-- Reported quarterly revenue of $26.6 million in Q4 2025 representing 24% growth --
-- Reiterates previously issued 2026 guidance assuming 20% to 22% growth in core RNS$(R)$ revenue from existing indications, excluding any contribution from idiopathic generalized epilepsy $(IGE)$ --
-- Continues to expect IGE contribution following potential NAUTILUS PMA-Supplement (PMA-S) approval in mid-2026 --
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--March 03, 2026--
NeuroPace, Inc. (Nasdaq: NPCE), a medical device company focused on transforming the lives of people living with epilepsy, today reported financial results for the fourth quarter and full year ended December 31, 2025, and provided a corporate update.
Fourth Quarter 2025 Financial Highlights
-- Total revenue of $26.6 million, representing growth of 24% compared to
the fourth quarter of 2024
-- RNS System revenue of $22.4 million, representing growth of 26%
compared to the fourth quarter of 2024
-- Total gross margin of 77.4%, a 200-basis point increase compared to the
fourth quarter of 2024, driven by positive product mix and manufacturing
efficiencies. RNS gross margin in the fourth quarter of 2025 was of 80.5%,
a 40 basis point increase compared to the fourth quarter of 2024
-- Delivered Adjusted EBITDA of $0.9 million for the second consecutive
quarter
-- Cash, cash equivalents and short-term investments of $61.1 million at
December 31, 2025, a $1.0 million increase from September 30, 2025
Full Year 2025 Financial Highlights
-- Total revenue of $100.0 million, representing growth of 25% compared to
the full year 2024
-- RNS System revenue of $81.7 million, representing growth of 25%
compared to the full year 2024
-- Total gross margin of 77.2%, a 330-basis point increase compared to the
full year 2024. RNS gross margin for the full year 2025 of 81.9%, a
350-basis point increase compared to the full year 2024
-- Adjusted EBITDA of ($5.0) million
Fourth Quarter 2025 Operational & Strategic Highlights
-- Submitted PMA-S to FDA seeking expanded RNS System indication IGE. The
PMA-S was supported by clinically meaningful and statistically
significant 18-month results from the NAUTILUS trial, which demonstrated
robust 77% median seizure reduction and a favorable safety profile in
this highly refractory patient population
-- Received favorable reimbursement updates in both the CY 2026 Outpatient
Prospective Payment System (OPPS) Final Rule, increasing the average
hospital Medicare reimbursement for RNS System replacements by 47%
beginning January 1, 2026 and the CY2026 Medicare Physician Fee Schedule
$(PFS)$, increasing by approximately 43% for initial implant procedure and
45% for the replacement procedure
-- Submitted Seizure ID$(TM)$ to the FDA for review. Seizure ID is the first
of a suite of planned NeuroPace AI(TM) tools designed to further improve
clinical outcomes through deeper data insights along with enhanced and
accelerated iEEG review. Built on years of proprietary, patient-level
brain data captured through the RNS System, Seizure ID empowers
clinicians to be supported in making faster, more confident treatment
decisions.
-- Showcased new clinical and AI-driven advances at the American Epilepsy
Society $(AES)$ meeting that underscored the Company's focus on delivering
life-changing outcomes and enabling physicians to provide more confident,
data-informed care for people living with epilepsy. The RNS System was
featured in over 80 scientific presentations and posters, the most of any
neuromodulation therapy.
-- Entered into an amendment to the Distribution Agreement with DIXI
Medical to end the wind down period and cease commercial partnership
activities on December 31, 2025, earlier than the previously agreed wind
down period ending March 31, 2026
-- Reached new all-time highs in both prescribers, accounts and patient
pipeline
"2025 marked an important execution year for NeuroPace, with strong growth and significant improvement toward cash flow break-even, increasing focus on our core RNS business, and meaningful progress across our strategic priorities," said Joel Becker, Chief Executive Officer of NeuroPace. "Looking ahead, we believe 2026 has the potential to be a transformational year for the Company, as we build on commercial momentum, prepare for indication expansion, and launch as well as advance new products that expand the reach and impact of personalized neuromodulation."
Fourth Quarter 2025 Financial Results
Total revenue in the fourth quarter of 2025 grew 24% to $26.6 million, compared with $21.5 million in the fourth quarter of 2024. The Company's revenue growth was primarily driven by increased sales of the RNS System which totaled $22.4 million in the fourth quarter of 2025, representing growth of 26% compared to the fourth quarter of 2024.
Gross margin for the fourth quarter of 2025 was 77.4%, compared with 75.4% in the fourth quarter of 2024 and 77.4% in the third quarter of 2025. The year-over-year improvement is primarily due to increasing revenue contribution from higher margin RNS revenue, benefit from improved manufacturing efficiency, and increasing average selling price resulting from strong pricing conversion. RNS gross margin for the fourth quarter of 2025 was 80.5%, compared with 80.1% in the fourth quarter of 2024.
Total operating expenses in the fourth quarter of 2025 were $22.3 million, compared with $19.8 million in the fourth quarter of 2024.
Sales and marketing expense in the fourth quarter of 2025 was $10.9 million, compared with $10.0 million in the fourth quarter of 2024. The year-over-year increase was largely due to personnel-related expenses associated with ongoing scaling of commercial activities, investment in direct-to-consumer marketing and other sales related expenses.
Research and development expense in the fourth quarter of 2025 was $7.0 million, compared with $6.1 million in the fourth quarter of 2024. The year-over-year increase was primarily driven by personnel-related expenses associated with the development of a next-generation platform, AI-enabled tools, and ongoing clinical trials.
General and administrative expense in the fourth quarter of 2025 was $4.4 million compared with $3.8 million in the fourth quarter of 2024. This increase was primarily due to an increase in personnel-related expenses.
Loss from operations was ($1.8) million in the fourth quarter of 2025, compared with loss from operations of ($3.7) million in the fourth quarter of 2024. Net loss was ($2.7) million for the fourth quarter of 2025 compared with net loss of ($5.3) million in the fourth quarter of 2024.
The Company's cash, cash equivalents and short-term investments balance as of December 31, 2025 was $61.1 million compared with $60.0 million at the end of the prior quarter. Long-term borrowings totaled $58.9 million as of December 31, 2025.
Full Year 2025 Financial Results
Total revenue for the year ended December 31, 2025 grew 25% to $100.0 million, compared with $79.9 million in 2024. The Company's revenue growth was primarily driven by increased sales of the RNS System, which totaled $81.7 million for the full year 2025, representing growth of 25% compared to 2024.
Gross margin for the year was 77.2%, compared with 73.9% in 2024. The year-over-year improvement is primarily due to increasing revenue contribution from higher margin RNS revenue, benefit from improved manufacturing efficiency, and favorable pricing. RNS gross margin for the year was 81.9%, compared with 78.4% in 2024.
Total operating expenses for the year were $93.6 million, compared with $80.8 million in 2024.
Sales and marketing expense for the year was $46.6 million, compared with $39.7 million in 2024. The year-over-year increase was largely due to personnel-related expenses associated with ongoing scaling of commercial activities, increased variable compensation due to sales performance, investment in direct-to-consumer marketing and other sales related expenses.
Research and development expense for the year was $27.9 million, compared with $23.7 million in 2024. The year-over-year increase was primarily driven by personnel-related expenses as well as lower grant funding received compared to 2024.
General and administrative expense for the year was $19.1 million compared with $17.4 million in 2024. This increase was primarily due to an increase in personnel-related expenses, including non-recurring items related to executive transition in the second quarter of 2025.
Discontinued Operations
The Company expects to begin reporting its DIXI Medical related financial results as a discontinued operation beginning with its first quarter 2026 financial results and in accordance with U.S. GAAP, the Company's continuing operations basis will exclude the impact of DIXI for both the 2026 reporting periods and the applicable comparable periods presented. Refer to Table 4 for selected historical DIXI Medical related operating results, including revenue, gross profit and operating expenses.
Full Year 2026 Financial Guidance on a Continuing Operations Basis
-- Total revenue guidance for full year 2026 to be between $98 million and
$100 million, representing underlying RNS growth of 20% to 22% compared
to full year 2025
-- Total revenue for first quarter 2026 to be between $21 million and $22
million
-- Non-GAAP gross margin to be between 81.5% and 82.5%, excluding $0.5
million in stock-based compensation, a non-cash expense. Including
stock-based compensation, GAAP gross margin to be between 81% and 82%.
-- Total non-GAAP operating expenses to be between $90 million and $92
million, excluding approximately $10 million in stock-based compensation,
a non-cash expense. Including stock-based compensation, GAAP operating
expenses range between $100 million and $102 million.
-- Adjusted EBITDA to be between ($9.0) and ($10.0) million
Beginning in the first quarter of 2026, the Company will present gross margin and operating expenses on an adjusted basis, excluding stock-based compensation, for each line item. This change is intended to provide greater transparency into the underlying operating performance of the business, enhance the visibility of our operating leverage, and improve comparability across periods. The Company will continue to disclose stock-based compensation and provide appropriate reconciliations to GAAP results.
Non-GAAP Measure
To supplement NeuroPace's condensed financial statements presented in accordance with GAAP, the Company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include Adjusted EBITDA, non-GAAP gross margin, non-GAAP cost of goods sold, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating expenses, and non-GAAP loss from operations. NeuroPace believes the presentation of its non-GAAP financial measures enhances the user's overall understanding of the Company's historical financial performance. The presentation of the Company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the Company's financial results prepared in accordance with GAAP, and the Company's non-GAAP measures may be different from non-GAAP measures used by other companies.
GAAP to Non-GAAP Supplemental Financial Information
The Company has included supplemental reconciliations of GAAP to non-GAAP financial measures to provide investors with additional insight into the performance of its core business.
-- Table 1 presents a reconciliation of GAAP to non-GAAP financial
measures excluding DIXI Medical related operating results. Management
believes this presentation provides a more meaningful basis for
evaluating period over period performance of the Company's continuing
operations and core RNS business. Beginning in 2026, the Company's
reported continuing operations results will be compared against these
2025 continuing operations amounts for year over year analysis.
-- Table 2 presents the Company's 2026 financial guidance on a continuing
operations basis. This table reflects, gross margin, and operating
expense ranges excluding the impact of DIXI Medical. Operating expense
guidance is presented by functional line item and includes stock-based
compensation expense within each respective category. These non-GAAP
expense line items will be the primary focus of the Company's reporting
and performance evaluation framework going forward, providing greater
transparency into the cost structure of the continuing operations.
Together with revenue and gross margin, these line items form the basis
for the Company's projected Adjusted EBITDA.
-- Table 3 presents a reconciliation of GAAP to non-GAAP financial
measures for the periods presented. Both GAAP and non-GAAP financial
measures in this table include DIXI Medical related operating results.
-- Table 4 presents selected historical DIXI Medical related operating
results, including revenue, gross profit and operating expenses, to
provide transparency into the financial contribution from DIXI Medical
related operations prior to its classification as discontinued
operations.
Webcast and Conference Call Information
NeuroPace will host a conference call to discuss the fourth quarter and full year 2025 financial results after market close on Tuesday, March 3, 2026, at 4:30 P.M. Eastern Time. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at (click here). Individuals interested in participating in the call via telephone may access the call by dialing + 1 (800) 715-9871 and referencing Conference ID 8467256. The webcast will be archived on the Company's investor relations website at https://investors.neuropace.com/news-and-events/events and will be available for replay for at least 90 days after the event.
About NeuroPace, Inc.
Based in Mountain View, Calif., NeuroPace is a medical device company focused on transforming the lives of people living with epilepsy by reducing or eliminating the occurrence of debilitating seizures. Its novel and differentiated RNS System is the first and only commercially available, brain-responsive platform that delivers personalized, real-time treatment at the seizure source. This platform can drive a better standard of care for patients living with drug-resistant epilepsy and has the potential to offer a more personalized solution and improved outcomes to the large population of patients suffering from other brain disorders.
Forward Looking Statements
This press release may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "aims," "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "intends," "may," "plans," "possible," "potential," "seeks," "will" and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. NeuroPace may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding: Expectations regarding the Company's future revenue and growth based on a continued operations basis without DIXI Medical revenue; NeuroPace's expectations, forecasts and beliefs with respect to potential indication expansion for its RNS System and its software, technology and other product development efforts; increasing access to and adoption of RNS therapy as the standard of care in drug-resistant epilepsy; NeuroPace's continued execution on its long-term revenue growth strategy, including with respect to sustained revenue growth and long-term value creation. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including: actual operating results may differ significantly from any guidance provided; uncertainties related to market acceptance and adoption of NeuroPace's RNS System and impacts to NeuroPace's revenue for 2026 and in the future; risks that NeuroPace's operating expenses could be higher than anticipated and that it could use its cash resources sooner than expected; risks that NeuroPace's gross margin may be lower than forecast; risks related to the pricing of the RNS System and availability of adequate reimbursement for the procedures to implant the RNS System and for clinicians to provide ongoing care for patients treated with the RNS System; risks related to regulatory compliance and expectations for regulatory approvals to expand the market for NeuroPace's RNS System, including risks related to the NAUTILUS submission; risks related to product development, including risks related to the development of AI-powered software, including NeuroPace AI(TM) and Seizure ID(TM) and the next generation device platform, including risks related to Seizure ID(TM) ; risks related to NeuroPace's reliance on contractors and other third parties, including single-source suppliers and vendors; and other important factors. These and other risks and uncertainties include those described more fully in the section titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in NeuroPace's public filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 3, 2026, as well as any other reports that it may file with the SEC in the future. Forward-looking statements contained in this announcement are based on information available to NeuroPace as of the date hereof. NeuroPace undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing NeuroPace's views as of any date subsequent to the date of this press release and should not be relied upon as a prediction of future events. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of NeuroPace.
NeuroPace, Inc.
Condensed Statements of Operations and Comprehensive Loss
(unaudited)
Three Months Ended
December 31, Year Ended December 31,
-------------------------- ----------------------------
(in thousands, except
for share and per
share amounts) 2025 2024 2025 2024
---------- ---------- ---------- ----------
Revenue $ 26,588 $ 21,466 $ 99,986 $ 79,906
Cost of goods sold 6,010 5,278 22,766 20,821
---------- ---------- ---------- ----------
Gross profit 20,578 16,188 77,220 59,085
Operating expenses:
Sales and marketing 10,936 9,951 46,580 39,669
Research and
development 7,027 6,050 27,888 23,653
General and
administrative 4,382 3,840 19,090 17,434
---------- ---------- ---------- ----------
Total operating
expenses 22,345 19,841 93,558 80,756
---------- ---------- ---------- ----------
Loss from
operations (1,767) (3,653) (16,338) (21,671)
Interest income 638 681 2,816 3,024
Interest expense (1,600) (2,192) (7,457) (8,798)
Other income
(expense), net -- (86) (486) 304
---------- ---------- ---------- ----------
Net loss and
comprehensive
loss $ (2,729) $ (5,250) $ (21,465) $ (27,141)
========== ========== ========== ==========
Net loss per share
attributable to
common stockholders,
basic and diluted $ (0.08) $ (0.18) $ (0.66) $ (0.93)
========== ========== ========== ==========
Weighted-average
shares used in
computing net loss
per share
attributable to
common stockholders,
basic and diluted 33,385,740 29,914,786 32,722,438 29,126,314
========== ========== ========== ==========
NeuroPace, Inc.
Condensed Balance Sheets
(unaudited)
December 31, December 31,
(in thousands) 2025 2024
--------- ---------
Assets
Current assets:
Cash and cash equivalents $ 21,692 $ 13,430
Short-term investments 39,366 39,325
Accounts receivable 14,681 12,851
Inventory 16,896 13,381
Prepaid expenses and other current
assets 1,438 2,352
--------- ---------
Total current assets 94,073 81,339
Property and equipment, net 1,125 1,052
Operating lease right-of-use asset 10,132 11,843
Restricted cash 122 122
Deferred offering costs -- 276
Other assets 113 15
--------- ---------
Total assets $ 105,565 $ 94,647
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,217 $ 2,954
Accrued liabilities 13,339 9,787
Operating lease liability 2,117 1,860
Deferred revenue 141 555
--------- ---------
Total current liabilities 17,814 15,156
Long-term debt 58,884 59,525
Operating lease liability, net of
current portion 9,836 11,953
--------- ---------
Total liabilities 86,534 86,634
--------- ---------
Stockholders' equity:
Common stock, $0.001 par value 34 30
Additional paid-in capital 571,412 538,933
Accumulated deficit (552,415) (530,950)
--------- ---------
Total stockholders' equity 19,031 8,013
--------- ---------
Total liabilities and
stockholders' equity $ 105,565 $ 94,647
========= =========
NeuroPace, Inc.
Condensed Statements of Cash Flows
(unaudited)
Three Months Ended Year Ended December
December 31, 31,
------------------ ----------------------
(in thousands) 2025 2024 2025 2024
------ ------ ------- -------
Cash flows from
operating activities
Net loss $(2,729) $(5,250) $(21,465) $(27,141)
Adjustments to
reconcile net loss to
net cash provided by
(used in) operating
activities:
Stock-based
compensation
expense 2,607 2,603 11,089 10,282
Depreciation 80 48 238 207
Amortization of
debt discount and
issuance costs 63 49 237 228
Non-cash interest
expense 75 211 538 954
PIK interest
incurred but not
paid on term loan -- -- -- 1,389
Loss on debt
extinguishment -- -- 527 --
Amortization of
right-of-use
asset 442 403 1,710 1,562
Loss (gain) on
short-term
investments -- 86 (41) (229)
Inventory
write-downs 19 55 159 251
Loss on disposal of
property and
equipment 12 -- 14 --
Changes in
operating assets
and liabilities:
Accounts
receivable 257 (1,289) (1,830) (536)
Inventory 1,221 (1,352) (3,673) (2,418)
Prepaid
expenses and
other assets 809 (237) 943 384
Accounts
payable (2,385) 773 (730) 671
Accrued
liabilities 1,022 (284) 3,552 (1,392)
Deferred
revenue (507) (193) (414) (534)
Operating lease
liabilities (480) (420) (1,860) (1,627)
------ ------ ------- -------
Net cash
provided
by (used
in)
operating
activities 506 (4,797) (11,006) (17,949)
------ ------ ------- -------
Cash flows from
investing activities
Acquisition of property
and equipment (97) (39) (332) (306)
Proceeds from sale of
short-term
investments -- 2,000 -- 9,300
------ ------ ------- -------
Net cash
(used in)
provided
by
investing
activities (97) 1,961 (332) 8,994
------ ------ ------- -------
Cash flows from
financing activities
Proceeds from issuance
of common stock in
follow-on offering, net
of underwriting
discounts and
commissions -- -- 69,654 --
Repurchase of common
stock from KCK Ltd. -- -- (49,546) --
Proceeds from issuance
of common stock under
employee plans 723 595 1,875 1,931
Taxes withheld and paid
related to net share
settlement of equity
awards (88) (92) (543) (881)
Proceeds from
At-the-Market
offering, net of sales
commission -- 345 232 3,277
Proceeds from debt, net
of discounts and
issuance costs -- -- 58,435 --
Repayment of debt -- -- (60,507) --
------ ------ ------- -------
Net cash
provided
by
financing
activities 635 848 19,600 4,327
------ ------ ------- -------
Net increase (decrease)
in cash and cash
equivalents 1,044 (1,988) 8,262 (4,628)
Cash, cash equivalents
and restricted cash at
the Beginning of
Period 20,770 15,540 13,552 18,180
------ ------ ------- -------
Cash, cash equivalents
and restricted cash at
the End of Period $21,814 $13,552 $ 21,814 $ 13,552
====== ====== ======= =======
Reconciliation of cash,
cash equivalents and
restricted cash to
balance sheets:
Cash and cash
equivalents $21,692 $13,430 $ 21,692 $ 13,430
Restricted cash 122 122 122 122
------ ------ ------- -------
Cash, cash equivalents
and restricted cash in
balance sheets $21,814 $13,552 $ 21,814 $ 13,552
====== ====== ======= =======
NeuroPace, Inc.
Table 1. GAAP to Non-GAAP Reconciliations (excluding DIXI)(1)
(unaudited)
Three Months Ended Year Ended
-----------------------------------------
March December
31, June 30, September 31, December
(in thousands) 2025 2025 30, 2025 2025 31, 2025
-------- -------- ----------- -------- -----------
GAAP loss from
operations $(5,147) $(6,824) $ (2,600) $(1,767) $(16,338)
Less: DIXI
income from
operations 1,613 1,365 1,425 1,500 5,903
Stock-based
compensation 2,626 3,228 2,628 2,607 11,089
Depreciation 49 55 54 80 238
------ ------ ------ ------ -------
Adjusted EBITDA
(Non-GAAP) (excluding
DIXI) $(4,085) $(4,906) $ (1,343) $ (580) $(10,914)
====== ====== ====== ====== =======
GAAP cost of goods sold $ 5,182 $ 5,388 $ 6,186 $ 6,010 $ 22,766
DIXI cost of
goods sold 1,992 2,100 2,005 1,605 7,702
Stock-based
compensation 178 173 168 175 694
------ ------ ------ ------ -------
Non-GAAP cost of goods
sold (excluding DIXI) $ 3,012 $ 3,115 $ 4,013 $ 4,230 $ 14,370
====== ====== ====== ====== =======
GAAP sales and marketing
expense $11,003 $12,043 $ 12,598 $10,936 $ 46,580
DIXI sales and
marketing
expense 598 554 573 223 1,948
Stock-based
compensation 783 761 781 727 3,052
------ ------ ------ ------ -------
Non-GAAP sales and
marketing expense
(excluding DIXI) $ 9,622 $10,728 $ 11,244 $ 9,986 $ 41,580
====== ====== ====== ====== =======
GAAP research and
development expense $ 7,440 $ 6,845 $ 6,576 $ 7,027 $ 27,888
Stock-based compensation 872 865 821 848 3,406
------ ------ ------ ------ -------
Non-GAAP research and
development expense
(1) $ 6,568 $ 5,980 $ 5,755 $ 6,179 $ 24,482
====== ====== ====== ====== =======
GAAP general and
administrative expense $ 4,046 $ 6,068 $ 4,594 $ 4,382 $ 19,090
Stock-based compensation 793 1,429 858 857 3,937
------ ------ ------ ------ -------
Non-GAAP general and
administrative expense
(1) $ 3,253 $ 4,639 $ 3,736 $ 3,525 $ 15,153
====== ====== ====== ====== =======
(____________________________ 1) The Company did not allocate research and development or general and administrative expenses to its DIXI operations.
NeuroPace, Inc.
Table 2. GAAP to Non-GAAP Reconciliations
2026 Guidance
(in thousands) 2026 Guidance
----------------------
GAAP gross margin 81% to 82%
Stock-based compensation 50 bps
----------------------
Non-GAAP gross margin 81.5% to 82.5%
----------------------
GAAP sales and marketing expense $49,000 to $51,000
Stock-based compensation $3,000
----------------------
Non-GAAP sales and marketing expense $46,000 to $48,000
----------------------
GAAP research and development expense $30,000
Stock-based compensation $3,000
----------------------
Non-GAAP research and development expense $27,000
----------------------
GAAP general and administrative expense $21,000
Stock-based compensation $4,000
----------------------
Non-GAAP general and administrative expense $17,000
----------------------
Total GAAP operating expenses $100,000 to $102,000
Stock-based compensation $10,000
----------------------
Non-GAAP operating expenses $90,000 to $92,000
----------------------
Total GAAP loss from operations ($20,000) to ($21,000)
Stock-based compensation (including
gross margin) $10,500
----------------------
Non-GAAP loss from operations ($9,500) to ($10,500)
----------------------
Total Depreciation & Amortization $500
Total Adjusted EBITDA (Non-GAAP) ($9,000) to ($10,000)
----------------------
NeuroPace, Inc.
Table 3. GAAP to Non-GAAP Reconciliations
(unaudited)
Three Months Ended Year Ended
-----------------------------------------
March December
31, June 30, September 31, December
(in thousands) 2025 2025 30, 2025 2025 31, 2025
-------- -------- ----------- -------- -----------
GAAP loss from
operations $(5,147) $(6,824) $ (2,600) $(1,767) $(16,338)
Stock-based
compensation 2,626 3,228 2,628 2,607 11,089
Depreciation 49 55 54 80 238
------ ------ ------ ------ -------
Adjusted EBITDA
(Non-GAAP) $(2,472) $(3,541) $ 82 $ 920 $ (5,011)
====== ====== ====== ====== =======
GAAP cost of goods sold $ 5,182 $ 5,388 $ 6,186 $ 6,010 $ 22,766
Stock-based
compensation 178 173 168 175 694
------ ------ ------ ------ -------
Non-GAAP cost of goods
sold $ 5,004 $ 5,215 $ 6,018 $ 5,835 $ 22,072
====== ====== ====== ====== =======
GAAP sales and marketing
expense $11,003 $12,043 $ 12,598 $10,936 $ 46,580
Stock-based
compensation 783 761 781 727 3,052
------ ------ ------ ------ -------
Non-GAAP sales and
marketing expense $10,220 $11,282 $ 11,817 $10,209 $ 43,528
====== ====== ====== ====== =======
GAAP research and
development expense $ 7,440 $ 6,845 $ 6,576 $ 7,027 $ 27,888
Stock-based
compensation 872 865 821 848 3,406
------ ------ ------ ------ -------
Non-GAAP research and
development expense $ 6,568 $ 5,980 $ 5,755 $ 6,179 $ 24,482
====== ====== ====== ====== =======
GAAP general and
administrative expense $ 4,046 $ 6,068 $ 4,594 $ 4,382 $ 19,090
Stock-based
compensation 793 1,429 858 857 3,937
------ ------ ------ ------ -------
Non-GAAP general and
administrative expense $ 3,253 $ 4,639 $ 3,736 $ 3,525 $ 15,153
====== ====== ====== ====== =======
NeuroPace, Inc.
Table 4. DIXI Operating Results (2)
(unaudited)
Three Months Ended Year Ended
--------------------------------------
March June
31, 30, September December December
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