NeuroPace Q2 Revenue Hits $23.5M, Up 22% YoY, With Gross Margin at 77.1%

NeuroPace reported record GAAP revenue of $23.5 million, a 22% year-over-year increase, exceeding analyst consensus. Gross margin improved to 77.1%, up from 73.4% in Q2 2024. The company's main goal is to broaden adoption of its brain-responsive neuromodulation device for drug-resistant epilepsy, targeting adults in the US with drug-resistant focal epilepsy. Efforts to increase prescriber reach, pursue clinical studies, and support commercial execution in community settings are key drivers for the business.

NeuroPace, Inc. (NPCE) has reported its second-quarter 2025 financial results, showcasing a record GAAP revenue of $23.5 million, a 22% year-over-year increase. This performance exceeded analyst consensus estimates. The company's gross margin improved to 77.1%, up from 73.4% in the second quarter of 2024 [2].

NeuroPace's primary objective is to expand the adoption of its brain-responsive neuromodulation device for drug-resistant epilepsy. The company is focusing on increasing prescriber reach, conducting clinical studies, and supporting commercial execution in community settings to achieve this goal [1].

The company's financial performance highlights its progress in the medical device industry, particularly in the treatment of epilepsy. Despite the challenges posed by the industry's overall ranking, which places it in the bottom 41% of the Zacks-ranked industries, NeuroPace has demonstrated resilience and growth [3].

NeuroPace's strategic initiatives, including the appointment of a new Chief Financial Officer and securing debt financing, are expected to support its future growth prospects. The company's recent earnings report underscores its commitment to innovation and expanding its market reach [1].

Investors should closely monitor the company's earnings outlook and estimate revisions to gauge its near-term stock performance. The current consensus EPS estimate for the coming quarter is -$0.20 on $24.32 million in revenues, and for the current fiscal year, it is -$0.85 on $95.36 million in revenues [1].

References:
[1] https://www.nasdaq.com/articles/neuropace-inc-npce-reports-q2-loss-beats-revenue-estimates
[2] https://investors.neuropace.com/news-and-events/news-releases
[3] https://www.globenewswire.com/news-release/2025/08/12/3131495/0/en/United-States-Epilepsy-Drugs-Market-Trends-and-Company-Analysis-Report-2025-2033-Featuring-Eisai-UCB-H-Lundbeck-GW-Pharmaceuticals-Abbott-Alkem-Laboratories-Bausch-Health-GSK.html