NeuroPace's Q2 2025 Earnings Call: Unraveling Key Contradictions in Growth, Margins, and Strategy

Project CARE impact on implant volumes, gross margin expectations, 2025 growth projections for RNS, FDA submission strategy and NAUTILUS study impact, and Project CARE's implant growth and referral dynamics are the key contradictions discussed in NeuroPace's latest 2025Q2 earnings call.



Record Revenue and Growth:
- NeuroPace, Inc. reported record revenue of $23.5 million for Q2 2025, representing 22% year-over-year growth compared to $19.3 million in Q2 2024.
- The growth was driven by continued strength in sales of its core RNS System, supported by increased commercial activity and broader prescriber engagement.

Financial and Strategic Progress:
- The company raised its full-year revenue guidance to a range of $94 million to $98 million, up from the previous guidance range of $93 million to $97 million.
- This was due to strong performance in RNS System sales and the successful refinancing of existing debt, which enhances financial flexibility.

Clinical Development and Data Impact:
- The Post-Approval Study showed compelling results, with a median seizure reduction of 100% in GTCs and nearly 87% of patients free from GTCs for six months or more.
- The GTC results speak to the broad efficacy of the RNS System across seizure types and support the ongoing analysis and development of new indications.

Reimbursement Stability and Future Opportunities:
- The company benefited from CMS electing not to finalize its proposal to reassign RNS cases into new DRGs, preserving the current reimbursement structure.
- This decision reduces reimbursement uncertainty and allows NeuroPace to maintain its financial stability while pursuing strategic growth opportunities.