--Revenue expected to be approximately $100.0 million in FY 2025, representing growth of 25%--

--Revenue expected to be approximately $26.6 million in Q4 2025, representing growth of 24%--

-- 2026 guidance assumes 20% to 22% growth in core RNS revenue from existing indications, excluding any contribution from idiopathic generalized epilepsy (IGE)--

--IGE is expected following potential approval in the second half of 2026--

NeuroPace, Inc. (NASDAQ:NPCE), a medical device company focused on transforming the lives of people living with epilepsy, today reported preliminary unaudited results for the fourth quarter ended December 31, 2025 with total revenue of approximately $26.6 million, an increase of 24% over the fourth quarter of 2024. RNS revenue is expected to be approximately $22.4 million, representing growth of 26% over the fourth quarter of 2024. Cash equivalents and short-term investments balance as of December 31, 2025 was $61.1 million, a $1.1 million increase compared with $60.0 million at the end of the third quarter 2025.

For full year 2025, total preliminary unaudited revenue is expected to be approximately $100 million, an increase of 25% over 2024. RNS revenue for full year 2025 is expected to be approximately $81.7 million, representing growth of 25% over the full year 2024.

"2025 was an important year for NeuroPace as we delivered strong growth, strengthened the core RNS business, and advanced our strategic priorities," said Joel Becker, Chief Executive Officer of NeuroPace. "Our preliminary results reflect robust demand for RNS, disciplined execution, and a business that is increasingly focused on high margin, high impact personalized neuromodulation. As we look to 2026, we believe we are very well positioned to drive durable growth, expand access to RNS therapy in existing and new indications, and continue progress toward our long-term profitability objectives."

Discontinued Operations

NeuroPace and DIXI Medical entered into an amendment to the Distribution Agreement to end the wind down period and cease commercial partnership activities on December 31, 2025, earlier than the previously agreed wind down period ending March 31, 2026. Under the amended wind down plan, NeuroPace is currently selling back, at cost, the remaining DIXI inventory to DIXI Medical, which is expected to be completed prior to the close of the first quarter 2026.

Accordingly, the Company expects to begin reporting its DIXI related financial results as a discontinued operation beginning with its first quarter 2026 financial results, and in accordance with U.S. GAAP, the Company's continuing operations basis will exclude the impact of DIXI for both the 2026 reporting period and the applicable comparable periods presented.

A supplemental financial schedule with preliminary unaudited DIXI related profit and loss results is currently available on the NeuroPace website at www.investors.neuropace.com.

2026 Outlook

The Company currently anticipates 2026 total revenue of $98 million to $100 million, which contemplates growth of 20% to 22% for the underlying core RNS business compared to preliminary unaudited 2025 RNS revenue. Revenue for the first quarter of 2026 is expected to be approximately $21 million to $22 million.

In the fourth quarter of 2025, the Company filed a Premarket Approval Supplement (PMA-S) application to the U.S. Food and Drug Administration (FDA) seeking to expand the labeled indication for its RNS System to include patients with antiseizure-medication (ASM) resistant idiopathic generalized epilepsy (IGE) with generalized tonic-clonic seizures. Under current FDA guidelines, PMA supplements are typically reviewed within approximately 180 days, although actual review times may vary. The Company's 2026 revenue guidance assumes no contribution from expanded indications such as IGE, Service revenue or sales of DIXI products.

2026 gross margin is expected to be in the range of 81% to 82% compared to full year 2025 preliminary unaudited gross margin of 77.2%. Gross margin on a continuing operations basis, excluding the impact of DIXI, is expected to be approximately 82% in full year 2025 on a preliminary unaudited basis.

Fourth Quarter 2025 Financial Results Conference Call

The Company plans to release its fourth quarter and full year 2025 financial results and additional full year 2026 operating expense guidance in early March 2026. The preliminary unaudited revenue amounts for the fourth quarter and full year 2025 included in this press release are being provided prior to the completion of review and audit procedures by the Company's independent registered public accounting firm and are therefore subject to adjustment. More details will be provided at a later date.

About NeuroPace, Inc.

Based in Mountain View, Calif., NeuroPace is a medical device company focused on transforming the lives of people living with epilepsy by reducing or eliminating the occurrence of debilitating seizures. Its novel and differentiated RNS System is the first and only commercially available, brain-responsive platform that delivers personalized, real-time treatment at the seizure source. This platform can drive a better standard of care for patients living with drug-resistant epilepsy and has the potential to offer a more personalized solution and improved outcomes to the large population of patients suffering from other brain disorders.

Forward Looking Statements

This press release may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "aims," "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "intends," "may," "plans," "possible," "potential," "seeks," "will" and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. NeuroPace may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding: preliminary financial results for the fourth fiscal quarter and full year 2025; expectations regarding the Company's future revenue and growth based on a continued operations basis without DIXI Medical revenue; NeuroPace's expectations, forecasts and beliefs with respect to potential indication expansion for its RNS System and its software, technology and other product development efforts; increasing access to and adoption of RNS therapy as the standard of care in drug-resistant epilepsy; NeuroPace's continued execution on its long-term revenue growth strategy, including with respect to sustained revenue growth and long-term value creation. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including: actual operating results may differ significantly from any guidance provided; uncertainties related to market acceptance and adoption of NeuroPace's RNS System and impacts to NeuroPace's revenue for 2026 and in the future; risks that NeuroPace's operating expenses could be higher than anticipated and that it could use its cash resources sooner than expected; risks that NeuroPace's gross margin may be lower than forecast; risks related to the pricing of the RNS System and availability of adequate reimbursement for the procedures to implant the RNS System and for clinicians to provide ongoing care for patients treated with the RNS System; risks related to regulatory compliance and expectations for regulatory approvals to expand the market for NeuroPace's RNS System, including risks related to the NAUTILUS submission; risks related to product development, including risks related to the development of AI-powered software, including NeuroPace AI™ and Seizure ID™ and the next generation device platform; risks related to NeuroPace's reliance on contractors and other third parties, including single-source suppliers and vendors; and other important factors. These and other risks and uncertainties include those described more fully in the section titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in NeuroPace's public filings with the U.S. Securities and Exchange Commission (SEC), including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, filed with the SEC on November 4, 2025, as well as any other reports that it may file with the SEC in the future. Forward-looking statements contained in this announcement are based on information available to NeuroPace as of the date hereof. NeuroPace undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing NeuroPace's views as of any date subsequent to the date of this press release and should not be relied upon as a prediction of future events. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of NeuroPace.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260113401077/en/

Investor Contact:

Scott Schaper

Head of Investor Relations

sschaper@neuropace.com

investors@neuropace.com