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NPCE Stock Gains on Q1 Earnings & Revenue Beat, 2026 Outlook Raised
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Key Takeaways
NPCE posted Q1 revenue beat and narrower adjusted loss, driven by RNS System sales growth.
NeuroPace raised 2026 revenue guidance and expects RNS growth of 21%-23% this year.
NPCE highlighted AI tools and potential FDA expansion into idiopathic generalized epilepsy.
NeuroPace (NPCE - Free Report) delivered a first-quarter 2026 adjusted loss per share of 13 cents compared with an adjusted loss of 18 cents in the year-ago period. The figure was 31.6% narrower than the Zacks Consensus Estimate.
GAAP loss per share for the quarter was 20 cents compared with 21 cents in the year-ago period.
NPCE’s Q1 Revenues in Detail
NeuroPace registered revenues of $22.1 million in the first quarter, down 2% year over year, reflecting strong RNS System sales of $21.7 million (up 19.5% year over year) alongside $314,000 in service revenues and $0.1 million from DIXI Medical wind-down. The figure surpassed the Zacks Consensus Estimate by 2.07%.
Shares of NPCE were up approximately 0.2% during after-market trading following the first-quarter results. The company’s shares have gained 2.3% in the year-to-date period against the industry’s decline of 20.1%. The broader S&P 500 Index has increased 9% in the same time frame.
Image Source: Zacks Investment Research
NPCE’s Margin Analysis
In the quarter under review, NeuroPace’s adjusted gross profit increased 18.6% year over year to $18.1 million. Adjusted gross margin contracted 110 basis points (bps) to 82.5%.
Sales and marketing expenses increased 5.3% year over year to $11.6 million, research and development expenses decreased 3.4% year over year to $7.2 million and general and administrative expenses increased 19.7% year over year to $4.8 million.
Adjusted operating expenses of $21.5 million rose 10.5% year over year.
The adjusted operating loss totaled $3.3 million, down from $4.1 million in the prior-year quarter.
NPCE’s Financial Position
NeuroPace ended first-quarter 2026 with total cash, cash equivalents and short-term investments of $53.9 million, compared with $61.1 million at the end of fourth-quarter 2025.
Cumulative net cash used in operating activities at the end of first-quarter 2026 was $5.9 million compared with $7.5 million a year ago.
NPCE’s Guidance for 2026
NeuroPace has raised its outlook for the full year 2026.
For 2026, management provided total revenue guidance of $99 million-$101 million (up from $98 million to $100 million previously) on a continuing-operations basis, with RNS growth of 21%-23%, compared to full year 2025. The Zacks Consensus Estimate is pegged at $98.8 million.
The adjusted gross margin is expected to be at 81.5%-82.5%, supported by ongoing pricing discipline and manufacturing efficiencies.
Adjusted operating expenses are guided to $90 million-$92million, excluding approximately $10 million in stock-based compensation.
Adjusted EBITDA is expected to be a loss of approximately $8.5 million-$9.5 million compared to the previous guidance of a loss between $9.0 million and $10 million.
NPCE exited the first quarter of 2026 with a narrower-than-expected adjusted loss per share and better-than-expected revenues. Growth was primarily driven by increased sales of the RNS System.
During the quarter, NeuroPace achieved new all-time highs in active prescribers, accounts and patient pipeline. Growth continued to be driven by Level 4 comprehensive epilepsy centers, while community referral relationships contributed to funnel expansion and patient identification. Management emphasized that accelerating patient pipeline trends, coupled with investments in commercial infrastructure and nurse navigation programs, is improving procedural visibility and reducing friction across the treatment pathway.
The quarter also highlighted NeuroPace’s potential expansion into idiopathic generalized epilepsy. Management reiterated expectations for a midyear FDA determination tied to the NAUTILUS PMA supplement, supported by encouraging interactions with the agency under the breakthrough device designation pathway.
NeuroPace continues to strengthen its competitive positioning through AI-driven innovation. The company’s ECoG Assistant platform and multimodal foundational AI model are designed to improve physician workflow efficiency, personalize therapy optimization and expand adoption of the RNS System. Leveraging more than 26 million intracranial EEG recordings and over 8,000 patient implants, management believes NeuroPace is uniquely positioned at the intersection of neuromodulation, data and AI-enabled epilepsy care.
NPCE’s Zacks Rank & Key Picks
NPCE currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) , Globus Medical (GMED - Free Report) and Intuitive Surgical (ISRG - Free Report) .
West Pharmaceutical, currently sporting a Zacks Rank #1 (Strong Buy), reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%.
GMED has an estimated long-term earnings growth rate of 10.2%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.
Intuitive Surgical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.
Intuitive Surgical has a long-term estimated growth rate of 14.6%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
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NPCE Stock Gains on Q1 Earnings & Revenue Beat, 2026 Outlook Raised
Key Takeaways
NeuroPace (NPCE - Free Report) delivered a first-quarter 2026 adjusted loss per share of 13 cents compared with an adjusted loss of 18 cents in the year-ago period. The figure was 31.6% narrower than the Zacks Consensus Estimate.
GAAP loss per share for the quarter was 20 cents compared with 21 cents in the year-ago period.
NPCE’s Q1 Revenues in Detail
NeuroPace registered revenues of $22.1 million in the first quarter, down 2% year over year, reflecting strong RNS System sales of $21.7 million (up 19.5% year over year) alongside $314,000 in service revenues and $0.1 million from DIXI Medical wind-down. The figure surpassed the Zacks Consensus Estimate by 2.07%.
Shares of NPCE were up approximately 0.2% during after-market trading following the first-quarter results. The company’s shares have gained 2.3% in the year-to-date period against the industry’s decline of 20.1%. The broader S&P 500 Index has increased 9% in the same time frame.
Image Source: Zacks Investment Research
NPCE’s Margin Analysis
In the quarter under review, NeuroPace’s adjusted gross profit increased 18.6% year over year to $18.1 million. Adjusted gross margin contracted 110 basis points (bps) to 82.5%.
Sales and marketing expenses increased 5.3% year over year to $11.6 million, research and development expenses decreased 3.4% year over year to $7.2 million and general and administrative expenses increased 19.7% year over year to $4.8 million.
Adjusted operating expenses of $21.5 million rose 10.5% year over year.
The adjusted operating loss totaled $3.3 million, down from $4.1 million in the prior-year quarter.
NPCE’s Financial Position
NeuroPace ended first-quarter 2026 with total cash, cash equivalents and short-term investments of $53.9 million, compared with $61.1 million at the end of fourth-quarter 2025.
Cumulative net cash used in operating activities at the end of first-quarter 2026 was $5.9 million compared with $7.5 million a year ago.
NPCE’s Guidance for 2026
NeuroPace has raised its outlook for the full year 2026.
For 2026, management provided total revenue guidance of $99 million-$101 million (up from $98 million to $100 million previously) on a continuing-operations basis, with RNS growth of 21%-23%, compared to full year 2025. The Zacks Consensus Estimate is pegged at $98.8 million.
The adjusted gross margin is expected to be at 81.5%-82.5%, supported by ongoing pricing discipline and manufacturing efficiencies.
Adjusted operating expenses are guided to $90 million-$92million, excluding approximately $10 million in stock-based compensation.
Adjusted EBITDA is expected to be a loss of approximately $8.5 million-$9.5 million compared to the previous guidance of a loss between $9.0 million and $10 million.
NeuroPace, Inc. Price, Consensus and EPS Surprise
NeuroPace, Inc. price-consensus-eps-surprise-chart | NeuroPace, Inc. Quote
Our Take on NeuroPace’s Q1 Results
NPCE exited the first quarter of 2026 with a narrower-than-expected adjusted loss per share and better-than-expected revenues. Growth was primarily driven by increased sales of the RNS System.
During the quarter, NeuroPace achieved new all-time highs in active prescribers, accounts and patient pipeline. Growth continued to be driven by Level 4 comprehensive epilepsy centers, while community referral relationships contributed to funnel expansion and patient identification. Management emphasized that accelerating patient pipeline trends, coupled with investments in commercial infrastructure and nurse navigation programs, is improving procedural visibility and reducing friction across the treatment pathway.
The quarter also highlighted NeuroPace’s potential expansion into idiopathic generalized epilepsy. Management reiterated expectations for a midyear FDA determination tied to the NAUTILUS PMA supplement, supported by encouraging interactions with the agency under the breakthrough device designation pathway.
NeuroPace continues to strengthen its competitive positioning through AI-driven innovation. The company’s ECoG Assistant platform and multimodal foundational AI model are designed to improve physician workflow efficiency, personalize therapy optimization and expand adoption of the RNS System. Leveraging more than 26 million intracranial EEG recordings and over 8,000 patient implants, management believes NeuroPace is uniquely positioned at the intersection of neuromodulation, data and AI-enabled epilepsy care.
NPCE’s Zacks Rank & Key Picks
NPCE currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) , Globus Medical (GMED - Free Report) and Intuitive Surgical (ISRG - Free Report) .
West Pharmaceutical, currently sporting a Zacks Rank #1 (Strong Buy), reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%.
GMED has an estimated long-term earnings growth rate of 10.2%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.
Intuitive Surgical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.
Intuitive Surgical has a long-term estimated growth rate of 14.6%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.