NeuroPace Q2 revenue $23.5mln, up 22% YoY, raises FY25 guidance to $94-$98mln.

• NeuroPace reported Q2 2025 revenue of $23.5 million, a 22% YoY increase. • Full-year 2025 revenue guidance increased to $94-$98 million. • Gross margin guidance raised to 75%-76%. • NAUTILUS data submission to FDA for IGE indication expansion expected in H2 2025. • CMS maintains current MS-DRG assignment for RNS System procedures.

Mountain View, Calif., July 2, 2025 — NeuroPace, Inc. (NASDAQ: NPCE), a leading medical device company specializing in epilepsy treatment, reported its second-quarter 2025 financial results, showcasing robust growth and strategic advancements. The company achieved record quarterly revenue of $23.5 million, representing a 22% year-over-year increase. This growth was driven primarily by the strong adoption of the company's core RNS System, which saw a 16% increase in revenue compared to the same quarter last year.

The company also reported a significant improvement in gross margin, rising to 77.1% from 73.4% in Q2 2024. This improvement reflects manufacturing efficiencies and a favorable product mix. NeuroPace has also secured a new $75 million credit facility with MidCap Financial, further strengthening its financial position.

Key operational highlights include preliminary data from the NAUTILUS study for IGE therapy, which showed a 79% median GTC seizure reduction at 12 months. This promising data could expand NeuroPace's addressable market significantly, as it represents approximately 20% of the epilepsy population. The company is on track to submit this data to the FDA in the second half of 2025 for potential indication expansion.

Additionally, the company maintained favorable CMS reimbursement status for RNS procedures, which is critical for preserving Medicare reimbursement stability and supporting broader adoption of the RNS System. NeuroPace's operational metrics, including record highs in active accounts and prescribers, indicate growing physician acceptance of RNS therapy as a standard treatment option for drug-resistant epilepsy.

Looking ahead, NeuroPace has increased its 2025 revenue guidance to between $94 million and $98 million, representing an 18-23% growth year-over-year. The company also raised its gross margin guidance to between 75% and 76%. These updates reflect confidence in continued commercial momentum and operational efficiency.

The company ended Q2 2025 with $62.1 million in cash and investments, providing approximately two years of runway at current burn rates to pursue growth initiatives. Despite operating losses of $6.8 million, free cash flow improved to ($2.3) million from ($4.0) million in Q2 2024, showing progress toward profitability.

NeuroPace is also advancing its pediatric PMA supplement program, which could further expand the addressable patient population. The company's operational metrics showing record highs in both active accounts and prescribers indicate growing physician acceptance of RNS therapy as a standard treatment option for drug-resistant epilepsy.

Overall, NeuroPace's Q2 2025 financial results and strategic advancements position the company for sustained long-term growth in the epilepsy treatment market.

References:
[1] https://www.stocktitan.net/news/NPCE/neuro-pace-reports-second-quarter-2025-financial-results-and-e2fxtn2jbwhw.html