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Mar 31
Neuropace Q1 2025 Earnings Report
NeuroPace reported a 24% year-over-year revenue increase in Q1 2025, driven by strong demand for its RNS System and improved operating leverage.
Key Takeaways
NeuroPace delivered record Q1 2025 revenue of $22.5 million, supported by growth in its core RNS System line and strong gross margins. Net loss narrowed compared to the prior year, and the company ended the quarter with a robust cash position.
Achieved record quarterly revenue of $22.5 million, up 24% year-over-year
Gross margin reached 77.0%, exceeding full-year guidance
Operating loss narrowed to $5.1 million from $7.5 million in Q1 2024
Ended the quarter with $66.3 million in cash, cash equivalents, and short-term investments
Neuropace
Neuropace
Neuropace Revenue by Segment
Revenue by Segment
RNS System Revenue
CapyFin.com Forward Guidance
NeuroPace raised full-year 2025 revenue guidance to $93–97 million and expects gross margin between 73% and 75%, supported by strong commercial momentum.
Positive Outlook
- Increased full-year 2025 revenue guidance to $93–97 million
- Projected gross margin of 73%–75% aligns with Q1 performance
- Expanded physician base driving RNS adoption
- New real-world data supports best-in-class efficacy of RNS System
- AI-powered software development remains on track
Challenges Ahead
- Ongoing net losses despite revenue growth
- SEEG distribution agreement to be wound down
- R&D investment pressures short-term profitability
- Long-term debt stands at $59.8 million
- Continued dependence on single product line for growth