Key Takeaways:
NeuroPace Inc. (NASDAQ:NPCE) raised its full-year outlook after reporting first-quarter revenue of $22.1 million, beating analyst estimates by 2.07 percent.
"The company reached all-time highs in active prescribers, accounts and patient pipeline during the quarter," CEO Joel Becker said, adding that these are "leading indicators” that support confidence in demand.
The medical device maker posted an adjusted loss of 13 cents per share, narrower than the consensus estimate for a loss of 19 cents. The strong performance was driven by a 19.5% year-over-year increase in sales of its RNS System to $21.7 million.
Following the results, NeuroPace raised its full-year 2026 revenue guidance to between $99 million and $101 million. The company's shares have gained 2.3% year-to-date, outperforming the medical instruments industry's 20.1% decline.
The updated outlook implies underlying RNS revenue growth of 21% to 23% for the year. NeuroPace also improved its forecast for adjusted EBITDA, now expecting a loss of $8.5 million to $9.5 million, better than its previous expectation for a loss of $9 million to $10 million.
Management said growth continues to be driven by Level 4 comprehensive epilepsy centers. The company is also pursuing a potential indication expansion for idiopathic generalized epilepsy, with an FDA determination expected by mid-year. Other medical device companies like Intuitive Surgical (ISRG) and Globus Medical (GMED) have also seen strong results.
The improved guidance signals management's confidence in continued commercial execution and demand for its core epilepsy treatment. Investors will now watch for the FDA's mid-year decision on the IGE indication, which could significantly expand the company's addressable market.
This article is for informational purposes only and does not constitute investment advice.
