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NeuroPace (NPCE) Down 0.6% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for NeuroPace, Inc. (NPCE - Free Report) . Shares have lost about 0.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is NeuroPace due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for NeuroPace, Inc. before we dive into how investors and analysts have reacted as of late.
NPCE Q1 Earnings & Revenues Beat Estimates, 2026 Outlook Raised
NeuroPace 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%.
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% to $7.2 million and general and administrative expenses increased 19.7% 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-$92 million, 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates review.
The consensus estimate has shifted -13.27% due to these changes.
VGM Scores
At this time, NeuroPace has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
NeuroPace has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
NeuroPace is part of the Zacks Medical - Instruments industry. Over the past month, Tandem Diabetes Care, Inc. (TNDM - Free Report) , a stock from the same industry, has gained 15%. The company reported its results for the quarter ended March 2026 more than a month ago.
Tandem Diabetes Care reported revenues of $247.22 million in the last reported quarter, representing a year-over-year change of +5.5%. EPS of -$0.30 for the same period compares with -$0.67 a year ago.
Tandem Diabetes Care is expected to post a loss of $0.34 per share for the current quarter, representing a year-over-year change of +29.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -14.7%.
Tandem Diabetes Care has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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NeuroPace (NPCE) Down 0.6% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for NeuroPace, Inc. (NPCE - Free Report) . Shares have lost about 0.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is NeuroPace due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for NeuroPace, Inc. before we dive into how investors and analysts have reacted as of late.
NPCE Q1 Earnings & Revenues Beat Estimates, 2026 Outlook Raised
NeuroPace 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%.
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% to $7.2 million and general and administrative expenses increased 19.7% 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-$92 million, 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates review.
The consensus estimate has shifted -13.27% due to these changes.
VGM Scores
At this time, NeuroPace has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
NeuroPace has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
NeuroPace is part of the Zacks Medical - Instruments industry. Over the past month, Tandem Diabetes Care, Inc. (TNDM - Free Report) , a stock from the same industry, has gained 15%. The company reported its results for the quarter ended March 2026 more than a month ago.
Tandem Diabetes Care reported revenues of $247.22 million in the last reported quarter, representing a year-over-year change of +5.5%. EPS of -$0.30 for the same period compares with -$0.67 a year ago.
Tandem Diabetes Care is expected to post a loss of $0.34 per share for the current quarter, representing a year-over-year change of +29.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -14.7%.
Tandem Diabetes Care has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.