NPCE · NeuroPace, Inc.

NeuroPace’s Q1 2026 results reflect disciplined execution in its core RNS System business, with $21.7 million in RNS revenue representing 19.5% year-over-year growth — driven by strong pricing conversion and improved manufacturing efficiency, as noted in the press release. The $22.0 million non-GAAP revenue (excluding $0.1 million from DIXI Medical) grew 20.1% year-over-year, outpacing the prior-year $18.3 million, while GAAP revenue declined slightly to $22.1 million from $22.5 million due to lower DIXI contribution and timing. Non-GAAP gross margin held at 82.5%, down modestly from 83.6% in Q1 2025 but excluding a one-time 120-basis-point inventory revaluation benefit, indicating underlying margin stability. Operating expenses rose as expected, with non-GAAP sales and marketing up to $11.0 million (from $9.6 million), supporting commercial scaling and direct-to-consumer initiatives; R&D decreased slightly to $6.5 million, reflecting lower clinical spend offset by next-gen platform investment. The $0.8 million improvement in non-GAAP Adjusted EBITDA loss to ($3.3) million signals early operating leverage. Critically, management raised full-year 2026 revenue guidance to $99–$101 million — a $1 million upward revision — and tightened the underlying RNS growth expectation to 21–23%, explicitly excluding any IGE contribution. This revision follows completion of the FDA mid-cycle review for the NAUTILUS PMA-Supplement, reinforcing confidence in the regulatory pathway toward mid-2026 approval for idiopathic generalized epilepsy — a potential inflection point for long-term market expansion. With $54.8 million in total liquid assets as of March 31, 2026, and $59.0 million in long-term borrowings, the company maintains sufficient runway to fund operations and development through anticipated milestones.