NeuroPace Q3 revenue misses analyst estimates, dragged by account-level issues
Overview
U.S. epilepsy device maker's Q3 revenue declined 1% yr/yr, missing analyst expectations
Company narrowed Q3 net loss compared to prior year
NeuroPace cut full-year 2026 revenue guidance, citing account-level disruptions and field changes
Outlook
NeuroPace cuts 2026 revenue guidance to $91 mln-$92 mln from $99.5 mln-$101.5 mln
Company raises 2026 non-GAAP gross margin outlook to 83.0%-83.5% from 82.0%-83.0%
NeuroPace lowers 2026 non-GAAP operating expense forecast to $85 mln-$86 mln from $90 mln-$92 mln
Result Drivers
ACCOUNT-LEVEL DISRUPTIONS - Co said Q3 revenue shortfall was concentrated in several large accounts and reflected isolated account-level issues and field organization changes
COMMERCIAL EXECUTION - Co said it is taking action to improve commercial execution and return to historical growth rates
LOWER PERSONNEL COSTS - Decline in operating expenses was largely due to decreased personnel-related expenses, including sales commissions and variable compensation
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $23.10 mln | $27.16 mln (10 Analysts) |
Q3 Loss Per Share | $0.10 | ||
Q3 Net Loss | $3.30 mln | ||
Q3 Gross Profit | $19.47 mln | ||
Q3 Operating Expenses | $21.55 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"
Wall Street's median 12-month price target for NeuroPace, Inc. is $20.00, about 59.7% above its November 11 closing price of $12.52
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)