📊 NPCE Key Takeaways
Is NeuroPace Inc (NPCE) a Good Investment?
NeuroPace exhibits strong top-line growth (+25.1% YoY) with exceptional gross margins (81.8%), indicating product-market fit in the neurostimulation space. However, the company faces severe profitability and cash generation challenges: operating cash flow is deeply negative (-5.9M), net margins are -30.3%, and the high debt-to-equity ratio (4.08x) with 59M in long-term debt leaves minimal financial flexibility. With negative interest coverage and no visible path to profitability, the company's growth quality is poor.
NeuroPace delivers strong 25% revenue growth with a premium 77% gross margin, signaling solid product traction and attractive unit economics. Yet persistent operating losses, negative free cash flow, and high leverage create execution and refinancing risk until scale improves profitability.
Why Buy NeuroPace Inc Stock? NPCE Key Strengths
- Strong revenue growth of 25.1% YoY demonstrates market demand for products
- Exceptional gross margin of 81.8% indicates strong pricing power and product viability
- Excellent liquidity position with 5.38x current ratio and 14.8M cash provides operational runway
- Robust top-line growth (+25% YoY)
- Very high gross margin supporting operating leverage potential
- Ample liquidity with >4x quick ratio and low capex needs
NPCE Stock Risks: NeuroPace Inc Investment Risks
- Deeply unprofitable with -30.3% net margin and negative operating cash flow of -5.9M
- Extremely high leverage with 4.08x debt-to-equity ratio and negative interest coverage (-2.5x), limiting financial flexibility
- No visible path to profitability; growth is not translating to bottom-line improvement and company remains cash flow negative
- High leverage (Debt/Equity ~3.1x) with negative interest coverage
- Continuing operating losses and negative free cash flow
- Thin equity base increases solvency and dilution risk
Key Metrics to Watch
- Operating cash flow trend and timeline to cash flow breakeven
- Operating margin progression toward profitability
- Debt refinancing risk and covenant compliance given negative interest coverage
- Operating margin
- Interest coverage
NeuroPace Inc (NPCE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.38x current ratio provides a solid financial cushion.
NPCE Profit Margin, ROE & Profitability Analysis
NPCE vs Healthcare Sector: How NeuroPace Inc Compares
How NeuroPace Inc compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NeuroPace Inc Stock Overvalued? NPCE Valuation Analysis 2026
Based on fundamental analysis, NeuroPace Inc shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NeuroPace Inc Balance Sheet: NPCE Debt, Cash & Liquidity
NPCE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: NeuroPace Inc's revenue has grown significantly by 121% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.93 indicates the company is currently unprofitable.
NPCE Revenue Growth, EPS Growth & YoY Performance
NPCE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $22.1M | -$6.6M | $-0.20 |
| Q3 2025 | $21.1M | -$3.5M | $-0.11 |
| Q2 2025 | $19.3M | -$6.6M | $-0.26 |
| Q1 2025 | $18.1M | -$6.6M | $-0.21 |
| Q3 2024 | $16.4M | -$5.5M | $-0.19 |
| Q2 2024 | $16.5M | -$7.5M | $-0.26 |
| Q1 2024 | $14.5M | -$8.9M | $-0.32 |
| Q3 2023 | $11.2M | -$7.3M | $-0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NeuroPace Inc Dividends, Buybacks & Capital Allocation
NPCE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for NeuroPace Inc (CIK: 0001528287)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NPCE
What is the AI rating for NPCE?
NeuroPace Inc (NPCE) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NPCE's key strengths?
Claude: Strong revenue growth of 25.1% YoY demonstrates market demand for products. Exceptional gross margin of 81.8% indicates strong pricing power and product viability. ChatGPT: Robust top-line growth (+25% YoY). Very high gross margin supporting operating leverage potential.
What are the risks of investing in NPCE?
Claude: Deeply unprofitable with -30.3% net margin and negative operating cash flow of -5.9M. Extremely high leverage with 4.08x debt-to-equity ratio and negative interest coverage (-2.5x), limiting financial flexibility. ChatGPT: High leverage (Debt/Equity ~3.1x) with negative interest coverage. Continuing operating losses and negative free cash flow.
What is NPCE's revenue and growth?
NeuroPace Inc reported revenue of $22.1M.
Does NPCE pay dividends?
NeuroPace Inc does not currently pay dividends.
Where can I find NPCE SEC filings?
Official SEC filings for NeuroPace Inc (CIK: 0001528287) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NPCE's EPS?
NeuroPace Inc has a diluted EPS of $-0.20.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NPCE a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, NeuroPace Inc has a SELL rating with 66% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NPCE stock overvalued or undervalued?
Valuation metrics for NPCE: ROE of -46.3% (sector avg: 15%), net margin of -30.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy NPCE stock in 2026?
Our dual AI analysis gives NeuroPace Inc a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NPCE's free cash flow?
NeuroPace Inc's operating cash flow is $-5.9M, with capital expenditures of $117.0K. FCF margin is -27.3%.
How does NPCE compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -30.3% (avg: 12%), ROE -46.3% (avg: 15%), current ratio 5.38 (avg: 2).
Is NeuroPace Inc carrying too much debt?
NPCE has a debt-to-equity ratio of 4.08x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 5.38 suggests adequate short-term liquidity.