NeuroPace Reports $100M Revenue for 2025, 25% Increase Year-Over-Year

NeuroPace Inc. reported revenue of $100.0 million for the year ended December 31, 2025, a 25% increase compared to $79.9 million in 2024. This growth was attributed to higher sales volumes of the RNS System, increased sales of DIXI Medical products, and a rise in service revenue. The company's cost of goods sold increased by 9% to $22.8 million, resulting in a gross profit of $77.2 million, a 31% increase from the previous year. The gross margin improved to 77.2% in 2025 from 73.9% in 2024, driven by lower fixed costs per unit due to increased production volume of the RNS System.

Operating expenses for NeuroPace increased by 16% to $93.6 million in 2025. Sales and marketing expenses rose by 17% to $46.6 million due to higher personnel costs and increased marketing activities. Research and development expenses also increased by 18% to $27.9 million, driven by higher personnel costs and product development expenses, partially offset by a decrease in grant funds received. General and administrative expenses increased by 9% to $19.1 million, primarily due to higher personnel-related expenses. The company's net loss decreased by 21% to $21.5 million in 2025, compared to a net loss of $27.1 million in 2024.

Key operational developments for NeuroPace in 2025 included the filing of a Premarket Approval Supplement (PMA-S) to the FDA seeking to expand the labeled indication for the RNS System to include patients with drug-resistant idiopathic generalized epilepsy. The company also continued its collaboration with the National Evaluation System for health Technology (NEST) and the FDA to support expanded labeling for pediatric patients with drug-resistant focal epilepsy. As of December 31, 2025, over 8,000 patients have received the RNS System.

In February 2025, NeuroPace completed a follow-on offering, generating net proceeds of $69.7 million. A significant portion of these funds, $49.5 million, was used to repurchase shares from a major stockholder, KCK Ltd. The remaining proceeds are earmarked for general corporate purposes, including sales and marketing, clinical trials, research and development, debt reduction, and working capital. The company also terminated its at-the-market (ATM) equity program in February 2025. As of December 31, 2025, NeuroPace had 209 employees, all based in the United States.

Looking ahead, NeuroPace intends to continue investing in research and development, clinical studies, and regulatory affairs to support ongoing and future regulatory submissions for retaining and expanding indications of its RNS System. The company also plans to continue making significant investments in sales and marketing efforts to drive awareness and expand its referral channel. Based on current plans, NeuroPace believes its existing cash, cash equivalents, and short-term investments will be sufficient to fund operations for at least the next 12 months.