10-Q · May 12, 2026
NeuroPace reported Q1 2026 revenue of $22.1 million, slightly exceeding analyst expectations of $21.6 million, with an EPS loss of $0.20, surpassing estimates of a $0.22 loss. The company's gross margin improved to…
Earnings analysis · 10-Q
NPCE earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
NeuroPace delivered $22.826 million of Q2 revenue and a $0.18 diluted loss, beating consensus and improving EPS sequentially and year over year. Core RNS revenue remained strong at $22.5 million, up 21.3%, but total…
Read full summary
NeuroPace delivered $22.826 million of Q2 revenue and a $0.18 diluted loss, beating consensus and improving EPS sequentially and year over year. Core RNS revenue remained strong at $22.5 million, up 21.3%, but total revenue was below the prior-year quarter and the company continues to consume cash while reporting substantial cumulative losses. Liquidity, secured debt covenants, the constrained current FDA indication, and execution risks around FDA expansion and manufacturing remain material offsets to the improving loss profile.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.18
What stood out
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Revenue beat estimates sequentially
Revenue was $22.826 million, approximately 0.7% above the $22.662 million consensus estimate. Revenue increased about 3.8% from $22 million in 2026 Q1 but declined about 4.9% from $24 million in 2025 Q2.
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Loss narrowed sequentially and year over year
Diluted EPS was a loss of $0.18 versus the $0.19 consensus loss, a $0.01 beat. EPS improved from a $0.20 loss in 2026 Q1 and a $0.26 loss in 2025 Q2.
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Core RNS growth remained strong
Core RNS System revenue reached $22.5 million, representing 21.3% year-over-year growth and approximately 98.6% of total quarterly revenue of $22.826 million.
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Year-to-date net loss improved
For the six months ended June 30, 2026, net loss was $12.9 million versus $15.2 million in the prior-year period, an improvement of $2.3 million or approximately 15.1%.
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Liquidity exceeds current liabilities
Management reported $51.7 million of cash, cash equivalents and short-term investments at June 30, 2026, providing liquidity against $17.4 million of current liabilities.
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No reported control deficiencies
Disclosure controls were effective at the reasonable-assurance level as of June 30, 2026, and the company reported no material changes to internal control over financial reporting during the quarter.
What to watch
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Liquidity runway remains a key risk
Cash, cash equivalents and short-term investments declined to $51.7 million from $61.1 million at December 31, 2025. Net cash used in operating activities was $9.8 million for the six months ended June 30, 2026, versus $9.6 million in the prior-year period.
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Persistent losses and funding needs
The company reported a six-month net loss of $12.9 million and an accumulated deficit of approximately $565.3 million as of June 30, 2026, and stated that it expects to continue incurring losses for the foreseeable future.
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Debt covenants constrain flexibility
The MidCap Term Loan includes a minimum liquidity covenant and a quarterly revenue covenant, is secured by substantially all company assets including intellectual property, and could become immediately due upon an uncured default.
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FDA delays threaten expansion plans
The filing newly emphasizes FDA staffing changes and states that cuts and staffing changes could delay reviews of indication-expansion submissions for IGE and patients ages 12 to 17. The current RNS indication remains limited to adults with drug-resistant focal epilepsy in the United States.
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New QMSR and single-site exposure
The filing states that the FDA’s QMSR superseded the prior QSR on February 2, 2026. Because the company manufactures the RNS System in one facility and relies on several single-source suppliers, compliance, yield or supply disruptions could interrupt production.
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AI, privacy and cybersecurity exposure
The filing adds or expands risks related to AI/ML, including the FDA-approved ECoG Assistant, and states that EU GDPR penalties can reach €20 million or 4% of annual global revenue, whichever is greater.
Management's outlook
The 10-Q discusses guidance generally but does not provide quantitative revenue or EPS guidance in the provided filing text. The quantitative 2026 outlook was provided separately in the August 11, 2026 earnings release: revenue of $99.5 million-$101.5 million, non-GAAP gross margin of 82.0%-83.0%, and Adjusted EBITDA loss of $7.5 million-$8.5 million; guidance excludes IGE indication expansion.
Earlier filings 4
10-K · March 3, 2026
NeuroPace’s 2025 10‑K emphasizes continued commercial expansion of its RNS System (now implanted in over 8,000 patients as of December 31, 2025) and improving operational performance following a February 2025 equity…
10-K · March 4, 2025
NeuroPace highlights durable, improving clinical efficacy and an expanding commercial opportunity: as of December 31, 2024 over 6,000 patients have received the RNS System, post‑approval data show median seizure…
10-K · March 5, 2024
NeuroPace positions its RNS System as a differentiated, data-driven closed‑loop neuromodulation therapy and is pursuing commercial expansion after a 2023 PMA-S that the company says enables qualification of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.