NeuroPace (NPCE) AI Stock Analysis

• Market Cap: $319.90M
• Dividend Yield: N/A
• Average Volume (3M): 198.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: 23.32%
• EPS Growth: 23.29%
• Country: US
• Employees: 184
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Devices
• EPS (TTM): -0.26
• Shares Outstanding: 33,081,497
• 10 Day Avg. Volume: 175,999
• 30 Day Avg. Volume: 198,572
• 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: 1.17
• Enterprise Value/Revenue: 4.24
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: -23.14
• 1Y Price Target: $16.86
• Price Target Upside: 74.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 47 Neutral
• Price Target: $8.50 ▼(-12.10% 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

Revenue Growth

Strong revenue growth indicates increasing demand for NeuroPace's RNS System, suggesting robust market position and potential for future expansion.

Gross Margin Improvement

Improved gross margins reflect operational efficiencies and pricing power, enhancing long-term profitability potential.

Financial Flexibility

Successful debt refinancing reduces financial risk and provides the company with more resources to invest in growth and innovation.

Negative Factors

High Financial Leverage

High leverage can strain financial resources and limit the company's ability to invest in growth, posing long-term financial stability risks.

Negative Cash Flow

Negative cash flow suggests operational inefficiencies and may hinder the company's ability to fund new projects or manage debt effectively.

Increased Operating Expenses

Rising operating expenses can erode profitability, necessitating cost management to maintain financial health and support growth.

NeuroPace Business Overview & Revenue Model

Company Description

NeuroPace, 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 Money

NeuroPace 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 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: Neutral
• Last Price: 9.67
• 50DMA: Positive
• 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 Neutral. The current price of 9.67 is above the 20-day moving average (MA) of 9.12, above the 50-day MA of 9.23, and below the 200-day MA of 11.47, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 79.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NPCE.

NeuroPace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLPT	61 Neutral	$299.34M	―	-85.68%	―	19.68%	-13.17%
SRTS	58 Neutral	$52.61M	48.68	-1.62%	―	3.30%	-112.70%
CVRX	52 Neutral	$207.91M	―	-92.33%	―	23.11%	18.06%
Sector *	51 Neutral	$7.90B	-0.36	-43.38%	2.23%	22.34%	-2.15%
NPCE	47 Neutral	$319.90M	―	-176.94%	―	23.32%	23.29%
SENS	46 Neutral	$357.16M	―	-102.61%	―	5.94%	25.16%
NNOX	40 Underperform	$241.02M	―	-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.