Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $26.6 million, representing a 24% year-over-year growth compared to $21.5 million in the prior year quarter [4][18] - RNS System revenue was $22.4 million, up 26% year-over-year, contributing significantly to overall revenue growth [4][18] - Gross margin improved to 77.4%, up from 75.4% in the fourth quarter of 2024, driven by higher margin RNS revenue and manufacturing efficiencies [19] - Adjusted EBITDA was positive at $900,000 for the fourth quarter, marking a $1.9 million improvement year-over-year [22] Business Line Data and Key Metrics Changes - The core RNS business showed strong performance with a growth rate of 29% in the second half of 2025 [5] - Service revenue from data collaborations totaled approximately $890,000 in the fourth quarter [18] - Revenue from DIXI Medical was approximately $3 million, a decline of 4% compared to the fourth quarter of 2024, as the company worked to sell existing inventory before the end of the commercial partnership [18] Market Data and Key Metrics Changes - The majority of growth came from Level 4 centers, indicating increased adoption and utilization of the RNS System [6] - The company reached new highs in prescribers, accounts, and patient pipeline, reflecting broad-based momentum across the business [5] Company Strategy and Development Direction - The company is focused on deepening adoption within the adult focal epilepsy indication while preparing for future indication expansion [5] - Investments are being made in the commercial organization, including sales representative additions and nurse navigator resources to enhance patient navigation through the treatment process [9] - The company aims to expand its RNS therapy access through community pathways and improve referral management [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a long-term growth trajectory of at least 20% in the core RNS business [7] - The company reiterated its full-year 2026 revenue guidance of $98 million to $100 million, assuming core RNS growth of 20%-22% [8][26] - Management highlighted the potential for a transformational year in 2026, driven by ongoing market momentum and new product developments [17][34] Other Important Information - The company submitted a PMA supplement to the FDA for an expanded indication in idiopathic generalized epilepsy (IGE), supported by significant clinical data [10] - The SeizureID tool, designed to enhance physician workflow and improve patient outcomes, is expected to receive approval in the first half of 2026 [12] Q&A Session Summary Question: How quickly can the company translate from IGE approval to revenue collection? - Management indicated that extending coverage in the private payer community is essential and that preparations are already underway to target key payers [38] Question: What is the impact of pricing on RNS growth in the fourth quarter? - Management noted that mid-single digit pricing increases have been consistent, contributing positively to gross margins without any significant changes in Q4 [50] Question: What is the current state of capacity dynamics across implanting centers? - Management stated that there is sufficient capacity in the channel for prescribers and that nurse navigators are being employed to facilitate patient flow through the referral process [60][61] Question: What is the logistics behind the SeizureID opportunity? - SeizureID will be part of the RNS System offering, aimed at improving efficiency for clinicians without additional costs for access [66]

Financial Data and Key Metrics Changes - NeuroPace reported Q4 2025 revenue of $26.6 million, a 24% year-over-year increase from $21.5 million in Q4 2024 [4][17] - RNS System revenue was $22.4 million, reflecting a 26% year-over-year growth [4][17] - Gross margin improved to 77.4%, up from 75.4% in Q4 2024, driven by higher margin RNS revenue and manufacturing efficiencies [18] - Adjusted EBITDA was positive at $900,000, marking a $1.9 million improvement year-over-year [22] - For the full year 2025, total revenue grew 25% to $100 million, with RNS System sales also increasing by 25% [24] Business Line Data and Key Metrics Changes - The core RNS business continues to show strong growth, with a 29% increase in the second half of 2025 [5] - Service revenue from data collaborations was approximately $890,000 in Q4 2025 [17] - Revenue from DIXI Medical was about $3 million, a 4% decline compared to Q4 2024, as the commercial partnership ended [17] Market Data and Key Metrics Changes - The majority of growth is coming from Level 4 centers, indicating increased adoption and utilization of the RNS System [5] - The company is expanding access to RNS therapy through community pathways and referral networks [5] Company Strategy and Development Direction - NeuroPace is focused on deepening adoption within the adult focal epilepsy indication while preparing for future indication expansions [5][8] - The company is investing in its commercial organization, including sales representative additions and nurse navigator resources [8] - The submission of a PMA supplement to the FDA for an expanded indication in idiopathic generalized epilepsy (IGE) is a key strategic move [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a minimum of 20% growth in the core RNS business for 2026 [6] - The company reiterated its 2026 revenue guidance of $98 million to $100 million, assuming 20%-22% growth in the core RNS business [7][26] - Management highlighted the importance of ongoing investments in commercial activities and product development to drive future growth [31] Other Important Information - The company achieved its second consecutive quarter of positive adjusted EBITDA and positive cash generation in Q4 2025 [7][22] - NeuroPace is advancing its product pipeline, including AI tools designed to enhance physician workflow and patient outcomes [10][12] Q&A Session Summary Question: How quickly can the company translate from IGE approval to revenue collection? - Management indicated that extending coverage in the private payer community is essential and that preparations are already underway [38] Question: What is the impact of pricing on RNS growth in Q4? - Management noted consistent mid-single-digit pricing increases annually, with Q4 growth primarily driven by initial implants rather than pricing changes [52][54] Question: What is the current state of capacity dynamics across implanting centers? - Management stated that there is sufficient capacity in the channel for prescribers and that nurse navigators are being employed to streamline patient flow [62][64] Question: Will SeizureID be a subscription service for physicians? - SeizureID will be included with the use of the RNS System, aimed at improving efficiency for clinicians [68][70] Question: Any updates on the pediatric NEST collaboration? - Management confirmed ongoing work with NEST to utilize real-world evidence for focal pediatric patients, with no specific submission timeline yet [82]