NeuroPace Reports First Quarter 2025 Financial Results

Core Insights - NeuroPace, Inc. reported record quarterly revenue of $22.5 million in Q1 2025, a 24% increase from $18.1 million in Q1 2024, driven by strong demand for RNS System products [1][4][7] - The company raised its full-year 2025 revenue guidance to between $93 million and $97 million, representing a growth of 16% to 21% compared to $79.9 million in 2024 [1][13] - Management is on track to announce topline data from the NAUTILUS pivotal study in the second half of 2025 [1] Financial Performance - RNS System revenue grew 26% year-over-year in Q1 2025, or 29% when excluding revenue from implants in the NAUTILUS study in Q1 2024 [4][7] - Gross margin for Q1 2025 was 77.0%, exceeding the company's full-year guidance range of 73% to 75% [5][7] - Total operating expenses increased to $22.5 million in Q1 2025 from $20.9 million in the same period of the prior year, primarily due to increased R&D expenses [6][7] Strategic Initiatives - The company is focused on expanding into drug-resistant idiopathic generalized and pediatric focal epilepsy patient populations, along with launching differentiated software products in its AI pipeline [3] - NeuroPace is building awareness among clinicians and accelerating adoption of RNS therapy through its Project CARE initiative [3] - A strategic refocusing of the product portfolio on the core RNS System product line has been announced, with plans to wind down the distribution relationship for SEEG products starting in Q4 2025 [7] Operational Metrics - Loss from operations was $5.1 million in Q1 2025, an improvement from $7.5 million in the prior year [8] - The net loss for Q1 2025 was $6.6 million compared to $8.9 million in Q1 2024 [8] - Cash, cash equivalents, and short-term investments totaled $66.3 million as of March 31, 2025, up from $52.8 million at the end of the previous quarter [8]