Neuropace Inc. Common Stock (NPCE)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach NeuroPace with Graham's caution and Buffett's preference for durable economics. NeuroPace sells the RNS System, an implanted brain-responsive device for drug-resistant focal epilepsy; the clinical need is serious, and the implant may create switching costs, but I cannot see a wide moat in the numbers. In fiscal year 2025, revenue was $100.0M and net loss was $21.5M, or EPS -$0.66. In fiscal year 2024, revenue was $79.9M and net loss was $27.1M; in fiscal year 2023, revenue was $65.4M and net loss was $33.0M. So sales have grown and losses have narrowed. The latest fiscal Q2 2026, the quarter ended 2026-06-30, showed revenue of $22.8M and net loss of $6.2M, or EPS -$0.18, better than the fiscal Q2 2025 quarter ended 2025-06-30, when revenue was $19.5M and net loss was $8.7M. Still, trailing free cash flow was -$11.6M, and the FCF yield was -2.7%. The balance sheet worries me: debt-to-equity was 5.88, ROE -103.27%, ROCE -7.47%, and Altman Z-score -4.18. At the 2026-10-13 close of $12.68, FairStock calculations show market cap of $435.2M, P/B of 36.23, and P/E of -26.98. FairStock Score 39/100 and Piotroski 4/9 do not signal a Graham bargain. The Lynch category is none because losses in each of the last four years rule out his profiles. I see improving revenue and narrowing losses, but no margin of safety in earnings or book value yet. This is a speculative medical-device story, not a proven compounding machine.

In plain English: NeuroPace makes a brain implant system called RNS that treats hard-to-control epilepsy. The company is selling more than before, but it still loses money and burns cash, and it has not earned a profit in at least four years. At $12.68 a share, the price looks expensive for a money-losing company whose accounting value is very small.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer