Revenue growth turned negative at -2.0% in 2026Q1, while the company continues to face persistent operating losses, evidenced by a -25.2% operating margin.
| Sales/Revenue | 99.53M | 99.99M | 79.91M | 65.42M | 45.52M | 45.18M | 41.14M | 36.97M |
| Revenue Growth % | 18.06% | 25.13% | 22.14% | 43.72% | 0.75% | 9.83% | 11.27% | - |
| Cost of Goods Sold | 21.6M | 22.77M | 20.82M | 17.3M | 13.03M | 11.75M | 10.87M | 10.51M |
| COGS % of Revenue | - | 22.77% | 26.06% | 26.44% | 28.62% | 26% | 26.41% | 28.42% |
| Gross Profit | 77.93M | 77.22M | 59.09M | 48.12M | 32.49M | 33.44M | 30.27M | 26.46M |
| Gross Margin % | 78.29% | 77.23% | 73.94% | 73.56% | 71.38% | 74% | 73.59% | 71.58% |
| Gross Profit Growth % | - | 30.69% | 22.78% | 48.1% | -2.82% | 10.45% | 14.39% | - |
| Operating Expenses | 94.69M | 93.56M | 80.76M | 75.3M | 73.29M | 57.17M | 43.32M | 48.49M |
| OpEx % of Revenue | - | 93.57% | 101.06% | 115.09% | 161% | 126.53% | 105.31% | 131.17% |
| Selling, General & Admin | 67.05M | 65.67M | 57.1M | 54.52M | 51.34M | 38.96M | 27.63M | 30.2M |
| SG&A % of Revenue | - | 65.68% | 71.46% | 83.33% | 112.79% | 86.23% | 67.16% | 81.69% |
| Research & Development | 27.64M | 27.89M | 23.65M | 20.78M | 21.95M | 18.21M | 15.7M | 18.29M |
| R&D % of Revenue | - | 27.89% | 29.6% | 31.76% | 48.21% | 40.3% | 38.15% | 49.48% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -16.76M | -16.34M | -21.67M | -27.17M | -40.79M | -23.74M | -13.05M | -22.03M |
| Operating Margin % | -16.84% | -16.34% | -27.12% | -41.54% | -89.62% | -52.54% | -31.72% | -59.59% |
| Operating Income Growth % | - | 24.61% | 20.25% | 33.39% | -71.86% | -81.88% | 40.76% | - |
| EBITDA | -15.19M | -14.39M | -19.9M | -25.57M | -37.81M | -23.44M | -12.74M | -21.61M |
| EBITDA Margin % | -15.26% | -14.39% | -24.91% | -39.08% | -83.06% | -51.88% | -30.97% | -58.45% |
| EBITDA Growth % | 13.01% | 27.7% | 22.16% | 32.37% | -61.29% | -84.01% | 41.05% | - |
| D&A (Non-Cash Add-back) | 1.57M | 1.95M | 1.77M | 1.6M | 2.99M | 296K | 312K | 421K |
| EBIT | -16.45M | -16.34M | -18.34M | -24.44M | -39.55M | -28.67M | -12.79M | -20.49M |
| Net Interest Income | -4.24M | -4.64M | -5.77M | -5.47M | -5.95M | -6.96M | -11.45M | -9.22M |
| Interest Income | 1.92M | 2.82M | 3.02M | 3.05M | 1.58M | 448K | 41K | 261K |
| Interest Expense | 6.16M | 7.46M | 8.8M | 8.52M | 7.53M | 7.41M | 11.49M | 9.48M |
| Other Income/Expense | -4.81M | -5.13M | -5.47M | -5.78M | -6.29M | -12.34M | -11.23M | -7.94M |
| Pretax Income | -21.57M | -21.46M | -27.14M | -32.96M | -47.08M | -36.08M | -24.28M | -29.97M |
| Pretax Margin % | -21.67% | -21.47% | -33.97% | -50.38% | -103.43% | -79.85% | -59.02% | -81.07% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -21.57M | -21.46M | -27.14M | -32.96M | -47.08M | -36.08M | -24.28M | -29.97M |
| Net Margin % | -21.67% | -21.47% | -33.97% | -50.38% | -103.43% | -79.85% | -59.02% | -81.07% |
| Net Income Growth % | 13.06% | 20.91% | 17.64% | 30% | -30.49% | -48.61% | 19% | - |
| Net Income (Continuing) | -21.57M | -21.46M | -27.14M | -32.96M | -47.08M | -36.08M | -24.28M | -29.97M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.64 | -0.66 | -0.93 | -1.27 | -1.91 | -2.17 | -2.17 | -2.70 |
| EPS Growth % | 22.42% | 29.03% | 26.77% | 33.51% | 11.98% | 0% | 19.63% | - |
| EPS (Basic) | - | -0.66 | -0.93 | -1.27 | -1.91 | -2.17 | -2.17 | -2.70 |
| Diluted Shares Outstanding | 33.72M | 32.72M | 29.13M | 25.85M | 24.59M | 16.61M | 11.1M | 11.1M |
| Basic Shares Outstanding | 33.72M | 32.72M | 29.13M | 25.85M | 24.59M | 16.61M | 11.1M | 11.1M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
High clinical support costs
As reported in recent financial filings, NeuroPace experienced a notable revenue contraction of 2.0% in 2026Q1, marking a sharp reversal from the 23.9% growth observed in the prior quarter and highlighting the volatility inherent in the company's specialized US-based epilepsy center sales model.
The sudden deceleration in top-line performance suggests that the company's reliance on elective surgical procedures makes it susceptible to quarterly fluctuations in hospital scheduling. Investors should monitor whether this contraction represents a temporary bottleneck or a broader saturation of the current Level 4 Epilepsy Center addressable market.
Based on the provided income statement data, NeuroPace maintained a robust gross margin of 81.8% in 2026Q1, demonstrating significant pricing power for its RNS system despite the broader operational challenges and the inherent costs associated with high-acuity medical device manufacturing and clinical support requirements.
The ability to sustain margins above 75% across the observed ten-quarter period indicates that the company's proprietary closed-loop technology commands a premium in the marketplace. This structural advantage suggests that the primary hurdle to profitability is not product pricing, but rather the efficiency of the underlying cost structure.
According to the company's historical income statements, operating margins have remained persistently negative, reaching -25.2% in 2026Q1, which implies that the firm has yet to achieve the necessary economies of scale to offset its heavy investment in clinical sales and technical support personnel.
The lack of clear operating leverage suggests that each incremental dollar of revenue is still accompanied by a high variable cost burden, likely driven by the requirement for specialists to be present during patient programming. Future margin expansion appears contingent on transitioning toward more automated or remote patient management solutions.
As evidenced by the quarterly data, SG&A expenses continue to represent a substantial portion of revenue, often exceeding $15 million per quarter, which effectively prevents the company from reaching a break-even point despite the high gross profit generated by its core RNS hardware sales.
The high level of SG&A spending reflects the intensive nature of the company's go-to-market strategy, which requires significant human capital to support neurosurgeons at specialized centers. This cost structure warrants further investigation into whether management can optimize these expenses without compromising the adoption rate of the RNS system.
Based on the reported figures, the company's persistent net losses and negative operating margins raise concerns regarding the long-term sustainability of its current growth trajectory, particularly if the firm is forced to rely on dilutive financing to fund its ongoing clinical and commercial operations.
Short-term investors may focus on the potential for cash runway depletion if revenue growth does not accelerate to cover the fixed cost base. The reliance on a single-product platform in a niche market suggests that any regulatory or reimbursement shift could disproportionately impact the company's financial viability.
Quick answers to the most common questions about buying NPCE stock.
For fiscal year 2025, NeuroPace, Inc. (NPCE) reported total revenue of $100.0M. This represents a 170.4% increase compared to $37.0M in 2019.
NeuroPace, Inc. (NPCE) reported a net loss of $21.5M for the fiscal year ending 2025.
NeuroPace, Inc. (NPCE) reported an operating income of $-16.3M, resulting in an operating profit margin of -16.3%. This margin reflects the operational efficiency of the business before interest and taxes.
NeuroPace, Inc. (NPCE) generated $77.2M in gross profit for the year, representing a gross profit margin of 77.2%. This demonstrates the company's core pricing power and production efficiency.