Medical device company NeuroPace (NPCE -3.42%) was showing signs of life on the stock market Wednesday. In late-session trading, the company's shares were slightly in positive territory with a nearly 1% rise. This was largely a reaction to its latest earnings release, published after market close on Tuesday.
Outpacing expectations
That release covered NeuroPace's fourth-quarter and full-year 2025 performance; in the fourth quarter, the company reported revenue of $26.6 million. That was a robust (24%) improvement over the same quarter of 2024. The medical device specialist also managed to narrow its net loss under generally accepted accounting principles (GAAP) to $2.7 million ($0.08 per share) from the year-ago deficit of almost $5.3 million.
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That meant a double beat for NeuroPace, as the consensus analyst estimate for revenue was $24.4 million and for net loss per share was $0.18.
In its earnings release, NeuroPace attributed its growth to favorable Medicare reimbursement decisions and increases in prescribers and accounts. Overall, its main revenue driver -- the RNS System, an epilepsy treatment device -- saw sales rise 26% to over $22 million.
NASDAQ: NPCE
Key Data Points
A unique product
Management reiterated its full-year 2026 guidance of $98 million to $100 million for revenue, and a non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $9 million to $10 million. By comparison, the 2025 figures were $100 million and $5 million, respectively.
Compared to the quarter's growth, that guidance wasn't all that impressive (a likely reason for the muted investor reaction). Still, NeuroPace clearly has a unique, winning product in the RNS System, and I think the stock has good potential on that basis alone.
