NeuroPace (NPCE) investor relations material

Executive summary

• Q2 2026 total revenue reached $22.8 million, with RNS System revenue up 21.3% year-over-year, reflecting strong adoption and record-high active prescribers.

• Net loss from continuing operations narrowed to $6.2 million from $10.0 million in Q2 2025, and Adjusted EBITDA loss improved to $2.8 million from $4.9 million.

• Launched ECoG Assistant, the first AI-based clinical decision support tool in neuromodulation, and published positive NAUTILUS trial results.

• Discontinued DIXI Medical product operations, now presented as discontinued operations in financials.

• FDA requested additional information for the IGE PMA supplement; company is preparing an amendment and regulatory process remains interactive.

Financial highlights

• Q2 2026 revenue was $22.8 million, up 17% year-over-year; RNS System revenue was $22.5 million, up 21.3%.

• Adjusted gross margin was 83.4% (GAAP: 82.8%), slightly down due to higher material costs.

• Adjusted operating expenses were $21.9 million, up 3% year-over-year.

• Adjusted net loss for Q2 2026 was $3.9 million, improved from $6.8 million; Adjusted EBITDA loss was $2.8 million, better than $4.9 million last year.

• Cash, cash equivalents, and short-term investments totaled $51.9 million at quarter end; long-term borrowings were $59 million.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $99.5–$101.5 million, with RNS revenue growth expected at 21–23%.

• Non-GAAP gross margin guidance increased to 82–83%; non-GAAP operating expenses expected at $90–$92 million.

• Full-year Adjusted EBITDA loss now expected between $7.5–$8.5 million, improved from prior guidance.

• Service revenue guidance raised to $1 million for the year; no IGE indication contribution included.

• Management expects continued investment in R&D and commercial activities, with ongoing net losses and negative cash flows in the near term.