.95M |
| Cash, Cash Equivalents and Short-Term Investments | 60.01M | 52.76M | 66.45M | 77.41M | 115.58M | 38.08M |
| Total Debt | 71.18M | 73.34M | 72.39M | 69.77M | 49.85M | 52.86M |
| Total Liabilities | 88.74M | 86.63M | 87.00M | 79.33M | 60.06M | 203.78M |
| Stockholders Equity | 18.52M | 8.01M | 20.65M | 34.78M | 73.50M | -147.83M |
Cash Flow | ||||||
| Free Cash Flow | -16.58M | -18.25M | -19.87M | -37.47M | -24.96M | -21.67M |
| Operating Cash Flow | -16.31M | -17.95M | -19.70M | -36.87M | -24.58M | -21.61M |
| Investing Cash Flow | 1.73M | 8.99M | 23.03M | 23.80M | -85.40M | -10.77M |
| Financing Cash Flow | 19.81M | 4.33M | 8.13M | 490.00K | 102.53M | 55.01M |
NeuroPace Technical Analysis
Positive
16.71
Price Trends
15.82
Positive
13.14
Positive
12.10
Positive
Market Momentum
0.36
Positive
54.22
Neutral
55.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPCE, the sentiment is Positive. The current price of 16.71 is above the 20-day moving average (MA) of 16.40, above the 50-day MA of 15.82, and above the 200-day MA of 12.10, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 54.22 is Neutral, neither overbought nor oversold. The STOCH value of 55.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NPCE.
NeuroPace Risk Analysis
NeuroPace disclosed 78 risk factors in its most recent earnings report. NeuroPace reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NeuroPace Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $647.29M | 37.41 | 8.80% | ― | 9.28% | 21.00% | |
61 Neutral | $556.57M | -22.18 | -169.27% | ― | 24.08% | 24.08% | |
61 Neutral | $371.85M | 1,224.42 | 1.94% | ― | 251.54% | ― | |
59 Neutral | $827.60M | -15.40 | -59.78% | ― | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $298.68M | -4.28 | -129.29% | ― | 31.94% | 36.59% | |
50 Neutral | $391.02M | -10.83 | -12.92% | ― | 10.75% | -7.15% |
* Healthcare Sector Average
NPCE
NeuroPace
16.71
2.47
17.35%
DCTH
Delcath Systems
10.53
-4.92
-31.84%
SENS
Senseonics Holdings
7.31
-13.89
-65.52%
TCMD
Tactile Systems Technology
28.98
11.12
62.26%
RXST
RxSight
9.51
-22.99
-70.74%
CBLL
Ceribell, Inc.
22.31
-0.31
-1.37%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.