NeuroPace (NPCE) AI Stock Analysis

• Market Cap: $272.92M
• Dividend Yield: N/A
• Average Volume (3M): 219.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 23.32%
• EPS Growth: 23.29%
• Country: US
• Employees: 184
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Devices
• EPS (TTM): -0.26
• Shares Outstanding: 33,081,497
• 10 Day Avg. Volume: 249,960
• 30 Day Avg. Volume: 219,757
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 4.24
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: -23.14
• 1Y Price Target: $16.86
• Price Target Upside: 95.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 47 Neutral
• Price Target: $8.50 ▼(-1.39% Downside)

NeuroPace's overall score is primarily impacted by its financial performance challenges, including high leverage and negative cash flow. While technical indicators suggest a bearish trend, the company has shown positive developments in earnings calls and corporate events, such as successful debt refinancing and promising clinical trial results.

Positive Factors

Earnings

NPCE reported 2Q25 sales of $23.5 million, which is 2% higher than consensus and shows a year-over-year growth of 22%.

Financial Performance

NPCE's gross margin guidance has been raised to 75-76%, which is higher than previous expectations and consensus.

Growth Strategy

Management is focused on key growth pillars and driving utilization expansion within core markets, including expanding adoption of its RNS platform for focal epilepsy.

Negative Factors

Clinical Trial Results

The study did not reach statistical significance for the primary effectiveness endpoint, which was to show a longer time to a second generalized tonic-clonic seizure in the active stimulation group compared to the sham stimulation group.

Price Target

Analyst decreases the price target for NPCE from $18 to $16.

Regulatory Risk

The NAUTILUS announcement creates additional near-term regulatory risk for the company.

NeuroPace Business Overview & Revenue Model

Company Description

NeuroPace, Inc. (NPCE) is a medical technology company that specializes in developing and manufacturing devices for the treatment of neurological disorders. The company's flagship product is the RNS® System, a responsive neurostimulation device designed to monitor and treat epileptic seizures. NeuroPace operates within the healthcare sector, focusing on neurology and neurotechnology, and is committed to improving the quality of life for patients suffering from epilepsy.

How the Company Makes Money

NeuroPace generates revenue primarily through the sale of its RNS® System to hospitals and medical institutions. The company makes money by charging for the initial implantation of the device as well as through ongoing monitoring and management services associated with the device's use. Revenue is also derived from follow-up procedures and replacement parts or upgrades. NeuroPace works closely with healthcare providers and insurance companies to ensure its devices are accessible to patients, which can also influence its revenue streams. Additionally, strategic partnerships and collaborations within the medical technology industry may contribute to its financial performance.

NeuroPace Financial Statement Overview

Summary

NeuroPace shows positive revenue growth, but faces challenges with profitability and liquidity. High debt levels and negative cash flow indicate financial risk.

Income Statement

NeuroPace shows a positive revenue growth trend with a 22% increase from the previous year. However, the company is facing challenges with profitability as reflected in negative EBIT and net income margins. The gross profit margin remains strong at 74%, but the net profit margin remains at 0%, indicating operational challenges.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio due to substantial debt levels, indicating potential financial risk. Equity has significantly decreased, impacting financial stability. The equity ratio is low at about 8%, highlighting reliance on debt financing.

Cash Flow

NeuroPace's free cash flow remains negative, indicating cash constraints. The free cash flow growth shows a slight improvement but remains negative, and the operating cash flow to net income ratio is unfavorable, reflecting cash generation issues relative to reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.57M	79.91M	65.42M	45.52M	45.18M	41.14M
Gross Profit	67.08M	59.09M	48.12M	32.49M	33.44M	30.27M
EBITDA	-16.22M	-16.57M	-22.83M	-36.57M	-28.37M	-12.48M
Net Income	-17.29M	-27.14M	-32.96M	-47.08M	-36.08M	-24.28M
Balance Sheet
Total Assets	106.11M	94.65M	107.65M	114.11M	133.56M	55.95M
Cash, Cash Equivalents and Short-Term Investments	62.14M	52.76M	66.45M	77.41M	115.58M	38.08M
Total Debt	71.52M	73.34M	72.39M	69.77M	49.85M	52.86M
Total Liabilities	86.68M	86.63M	87.00M	79.33M	60.06M	203.78M
Stockholders Equity	19.44M	8.01M	20.65M	34.78M	73.50M	-6.41M
Cash Flow
Free Cash Flow	-16.23M	-18.25M	-19.87M	-37.47M	-24.96M	-21.67M
Operating Cash Flow	-16.09M	-17.95M	-19.70M	-36.87M	-24.58M	-21.61M
Investing Cash Flow	3.16M	8.99M	23.03M	23.80M	-85.40M	-10.77M
Financing Cash Flow	22.95M	4.33M	8.13M	490.00K	102.53M	55.01M

NeuroPace Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPCE, the sentiment is Negative. The current price of 8.62 is below the 20-day moving average (MA) of 8.80, below the 50-day MA of 9.66, and below the 200-day MA of 11.38, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 44.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NPCE.

NeuroPace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLPT	59 Neutral	$295.65M	―	-85.68%	―	19.68%	-13.17%
SRTS	58 Neutral	$52.61M	48.68	-1.62%	―	3.30%	-112.70%
CVRX	52 Neutral	$189.60M	―	-92.33%	―	23.11%	18.06%
Sector *	51 Neutral	$7.77B	-0.12	-39.78%	2.21%	22.68%	-1.42%
NPCE	47 Neutral	$272.92M	―	-176.94%	―	23.32%	23.29%
SENS	47 Neutral	$371.82M	―	-102.61%	―	5.94%	25.16%
NNOX	40 Underperform	$256.32M	―	-32.87%	―	17.36%	9.38%

NeuroPace Corporate Events

NeuroPace Appoints New CFO Amid Strategic Shift

On June 20, 2025, Rebecca Kuhn resigned as NeuroPace‘s Chief Financial Officer and transitioned to a Senior Strategic Advisor role, with a separation agreement outlining her consulting services and severance benefits. Concurrently, Patrick F. Williams was appointed as the new CFO, bringing over 25 years of experience in financial and operational management within public medical device companies, signaling a strategic shift for NeuroPace as it seeks to expand access to its RNS System and enhance its growth trajectory.

NeuroPace Holds Virtual Annual Stockholders Meeting

On June 6, 2025, NeuroPace, Inc. conducted its Annual Meeting of Stockholders virtually, where key proposals were voted on. Stockholders elected Class I director nominees Joel Becker and Frank Fischer to serve until the 2028 Annual Meeting. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.

NeuroPace Secures $75 Million Credit Facility with MidCap

On June 4, 2025, NeuroPace, Inc. entered into a $75 million credit facility with MidCap Financial, comprising a $60 million term loan and a $15 million revolving credit facility. This new financing arrangement allowed NeuroPace to repay its existing loan with CRG Partners IV, L.P., and the revolving credit will support working capital and corporate purposes. The favorable terms of the new credit facility are expected to reduce cash interest expenses and support NeuroPace’s growth initiatives, including expanding access to the RNS System and investing in new product developments.

NeuroPace Announces Promising NAUTILUS Study Results

On May 27, 2025, NeuroPace announced the preliminary one-year results of its NAUTILUS study, which evaluates the safety and effectiveness of the RNS System for treating drug-resistant idiopathic generalized epilepsy. The study met its primary safety endpoint and showed significant seizure reduction in a key patient subgroup, suggesting potential benefits for a substantial portion of patients. NeuroPace plans to engage with the FDA regarding regulatory pathways and is confident in its long-term growth strategy, reaffirming its 2025 financial guidance.