NeuroPace Inc. reported fourth‑quarter 2025 results, posting revenue of $26.6 million—a 24% year‑over‑year increase—largely driven by a 26% rise in RNS System sales to $22.4 million.
The company’s gross margin for the quarter was 77.4%, up from 75.4% in Q4 2024, while the RNS System margin stood at 80.5% versus 80.1% a year earlier, reflecting continued pricing power and manufacturing efficiencies.
Adjusted earnings per share were $‑0.08, beating the consensus estimate of $‑0.14; the beat was driven by cost control and a higher‑margin product mix.
DIXI Medical revenue was $3.0 million, down 4% year‑over‑year, and the company will report DIXI as a discontinued operation beginning in Q1 2026, underscoring its shift away from the lower‑margin distribution business.
NeuroPace reiterated its 2026 outlook, maintaining revenue guidance of $98 million to $100 million and a gross margin target of 76% to 77%, unchanged from prior guidance and signaling confidence in continued growth.
Investors reacted positively to the results, citing the revenue and EPS beats, margin expansion, and steady outlook as key drivers of the favorable market response.
CEO Joel Becker highlighted strong adoption of the RNS System, new prescriber and patient pipeline growth, and progress toward cash‑flow breakeven, while CFO Patrick Williams noted the 24% revenue growth and margin improvement as evidence of effective execution.
The results reinforce NeuroPace’s strategic pivot to its high‑margin neuromodulation platform, progress toward cash‑flow breakeven, and expansion into new indications and AI‑enabled tools, positioning the company for continued long‑term growth.
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