NeuroPace Shares Plunge 33.61% After-Hours: Here's What Investors Should Know

NeuroPace, Inc. (NASDAQ:NPCE)shares fell 33.61% to $7.98 in after-hours trading on Thursday after the company reported third-quarter revenue below analyst estimates and lowered its full-year 2026 revenue guidance.

NeuroPace is a medical device company focused on developing treatments for people living with epilepsy. Its RNS System delivers personalized, responsive treatment at the source of seizures.

Revenue Misses Forecast Despite Improving Margins

NeuroPace reported third-quarter revenue of $23.1 million, down 1.1% from $23.4 million a year earlier and below analyst estimates of $27.14 million, representing a 14.9% miss. RNS System revenue increased 1.4% year over year to $22.9 million.

Non-GAAP loss per share was 10 cents, in line with estimates. Non-GAAP gross margin improved to 84.8% from 82.8%, while non-GAAP operating expenses declined to $19.2 million from $20.7 million.

GAAP net loss from continuing operations narrowed to $3.3 million from $4.9 million a year earlier. Non-GAAP net loss improved to $0.9 million from $2.3 million, while adjusted EBITDA turned positive at $0.4 million compared with a loss of $1.3 million.

Management Revises Sales Outlook

The company lowered its full-year 2026 revenue guidance to $91 million to $92 million from its previous range of $99.5 million to $101.5 million.

CEO Joel Becker said third-quarter revenue was below expectations and the company was taking steps to improve commercial execution. He attributed the shortfall to isolated issues at several large accounts and disruption from changes to the field organization. Becker added that fourth-quarter scheduled cases had begun to recover.

The company also raised its full-year non-GAAP gross margin outlook to 83%-83.5% from 82%-83%, while lowering its non-GAAP operating expense forecast to $85 million-$86 million from $90 million-$92 million. Its expected adjusted EBITDA loss widened to $8.5 million-$9.5 million from $7.5 million-$8.5 million.

Trading Metrics, Technical Analysis

NeuroPace has a market capitalization of approximately $412.58 million.

The shares have traded between a 52-week high of $19.60 and a 52-week low of $11.90.

Over the past 12 months, shares have declined 6.17%. Since the year began, they have fallen 20.76%.

Benzinga Edge Stock Rankings indicate negative trends across short-, medium- and long-term periods.

Price Action: NeuroPace shares fell 3.99% to close at $12.02 during regular trading hours on Thursday.

Photo Courtesy: Who is Danny on Shutterstock.com