NPCEMEDIUM SIGNALOPPORTUNITY10-K

NeuroPace achieved substantial progress with over 2,000 additional patients receiving RNS therapy and filed for expanded FDA approval to treat idiopathic generalized epilepsy.

The company demonstrates strong execution across multiple fronts - expanding its addressable market through regulatory filings, growing its installed base meaningfully, and building commercial infrastructure with 30+ new Level 4 epilepsy centers. The shift from completing patient enrollment in generalized epilepsy trials to actively seeking FDA approval for this indication represents significant regulatory progress that could unlock a new patient population.

Comparing 2026-03-03 vs 2025-03-04View on EDGAR →
FINANCIAL ANALYSIS

NeuroPace delivered solid financial improvement with revenue growing 25% to $100M and gross profit expanding 31% to $77M, indicating improving operational leverage. The company meaningfully reduced its operating loss from $21.7M to $16.3M while cash position strengthened 62% to $21.7M, providing enhanced financial flexibility. Operating cash flow deficit also improved materially from negative $17.9M to negative $11.0M, signaling progress toward cash flow breakeven despite continued R&D investment growth.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+61.5%
$13.4M→$21.7M

Cash position surged 61.5% — strong cash generation or capital raise providing significant financial cushion.

Operating Cash Flow
Cash Flow
+38.7%
-$17.9M→-$11.0M

Operating cash flow surged 38.7% — exceptional cash generation, highest quality earnings signal.

Gross Profit
P&L
+30.7%
$59.1M→$77.2M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Inventory
Balance Sheet
+26.3%
$13.4M→$16.9M

Inventory built 26.3% — monitor whether demand supports this build or if write-downs may follow.

Revenue
P&L
+25.1%
$79.9M→$100.0M

Revenue growing 25.1% — solid top-line momentum, watch margins for quality of growth.

Operating Income
P&L
+24.6%
-$21.7M→-$16.3M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Net Income
P&L
+20.9%
-$27.1M→-$21.5M

Net income grew 20.9% — bottom-line growth signals improving overall business health.

R&D Expense
P&L
+17.9%
$23.7M→$27.9M

R&D investment increased 17.9% — signals commitment to future product development, though near-term margin impact.

Current Liabilities
Balance Sheet
+17.5%
$15.2M→$17.8M

Current liabilities rose 17.5% — increased short-term obligations, watch current ratio.

Current Assets
Balance Sheet
+15.7%
$81.3M→$94.1M

Current assets grew 15.7% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2026-03-03
PRIOR — 2025-03-04
ADDED
As of December 31, 2025, over 8,000 patients have received our RNS System.
We are using the remaining net proceeds from the offering for general corporate purposes, including, but not limited to, sales and marketing, clinical trial, and other research and development expenses, general and administrative expenses, debt reduction and working capital.
In 2025 there were over 230 Level 4 CECs in the United States.
Since 2023, our sales team has targeted epileptologists and functional neurosurgeons practicing outside of Level 4 CECs to expand access to RNS therapy, both in the community and through referral of patients to Level 4 CECs.
Of the patients with generalized epilepsy, approximately 50% of those patients have idiopathic generalized epilepsy.
In December 2025, we filed a PMA-S application to the FDA seeking to expand the labeled indication for the RNS System to include patients with drug-resistant idiopathic generalized epilepsy.
We have entered into a subsequent agreement with Rapport for continued work.
We have entered into a similar collaboration with another company and plan to continue to evaluate additional opportunities for such collaborations.
In late 2025, after strategic analysis of regulatory and market considerations, we entered into a narrowly-scoped distribution agreement with an Israeli distributor to commence limited sales of the RNS System in Israel, where regulatory approval has been obtained.
Since the commencement of this relationship, a small number of cases have been performed in Israel.
REMOVED
As of December 31, 2024, over 6,000 patients have received our RNS System.
We intend to use the remaining net proceeds from the offering for general corporate purposes, which may include clinical trial and other research and development expenses, selling, general and administrative expenses, debt reduction and working capital.
In 2024 there were approximately 200 Level 4 CECs in the United States.
9 Our partnership with DIXI Medical further enhances our ability to drive adoption and utilization by giving our representatives access to epilepsy monitoring units in Level 4 CECs, generating earlier opportunities to provide education and awareness about the RNS System.
Our sales team has begun to target epileptologists and functional neurosurgeons practicing outside of Level 4 CECs to expand access to RNS therapy, both in the community and through referral of patients to Level 4 CECs.
In March 2024, we finished implanting patients in our clinical trial to evaluate RNS System use in the generalized epilepsy population.
We may enter into similar collaborations with other companies.
While our RNS System is not yet approved for sale outside the United States, other than limited case-by-case approvals pursuant to a special program in Canada, if we determine to expand internationally, we will plan to pursue regulatory approvals and reimbursement with a priority on markets in which we see significant potential opportunity.
As of December 31, 2024, over 6,000 epilepsy patients have received our RNS System, yielding an extensive database of over nineteen million iEEG records.
Clinical Data Supporting Our RNS System The safety, effectiveness.
MORE OPPORTUNITY SIGNALS
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