NeuroPace Achieves Record Q2 Revenue, Raises Full-Year Outlook to $94-$98 Million

NeuroPace reported Q2 2025 revenue of $23.5 million, up 22% YoY, with gross margin at 77.1%. RNS system sales drove growth, and the company raised its full-year revenue outlook to $94-$98 million. The NAUTILIST trial for generalized epilepsy showed positive progress, and the FDA granted breakthrough device designation. Debt refinancing supports financial flexibility.

NeuroPace, Inc. (Nasdaq: NPCE), a medical device company focused on transforming the lives of people living with epilepsy, reported its financial results for the second quarter of 2025. The company reported a record quarterly revenue of $23.5 million, a 22% year-over-year (YoY) increase. This growth was primarily driven by sales of the RNS System, which saw a 21% increase in the first half of 2025 compared to the same period in 2024, and a 16% increase in the second quarter of 2025 compared to the same period in 2024 [1].

The company also announced an increase in its full-year 2025 revenue guidance to between $94 million and $98 million, representing growth of 18% – 23% compared to 2024. Gross margin guidance was also increased to between 75% and 76%, up from the previous guidance of 73% and 75% [1].

Operational highlights included the NAUTILUS study, which demonstrated statistically significant safety and clinically meaningful improvement across multiple secondary endpoints. The study showed a 79% median reduction in generalized tonic-clonic (GTC) seizures at 12 months, surpassing the 44% reduction seen in the pivotal trial for focal epilepsy that led to FDA approval. Data collected at 18 and 24 months indicated better than 80% median GTC seizure reduction [1].

NeuroPace also achieved record highs in the number of both active accounts and prescribers, and received a favorable outcome in CMS’s FY 2026 Inpatient Prospective Payment System (IPPS) final rule, with RNS procedures remaining in MS-DRG 023, preserving reimbursement stability for Medicare patients [1].

The company's gross margin for the second quarter of 2025 was 77.1%, driven by manufacturing efficiencies and positive product mix. Total operating expenses in the second quarter of 2025 were $25.0 million, compared to $20.4 million in the same period of the prior year, largely driven by one-time personnel expenses [1].

NeuroPace also announced the refinancing of its existing debt into a new $75 million credit facility with MidCap Financial at favorable terms, providing financial flexibility for the company [1].

The company will host a conference call to discuss the second quarter 2025 financial results after market close on Tuesday, August 12, 2025, at 4:30 P.M. Eastern Time [1].

References:
[1] https://www.globenewswire.com/news-release/2025/08/12/3132117/0/en/NeuroPace-Reports-Second-Quarter-2025-Financial-Results-and-Increases-2025-Revenue-Guidance.html