NeuroPace Q1 2025 presentation: revenue jumps 24%, expands epilepsy treatment market

NeuroPace Inc. (NASDAQ:NPCE) delivered strong first-quarter results according to its May 2025 investor presentation, showing continued momentum in its mission to transform epilepsy treatment. The medical device company reported 24% year-over-year revenue growth while advancing multiple initiatives to expand its addressable market.

Q1 2025 Performance Highlights

NeuroPace reported Q1 2025 revenue of $22.5 million, representing 24% growth compared to the same period last year. Excluding implants in the NAUTILUS clinical study from Q1 2024, the company’s RNS System revenue grew even more impressively at 29%.

The company highlighted that RNS active prescribers increased to new record highs during the quarter, while its Project CARE initiative demonstrated increasing momentum. NeuroPace also completed one-year follow-up in the NAUTILUS trial, an important milestone in its clinical development pipeline.

As shown in the following chart of quarterly revenue performance, NeuroPace has maintained a steady growth trajectory over recent quarters:

The company achieved a gross margin of 77.0% in Q1 2025, exceeding its full-year guidance range of 73-75%. Operating expenses totaled $22.5 million for the quarter, with the company maintaining a strong cash position of $66.3 million as of March 31, 2025.

Market Opportunity (SO:FTCE11B) and Growth Strategy

NeuroPace’s presentation emphasized the significant market opportunity in treating drug-resistant epilepsy (DRE), which affects approximately 1.2 million people in the United States. The company estimates its total U.S. addressable market at over $55 billion, with a core annual market opportunity exceeding $2 billion within Comprehensive Epilepsy Centers (CECs).

The following slide illustrates NeuroPace’s key strengths and growth positioning:

The company is pursuing multiple growth initiatives across three strategic areas: clinical development, product development, and market development. These initiatives include expanding indications to generalized epilepsy and pediatric focal epilepsy, developing AI-enabled software tools, and increasing sales force expansion.

NeuroPace’s addressable market spans several patient segments, as illustrated in this comprehensive market breakdown:

A key component of NeuroPace’s growth strategy is Project CARE, which aims to expand access to the RNS system by reaching approximately 1,800 additional epileptologists and functional neurosurgeons practicing outside of Level 4 CECs.

Clinical Outcomes and Product Differentiation

NeuroPace’s RNS System is a closed-loop, brain-responsive neuromodulation system that continuously monitors brain activity, recognizes patient-specific seizure patterns, and delivers targeted stimulation only when needed. The following image illustrates how the system works:

The company’s presentation highlighted impressive clinical outcomes, with seizure reductions that improve over time. Data shows a median 75% seizure reduction at 9 years in the original FDA study, and real-world data indicates 82% median seizure reduction at 3+ years, with approximately one in three patients experiencing greater than 90% reduction in seizures.

These clinical outcomes are visualized in the following chart:

NeuroPace emphasized its competitive advantages over alternative treatments, noting that its RNS System provides therapy only at the seizure source when needed, responds to patient-specific abnormal events, has no stimulation-related side effects, and provides detailed iEEG recordings for physicians to monitor patient progress.

Financial Position and 2025 Outlook

For full-year 2025, NeuroPace provided guidance of:

• Revenue: $93-97 million (representing continued strong growth)
• Gross Margin: 73-75%
• Operating Expenses: $92-95 million

The company stated it is sufficiently capitalized to support planned operations until achieving cash flow breakeven, with its current cash balance of $66.3 million as of March 31, 2025.

Following the earnings presentation, NeuroPace’s stock rose 4.25% in after-hours trading to $13.50, building on its strong performance over the past year. The stock has traded between $5.45 and $15.11 over the past 52 weeks.

Strategic Initiatives

NeuroPace is focused on three key strategies to close the epilepsy treatment gap:

1. Expanded therapy utilization through educating and supporting clinicians and patients

2. Increased therapy availability by expanding presence in healthcare systems near patients

3. Expanded patient eligibility through broadening indications

The company’s NAUTILUS clinical trial for generalized epilepsy has received Breakthrough Device Designation status from the FDA, with enrollment and implants complete. One-year follow-up was completed in March 2025, positioning NeuroPace to potentially expand its addressable market to include the approximately 480,000 patients with generalized epilepsy in the U.S.

NeuroPace summarized its position and outlook with this comprehensive overview:

With continued revenue growth, expanding clinical indications, and a differentiated product offering, NeuroPace appears well-positioned to capitalize on the large, underpenetrated market for epilepsy treatment while working toward its mission of transforming the lives of people suffering from debilitating seizures.

Full presentation:

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