NeuroPace Reports Record Q2 2025 Revenue of $23.5 Million, Increases 2025 Guidance

NeuroPace reported record quarterly revenue of $23.5 million in Q2 2025, a 22% YoY increase. The company increased its full-year 2025 revenue guidance to between $94 million and $98 million and gross margin guidance to between 75% and 76%. NeuroPace also remains on track to submit NAUTILUS data to the FDA for potential IGE indication expansion in the second half of 2025. The CMS maintains the current MS-DRG assignment for RNS System procedures.

NeuroPace (NASDAQ: NPCE), a medical device company specializing in epilepsy treatment, reported robust financial results for the second quarter of 2025. The company achieved record quarterly revenue of $23.5 million, representing a 22% year-over-year (YoY) growth. Gross margin improved to 77.1%, up from 73.4% in Q2 2024. NeuroPace also raised its 2025 revenue guidance to $94-98 million (18-23% growth) and increased gross margin guidance to 75-76% [1].

Key operational highlights include preliminary data from the NAUTILUS study for Idiopathic Generalized Epilepsy (IGE) therapy, showing a 79% median GTC seizure reduction at 12 months. NeuroPace secured a new $75 million credit facility with MidCap Financial and maintained favorable CMS reimbursement status for RNS procedures [1].

NeuroPace delivered strong Q2 results with 22% revenue growth and raised 2025 guidance, demonstrating operational momentum despite mixed clinical data. The company's core RNS System showed healthy adoption with 16% growth in Q2 and 21% for the first half of 2025. Gross margin improvement to 77.1% reflects manufacturing efficiencies and favorable product mix [1].

The company has strengthened its financial position by refinancing its debt into a new $75 million credit facility with MidCap Financial. Free cash flow improved to ($2.3) million from ($4.0) million in Q2 2024, showing progress toward profitability despite operating losses of $6.8 million. Operating expenses increased to $25.0 million, up from $20.4 million, with $1.9 million in one-time personnel costs [1].

Management's increased guidance for 2025 revenue to $94-98 million and gross margin to 75-76% reflects confidence in continued commercial momentum. The company ended Q2 with $62.1 million in cash and investments, providing approximately two years of runway at current burn rates to pursue growth initiatives [1].

The favorable CMS decision maintaining the current MS-DRG assignment for RNS System® procedures is critical for preserving Medicare reimbursement stability. NAUTILUS data shows promising seizure reduction for IGE patients despite missing the primary endpoint, potentially expanding NeuroPace's addressable market significantly [1].

NeuroPace appears on track to submit this data to the FDA in the second half of 2025 for potential indication expansion. The company is also advancing its pediatric PMA supplement program, which could further expand the addressable patient population [1].

The 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. This broader adoption is crucial for reaching the approximately 1.1 million patients with drug-resistant epilepsy in the US who could potentially benefit from this therapy [1].

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