NeuroPace(US:NPCE)2025-11-04 21:10Revenue Performance - Total revenue for Q3 2025 was $27.4 million, representing a 30% increase compared to $21.1 million in Q3 2024[4] - RNS® System revenue reached $22.6 million, reflecting a 31% growth year-over-year[5] - The company increased its full-year 2025 revenue guidance to between $97 million and $98 million, indicating a growth of 21% to 23% compared to $79.9 million in 2024[14] Profitability and Expenses - Gross margin improved to 77.4%, up from 73.2% in Q3 2024, driven by a favorable product mix and manufacturing efficiencies[6] - Operating expenses for Q3 2025 totaled $23.8 million, compared to $19.7 million in Q3 2024[6] - Net loss for Q3 2025 was $3.5 million, an improvement from a net loss of $5.5 million in Q3 2024[9] Cash Flow and Investments - Cash, cash equivalents, and short-term investments as of September 30, 2025, were $60.0 million, down from $62.1 million at the end of the previous quarter[10] - Cash used in operating activities for Q3 2025 was $1,944,000, slightly higher than $1,724,000 in Q3 2024, with total cash used in operating activities for the nine months at $11,512,000 compared to $13,152,000 in the prior year[22] - Cash provided by financing activities in Q3 2025 was $235,000, a decrease from $2,898,000 in Q3 2024, while total cash provided for the nine months was $18,965,000 compared to $3,479,000 in the same period of 2024[22] Accounts and Inventory Management - The number of active accounts, prescribers, and utilization reached record highs in Q3 2025[5] - The company experienced a decrease in accounts receivable by $1,383,000 in Q3 2025, compared to a decrease of $318,000 in Q3 2024, with total changes for the nine months showing a decrease of $2,087,000 versus an increase of $753,000 in the prior year[22] - Inventory write-downs for Q3 2025 were $47,000, down from $107,000 in Q3 2024, with total write-downs for the nine months at $140,000 compared to $196,000 in the same period of 2024[22] Future Plans and Developments - The company plans to submit the NAUTILUS PMA Supplement to the FDA for IGE indication expansion by year-end 2025[1] - NeuroPace submitted Seizure ID, an AI application aimed at improving clinical outcomes, to the FDA for approval[5] Non-Cash and Other Financial Metrics - The company reported stock-based compensation expense of $2,628,000 in Q3 2025, slightly up from $2,591,000 in Q3 2024, with total expenses for the nine months at $8,482,000 compared to $7,679,000 in the previous year[22] - The company incurred a non-cash interest expense of $73,000 in Q3 2025, down from $203,000 in Q3 2024, with total non-cash interest for the nine months at $463,000 compared to $743,000 in the previous year[22] - The company reported a gain on short-term investments of $82,000 in Q3 2025, an improvement from a loss of $219,000 in Q3 2024, with total gains for the nine months at $41,000 compared to a loss of $315,000 in the prior year[22]