NeuroPace (NPCE) opened 2026 with Q1 revenue of US$22.1 million and a basic EPS loss of US$0.20, as net income excluding extra items came in at a loss of US$6.7 million. This provides a clear starting point for how the year is shaping up. The company reported quarterly revenue moving from US$22.5 million in Q1 2025 to US$26.6 million in Q4 2025, with basic EPS losses ranging between US$0.26 and US$0.08 over that period. Trailing twelve month revenue reached US$99.5 million against a net loss of US$21.6 million, leaving margins under pressure even as top line scale increases.

See our full analysis for NeuroPace.

With the latest numbers available, the next step is to compare them with the key market narratives around growth, profitability and risk to see which views are supported and which may need to be reconsidered.

Losses Stay Elevated Around US$6.7 Million

• Net income excluding extra items for Q1 2026 was a loss of US$6.7 million, similar to the US$6.6 million loss in Q1 2025 and within a trailing twelve month loss of US$21.6 million.
• Bears argue that continued losses and the forecast for the company to remain unprofitable over the next three years put real pressure on the long term story,
  • Trailing twelve month EPS is a loss of US$0.65 while quarterly EPS losses over the last year ranged from US$0.26 to US$0.08, so profitability has not yet turned the corner.
  • Forecasts still call for the business to stay in the red, which lines up with the bearish view that ongoing investment and costs could keep net margin under strain.

Bears point to these sustained losses as a sign that the turnaround could take longer than some expect. It can be useful to see how that thesis is laid out in detail in the 🐻 NeuroPace Bear Case.

Revenue Near US$100 Million, Still Paired With Losses

• On a trailing twelve month basis, NeuroPace generated US$99.5 million of revenue against a net loss of US$21.6 million, and Q1 2026 revenue of US$22.1 million sat slightly below the US$26.6 million recorded in Q4 2025.
• Consensus narrative highlights revenue growth potential from epilepsy center adoption and Project CARE, and the current numbers give a mixed read through that lens,
  • Trailing twelve month revenue moved from US$79.9 million in Q4 2024 to US$99.5 million in Q1 2026, which lines up with a story focused on expanding the revenue base even while earnings stay negative.
  • At the same time, losses over that trailing period summed to US$21.6 million, so the path that analysts expect toward better margins still has not shown up as profitability in the reported figures.

Rich Sales Multiple Relies On Growth Story

• The stock trades on a P/S of 5.4x compared with 2.7x for the wider US Medical Equipment industry and 3.1x for peers, while the current share price of US$15.81 sits below an analyst price target of US$19.60 and above a DCF fair value estimate of US$11.84.
• Bullish investors point to forecast revenue growth of about 14.7% a year and improving loss trends to justify that higher multiple, yet the data also show why execution really matters,
  • Analysts expect revenue growth faster than the 11.6% figure cited for the broader US market, which heavily supports the bullish idea that a higher than average sales multiple could be earned if that growth is delivered.
  • At the same time, the company is still unprofitable and forecast to remain so over the next three years, which sits uncomfortably with a valuation above DCF fair value and means bulls are leaning on future margin improvement that is not yet in the numbers.

If you want to see how growth forecasts, margin expectations and price targets are stitched together into a fuller upside story, it is worth reading the bullish case set out in the 🐂 NeuroPace Bull Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for NeuroPace on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of risks and rewards here feels finely balanced, this may be a good time to look through the details yourself and decide where you stand using the 3 key rewards and 1 important warning sign.

See What Else Is Out There

NeuroPace is still pairing losses with its nearly US$100 million revenue base, trading on a richer P/S multiple while remaining unprofitable for the foreseeable future.

If you want ideas where pricing looks less demanding relative to the current fundamentals, this is a good moment to scan for 46 high quality undervalued stocks and compare alternatives side by side.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.