NPCE

This article first appeared on GuruFocus. Total Revenue: $22.8 million in Q2 2026, a 17% increase from $19.5 million in the prior year period. RNS System Revenue: $22.5 million, representing 21.3% growth compared to $18.6 million in Q2 2025. Service Revenue: $302,000 in Q2 2026, down from $937,000 a year ago, representing an expected headwind of more than 300 basis points to total company revenue growth. Adjusted Gross Margin: 83.4% in Q2 2026, compared with 84.0% in the prior year period. GAAP Gross Margin: 82.8% in Q2 2026. Adjusted Operating Expense: $21.9 million in Q2 2026, compared to $21.3 million in Q2 2025, an increase of approximately 3%. Adjusted Sales and Marketing Expense: $11.5 million in Q2 2026, compared with $10.7 million in the prior year period. Adjusted Research and Development Expense: $6.3 million in Q2 2026, compared to $6.0 million in the prior year period. Adjusted General and Administrative Expense: $4.1 million in Q2 2026, compared with $4.6 million in the prior year period. Adjusted Loss from Operations: $2.8 million in Q2 2026, compared with a loss of $5.0 million in Q2 2025. Adjusted Net Loss: $3.9 million in Q2 2026, compared with a net loss of $6.8 million in the prior year period. Adjusted EBITDA Loss: $2.8 million in Q2 2026, compared with an adjusted EBITDA loss of $4.9 million in Q2 2025. GAAP Net Loss from Continuing Operations: $6.2 million in Q2 2026, compared with a net loss of $10 million in the prior year period. Cash Position: $51.9 million in cash equivalents, short-term investments and restricted cash as of June 30, 2026, compared with $54.8 million at the end of Q1 2026. Long-Term Borrowings: $59.0 million as of June 30, 2026. Full Year 2026 Total Revenue Guidance: Increased to $99.5 million to $101.5 million, up from the previous range of $99 million to $101 million. Full Year 2026 RNS Revenue Guidance: Unchanged at $98.5 million to $100.5 million, or growth of 21% to 23%. Full Year 2026 Adjusted Gross Margin Guidance: Increased to 82% to 83%, compared to the previous range of 81.5% to 82.5%. Full Year 2026 Adjusted Operating Expense Guidance: Expected to range from $90 million to $92 million. Full Year 2026 Adjusted EBITDA Loss Guidance: Expected to be between $7.5 million and $8.5 million, improved from the previous expectation of a loss between $8.5 million and $9.5 million. Warning! GuruFocus has detected 3 Warning Signs with NPCE. Is NPCE fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. RNS System revenue grew 21.3% year-over-year in Q2 2026, with first-half growth exceeding 20%, consistent with the company's long-term growth framework. The company achieved all-time highs in active prescribers, active accounts, and patient pipeline, indicating broad and durable adoption. Launched ECOG Assistant, the first AI algorithm-based tool in neuromodulation, which has received encouraging early feedback for improving workflow efficiency and clinical decision-making. The FDA's response to the IGE PMA supplement was not a disapproval, and the agency recommended a submission issue request (SIR) process, with no safety concerns raised. The company raised its full-year total revenue guidance to $99.5-$101.5 million and improved adjusted EBITDA loss guidance to $7.5-$8.5 million, reflecting strong financial discipline. The FDA informed the company that the IGE PMA supplement was not approvable in its current form, requesting additional information on clinical evidence, which was an unexpected setback. The IGE approval timeline remains uncertain, with no specific date set for the SIR meeting and potential for the FDA to reset the 180-day review clock. Service revenue declined significantly to $302,000 in Q2 2026 from $937,000 a year ago, creating a headwind of more than 300 basis points to total revenue growth. Adjusted gross margin slightly decreased to 83.4% from 84.0% in the prior year period due to modestly higher material costs. The company continues to incur operating losses, with an adjusted EBITDA loss of $2.8 million in Q2 2026, and remains dependent on future growth to achieve profitability. Q: What is the current status and expected timeline for the IGE PMA supplement, and what are the next steps following the FDA's request for additional information? A: Joel Becker, CEO, stated that the FDA's response was not a disapproval, and the agency has recommended the submission issue request (SIR) process. The additional questions are not related to safety but seek more context on clinical benefit across patient subgroups. The company is preparing additional subgroup analyses, patient-reported outcomes, and 24-month data showing a 100% median reduction in GTC seizures. The SIR meeting is expected to be scheduled over the next few weeks, and the company expects the amendment may be reviewed without resetting the full 180-day clock, though the agency has discretion. Q: How did the clinical community react to the FDA's letter regarding the IGE application? A: Joel Becker, CEO, reported that after direct calls with investigators, the feedback was threefold: appreciation for real-time updates, continued confidence in the clinical data from the Nautilus study, and a willingness to help. The clinical community recognizes the significant unmet need for drug-resistant idiopathic generalized epilepsy patients, who currently have no neurostimulation options and are not surgical candidates. Q: Can you provide more detail on the potential outcomes of the upcoming SIR meeting and how prepared the company is to handle additional feedback? A: Joel Becker, CEO, explained that the SIR meeting's purpose is to align with the FDA on the specifics of their requests and the company's data plans. The company has a good roadmap based on the FDA's letter and interactions. Unless there are unanticipated requests, the company expects to turn feedback into an amendment in a timely fashion after the meeting, as the data analysis and preparation are on track. Q: What were the key drivers of the strong Q2 2026 performance, and how is the company thinking about the second half of the year? A: Joel Becker, CEO, highlighted all-time highs in active prescribers, active accounts, and patient pipeline. Growth is driven by increased adoption and utilization within Level 4 comprehensive epilepsy centers, including the use of network stimulation and hybrid surgical therapies. Patrick Williams, CFO, added that the company expects Q3 RNS revenue growth to be similar to the first half's ~20%, with the full-year guidance implying a step-up in the back half, supported by a strong prior-year comp (32% growth in H2 2025) and continued execution. Q: How should investors think about the monetization of the new ECOG Assistant AI tool and other AI initiatives? A: Joel Becker, CEO, stated that ECOG Assistant is part of the RNS System and not monetized separately. The value is derived from increased efficiency and improved outcomes, which drive increased adoption and unit volume. Patrick Williams, CFO, added that the tool will be particularly powerful in community settings, which will be important for the IGE indication expansion. The company sees potential for other business models downstream, but the current focus is on driving RNS unit volume. Q: Can you provide more color on the next-generation platform's development timeline and its key improvements? A: Joel Becker, CEO, explained that the next-generation platform is the next hardware iteration, featuring expanded capability for additional lead configurations, Bluetooth low energy communication, and faster processing. It will serve as the chassis for future product development. Patrick Williams, CFO, added that faster processing will be especially important for the AI suite of tools. The company has not provided specific timelines beyond what was shared in investor day materials, but development is active and in the "D" (development) phase. Q: What is the company's approach to balancing top-line growth with profitability, especially with the IGE opportunity ahead? A: Joel Becker, CEO, stated that the company's first priority is pursuing growth opportunities, and it will not let growth opportunities go wanting in favor of accelerating cash flow breakeven. The company is committed to a disciplined income statement, with a focus on expanding gross margins and prioritizing spending. Patrick Williams, CFO, added that the company has a huge untapped TAM with adult focal, which will only grow with IGE, and that shareholder value will be created through continued revenue growth with strong gross margins. Q: How long does it typically take for new accounts to become meaningful contributors, and how does the patient pipeline inform the outlook? A: Joel Becker, CEO, explained that the company has a presence in most Level 4 centers, so the focus is on expanding adoption among individual epileptologists. For Level 3 and community centers, the startup curve varies depending on existing infrastructure. The patient pipeline for focal epilepsy can take six months to a year due to multiple evaluation steps. The IGE population is expected to have a much smoother adoption dynamic as it doesn't require invasive monitoring. Patrick Williams, CFO, added that the company is increasing analytics around the patient pipeline to improve conversion velocity. Q: What are the expectations for the IGE label, and what gives the company confidence there won't be material pushback on labeling? A: Joel Becker, CEO, stated that the company's focus is on providing information and context for the entire enrolled patient population. The company believes there is benefit across populations and that the clinical meaningfulness of reducing GTC seizures is significant. The purpose of the SIR discussions is to align with the FDA on their questions, and the company is focused on answering them for the full study population. Q: Is the ECOG Assistant priced or monetized separately, and is it contributing to the 21% RNS growth guidance? A: Joel Becker, CEO, confirmed that ECOG Assistant is part of the RNS System and not monetized separately. Its value is in driving increased adoption through efficiency and improved outcomes. All business activities, including the ECOG Assistant launch, have been contemplated in the company's guidance. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NeuroPace, Inc. NPCE reported a second-quarter 2026 loss per share of 18 cents, compared with a loss of 30 cents in the year-ago period. The figure beat the Zacks Consensus Estimate by 5.3%. Shares of NPCE were down approximately 2.3% during after-market trading following the second-quarter results. The company’s shares have lost 2.6% in the year-to-date period compared with the industry’s decline of 5.9%. However, the broader S&P 500 Index has increased 12.5% in the same time frame. Image Source: Zacks Investment Research NeuroPace registered revenues of $22.8 million in the second quarter, up 17.1% year over year. Growth was led by the RNS System, while active prescribers, accounts and the patient pipeline reached record highs. The figure surpassed the Zacks Consensus Estimate by 0.6%. RNS System revenues totaled $22.5 million, up 21.3% year over year. The increase primarily reflected more units sold, driven by a higher number of initial implants and replacement procedures. Service revenues were $302,000, down from $937,000 a year ago. Following the DIXI Medical wind-down, NeuroPace now presents that business as discontinued operations. In the quarter under review, NeuroPace’s adjusted gross profit increased 16.1% year over year to $19 million. Adjusted gross margin contracted 60 basis points (bps) to 83.4%, primarily due to slightly higher material costs, partly offset by favorable pricing. Sales and marketing expenses increased 5.5% year over year to $12.1 million, while research and development expenses rose 0.8% to $6.9 million. General and administrative expenses decreased 17.2% year over year to $5.0 million. Adjusted operating expenses of $21.9 million increased 2.5% year over year. The adjusted operating loss narrowed to $2.8 million from $5 million in the prior-year quarter. NeuroPace ended second-quarter 2026 with total cash, cash equivalents and short-term investments of $51.7 million, compared with $53.9 million at the end of first-quarter 2026. Cumulative net cash used in operating activities at the end of second-quarter 2026 was $9.8 million compared with $9.6 million a year ago. Management raised full-year 2026 revenue guidance to $99.5-$101.5 million from $99-$101 million. The increase reflects expected service revenues of about $1 million, up from roughly $500,000 previously, while the RNS revenue growth outlook remains 21%-23%. The Zacks Consensus Estimate is pegged at $99.9 million. The adjusted gross margin is now expected to be 82%-83%, up from the previous guidance of 81.5%-82.5%. Adjusted operating expenses are projected at $90 million-$92 million, unchanged from the prior outlook and excluding approximately $10 million in stock-based compensation. The adjusted EBITDA loss is now expected in the range of $7.5 million-$8.5 million, an improvement from the previous guidance of a loss between $8.5 million and $9.5 million. NeuroPace, Inc. price-consensus-eps-surprise-chart | NeuroPace, Inc. Quote NPCE exited the second quarter of 2026 with continued momentum in its core RNS business, supported by increased adoption within the existing focal epilepsy indication. The company reached record highs in active prescribers, accounts and patient pipeline, underscoring progress in its commercial expansion efforts. Innovation remained a key focus during the quarter. NeuroPace launched ECoG Assistant, the first in its planned suite of AI-based clinical decision-support tools. The platform leverages the company’s proprietary dataset of more than 27 million intracranial EEG recordings and 35,000 patient implant years to simplify data review and support individualized therapy decisions. NeuroPace continued to advance its idiopathic generalized epilepsy opportunity. It published 18-month NAUTILUS data showing a 77% median reduction in generalized tonic-clonic seizures and is preparing for a Submission Issue Request meeting with the FDA regarding its PMA supplement. The company also cited 24-month data showing a 100% median reduction in GTC seizures among evaluable patients. Looking ahead, NeuroPace’s growth strategy centers on driving more than 20% growth in the core RNS business through prescriber expansion, higher utilization and commercial execution. Management also intends to deepen community penetration, advance AI-enabled personalized neuromodulation, prepare for potential indication expansion and maintain disciplined spending as it works toward cash flow breakeven. NPCE currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Globus Medical GMED, West Pharmaceutical WST and The Cooper Companies COO. Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here. GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%. West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%. WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%. The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10.00%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%. COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NeuroPace, Inc. (NPCE) : Free Stock Analysis Report The Cooper Companies, Inc. (COO) : Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report Globus Medical, Inc. (GMED) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Core RNS System revenue grew 21% in Q2, maintaining a consistent 20% growth framework driven by increased adoption within Level 4 comprehensive epilepsy centers. Management attributes growth to expanding the prescriber base and increasing utilization per account, specifically through network stimulation and hybrid surgical therapies. The company reached all-time highs in active prescribers and patient pipelines, which management views as indicators of long-term business durability. Community access initiatives are successfully expanding referral pathways, moving patients from Level 3 and community centers toward specialized evaluation. The launch of ECoG Assistant, an AI-based tool, is being used strategically to differentiate the RNS platform and improve clinician workflow efficiency. Management emphasized that the RNS System's unique ability to continuously monitor and record intracranial EEG data creates a proprietary 'data moat' for future AI development. The FDA's 'not approvable' letter for the IGE supplement is being addressed through a Submission Issue Request (SIR) process to align on clinical evidence requirements. Management expects to submit an amendment for IGE that includes 24-month data showing a 100% median reduction in GTC seizures among evaluable patients. Full-year revenue guidance was raised to $99.5 million-$101.5 million, primarily reflecting higher visibility into service revenue rather than a change in core RNS expectations. The company plans to submit its remote care platform to the FDA by the end of 2026, aiming to reduce travel burdens for patients and increase physician efficiency. Financial strategy remains focused on reaching cash flow breakeven by the end of 2027 while prioritizing growth investments over immediate profitability. The distribution arrangement with DIXI Medical is now reported as discontinued operations, requiring a recast of prior period financials for comparability. The FDA's request for additional IGE data focuses on clinical benefit across subgroups and the meaningfulness of GTC seizure reduction, rather than safety concerns. Service revenue faced a 300 basis point headwind to total company growth in Q2, though full-year expectations for this segment were doubled to $1 million. Adjusted EBITDA loss guidance improved due to higher revenue visibility, disciplined expense management, and a 50 basis point increase in gross margin guidance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects to hold the SIR meeting within a few weeks and believes the subsequent amendment may not require a full 180-day clock reset. The agency's response was characterized as highly interactive and not a disapproval, with ongoing engagement remaining on track. NeuroPace is already pushing into community centers using the current adult focal indication to 'lay track' for the future IGE launch. This strategy involves establishing referral relationships and training Level 3 centers to manage and program patients locally. AI tools are currently bundled with the RNS System to drive unit volume by making patient management more efficient for clinicians. While management hinted at future diagnostic or partnership business models, the current priority is using AI to improve clinical outcomes and adoption. The focal epilepsy pipeline typically takes 6-12 months due to the need for invasive monitoring (SEEG) and localization steps. Management anticipates the IGE population will have a faster, 'less frictioned' adoption path because it does not require invasive monitoring for localization.

Interested in NeuroPace, Inc.? Here are five stocks we like better. Strong Q2 performance: Revenue rose 17% year over year to $22.8 million, led by 21.3% growth in RNS System revenue. NeuroPace also narrowed its adjusted EBITDA loss and raised its full-year revenue, gross-margin and adjusted EBITDA outlooks. IGE approval remains unresolved: The FDA said NeuroPace’s application to expand the RNS System to idiopathic generalized epilepsy is not approvable in its current form and requested additional clinical context, but the company said the issue was not safety-related and expects to pursue an amendment. Product development advances: NeuroPace launched its AI-based ECoG Assistant, continued work on a multimodal intracranial EEG model and advanced remote-care capabilities, which it expects to submit to the FDA by the end of 2026. NeuroPace (NASDAQ:NPCE) reported second-quarter revenue growth driven by continued adoption of its RNS System for adult focal epilepsy, while raising its full-year revenue and adjusted EBITDA outlook. The company also said it is pursuing additional discussions with the U.S. Food and Drug Administration regarding its application to expand the RNS System’s indication into idiopathic generalized epilepsy, or IGE. Total revenue for the second quarter was $22.8 million, up 17% from $19.5 million a year earlier. RNS System revenue rose 21.3% to $22.5 million, compared with $18.6 million in the prior-year period. Service revenue declined to $302,000 from $937,000, creating what Chief Financial Officer Patrick Williams described as an expected headwind of more than 300 basis points to companywide revenue growth. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat For the first six months of 2026, RNS revenue totaled $44.2 million, an increase of 20.4% from the first half of 2025. Chief Executive Officer Joel Becker said the company reached new highs in active prescribers, active accounts and its patient pipeline during the quarter. Most growth continued to come from Level 4 comprehensive epilepsy centers, supported by broader adoption among physicians and higher use by existing prescribers. NeuroPace increased its 2026 total revenue guidance to $99.5 million to $101.5 million, from a prior range of $99 million to $101 million. The change reflects improved expectations for service revenue, now projected at about $1 million for the year versus previous guidance of $500,000. → 3 Dividend Champion Utilities for a Market That Can't Sit Still The company maintained its RNS revenue outlook of $98.5 million to $100.5 million, representing annual growth of 21% to 23% from its current adult focal epilepsy indication. The guidance does not include any revenue contribution from a potential IGE indication expansion. Williams said NeuroPace expects third-quarter RNS growth to be similar to the approximately 20% growth rate reported during the first half. The full-year outlook implies stronger growth in the second half, which management attributed to expanded commercial capacity, deeper account utilization and improving analytics around the patient pipeline. Adjusted gross margin was 83.4%, compared with 84.0% a year earlier. Adjusted operating expenses rose about 3% to $21.9 million, below the company’s 17% revenue-growth rate. Adjusted EBITDA loss narrowed to $2.8 million from $4.9 million a year earlier. GAAP net loss from continuing operations was $6.2 million, compared with $10 million in the prior-year quarter. Cash equivalents, short-term investments and restricted cash totaled $51.9 million at June 30, while long-term borrowings were $59 million. → Is Wingstop's Growth Story Losing Steam? The company lifted its adjusted gross-margin outlook to 82% to 83%, from 81.5% to 82.5%, citing first-half performance, pricing and management of manufacturing costs and product mix. NeuroPace maintained its forecast for $90 million to $92 million in full-year adjusted operating expenses and improved its adjusted EBITDA loss outlook to $7.5 million to $8.5 million, from a prior expected loss of $8.5 million to $9.5 million. Becker said the FDA informed NeuroPace on July 28 that its PMA supplement for IGE was not approvable in its current form because the agency requested additional information supporting the clinical evidence. He said the agency’s response was not a disapproval and that the review has remained interactive. The FDA’s questions were not related to safety, according to Becker. Instead, the agency requested more data and context on clinical benefit across patient subgroups, including baseline generalized tonic-clonic, or GTC, seizure frequency, and on the clinical significance of reducing GTC seizures. NeuroPace plans to use the FDA’s submission issue request, or SIR, process to align on an amendment. Becker said the company expects to request and hold an SIR meeting in the coming weeks. Its planned amendment is expected to include subgroup analyses, patient- and physician-reported outcomes, published and real-world evidence, and 24-month data showing a 100% median reduction in GTC seizures among evaluable patients. Management said it continues to believe there is a path to approval, although the FDA retains discretion to reset the full 180-day review period. Becker said the company does not currently expect a full clock reset based on its interactions with the agency, but did not provide a specific resubmission date. During the quarter, NeuroPace launched ECoG Assistant, an artificial intelligence algorithm-based tool designed to help physicians identify electrocortricography recordings of interest, review trends and assess circadian patterns. Becker said the tool uses the RNS System’s intracranial EEG data and NeuroPace’s physician-labeled dataset to make patient-data review more efficient and support individualized treatment decisions. The company said early physician feedback has pointed to workflow efficiencies and uses in medication timing, therapy adjustments and longer-term patient management. ECoG Assistant is included as part of the RNS System rather than separately monetized, Becker said. NeuroPace also said it completed a key phase of training for its multimodal foundational model, which is being tested for its ability to interpret more complex intracranial EEG patterns. The company said its proprietary dataset now includes more than 27 million intracranial EEG recordings. Separately, NeuroPace continued usability testing and validation for remote-care capabilities intended to let physicians program RNS patients through telehealth and allow patients to prepare devices for MRI without a physician being physically present. The company expects to submit remote care to the FDA by the end of 2026. Becker said the company is also progressing development of its next-generation implantable hardware platform, which is expected to support expanded lead configurations, Bluetooth Low Energy communication and faster processing for AI-enabled tools. NeuroPace, Inc is a medical device company based in Mountain View, California, that develops innovative neuromodulation systems for the treatment of neurological disorders. Founded in the late 1990s out of research at Stanford University, the company's mission centers on delivering closed-loop, “smart” therapies that monitor and respond to electrical activity in the brain. In 2020, NeuroPace completed its initial public offering and now trades on the NASDAQ under the ticker NPCE. The company's flagship product, the RNS® System, is an implantable device designed for adults with medically refractory focal epilepsy. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "NeuroPace Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

--Q2 2026 total revenue of $22.8 million, including $22.5 million in RNS revenue representing 21% growth-- --Raises full year 2026 total revenue guidance to $99.5 million to $101.5 million, which assumes 21% to 23% growth in core RNS® revenue from existing indications-- --Preparation remains on track for SIR meeting with FDA regarding the IGE PMA supplement, supported by 24-month NAUTILUS data showing a 100% median reduction in GTC seizures among evaluable patients1-- MOUNTAIN VIEW, Calif., August 11, 2026--(BUSINESS WIRE)--NeuroPace, Inc. (Nasdaq: NPCE), a medical device company focused on transforming the lives of people living with epilepsy, today reported financial results for the second quarter ended June 30, 2026, and provided a corporate update. Second Quarter 2026 Financial Highlights Total revenue of $22.8 million in the second quarter of 2026 RNS System revenue of $22.5 million in the quarter, representing 21.3% growth compared to the second quarter of 2025 Net loss in the second quarter of 2026 was ($6.2) million compared to ($10.0) million in the second quarter of 2025 Adjusted EBITDA loss of ($2.8) million for the second quarter of 2026, an improvement of $2.1 million compared to a loss of ($4.9) million in the second quarter of 2025 Second Quarter 2026 Operational & Strategic Highlights Launched ECoG Assistant™, the first in a planned suite of NeuroPace AI-based clinical decision support tools, uniquely enabled by NeuroPace’s proprietary long-term intracranial EEG dataset and designed to help physicians more efficiently review ECoG data and inform individualized treatment decisions Published 18-month NAUTILUS results in Epilepsia, a leading peer-reviewed epilepsy journal, providing Level 1 evidence from the first randomized controlled neuromodulation trial in drug-resistant IGE and demonstrating a 77% median reduction in GTC seizures. Reached new all-time highs in active prescribers, accounts and patient pipeline "Second-quarter performance showed continued momentum in our core RNS business driven by increased adoption within our current focal epilepsy indication," said Joel Becker, Chief Executive Officer of NeuroPace. "We also maintained strong financial discipline while continuing to invest in the long-term growth of the business and advance our product roadmap. The launch of ECoG Assistant marked an important first-of-its-kind step in extending the differentiated capabilities of the RNS System, building on NeuroPace’s unique ability to continuously monitor and record each patient’s intracranial EEG data, efficiently identify ECoGs of interest and support more individualized therapy, reinforcing a data advantage that other neuromodulation platforms cannot replicate. "Looking ahead, we remain focused on sustaining momentum in our core business. Additionally, we look forward to continuing our engagement with the FDA regarding the path forward for our IGE PMA Panel Track supplement and remain on track with our clinical and regulatory timelines." Discontinued Operations & Basis of Presentation Following the expiration of the Company’s distribution agreement with DIXI Medical and the related wind-down, the Company concluded in the second quarter of 2026 that the abandonment of its DIXI Medical product operations met the criteria for presentation as a discontinued operation under ASC 205-20. Unless otherwise noted, the results discussed in this release reflect continuing operations; prior-period amounts have been reclassified accordingly, with no effect on previously reported net loss, total assets, total liabilities, or total stockholders’ equity. See the accompanying financial statements for the GAAP presentation of continuing and discontinued operations. Second Quarter 2026 Financial Results RNS System revenue totaled $22.5 million in the second quarter of 2026, representing growth of 21.3% compared to the second quarter of 2025. Total revenue in the second quarter of 2026 grew 17% to $22.8 million, compared with revenue of $19.5 million in the second quarter of 2025. Non-GAAP gross margin for the second quarter of 2026 was 83.4%, compared with 84.0% in the second quarter of 2025. The slight year-over-year decline was driven by slightly higher material costs partially offset by favorable pricing. Total GAAP gross margin from continuing operations in the second quarter of 2026 was 82.8%. Non-GAAP operating expenses in the second quarter of 2026 were $21.9 million, compared with $21.3 million in the second quarter of 2025. GAAP operating expenses in the second quarter of 2026 were $24.0 million. Non-GAAP sales and marketing expense in the second quarter of 2026 was $11.5 million, compared with $10.7 million in the second quarter of 2025. The year-over-year increase was largely due to personnel-related expenses associated with ongoing scaling of commercial activities and other sales-related expenses. Non-GAAP research and development expense in the second quarter of 2026 was $6.3 million, compared with $6.0 million in the second quarter of 2025. The year-over-year increase was primarily driven by an increase in product development-related expenses associated with a next-generation platform and AI-enabled tools. Non-GAAP general and administrative expense in the second quarter of 2026 was $4.1 million compared with $4.6 million in the second quarter of 2025. The year-over-year decline was largely due to one-time expenses incurred in the prior period related to executive transition, partially offset by an increase in personnel-related expenses in the current period. Non-GAAP loss from operations was ($2.8) million in the second quarter of 2026, compared with loss from operations of ($5.0) million in the second quarter of 2025. Non-GAAP net loss was ($3.9) million for the second quarter of 2026 compared with net loss of ($6.8) million in the second quarter of 2025. GAAP net loss in the second quarter of 2026 was ($6.2) million. The Company’s cash, cash equivalents, short-term investments and restricted cash balance as of June 30, 2026 was $51.9 million compared with $54.8 million at the end of the prior quarter. Long-term borrowings totaled $59.0 million as of June 30, 2026. Full Year 2026 Financial Guidance Increase total revenue guidance for full year 2026 to between $99.5 million and $101.5 million, compared with previously issued guidance of $99 million to $101 million. The higher guidance reflects expected service revenue of approximately $1 million, up from approximately $500,000 previously, while the underlying RNS growth outlook of 21% to 23% remains unchanged. Consistent with previous guidance, this range excludes any contribution from idiopathic generalized epilepsy indication expansion. Increase full year non-GAAP gross margin to between 82.0% and 83.0%, an increase compared to 81.5% to 82.5% previously Reiterate full year non-GAAP operating expenses to be between $90 million and $92 million, excluding approximately $10 million in stock-based compensation, a non-cash expense Increase Adjusted EBITDA to be between ($7.5) million and ($8.5) million compared to previous guidance between ($8.5) million to ($9.5) million Non-GAAP Measure To supplement NeuroPace’s condensed financial statements presented in accordance with GAAP, the Company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include Adjusted EBITDA, non-GAAP gross margin, non-GAAP cost of goods sold, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating expenses, non-GAAP loss from operations, and non-GAAP net loss from operations. NeuroPace believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the Company’s historical financial performance. The presentation of the Company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with GAAP, and the Company’s non-GAAP measures may be different from non-GAAP measures used by other companies. Webcast and Conference Call Information NeuroPace will host a conference call to discuss the second quarter and full year 2026 financial results after market close on Tuesday, August 11, 2026, at 4:30 P.M. Eastern Time. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at (click here). Individuals interested in participating in the call via telephone may access the call by dialing + 1 (833) 461-5787 and referencing Conference ID 246 660 202. The webcast will be archived on the Company’s investor relations website at https://investors.neuropace.com/news-and-events/events and will be available for replay for at least 90 days after the event. About NeuroPace, Inc. Based in Mountain View, Calif., NeuroPace is a medical device company focused on transforming the lives of people living with epilepsy by reducing or eliminating the occurrence of debilitating seizures. Its novel and differentiated RNS System is the first and only commercially available, brain-responsive platform that delivers personalized, real-time treatment at the seizure source. This platform can drive a better standard of care for patients living with drug-resistant epilepsy and has the potential to offer a more personalized solution and improved outcomes to the large population of patients suffering from other brain disorders. Forward Looking Statements This press release may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "aims," "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "intends," "may," "plans," "possible," "potential," "seeks," "will" and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. NeuroPace may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding: Expectations regarding the Company’s future revenue and growth based on a continued operations basis, excluding revenue from the DIXI Medical product operations; NeuroPace’s expectations, forecasts and beliefs with respect to potential indication expansion for its RNS System and its software, technology and other product development efforts; increasing access to and adoption of RNS therapy as the standard of care in drug-resistant epilepsy; NeuroPace’s continued execution on its long-term revenue growth strategy, including with respect to sustained revenue growth and long-term value creation. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including: actual operating results may differ significantly from any guidance provided; uncertainties related to market acceptance and adoption of NeuroPace’s RNS System and impacts to NeuroPace’s revenue for 2026 and in the future; risks that NeuroPace’s operating expenses could be higher than anticipated and that it could use its cash resources sooner than expected; risks that NeuroPace’s gross margin may be lower than forecast; risks related to the pricing of the RNS System and availability of adequate reimbursement for the procedures to implant the RNS System and for clinicians to provide ongoing care for patients treated with the RNS System; risks related to regulatory compliance and expectations for regulatory approvals to expand the market for NeuroPace’s RNS System, including risks related to the NAUTILUS submission and the forthcoming Submission Issue Request (SIR) Q-Sub process; risks related to product development, including risks related to the development of AI-powered software, including NeuroPace AI™ and the next generation device platform; risks related to NeuroPace’s reliance on contractors and other third parties, including single-source suppliers and vendors; and other important factors. These and other risks and uncertainties include those described more fully in the section titled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in NeuroPace’s public filings with the U.S. Securities and Exchange Commission (SEC), including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on August 11, 2026, as well as any other reports that it may file with the SEC in the future. Forward-looking statements contained in this announcement are based on information available to NeuroPace as of the date hereof. NeuroPace undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing NeuroPace’s views as of any date subsequent to the date of this press release and should not be relied upon as a prediction of future events. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of NeuroPace. View source version on businesswire.com: https://www.businesswire.com/news/home/20260811453255/en/ Contacts Investor Contact: Scott SchaperHead of Investor [email protected] [email protected]

It has been about a month since the last earnings report for NeuroPace, Inc. (NPCE). Shares have lost about 0.6% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is NeuroPace due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for NeuroPace, Inc. before we dive into how investors and analysts have reacted as of late. NPCE Q1 Earnings & Revenues Beat Estimates, 2026 Outlook Raised NeuroPace delivered a first-quarter 2026 adjusted loss per share of 13 cents compared with an adjusted loss of 18 cents in the year-ago period. The figure was 31.6% narrower than the Zacks Consensus Estimate. GAAP loss per share for the quarter was 20 cents compared with 21 cents in the year-ago period. NPCE’s Q1 Revenues in Detail NeuroPace registered revenues of $22.1 million in the first quarter, down 2% year over year, reflecting strong RNS System sales of $21.7 million (up 19.5% year over year) alongside $314,000 in service revenues and $0.1 million from DIXI Medical wind-down. The figure surpassed the Zacks Consensus Estimate by 2.07%. NPCE’s Margin Analysis In the quarter under review, NeuroPace’s adjusted gross profit increased 18.6% year over year to $18.1 million. Adjusted gross margin contracted 110 basis points (bps) to 82.5%. Sales and marketing expenses increased 5.3% year over year to $11.6 million, research and development expenses decreased 3.4% to $7.2 million and general and administrative expenses increased 19.7% to $4.8 million. Adjusted operating expenses of $21.5 million rose 10.5% year over year. The adjusted operating loss totaled $3.3 million, down from $4.1 million in the prior-year quarter. NPCE’s Financial Position NeuroPace ended first-quarter 2026 with total cash, cash equivalents and short-term investments of $53.9 million, compared with $61.1 million at the end of fourth-quarter 2025. Cumulative net cash used in operating activities at the end of first-quarter 2026 was $5.9 million compared with $7.5 million a year ago. NPCE’s Guidance for 2026 NeuroPace has raised its outlook for the full year 2026. For 2026, management provided total revenue guidance of $99 million-$101 million (up from $98 million to $100 million previously) on a continuing-operations basis, with RNS growth of 21%-23%, compared to full year 2025. The Zacks Consensus Estimate is pegged at $98.8 million. The adjusted gross margin is expected to be at 81.5%-82.5%, supported by ongoing pricing discipline and manufacturing efficiencies. Adjusted operating expenses are guided to $90 million-$92 million, excluding approximately $10 million in stock-based compensation. Adjusted EBITDA is expected to be a loss of approximately $8.5 million-$9.5 million compared to the previous guidance of a loss between $9.0 million and $10 million. In the past month, investors have witnessed a flat trend in estimates review. The consensus estimate has shifted -13.27% due to these changes. At this time, NeuroPace has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. NeuroPace has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. NeuroPace is part of the Zacks Medical - Instruments industry. Over the past month, Tandem Diabetes Care, Inc. (TNDM), a stock from the same industry, has gained 15%. The company reported its results for the quarter ended March 2026 more than a month ago. Tandem Diabetes Care reported revenues of $247.22 million in the last reported quarter, representing a year-over-year change of +5.5%. EPS of -$0.30 for the same period compares with -$0.67 a year ago. Tandem Diabetes Care is expected to post a loss of $0.34 per share for the current quarter, representing a year-over-year change of +29.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -14.7%. Tandem Diabetes Care has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NeuroPace, Inc. (NPCE) : Free Stock Analysis Report Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It's been a mediocre week for NeuroPace, Inc. (NASDAQ:NPCE) shareholders, with the stock dropping 13% to US$15.81 in the week since its latest quarterly results. Revenues of US$22m were in line with expectations, although statutory losses per share were US$0.20, some 16% smaller than was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NeuroPace after the latest results. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Taking into account the latest results, NeuroPace's six analysts currently expect revenues in 2026 to be US$99.7m, approximately in line with the last 12 months. Losses are expected to increase slightly, to US$0.65 per share. Before this latest report, the consensus had been expecting revenues of US$98.9m and US$0.64 per share in losses. Check out our latest analysis for NeuroPace The consensus price target was unchanged at US$19.88, suggesting that the business - losses and all - is executing in line with estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on NeuroPace, with the most bullish analyst valuing it at US$22.00 and the most bearish at US$15.80 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that NeuroPace's revenue growth is expected to slow, with the forecast 0.2% annualised growth rate until the end of 2026 being well below the historical 20% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than NeuroPace. The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for NeuroPace going out to 2028, and you can see them free on our platform here. It is also worth noting that we have found 1 warning sign for NeuroPace that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Image source: The Motley Fool. Tuesday, May 12, 2026 at 4:30 p.m. ET Chief Executive Officer — Joel D. Becker Chief Financial Officer — Patrick F. Williams Need a quote from a Motley Fool analyst? Email [email protected] Joel D. Becker, NeuroPace's Chief Executive Officer who will summarize our recent performance and strategic progress followed by a detailed financial review and outlook from Patrick F. Williams, our chief financial officer. Following our prepared remarks, we will open the call for questions. Before we begin, I would like to remind you that certain statements made on today's call may constitute forward looking statements within the meaning of federal securities laws. These statements include, among others, comments regarding our financial outlook for 2026, our commercial strategy, clinical and product development initiatives, regulatory matters, including our IGE PMA supplement, and our expectations regarding operating performance and profitability. Forward looking statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. A discussion of these risks and uncertainties can be found in today's press release And in our filings with the Securities and Exchange Commission including our most recent Form 10-K and Form 10-Q. We undertake no obligation to update or revise any forward looking statements except as required by law. In addition, we will discuss certain non GAAP financial measures on today's call. Including adjusted EBITDA. Reconciliations of non GAAP measures to the most directly comparable GAAP measures are included in our earnings release, which is available on the Investor Relations section of our website. With that, I will now turn the call over to Neuropace's Chief Executive Officer, Joel D. Becker. Joel? Joel D. Becker: Thanks, Scott, and good afternoon, everyone. I will start with an overview of our first quarter results and how the team is executing against our strategy followed by updates on key clinical and product development initiatives. After that, Patrick will walk through the financials and our revised outlook before we open the line for Q&A. The first quarter reflects continued execution against the priorities we outlined earlier this year. We delivered total revenue of $22.1 million in the quarter and excluding DIXI Medical, we delivered $22 million in revenue. Representing 8% year over year growth with RNS system revenue of $21.7 million. Importantly, the underlying fundamentals of the business remain solid, as we reached new all time highs in active prescribers, accounts, and patient pipeline during the quarter. These are leading indicators we track closely and give us confidence in the durability of demand for the RNS system. The majority of growth continues to be driven by level 4 comprehensive epilepsy centers, which remain the core of our commercial focus. In addition, we continue to see encouraging trends in the front end of the patient funnel with the rate of new patients being added to the pipeline continuing to accelerate. While the majority of procedures remain concentrated within level 4 comprehensive epilepsy centers, community relationships are increasingly serving as durable referral channels. We believe this is important not only for continued penetration of the adult focal population, but also for establishing referral pathways that will be relevant as we potentially expand into IGE. Regarding guidance, we are raising our full year 2026 revenue guidance to a range of $99 million to $101 million up from $98 million to $100 million previously. This reflects 21% to 23% underlying RNS growth from our existing adult focal indication and does not include any contribution from idiopathic generalized epilepsy or IGE indication expansion. From a market development perspective, we continue to invest in the commercial organization. This includes targeted sales representative additions in key geographies, updates to our sales incentive structure to better align with growth objectives, and additional resources dedicated to helping patients navigate the funnel from identification to implant. These investments are designed to reduce friction in the pathway and increase procedural consistency over time. We expect them to become increasingly productive throughout 2026. Let me now turn to clinical development. During the quarter, we completed our FDA mid cycle review meeting with the Nautilus PMA supplement sometimes referred to as a Day 100 meeting, which we viewed as a productive step in the overall regulatory pathway. As a reminder, the PMA supplement was submitted on December 15, and the 180-day review clock began upon acceptance of that submission. As part of the PMA supplement review process, the FDA has the ability to pause the 180-day review clock to request additional information or clarification. During the quarter, the agency exercised that option to seek certain follow-up information in conjunction with our mid cycle review meeting. We view this as a standard and constructive part of the review process. And we were pleased with how quickly the agency provided their questions which allowed us to respond promptly and thoroughly with robust information during and following the meeting. At this time, we have responded to the agency's request and the dialogue continues to be productive. Importantly, based on our interactions to date, we continue to believe a midyear determination remains on track. The breakthrough device designation continues to be meaningful in this process allowing for more consistent interaction and timely feedback as the review progresses. The ongoing dialogue we are experiencing, including the ability to address clarifying questions in real time, is consistent with the intent of that program and reflects the collaborative nature of the review. As a reminder, our 2026 revenue guidance does not include any contribution from IGE indication expansion. If approved on our current timeline, contribution would begin in the second half of the year. And we would provide updated guidance at the appropriate time once we have greater visibility into timing, and reimbursement dynamics. From a data perspective, we remain confident in the totality of the NAUTILUS clinical results. As a reminder, 18 month data presented at the American Academy of Neurology annual meeting in April demonstrated a 77% median reduction in generalized tonic clonic seizures with sustained reductions over time along with favorable safety outcomes in a highly refractory population. Additionally, reductions in absence, and myoclonic seizures exceeded those observed for generalized tonic clonic seizures. Injury events also declined by approximately 30 percent following treatment. and the use of benzodiazepines as rescue medication for generalized tonic clonic seizures was 44% lower compared with baseline. The strong physician and patient reported clinical improvement, these clinical findings are meaningful because they speak to the real world impact beyond seizure counts. Including fewer seizure related injuries and reduced reliance on rescue interventions. Both of which can translate into improved safety and quality of life. In parallel, we continue to build our leadership position in clinical evidence. Our 3-year post-approval study results in drug resistant focal epilepsy were published in the journal neurology in late April. Demonstrating an 82% median seizure reduction in study subjects. This publication reflects data from a rigorously conducted FDA monitored prospective study not retrospective registry data, and reinforces the durability and strength of long term outcomes with the RNS system. Now turning to product development. The road map we outlined on our fourth quarter call remains on track. Our priorities continue to be our suite of NeuroPace AI tools, development of a multimodal foundational model, remote care, and progress toward automated detection and next generation system development. Our ECOG assistant, previously known as Seizure ID, represents the first step in our NeuroPace AI suite. This is an AI enabled tool designed to assist clinicians in analyzing patients' iEEG records of interest and efficiently identify likely electrographic seizure activity upon which to focus their clinical decision making. This is a highly desired capability addressing a real workflow challenge and supports clinicians in their ability to individualize care. We are encouraged by the early performance we are seeing in internal testing and validation work of this tool. We believe this product can serve 2 important purposes. First, it lowers the barrier for new physicians adopting RNS by simplifying data review. Second, it deepens engagement among existing high utilizing centers by improving efficiency allowing clinicians to manage more RNS patients within their practice. Importantly, submission is paired with moving our clinician platform to the cloud which improves scalability and supports faster deployment of software and data products over time. We expect ECOG assistant approval in the 2026. We are also advancing the development of a multimodal foundational model leveraging our proprietary intracranial iEEG dataset and the clinical experience derived from more than 8 thousand patient implants across 35 thousand patient-years. The EEG component of this model is currently in training, and although we are approximately 1-third of the way through the training process, early internal validation work has been encouraging. Even at this early stage, the model is outperforming prior internal algorithmic approaches we had been developing. We believe this reflects the power of scale in our dataset and reinforces the strategic value of the more than 26 million intracranial iEEG recordings we have accumulated. Importantly, we are uniquely positioned here. No other neuromodulation platform has a comparable depth of longitudinal intracranial EEG data linked to therapy and outcomes. And leadership in this area matters. As the field moves toward a data guided personalized neuromodulation approach as the model continues to train and refine, we see meaningful opportunity to enhance treatment optimization improve outcomes and further differentiate the RNS platform. With that, I will turn it over to Patrick for review of the financials and outlook. Patrick? Patrick F. Williams: Thank you, Joel. I will review our Q1 26 performance in more detail and then discuss our updated 2026 guidance. Before I walk through the quarter, I want to clarify our reporting presentation. While we previously anticipated presenting DIXI Medical as discontinued operations, beginning in the first quarter we now expect the discontinued operations presentation to begin with our Q2 26 results. In the meantime, we are providing supplemental non GAAP disclosures that exclude DIXI Medical in both current and prior periods to facilitate comparability. In addition, beginning this quarter, we are presenting gross margin and operating expenses on an adjusted non GAAP basis, excluding stock based compensation, consistent with full year guidance given on our fourth quarter call. Reconciliations to the most directly comparable GAAP measures are included in today's press release. Excluding DIXI, total non GAAP revenue in Q1 2026 was $22 million or 20.1% year over year. Compared with $18.3 million in the prior year quarter. Growth was primarily driven by increased sales of the RNS system, which grew 19.5% to $21.7 million versus $18.2 million in Q1 2025. As we previewed on our fourth quarter call, growth in the first half tends to moderate relative to the acceleration we see exiting the prior year, and that pattern held true again. Service revenue tied to our data collaborations in the quarter including a new partnership, totaled $314 thousand. Excluding DIXI, non-GAAP gross margin in Q1 2026 was 82.5%, compared to 83.6% in the prior year quarter. The Q1 2025 gross margin included a 1-time inventory revaluation benefit of approximately 120 basis points. Excluding that impact, underlying gross margin expanded year over year, driven primarily by favorable pricing conversion. Total non GAAP operating expenses for Q1 2026 were $21.5 million compared with $19.4 million in the prior year quarter, and came in better than expectations driven by hiring cadence and other personnel related expenses. Non GAAP operating expense growth of approximately 10% in the quarter remained meaningfully below our revenue growth of 20% again, demonstrating underlying operating leverage as we scale. Non GAAP sales and marketing expense was $11 million up from $9.6 million in the prior year quarter, reflecting headcount growth in personnel related expenses, as we continue investing in the commercial team and other sales related expenses. Non GAAP research and development expense was $6.5 million compared to $6.6 million in the prior year quarter, The slight decline reflects lower clinical study spend compared to the prior year period. Partially offset by personnel investments supporting our AI road map and next generation platform. Non GAAP general and administrative expense was $4 million, up from $3.3 million in the prior year quarter primarily reflecting increased personnel costs. Total stock based compensation in the quarter was $2.3 million with $2.1 million included in operating expenses and the balance in cost of goods. Non GAAP loss from operations for Q1 2026 was $3.3 million compared with a loss from operations of $4.1 million in the prior year quarter. Adjusted EBITDA loss was $3.3 million in the first quarter, an improvement compared to a loss of $4.1 million in the prior year quarter. GAAP net loss was $6.7 million for Q1 2026 compared with net loss of $6.6 million in the prior year quarter, which included DIXI Medical in both periods. We ended the quarter with $54.8 million in cash equivalents, short term investments and restricted cash, compared to $61.2 million at year-end 2025. The sequential decrease reflects typical first quarter cash outflows primarily driven by annual corporate bonus payments. Please note that as of March 31, 2026, we had approximately $700 thousand of restricted cash related to DIXI Medical, Approximately $600 thousand has since been converted to cash and cash equivalents, and we expect the balance will be converted by year-end 2026. Turning now to our outlook for 2026. As Joel mentioned, we are raising full year 2026 revenue guidance to $99 million to $101 million up from previous guidance of $98 million to $100 million The $1 million increase at the midpoint is driven by 2 factors, Approximately $500 thousand reflects improved visibility into service revenue, and approximately $500 thousand reflects improved visibility into our core RNS outlook. Our increased guidance reflects underlying RNS revenue growth, of 21% to 23%, in our core business and continues to exclude any potential contribution from IGE indication expansion. On service revenue specifically, last quarter, we noted that while we may generate modest service revenue during 2026, it was not included in our initial outlook given limited visibility at that time. As our planning has progressed, certain activities have become more predictable. We are now incorporating approximately $500 thousand of service revenue into our updated 2026 guidance. As we have previously stated, given the underlying dynamics of a procedure based business, it can be more informative to evaluate RNS performance over 6 month periods. We remain confident in our ability to deliver 20% underlying RNS focal indication growth over time and we expect that 2026 will be consistent with that framework. Quarter to quarter fluctuations can occur, but our focus remains on sustained adoption and utilization trends across a broader time horizon. We continue to expect full year non GAAP or adjusted gross margin to be between 81.5% and 82.5% reflecting continued leverage and favorable pricing. We continue to expect full year non GAAP or adjusted operating expense to remain in the range of $90 million to $92 million excluding approximately $10 million in stock based compensation consistent with prior guidance. For the full year 2026, we continue to expect non GAAP or adjusted sales and marketing expense to total between $46 million and $48 million Sales and marketing expense growth in 2026 reflects the continued commercial investment and we expect productivity and leverage from these investments to increase meaningfully as we move through 2026 and into 2027. We continue to expect full year non GAAP or adjusted research and development expense to total approximately $27 million R&D expense growth in 2026 reflects continued investment in our next generation platform and the development of the Neuropace AI suite of tools designed to enhance physician workflow, and drive further adoption. We remain focused on disciplined allocation of r and R&D capital to programs that strengthen the platform, enhance differentiation, and support long term growth. We continue to expect full year non GAAP or adjusted general and administrative expense to total approximately $17 million G&A expense in 2026 primarily reflects the infrastructure required to support a growing commercial organization, and corporate systems necessary to operate at scale. We remain disciplined in managing overhead as we drive operating leverage across the organization. We now expect more favorable full year adjusted EBITDA to be a loss in the range of $8.5 million to $9.5 million improved from a loss $9 million to $10 million. And with that, I will turn it back to Joel. Joel D. Becker: Thanks, Patrick. We are energized by the opportunity in front of us. We are executing and penetrating the adult focal market, progressing toward potential indication expansion into the IGE population, and advancing a differentiated product road map anchored in unique proprietary data where we are developing first of its kind and unique assistive and foundational AI data analysis tools. We believe that we are uniquely positioned at the intersection of data device, and neuromodulation. We will continue to lead on product innovation and clinical evidence and we remain focused on disciplined execution and thoughtful investment to drive durable long term growth. With that, operator, please open the line for questions. Operator: Thank you. And we will now begin the question and answer session. If you have dialed in and would like to ask a question, please press 1 on your telephone keypad to raise your hand and join the queue. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. To be able to take as many questions as possible, we ask that you please limit yourself to 1 question and 1 follow-up, and you may rejoin the queue for additional follow-up questions. Again, it is *1 to join the queue. And our first question comes from the line of Mike Kratky with Leerink Partners. Your line is open. Analyst (Mike Kratke): Hey, everyone. Congrats on all the progress, and thanks very much for taking our questions. So first, you had some really encouraging updates on achieving new all time highs in active prescribers, accounts, patient pipeline, 1 of your epilepsy competitors also recently mentioned a strengthening of the patient funnel in the U.S. So can you just help us understand what factors seem to be most responsible for this dynamic and where specifically are you seeing this materialize? Joel D. Becker: Thanks, Mike, and it is a great question. So for us, we are particularly pleased with the trends that we see with regard to patient pipeline. Our patient pipeline numbers are as strong as we have ever seen them. And I think a lot of that comes well, a lot of that comes from our work in really 3 things. 1, our work with our level 4 center traditional customers to make sure that we are doing everything we can to collaborate with them, to have patient identified as they are moving through level 4 centers. 2, we have talked about in the past the work that we have been doing in the community. And with the referral population, and that is beginning to contribute nicely to the patient pipeline as well. And then thirdly, the investments we have made in our commercial organization. Both the breadth of that organization as well as the way the leadership team is executing in the discipline systems and processes that we put in place to make sure that we have good visibility to and are tracking well. The execution around that priority or think are all leading toward building and really as good as we have seen it. Patient pipeline to date. Patrick F. Williams: The only thing I would add to that, Mike, is we are starting to look a lot deeper into the patient pipeline in terms of analytics. And tracking that differently with our commercial team. And we think about it as sort of the velocity of that patient, which we know has a long sales cycle, but better understanding where they are at within that health care continuum, we will call it, until they actually go to a neuromodulation device. So more to come on that, but wanted to throw in there that you know, leveraging, you know, predictive tools that are AI based, etcetera, to get a little bit smarter in that area. Analyst (Mike Kratke): Understood. Very helpful. And maybe just as a follow-up, but can you share any specifics in terms of what information FDA was looking for specifically as part of its mid cycle review? Joel D. Becker: You bet, Mike. We had a-- we had a very productive and interactive meeting with the agency. A couple of things I would punch up there. 1, we were we were really pleased to get the questions that we got in such a timely fashion, so it made for good opportunity to prepare and then a robust and, again, interactive discussion with the agency. I would characterize the nature of the questions that we received. We are really focused on both clarification of and context around various aspects of the data and the associated analyses that had gone into the PMA supplement. So, it is clear that they are, paying good and close attention to the data as we would expect. And, and the again, the questions were really around clarifying, some of that data, how to best understand and interpret it. And then where we had provided associated analysis wanting to make sure that they had appropriate context for that analysis. But, again, I would in addition to those facts, I would emphasize that we thought that, you know, when we got really good questions, we got them in a timely fashion. It resulted in a good and engaged discussion. And we have since followed up and submitted our formal responses to those and all the questions that we have received until now. So, yeah, Very helpful. Analyst (Mike Kratke): Thanks very much. Operator: And our next question comes from the line of Priya Sachdeva with UBS. Your line is open. Analyst (Priya Sachdeva): Hey, guys. Thanks so much for taking the question and congrats on a strong start to the year. Maybe first, if I could just, really encouraging to see the strong growth in RNS revenues. But would love to maybe if you could parse out how much of that was deeper market penetration, increasing utilization across your existing centers versus new physician capture, And if there was any pricing dynamics in the quarter, I think you did call out some increasing ASP. You know, if you could maybe just help us level set contributions from each and then 1? You bet. Joel D. Becker: I will start here, Priya, and then ask Patrick if he has anything he would like to add. So as has been the case, the growth in the business really has been centered around increasing adoption and utilization within our level 4 centers. So adoption, you can see by the ongoing increasing number of all time high prescribers. And so we are we continue to be pleased with that. But then, you know, also continuing to work utilization and expansion of where the RNS system plays within those people's practices. And then the second part would be, as I mentioned earlier, the increasing contribution of patients who are identified for in either implanted at or referred from community settings? So patients who are identified as good candidates for RNS in the community and either undergo the therapy there at a level 3 or community hospital or are identified for RNS therapy and then referred in for surgical placement of an RNS device in a level 4 center. The third thing I would I would identify here is the our DTC or direct to patient efforts as well as then, in our Q4 call, we made mention of investment in our nurse navigator team. And that is all designed to help fill the pipeline and then move patients with increasing velocity and decreased friction through the pipeline. And so I think our nurse navigator team is beginning to have a nice impact there as well. With regard to pricing, as you know, we have we have had consistent and good, execution with regard to pricing. Pricing is somewhat of a tailwind for us here in the quarter, but the majority of the revenue is really associated with unit volume rather than a significant price effect, but a good tailwind. Patrick F. Williams: Priya. The only thing I would add on pricing, Joel, articulated that well, is that we do plan to take as we have in prior years going forward. So this is not a onetime event. And as we said, we will continue to take pricing each and every year that we can. And it will be you know, you can expect kind of that low single digit type pricing increase that we would look to get. Analyst (Priya Sachdeva): Okay. Got it. That was super helpful. And just 1 more for me. When we are thinking about IGE, and I know it is not baked into guidance for this year, but you know, when approval does come online, how quickly could we see a contribution? And then maybe if you could just remind us what the pathway from a reimbursement perspective looks like how quickly that could come online. Thanks so much. Joel D. Becker: I will maybe start us out here, and then I will ask Patrick, who is very much involved with our reimbursement team and process here to comment on that as well. So first steps first, we are focused on getting the indication expansion, getting the approval from the agency. You know what that process looks like. I described it earlier here in my comments of working through that here now with the agency. In parallel with that, we are, working with our in internal team to make sure they are trained and, well prepared for the launch and all of our launch plans, etcetera. Are moving in parallel with that as well. Once we do have approval, we will move into what is really a coverage expansion exercise. We have the device covered today It will be the same codes. For tomorrow, and our exercise then is really going to be working with the private payers to get coverage expansion. Obviously, we are gonna be working to do that on an off cycle basis, but certainly, we have got good visibility to contract cycles and ensuring that we are well prepared to be engaged with medical directors and health plans at the very least, as part of an on cycle process and, we intend to make sure that there is a case by case submission associated with the coverage expansion. Very important as part of that process will be the published manuscript of the NAUTILUS data, and I am really pleased with progress we have been making there. We are ahead of expectations in terms of the timing of the submission and review of the Nautilus manuscript and results. And so, I mean, I am encouraged by having that and the time line it is on and being able to show the results that it shows and, the early review from the editorial reviewers was, very light. It was a well done manuscript, and is on a and on a good timeline there. So I think, you know, we have also been we have also been preparing from a reimbursement perspective, and here I will I will hand it over to Patrick. But we, we have been planning and doing our research around, coverage expansion and have a number of outside experts as well that we are working with up to and including even having advisory board types of discussions for how people are going to be thinking about and reacting to the data and what will be particularly important to them, etcetera. So it is approval with internal training and market development in parallel than all of the logistics mechanics and publication associated with, extending coverage from the current focal indication for the current product, with the private payers. Patrick, what would you add? Patrick F. Williams: Priya. I think just some highlights. You asked the question just sort of cadence of when we can expect, and so we are still focused on midyear approval. Frank you for pointing out that, you know, we had a good quarter with RNS. We did raise guidance. but raise guidance on top of that above the beat. to not only include that beat in Q1, We do not have IgE indication expansion in there as we said. So the cadence on that, because of what Joel just went through in detail in terms of the coverage policies with the private payers, which is, you know, close to 80%, we will call it, when you include the advantage programs with Medicare, Medicaid. it is gonna take a little bit of time to get on there. So I would say it is definitely a back end loaded if we think about the first 12 months, let's say, of launch. And so you are gonna see more coverage policies come on board as we move into months 7, 9, 10, 11 and 12, and so forth. And so at the appropriate time, we will come back and give guidance to everyone. But I think the takeaway for you all is that it is the same exact DRG and CPT as Joel said. We believe we are being very proactive and being very patient advocate focused on making sure they get this approval. And so that is really the only thing that is gonna hold us back in terms of the adoption from a reimbursement standpoint. Joel D. Becker: I would just wrap up there, Priya, when we when we have had discussions on the reimbursement side. I have been impressed as to hearing the feedback for how pleased people were with the clinical data. And how attuned people were that there are not approved options for these patients. And so it is just been encouraging to hear from that constituency, from that stakeholder group the recognition of the value of the data and the recognition of the clinical gap. That exists today. Patrick F. Williams: And we are actually augmenting our internal reimbursement with some third party as especially as we launch to ensure that on a case by case basis, we can continue to advocate for those patients and we are feeling good about it. Again, we are kinda seeing a couple things. We are excited about it, but at the same time, we want to be thoughtful. As we do get approval and find out what that revenue cadence will look like. But we think there is a really, really good opportunity here to move things along quicker than maybe what most people may think of. Analyst (Priya Sachdeva): Thanks so much. Operator: And our next question comes from the line of Larry Biegelsen with Wells Fargo. Your line is open. Analyst (Ross Osborn): Hey, guys. This is Ross Osborn on for Larry. Thanks for taking our questions. Hey, Ross. Looking for your RNS volumes, did the system have a diagnostic or a companion to surgery contribute to growth during the quarter and how you see this evolving over time? Joel D. Becker: it is a great question. I think that as we think about both of those dynamics, 1, the unique capability to provide the window into the brain, to see what is really going on with these patients has, been increasingly recognized. And as we mentioned in our prepared comments, we really see the field moving more and more toward the ability to individualize and tailor therapy. For patients. And it is really that unique diagnostic capability that allows us to do that. To monitor, record, and then analyze that data and subsequently then tailored therapy. And that is we think, part of why we see improving results over time. So, yes, the diagnostic capabilities of the device absolutely are contributing to our growth. And secondly, with regard to hybrid therapy or as a complement to resection therapy, we do hear that more and more. Especially within centers that you might consider to be somewhat more in quotes classically trained to really look for resection first. In places where either they know they cannot resect or to be able to inform surgical procedures, the use of the implantation of an RNS device prior to a surgical procedure to be able to best localize where they wanna resect. Or to if they have a clear area for surgical intervention, but the disease is diffuse enough and they know they cannot resect some areas of eloquent cortex, for example, they will use an RNS device in combination as part of a hybrid therapy. So as we have talked about before, the really the modern RNS story we are going from a particularly kinda niche application within a focal patient population to multifocal disease to network stimulation, to adjacent to surgical procedures is really the progression that we see. And we do hear about adjacent to resection procedures more and more. Analyst (Ross Osborn): Great. And then apologies if I missed this in your prepared remarks, but would you walk through your latest advances and timelines for pediatrics and LGS? Joel D. Becker: You did not miss it. We did not include it in our prepared comments, but I will address both. With regard to pediatrics, as you know, we are working on a real world evidence strategy here using retrospective meta analysis, working with the agency itself, as well as a number of external parties to really aggregate and analyze the published data that is out there. We have worked to try and prospectively enroll in trials on the pediatric side. And as sometimes is the case where you have devices that are approved in the adult population, it is difficult to get people to for understandable reasons, to get people to consent to enroll children in the trial. We think that the real world data approach is a particularly good 1 at this time in that if you look at the interest from the clinical and scientific community, as well as the amount of data that has been gathered and published, it is gathering momentum. Since 2020, for example, so in a little over the last 5 or maybe 6 years, in 2020, there were about 8 peer reviewed publications. For pediatric use of the RNS system Today, there are 29. And so there is an increasing amount of both interest as well as published data that really supports this kind of a real world evidence analysis. So we are we are underway in that process. I think as you have heard me explain before, it is a little bit inverted from a prospective trial. We are in a retrospective trial. You do a lot of the work on the data alignment and structure upfront. And then once you have that, the back end of the process can go a little bit quicker. Whereas on a prospective trial, you can go a little bit quicker on the front end, and then you have to do all the work down downstream. So we are in the middle of that hard work now. I am I am not gonna quote a timeline for you, but I would want you to know that it remains as significant priority for us. And, again, I think, there is a lot of momentum and a lot of interest within the clinical and scientific community here. On LGS, as folks may know, we have announced enrollment completion on our LGS trial, the first of its kind in a collaborative effort with NIH, to enroll a pilot group of 20 patients. In a trial looking at both safety as well as efficacy endpoints. Although in a pilot, trial design, More to come on the results here with regard to LGS, but we are encouraged with what we see. We are in the process of developing our plans right now for how we will engage with the agency further. But encouraged with, what we see from that early data. And, do plan on advancing our work in LGS. And, again, stay tuned there. More to come in not too long. But LGS is absolutely on our minds, and we are encouraged with what we have seen. Patrick F. Williams: I think the takeaway is that as we think about adoption dynamics in the clinical setting, not only IgE, as well with pediatrics and LGS as Joel just went through. We think those adoption dynamics are very exciting for us and much more so than what we have seen with focal over time. And so just another thing to look for in the future as we think about our clinical development efforts. Analyst (Ross Osborn): Thank you. Thanks, Ross. Operator: And our next question comes from the line of Lily Lozano with JPMorgan. Your line is open. Analyst: Great. Thanks so much for taking the question. Maybe just to go back to the quarter and guidance. Like you said, you raised by more than the beat. You beat by a couple hundred thousand, and you are raising guidance by a million So can you talk through your thinking behind raising the guide this early in the year and where specifically that better visibility and incremental upside coming from, especially on the RNS side of the business? Joel D. Becker: Absolutely, Lily. it is a great question. And I think both, you know, the performance in the quarter as well as then, historically, what we have seen in the business is really our basis for thinking about the business that way. If you go back over the past, I will I will call it the last 3 years, my direct involvement here just to speak to it personally. If you look at 2023, 2024, and 2025, we have seen more revenue in the second half of the year than the first half of the year. We have seen you know, about 500-basis-point increase in growth rates in the second half of the year versus the first half of the year, and that is been very consistent across that time. And so that is what the calendarization looks like. Additionally, we have a team that we are investing in commercially, both from a sales perspective and from a marketing perspective. And we expect those investments to ramp and become more productive over the year, both the people to become more productive and the programs to become to become more installed. And then finally, as I mentioned, the patient funnel. Is as strong as we have seen it. And so it is growing and robust really across the business. And so all of those factors, are really dynamics within the business. That, that put us in position to be able to make the decision to raise, the guide at this point. And then and then finally, from a more of an internal perspective, as I mentioned, we continue to really strengthen the operating system around the business and particular, the organization and the discipline around the leadership, the training, incentives, referral management, as Patrick mentioned. And so it is it is not that we cannot and I suspect we will not have quarter to quarter variability in some of the results, but with, what we see in the business today as well as what we have seen in the business over time, Those are the dynamics that we are working to reflect in the guidance. Analyst: Great. Very helpful. And then just to follow-up on generalized You mentioned there is no generalized included in the guidance. I know the main gating factor from here after approval is really getting commercial reimbursement. So it sounds like that is more of a 2027 event for that to be felt more materially in the numbers. But to my understanding, you can go after that 20% of the population that is Medicaid right off the bat. So why not include some contribution from Medicaid? Is that just conservatism, or is there some other reason that is not baked into the guidance for this year? Thanks so much. Patrick F. Williams: Priya. No. it is a it is a fair question. And just to say again a little bit more on that is that, again, we are anticipating a midyear approval. But to stick with how we have been doing this since you know, back in late 25. We have kept IgE indication expansion out of our guidance and we will continue to do so until we get approval. Upon that time, you are correct. We would expect that on a case by case basis with that 20% Medicare Medicaid, we can likely move pretty quickly on that. that is why we are augmenting with third party reimbursement help, etcetera. And then we will work with the other 80%, which is across private pay in the Advantage program. So I guess I would call it more than anything being thoughtful about waiting for an approval. that is a bit of a binary event. We feel very cautiously optimistic about when that is gonna happen, and we have said it. But we want to make sure we do not get ahead of ourselves and at the point of approval, we will absolutely come back and let people know what they can expect in contribution. And I stated it already that you should expect that it would be your point, as we get those private payers on board, that it would be more of a months 7 to 12, we will call it impact when we cycle through all coverage policies. Analyst: Perfect. Thank you. Thanks, Lily. Operator: And our next question comes from the line of Frank Takkinen with Lake Street Capital Markets. Your line is open. Analyst (Frank Kaczynin): Great. Frank you for taking the questions. Was hoping to start with 1, and apologies if it already came up, I do not think it has. On the reimbursement changes for 2026. I think last year or last quarter you spoke to the improvements in both OPPS and the physician fee schedule effective at the 2026. Any anecdotal feedback or direct feedback from the field on how that reimbursement has been received or impacted the business? Patrick F. Williams: Priya. Hey, Frank. You know, 2026 was a or it is still is a good year for us from a reimbursement standpoint. A lot of the legwork that we did in 2025 came to rich fruition in 2026. So I would say, overall, when you do not hear news and pushback from your field team, that is a good thing. As we go into 2027, you know, we will keep everyone posted on that. But at this point, we are in comment period, etcetera. We are not anticipating nor have we, you know, obviously given 2027 guidance yet. But rest assured, you can expect us to continue to push hard. On making sure that we not only advocate for patients, but that the hospital accounts are being reimbursed appropriately to make sure that does not become a impediment to installing our neuromodulation device. Joel D. Becker: The only thing I would add there, Frank, is that we did have a positive development from an OPPS perspective, as you mentioned. The replacement cycle for us is still a small amount of the business. But I know I do not need to emphasize for this group that is on its way. And so that is something that we believe will hold us in good stead here as those RNS 23 devices increasingly come back around for replacement, will be in a positive and improved reimbursement position with regard to outpatient device replacement as that cycle increases. Analyst (Frank Kaczynin): Got it. that is helpful. And then maybe just a bigger picture question on Project Care. I think we are about 2 years into when that initiative was kicked off. Joel, maybe give us a review, I mean, puts and takes what has surprised positively, maybe what is been more challenging in this setting? Anything on utilization, if that is what is been driving some improvement, if it is new site activations, just any kind of big picture commentary that you have noticed over the last 2 years, on that would be great. Thanks. Thank you, Frank. Joel D. Becker: I think, you know, things we have learned. We have learned, and you have heard me comment on some of this previously, is that there are a number of different segments that exist in the community or referral population. And having the flexibility to be able to address the needs of those different segments is important. 1, we have some centers community centers, level 3 centers who really it is they have got the patient population. They have got the epileptologists and neurologists there. They have got the functional neurosurgeons with capacity, the surgical equipment capital equipment requirements are there, and maybe there is a software package that is required in a contracting activity. But other than that, they are really ready to go. And we can turn them into an implanting center. Where they can self sustain and, you know, that is great. There are others that will eventually look like that, But since they had not had access to the technology, it was not something that they were planning for, and so it takes some time then to develop those centers. And as you know, with capital cycles and trainings and everything else that goes on at the hospital, level that takes a little longer, but that is also a very important and viable segment for us especially as we think about the idiopathic generalized population and not needing the phase 2 monitoring that requires someone to be transferred to a level 4 center for invasive EMU, SEE, monitoring that can aggregate the referral pathway timing. The third segment has been interesting, and that is centers that have all of the patient population and the neurology and epileptology capability and management infrastructure, and they do not really want to have the patients implanted at their center. Not that they do not want patients implanted at their centers, but they would like to prioritize management of the patients. And so they are happy to have a connection made and a referral relationship developed that puts them in a position where they feel like their patients are gonna be taking care of. Remember, these are patients that have multiyear relationships. With their clinicians as they proceed through medication management, and they are disease progression. So to have a relationship developed where they can have somebody handed off and make sure they can get them back, and then we can do the training and the support around programming those patients. that is his third segment. That exists and really works out quite well. And so I think we had maybe thought going into it, it would be a little more homogeneous than that. But that those have been some learnings. Think maybe not negative, I guess, maybe I would characterize it a little bit as a negative. there is just there is a lot of awareness building and development to do And so on the on the 1 hand, that is work that needs to be done and is a little bit of a, air quotes, negative surprise. You cannot assume that people are aware. Of things. On the other hand, we found it to be just a great opportunity. And to be able to get out in the community the way we are now on an increase and be able to make people aware of and understand recent developments in and the data associated with, as well as referral opportunities for Again, all associated with learning. And why I think overall, to your point on big picture, from a big picture perspective, staging things the way that we have we got the PMA supplement to permit expansion beyond level 4 centers with the focal indication and doing that work has allowed us to learn about that dynamic and the referral population even more. And then, we think that will skate rather nicely here with the work that we are doing for indication expansion with IgE and beyond. Little bit of a long way around, but hopefully, that answers your question. Analyst (Frank Kaczynin): No. that is perfect. Comprehensive. Thank you very much. Thank you, Frank. Operator: And our next question comes from the line of Anthony Petrone with Mizuho. Your line is open. Analyst: Thanks for fitting us in here, and congrats on progress so far in 2026. Maybe just to come back to 2 reimbursement questions. 1 on the new APC mapping for vagus nerve stimulators there. It was a shift for new patient implants. To APC 1.58 thousand. That was a 48% increase for the category. And then end of service shifted from Level 4 to Level 5, and that was also roughly a 47%-48% uplift. So it just seems like, you know, from the Medicare level on an outpatient basis, there is reset receptivity to you know, good healthy levels of reimbursement for epilepsy. So is there any kind of read through from what we have seen in vagus nerve you know, kinda transferred over to the RNS system once we get there for generalized and I think, and I believe, there is no wiser program exposure here, but just to confirm that the RNS system is not seeing any kind of prior authorization impact. Thanks. authorization impact in those 6 states from the WISER program. Joel D. Becker: Thank you, Anthony, and I will start here and then Patrick can help me. The first point is with regard to end of service and moving from 4 to 5, we had the same improvement in, what I mentioned earlier with regard to the cycle in the OPPS increase in reimbursement. So that is absolutely the case. There, I agree with your comments 100%. That when we saw those increases in reimbursement, we were encouraged not only because of the effect on RNS replacement, reimbursement, obviously, but that overall and generally, the reimbursing bodies are seeing the value associated with neuromodulation. And are open to making sure that there is good access for hospitals and clinicians to be able to access the technology. So 1, also fortify an improvement in OPPS. 2, I shared the view on it is good news when people are investing in neuromodulation broadly and 3, there is no impact with regard to WISER for us, and we are not included. Operator: And our next question comes from the line of Michael Polark with Wolfe Research. Your line is open. Analyst (Michael Pollark): On the topic of generalized with the FDA, Joel, I am curious just as you assess their interest in the data, questions that you have received and answered, how much focus are how much focus have they placed on the primary endpoint in the NAUTILUS study, which did not meet significance versus all of the supplemental analysis. I am just trying to envision you know, in light of the kinda headline squish in the trial and all the constructive data underneath, how they may kind of are they wrestling with that? How they might conclude and what a label may or may not look like. Thank you. Thanks, Mike. Joel D. Becker: As you might imagine and I will not I will not speak on FDA's on FDA's behalf. But I will give you my observations. My observations would be, as you might expect, they are they are focused on the totality of the data. They are looking at all of it. The primary safety, which did meet the primary efficacy, as you mentioned, which did not, and the prespecified secondaries that again, we think are particularly impactful and clinically relevant. And so I would I would say that they are taking a comprehensive and appropriate view of the totality of the evidence. With regard to label, it is it is our interest to pursue a label that is aligned with the study population and the inclusion exclusion criteria in study, and that is really been our approach. Appreciate that, Joel. Analyst (Michael Pollark): Thank you. I have 1 other reimbursement question. I in this question is not sky high, but I believe the RNS first time implant is on the so called inpatient only list. Maintained by Medicare. And I think over the years to come, it may come off And could trigger the creation of the level 6 outpatient APC. Now it may be most of if not all, the cases would still be inpatient, but by virtue of Medicare cleaning up this inpatient only list and, you know, you, they would have to provide a pathway for the RNS system and some other devices in the outpatient setting and given the cost of the case is a lot higher, that would necessitate and maybe pull forward and finally make come to fruition this Level 6 creation sorry for the long-winded ramp, but it is a very you know, it is been a topic in neuro that is been discussed for a while, and I am I am curious if you agree or disagree strongly with anything. I just said there. Thank you. Joel D. Becker: Mike, what I would what I would tell you, and there are a lot of there are there are a lot of moving parts there associated with that. Is that we have been very engaged with regard to virtually all aspects of reimbursement from inpatient to outpatient to physician reimbursement. The move from 4 to 5, the maintenance of the DRG categorization change from the proposed rule to the final rule, the improvement in CPT rates, you know, really across all fronts. We have been both pleased with and highly engaged from a reimbursement perspective. I think at this point, to talk further about going from 5 to 6 and kind of a secondary dependency for what may or may not happen with the inpatient is a couple of degrees removed from where I feel like I could credibly comment. I would I would leave you with we are very engaged in. You can see from the results associated with and are highly involved with reimbursement across all fronts. And, again, back to the question that was asked earlier, I think, it is encouraging for us to see the payers signaling a general openness to recognizing the value both clinically as well as economically. So I cannot answer the 5 to 6 potentialities specifically, given where we sit today. But I like where, general trends are headed from a reimbursement perspective around neuromodulation. Patrick F. Williams: Priya. And I would just add because this is a you know, I appreciate the question but I wanna be crystal clear with everyone. We feel very good about the reimbursement that we advocated for our patients, through 2025 that came into effect in 2026. We feel good about the pricing that we have as we move forward. And as Joel said, we continue to see the payers advocate on behalf of these patients that need intervention in order to get their lives back and have some life changing outcomes. And so not in the game of speculation, but rest assured, we are doing everything we can, including advocacy at the Hill, society advocacy, etcetera. And so this will not be a headwind for us in our we will continue to advocate on behalf of patients. On the reimbursement side. Analyst (Michael Pollark): Helpful color. Frank you both. Thanks. Mhmm. Thanks, Mike. Operator: And our final question comes from the line of Yi Chen with H. C. Wainwright. Analyst (Katie): Hi. This is Katie on for Yi. Just real quick to wrap this up. Could you give us an idea of how many implants for replacements versus new implants this quarter? Do you think that is a typical mix of what we should expect going through the rest of 2026? Joel D. Becker: We I will ask Patrick to comment here, but we did see an in replacements. it is still a small number, but we did see mild increase in replacements. You know, we are gonna remember, the RNS-320s have got a nominal battery life of 11 years, and then so we are should be right at the kind of the front edge here of that replacement cycle, but still not seeing meaningful volume in the last quarter. Patrick F. Williams: I agree. And what we talked about historically, said we are less than 5% of our revenue is replacement over time at this point. A little less than 10% as well on the unit side. And that is because when we do a replacement, we do not have to replace the leads. We just replace the 23 device, so there is less of an ASP that we incur the accounts. So I think the point here for everyone that we are excited about the replacement revenue that we come a bit of a recurring revenue stream as we go forward, but we are in a the very early stages of that. But become more meaningful as we move throughout this year and certainly as we get into 2027, 2028, and beyond. Operator: And ladies and gentlemen, that is all the time we have for questions today. I will now turn the conference back over to Mr. Joel D. Becker for closing remarks. Joel D. Becker: Thank you. Thank you all for your time and attention today. 2026 is a year with transformational potential for NeuroPace. And we are well on our way to executing on this potential, while building on the momentum in our current business. We look forward to keeping you up to date throughout the year as we continue to execute our strategy and progress toward these significant opportunities and thanks again for your interest in and support of NeuroPace. Operator: And, ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect. Before you buy stock in NeuroPace, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NeuroPace wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends NeuroPace. The Motley Fool has a disclosure policy. NeuroPace (NPCE) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NeuroPace Inc (NASDAQ:NPCE) reported a total revenue of $22.1 million for Q1 2026, reflecting an 8% year-over-year growth. The company achieved new all-time highs in active prescribers, accounts, and patient pipeline, indicating strong demand for the RNS system. NeuroPace Inc (NASDAQ:NPCE) raised its full-year 2026 revenue guidance to a range of $99 million to $101 million, up from the previous range of $98 million to $100 million. The company completed its FDA mid-cycle review meeting for the Nautilus PMA supplement, which is seen as a productive step in the regulatory pathway. NeuroPace Inc (NASDAQ:NPCE) is advancing its product development with AI tools, including the eCOG Assistant, expected to be approved in Q2 2026, enhancing clinician efficiency and patient care. The company experienced a GAAP net loss of $6.7 million for Q1 2026, slightly higher than the $6.6 million loss in the prior-year quarter. Non-GAAP gross margin decreased to 82.5% from 83.6% in the prior-year quarter, although this was partly due to a one-time inventory revaluation benefit in Q1 2025. The FDA requested additional information during the Nautilus PMA supplement review, which could potentially delay the approval process. The contribution from the idiopathic generalized epilepsy (IGE) indication expansion is not included in the 2026 revenue guidance, indicating uncertainty in this area. The company is still in the early stages of its replacement cycle for the RNS320 devices, with replacements accounting for less than 5% of revenue, indicating limited immediate impact from this revenue stream. Warning! GuruFocus has detected 3 Warning Signs with NPCE. Is NPCE fairly valued? Test your thesis with our free DCF calculator. Q: Can you explain the factors contributing to the strengthening of the patient pipeline and where this is materializing? A: The strengthening of the patient pipeline is attributed to three main factors: collaboration with Level 4 centers, community and referral population efforts, and investments in the commercial organization. These efforts have led to a robust patient pipeline, the strongest seen to date. (Joel Becker, CEO) Q: What specifics did the FDA request during the mid-cycle review, and how did you respond? A: The FDA's questions focused on clarifying and contextualizing data and analyses in the PMA supplement. The company received the questions promptly, allowing for a thorough and interactive discussion with the FDA. NeuroPace has submitted formal responses to all questions received. (Joel Becker, CEO) Q: How much of the R&S revenue growth was due to market penetration versus new physician capture, and were there any pricing dynamics? A: Growth was primarily driven by increased adoption and utilization within Level 4 centers and contributions from community settings. Pricing provided a tailwind, but the majority of revenue growth was due to unit volume. (Joel Becker, CEO) Q: When can we expect a contribution from the IGE indication, and what is the reimbursement pathway? A: The focus is on obtaining indication expansion approval. Post-approval, the company will work on coverage expansion with private payers. The process involves engaging with medical directors and health plans, with the Nautilus data publication playing a crucial role. Contribution is expected to be back-end loaded in the first 12 months post-launch. (Joel Becker, CEO; Patrick Williams, CFO) Q: Did the RNS system's diagnostic capabilities contribute to growth, and how do you see this evolving? A: The diagnostic capabilities of the RNS system are contributing to growth by allowing individualized therapy. The system is increasingly used in hybrid therapy, complementing resection procedures, and is expected to continue evolving in this direction. (Joel Becker, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

--Total revenue of $22.1 million-- -- Raises full year 2026 guidance to $99 million to $101 million, up from $98 million to $100 million previously-- --Assumes 21% to 23% growth in core RNS® revenue from existing indications, excluding any contribution from idiopathic generalized epilepsy (IGE) indication expansion-- --Continues to expect IGE contribution following potential NAUTILUS PMA-Supplement (PMA-S) approval in mid-2026-- MOUNTAIN VIEW, Calif., May 12, 2026--(BUSINESS WIRE)--NeuroPace, Inc. (Nasdaq: NPCE), a medical device company focused on transforming the lives of people living with epilepsy, today reported financial results for the first quarter ended March 31, 2026, and provided a corporate update. First Quarter 2026 Highlights Total revenue of $22.1 million in the quarter. Excluding DIXI Medical, total revenue of $22.0 million representing 20.1% year over year growth RNS System revenue of $21.7 million in the quarter, representing 19.5% year over year growth GAAP net loss in the first quarter of 2026 was ($6.7) million compared to ($6.6) million in the first quarter of 2025 Adjusted EBITDA loss, excluding DIXI Medical, of ($3.3) million for the first quarter of 2026, an improvement of $0.8 million compared to a loss of ($4.1) million in the first quarter of 2025 Completed the FDA mid-cycle review meeting for the NAUTILUS PMA supplement, consistent with the expected regulatory timeline Reached new all-time highs in active prescribers, accounts and patient pipeline "First quarter results reflect continued execution against the strategic priorities we outlined earlier this year," said Joel Becker, Chief Executive Officer of NeuroPace. "We remain focused on driving disciplined growth in our core RNS business, advancing our product roadmap, and progressing toward potential indication expansion, all while strengthening the operational foundation of the Company. We continue to progress NAUTILUS through the regulatory review process and remain encouraged by the totality of the dataset supporting the IGE indication expansion." First Quarter 2026 Financial Results Non-GAAP revenue in the first quarter of 2026 grew 20.1% to $22.0 million, compared with $18.3 million in the first quarter of 2025. The Company’s revenue growth was primarily driven by increased sales of the RNS System which totaled $21.7 million in the first quarter of 2026, representing growth of 19.5% compared to the first quarter of 2025. On a GAAP basis, total revenue of $22.1 million included $0.1 million of revenue attributable to DIXI Medical. Beginning this quarter, the Company reports gross margin and operating expenses on a non-GAAP basis, excluding DIXI Medical and stock-based compensation, for each respective line item. This presentation is intended to provide greater transparency into the underlying operating performance of the business, enhance visibility into operating leverage, and improve comparability across periods. Total stock-based compensation by line item, along with reconciliations to the most directly comparable GAAP measures, are included at the end of this press release. Non-GAAP gross margin for the first quarter of 2026 was 82.5%, compared with 83.6% in the first quarter of 2025 which included a one-time benefit of 120 basis points from an inventory revaluation. The underlying year-over-year improvement, absent one-time items, is primarily due to improved manufacturing efficiency and increasing average selling price resulting from strong pricing conversion. Total GAAP gross margin in the first quarter of 2026 was 81.8%. Non-GAAP operating expenses in the first quarter of 2026 were $21.5 million, compared with $19.4 million in the first quarter of 2025. GAAP operating expenses in the first quarter of 2026 were $23.6 million. Non-GAAP sales and marketing expense, excluding DIXI Medical, in the first quarter of 2026 was $11.0 million, compared with $9.6 million in the first quarter of 2025. The year-over-year increase was largely due to personnel-related expenses associated with ongoing scaling of commercial activities, investment in direct-to-consumer marketing and other sales-related expenses. Non-GAAP research and development expense in the first quarter of 2026 was $6.5 million, compared with $6.6 million in the first quarter of 2025. The year-over-year decrease was primarily driven by lower clinical study expense partially offset by an increase in personnel-related expenses associated with the development of a next-generation platform and AI-enabled tools. Non-GAAP general and administrative expense in the first quarter of 2026 was $4.0 million compared with $3.3 million in the first quarter of 2025. This increase was primarily due to an increase in personnel-related expenses. Non-GAAP loss from operations was ($3.3) million in the first quarter of 2026, compared with loss from operations of ($4.1) million in the first quarter of 2025. Non-GAAP net loss was ($4.4) million for the first quarter of 2026 compared with net loss of ($5.6) million in the first quarter of 2025. GAAP net loss in the first quarter of 2026 was ($6.7) million. The Company’s cash, cash equivalents, short-term investments and restricted cash balance as of March 31, 2026 was $54.8 million compared with $61.2 million at the end of the prior quarter. Long-term borrowings totaled $59.0 million as of March 31, 2026. Discontinued Operations The Company expects to report DIXI Medical related operating results as discontinued operations beginning with its second quarter 2026 financial results. In accordance with U.S. GAAP, the Company’s continuing operations results will exclude the impact of DIXI Medical for the 2026 reporting periods and applicable comparable periods presented. Full Year 2026 Financial Guidance on a Continuing Operations Basis Increase total revenue for full year 2026 to be between $99 million and $101 million, representing underlying RNS growth of 21% to 23% compared to full year 2025. This compares to previously issued guidance of $98 million to $100 million, representing underlying RNS growth of 20% to 22%, excludes any contribution from idiopathic generalized epilepsy (IGE) indication expansion. Reiterate full year non-GAAP gross margin between 81.5% and 82.5% Reiterate full year non-GAAP operating expenses to be between $90 million and $92 million, excluding approximately $10 million in stock-based compensation, a non-cash expense Increase Adjusted EBITDA to be between ($8.5) and ($9.5) million compared to previous guidance between ($9.0) million to ($10.0) million Non-GAAP Measure To supplement NeuroPace’s condensed financial statements presented in accordance with GAAP, the Company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include Adjusted EBITDA, non-GAAP gross margin, non-GAAP cost of goods sold, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating expenses, and non-GAAP loss from operations. NeuroPace believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the Company’s historical financial performance. The presentation of the Company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with GAAP, and the Company’s non-GAAP measures may be different from non-GAAP measures used by other companies. Webcast and Conference Call Information NeuroPace will host a conference call to discuss the first quarter and full year 2026 financial results after market close on Tuesday, May 12, 2026, at 4:30 P.M. Eastern Time. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at (click here). Individuals interested in participating in the call via telephone may access the call by dialing + 1 (800) 715-9871 and referencing Conference ID 8467256. The webcast will be archived on the Company’s investor relations website at https://investors.neuropace.com/news-and-events/events and will be available for replay for at least 90 days after the event. About NeuroPace, Inc. Based in Mountain View, Calif., NeuroPace is a medical device company focused on transforming the lives of people living with epilepsy by reducing or eliminating the occurrence of debilitating seizures. Its novel and differentiated RNS System is the first and only commercially available, brain-responsive platform that delivers personalized, real-time treatment at the seizure source. This platform can drive a better standard of care for patients living with drug-resistant epilepsy and has the potential to offer a more personalized solution and improved outcomes to the large population of patients suffering from other brain disorders. Forward Looking Statements This press release may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "aims," "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "intends," "may," "plans," "possible," "potential," "seeks," "will" and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. NeuroPace may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding: Expectations regarding the Company’s future revenue and growth based on a continued operations basis without DIXI Medical revenue; NeuroPace’s expectations, forecasts and beliefs with respect to potential indication expansion for its RNS System and its software, technology and other product development efforts; increasing access to and adoption of RNS therapy as the standard of care in drug-resistant epilepsy; NeuroPace’s continued execution on its long-term revenue growth strategy, including with respect to sustained revenue growth and long-term value creation. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including: actual operating results may differ significantly from any guidance provided; uncertainties related to market acceptance and adoption of NeuroPace’s RNS System and impacts to NeuroPace’s revenue for 2026 and in the future; risks that NeuroPace’s operating expenses could be higher than anticipated and that it could use its cash resources sooner than expected; risks that NeuroPace’s gross margin may be lower than forecast; risks related to the pricing of the RNS System and availability of adequate reimbursement for the procedures to implant the RNS System and for clinicians to provide ongoing care for patients treated with the RNS System; risks related to regulatory compliance and expectations for regulatory approvals to expand the market for NeuroPace’s RNS System, including risks related to the NAUTILUS submission; risks related to product development, including risks related to the development of AI-powered software, including NeuroPace AI™ and the next generation device platform; risks related to NeuroPace’s reliance on contractors and other third parties, including single-source suppliers and vendors; and other important factors. These and other risks and uncertainties include those described more fully in the section titled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in NeuroPace’s public filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 3, 2026, as well as any other reports that it may file with the SEC in the future. Forward-looking statements contained in this announcement are based on information available to NeuroPace as of the date hereof. NeuroPace undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing NeuroPace’s views as of any date subsequent to the date of this press release and should not be relied upon as a prediction of future events. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of NeuroPace. View source version on businesswire.com: https://www.businesswire.com/news/home/20260512262815/en/ Contacts Investor Contact: Scott Schaper Head of Investor Relations [email protected] [email protected]