NeuroPace, Inc. (NPCE): Business Model Canvas [Dec-2025 Updated]

You're digging into NeuroPace, Inc. right now, likely trying to make sense of their focused strategy as they exit 2025. Honestly, the pivot to the high-margin RNS System is working: they posted a Q3 gross margin of 77.4% and are guiding for full-year revenue between $97 million and $98 million, all while sitting on $60 million in cash as of Q3. This isn't just about selling a device; it's about owning the closed-loop data stream that delivers an 82% median seizure reduction for patients. See how the pieces fit together in their Business Model Canvas below.

NeuroPace, Inc. (NPCE) - Canvas Business Model: Key Partnerships

You're looking at the external relationships that fuel NeuroPace, Inc.'s growth, especially as they push for label expansion and new AI tools. Honestly, these alliances are critical for validating the RNS System's long-term value beyond its initial focal epilepsy indication.

Clinical collaborations with major epilepsy centers (Level 4 centers)

The credibility of the RNS System is built in top-tier centers. The Post-Approval Study (PAS) itself involved a significant network, enrolling 324 patients across 32 centers to generate the long-term evidence presented at the American Academy of Neurology (AAN) 2025 meeting. This network forms the backbone for adoption and future trial recruitment.

• PAS enrolled 324 patients across 32 centers.
• Three-year PAS data showed an 82% median reduction in seizures for focal epilepsy patients.
• 42% of PAS patients achieved seizure freedom for 6+ months at the 3-year mark.

Data partnerships with pharmaceutical companies like UCB and Rapport

NeuroPace, Inc. is actively leveraging its proprietary intracranial EEG (iEEG) data stream with pharma partners. Management confirmed that partnerships, referencing Rapport and UCB, are ramping up as of late 2025. The collaboration with Rapport Therapeutics is a prime example, where RNS System data is being used to assess the drug candidate RAP-219 in a Phase 2a trial for drug-resistant focal onset seizures.

Here's a quick look at the data utilization in that specific partnership:

Collaboration with Seizure Tracker™ for the nSight patient data platform

While a direct, named partnership with Seizure Tracker™ for a platform wasn't explicitly detailed in recent financial reports, NeuroPace, Inc.'s internal data strategy points to a similar goal: enhancing data utility. The company submitted Seizure ID™, the first of its planned NeuroPace AI™ applications, to the FDA for approval. This tool is explicitly built on years of proprietary, patient-level brain data captured through the RNS System, showing a commitment to turning raw data into actionable clinical insights.

Strategic suppliers for specialized implantable device components

The high gross margin of 77.4% reported in Q3 2025 suggests NeuroPace, Inc. has secured favorable terms or efficiencies with its supply chain. Maintaining this margin, while increasing full-year revenue guidance to between $97 million and $98 million, requires stable, cost-effective sourcing for the specialized components of the RNS System. The company is focused on scaling RNS revenue, which grew 31% year-over-year in Q3 2025 to $22.6 million.

Academic and research institutions for clinical trials (e.g., NAUTILUS)

The drive for label expansion into Idiopathic Generalized Epilepsy (IGE) relies heavily on academic and research partnerships. The NAUTILUS pivotal study is the first-and-only randomized controlled trial for neuromodulation in IGE. NeuroPace, Inc. remains on track to submit the Premarket Approval Supplement (PMA-S) to the FDA for this indication by year-end 2025. The 18-month preliminary results highlighted a clinically meaningful 79% median GTC seizure reduction at 12 months in the IGE population, a result achieved through rigorous academic collaboration.

• NAUTILUS trial met its 12-week post-implant primary safety endpoint.
• The company is also developing next-generation tools, citing ongoing clinical trials for pediatric indications.

NeuroPace, Inc. (NPCE) - Canvas Business Model: Key Activities

You're looking at the core engine driving NeuroPace, Inc. (NPCE) right now, which is all about execution on the RNS System and pushing the next wave of data-driven therapy. The key activities are where the money is spent and where the future growth is being built, so let's look at the numbers from late 2025.

Manufacturing and quality control of the RNS System neurostimulator

Manufacturing efficiency is clearly paying off, which you can see in the margin expansion. For the third quarter of 2025, the company delivered a strong gross margin of 77.4%. This improvement year-over-year is attributed to increasing revenue contribution from the higher-margin RNS revenue, a benefit from improved manufacturing efficiency, and favorable pricing. Looking ahead, NeuroPace increased its full year 2025 gross margin guidance to between 76% and 77%.

Here's a quick look at the margin performance:

If onboarding takes 14+ days, churn risk rises, but these margins suggest the production line is humming along nicely.

Research and development of next-generation platforms and AI-enabled tools

The investment in R&D is focused on future differentiation, specifically around AI. Research and development expense in the third quarter of 2025 was $6.6 million, which is an increase from $5.8 million in the third quarter of 2024. This spending is tied to the development of a next-generation platform and AI-enabled tools. These tools, like SeizureID™, are being designed to transform intracranial EEG (iEEG) recordings into actionable insights.

Clinical training and support for neurosurgeons and epileptologists

Supporting the clinical community is key to adoption, and NeuroPace is heavily featuring its evidence base. The company planned to provide updated data from the NAUTILUS clinical trial, which evaluates RNS therapy for idiopathic generalized epilepsy (IGE), including 18-month preliminary safety and efficacy outcomes at the 2025 American Epilepsy Society (AES) Annual Meeting. Furthermore, they are demonstrating Neuropace AI and SeizureID tools at AES 2025 to illustrate how iEEG insights can streamline clinic workflows. The RNS System Post-Approval Study (PAS) data, showing an 82% median reduction in seizures at 3 years, is central to this educational push.

Direct sales and marketing to drive adoption in drug-resistant epilepsy

Driving adoption means spending on commercial scaling. Sales and marketing expense in the third quarter of 2025 hit $12.6 million, up from $9.9 million in the third quarter of 2024. This increase is linked to personnel scaling, direct-to-consumer marketing, and other sales-related expenses. The core RNS System revenue responded well, growing 31% year-over-year in Q3 2025 to reach $22.6 million. Overall, the company raised its full year 2025 total revenue guidance to between $97 million and $98 million.

Sales momentum metrics for the RNS System:

• RNS System revenue in Q3 2025: $22.6 million.
• RNS System revenue growth in Q3 2025: 31% year-over-year.
• Total company revenue in Q3 2025: $27.4 million.
• Total operating expenses in Q3 2025: $23.8 million.

Regulatory compliance and securing new FDA indications (e.g., IGE)

Regulatory milestones are a critical activity for expanding the market. Management confirmed that plans remain on track to submit the PMA supplement for NAUTILUS, which is evaluating the RNS therapy in IGE, before year-end 2025. However, the submission timeline for the pediatric indication will extend beyond 2025. The RNS System itself is currently FDA approved for drug-resistant focal epilepsy (DRE) in individuals 18 years or older as a supplemental therapy. The company is also managing the wind-down of DIXI sales, which were approximately $4 million in Q3 2025, with sales expected to be substantially done by the end of 2025.

Finance: draft 13-week cash view by Friday.

NeuroPace, Inc. (NPCE) - Canvas Business Model: Key Resources

You're looking at the core assets NeuroPace, Inc. relies on to execute its strategy in late 2025. These aren't just line items; they are the engine for their differentiated value proposition in neuromodulation.

Proprietary RNS System (Responsive Neurostimulation) technology.

The RNS System is the first and only commercially available, brain-responsive platform delivering personalized, real-time treatment directly at the seizure source. This closed-loop system is a significant barrier to entry for competitors. The physical hardware itself is compact, with the neurostimulator measuring 60 x 27.5 x 7.5 mm, designed for cranial implantation. Internally, the device uses four user-configurable differential amplifiers to continuously monitor electrographic activity.

Extensive, unique database of intracranial EEG (iEEG) data.

The longitudinal, real-world iEEG data collected by the deployed RNS Systems is a massive, non-replicable asset fueling their AI development. As of July 2023, the company had captured over 10 million iEEG records from more than 4,500 patients. This dataset allows for the refinement of AI tools like SeizureID, which turns raw data into actionable insights for clinicians.

Patents and intellectual property protecting the closed-loop neuromodulation.

Intellectual property provides the necessary exclusivity to protect the investment in the RNS System and the data platform. The protection covers both the hardware and the data management infrastructure.

Other patents are or may be pending, reinforcing the defensive moat around the technology.

Specialized direct sales and clinical support personnel.

Scaling the adoption of a complex, implanted medical device requires a highly specialized team. The investment in this human capital is evident in operating expenses, which are increasing to support commercial scale. The company's total workforce grew to approximately 236 employees as of October 2025, up from 184 employees at the end of 2024. This team drives revenue through specialized commercial activities.

• Personnel costs are a key driver of operating expense growth.
• Sales and marketing expense reached $12.0 million in the second quarter of 2025.
• The team provides extensive training for surgical implantation and clinical programming.

Cash and short-term investments of $60 million (Q3 2025).

The balance sheet provides the runway to fund operations and R&D until cash flow breakeven. As of September 30, 2025, NeuroPace, Inc. maintained $60.0 million in cash, cash equivalents, and short-term investments. This figure was slightly down from $62.1 million at the end of the prior quarter, Q2 2025.

NeuroPace, Inc. (NPCE) - Canvas Business Model: Value Propositions

You're looking at what makes NeuroPace, Inc. stand out in the medical device space, specifically what they offer to patients and physicians. Honestly, the value proposition centers on data-driven, personalized therapy that changes the standard of care for drug-resistant epilepsy.

The core offering is personalized, real-time seizure treatment delivered right at the seizure source via a closed-loop system. This is the first and only FDA-approved epilepsy device that provides this brain-responsive neurostimulation. It's designed to respond to the patient's abnormal brain events as they happen.

The clinical results from the Post-Approval Study (PAS) are the hard numbers backing this up. You need to see these figures:

This therapy is also minimally invasive and offers fewer stimulation-related side effects when compared to other neuromodulation options. Plus, the system generates detailed intracranial EEG (iEEG) data. This data is crucial; it helps physicians make more informed treatment decisions. The company is even using this data to fuel AI-driven tools, like NeuroPace AI and SeizureID, designed to turn iEEG recordings into actionable insights for clinicians.

The potential for market expansion is significant, particularly into Idiopathic Generalized Epilepsy (IGE). Preliminary data from the NAUTILUS study for IGE therapy is showing promising results for generalized tonic-clonic (GTC) seizures:

• Median GTC seizure reduction of 79% at 12 months.
• Data at 18 and 24 months currently indicate better than 80% median GTC seizure reduction.
• NeuroPace plans to submit the NAUTILUS PMA Supplement to the FDA for IGE indication expansion by year-end 2025.

For context on the commercial momentum supporting these value propositions, NeuroPace reported Q3 2025 total revenue of $27.4 million, a 30% year-over-year growth, and increased full-year 2025 revenue guidance to between $97 million and $98 million. The gross margin hit 77.4% in Q3 2025.

Finance: draft 13-week cash view by Friday.

NeuroPace, Inc. (NPCE) - Canvas Business Model: Customer Relationships

You're looking at how NeuroPace, Inc. nurtures its relationship with the key players-the implanting physicians and the patients who rely on the RNS System. This isn't a simple transaction; it's a long-term clinical partnership.

For implanting physicians, the relationship starts with high-touch clinical support and training. NeuroPace, Inc. emphasizes generating high-quality evidence to enable these clinicians to provide more confident, data-informed care. The educational infrastructure supporting this includes specific offerings like RNS System Education, Fellows Education, and dedicated Programming Resources, alongside general Webinars. This commitment to provider education helps ensure the system is used effectively post-implant.

Post-implant management relies heavily on the data ecosystem, which supports the role of what would be dedicated field clinical specialists, even if specific specialist headcount isn't public. The RNS System continuously monitors brain activity, recording intracranial EEG (iEEG) data. This data is transferred by the patient to the Tablet Remote Monitor (TRM), which then uploads it to a secure database. This mechanism directly supports ongoing care, as the RNS System data can be securely accessed online to review patient progress anytime, anywhere, which helps support telehealth visits. Furthermore, NeuroPace, Inc. has established an established reimbursement code for Remote iEEG Review, making this ongoing support financially viable for providers.

Patient support programs are a clear driver for both awareness and referrals. Project CARE is a key initiative here, and its momentum is building; the contribution from Project CARE showed an increasing sequential contribution in the third quarter of 2025 compared with the second quarter of 2025. This effort is strategically paired with direct-to-consumer marketing initiatives, which are a significant component of the Sales and Marketing spend. For the second quarter of 2025, Sales and Marketing expense totaled $12.0 million.

The remote monitoring and programming capabilities are central to the ongoing relationship, moving care beyond the clinic walls. The next-generation nSight Platform is designed to simplify the data experience for physicians, presenting a concise, customized report that integrates information from multiple sources, including digital seizure diaries. This allows clinicians to identify patient-specific insights to optimize care through behavioral counseling and programming changes. The introduction of features like Simple Set Programming streamlines the physician's workflow by allowing pre-establishment of complete programming sets before a clinic visit.

To give you a snapshot of the scale of the customer base being managed through these relationships as of late 2025, look at these key operational figures:

The focus on data-driven remote management is a clear differentiator. The ability to review patient data online supports the goal of becoming the neuromodulation category leader in efficiency and ease of use with AI Tools and Remote Programming, a stated three-year strategic objective. If onboarding takes 14+ days, churn risk rises, so streamlining this initial clinical relationship is defintely critical.

Finance: review Q3 2025 Sales & Marketing spend against the stated goal of expanding awareness by Friday.

NeuroPace, Inc. (NPCE) - Canvas Business Model: Channels

The channels NeuroPace, Inc. uses to reach its customer segments are directly tied to the high-touch nature of implantable medical devices and physician education.

Direct sales force targeting specialized epilepsy treatment centers.

The core commercial engine relies on direct engagement, evidenced by the investment in personnel and the resulting revenue generation.

• Sales and Marketing Expense in Q3 2025 was $12.6 million.
• Sales and Marketing Expense in Q2 2025 was $12.0 million.
• The company cited growth driven by increased commercial activity and broader prescriber engagement.
• Growth is supported by the impact of Project CARE, which increases site engagement and implant volumes.
• The RNS System is substantially sold to hospital facilities, typically designated as Level 4 CECs.

Hospital and surgical center procurement departments.

The direct sales force navigates the formal purchasing structures within healthcare facilities to secure adoption of the RNS System.

Online physician portal (nSight Platform) for data review.

The nSight Platform serves as a critical post-sale channel for ongoing physician engagement and patient management, turning recorded data into actionable insights.

• The platform summarizes electrographic detail and historical data to inform programming decisions.
• It integrates information from multiple sources, including PDMS and digital patient seizure diaries like Seizure Tracker.
• The platform provides access to reports such as the Patient nSight Report and Clinic Dashboard Center Report.
• The portal is intended for use by clinicians trained on the RNS System, providing retrospective data.

Direct-to-consumer digital and traditional advertising.

While the primary focus remains on physician adoption, NeuroPace has stated plans for broader awareness campaigns.

• A stated three-year strategic objective is to significantly expand patient and referral awareness through direct-to-consumer campaigns.

Clinical education and professional society conferences.

Scientific exchange at major meetings is a key channel for validating the technology and driving prescriber adoption.

NeuroPace, Inc. (NPCE) - Canvas Business Model: Customer Segments

You're looking at the core groups NeuroPace, Inc. (NPCE) targets to drive its business, which is all about getting the RNS® System to the right patients and centers. The numbers from late 2025 show real traction in these segments.

Patients with drug-resistant focal epilepsy who have failed multiple medications

This is the primary patient pool. Drug-resistant epilepsy (DRE) is a significant unmet medical need, affecting approximately 1.2 million people in the U.S., representing up to 30-40% of all epilepsy diagnoses. The RNS System is FDA approved as a supplemental therapy for individuals 18 years of age or older. As of the data presented in 2025, over 6,500 individuals in the United States have experience with the RNS System. The clinical evidence supporting this segment is strong; three-year data from the Post-Approval Study (PAS) showed an 82% median reduction in seizures at 3 years, with 42% of patients achieving seizure freedom for 6+ months.

The key patient profile is one who has exhausted other options. Here's a snapshot of the clinical value proposition for this segment:

• Median seizure reduction at 3 years: 82%.
• Patients seizure-free for 6+ months: 42%.
• Current U.S. patient experience base: Over 6,500 individuals.
• Target population size (DRE in U.S.): Approximately 1.2 million.

Epileptologists and neurosurgeons at Level 4 Epilepsy Centers

These are the key prescribers and centers of excellence where the RNS System is implanted. NeuroPace, Inc. achieved record highs in the number of prescribers and active accounts during the third quarter of 2025. The company is working to establish the RNS System as the standard of care in drug-resistant epilepsy, which requires deep engagement with these specialists. The clinical validation for these centers comes from large trials; for instance, the PAS enrolled 324 patients from 32 centers. The company is also advancing regulatory milestones, remaining on track to submit the NAUTILUS PMA Supplement to the FDA for the idiopathic generalized epilepsy (IGE) indication expansion by year-end 2025, which will broaden the appeal to these specialized centers.

Neurologists and referring physicians in the broader community

This group serves as the crucial referral source, feeding patients into the specialized Level 4 centers. While direct financial data for this segment isn't segmented out, the overall commercial momentum reflects their growing role. Total revenue for NeuroPace, Inc. hit $27.4 million in Q3 2025, a 30% year-over-year growth, with RNS System revenue alone at $22.6 million, up 31%. The management team is confident in a long-term growth trajectory of a minimum of 20% in the core RNS business, which relies on broader community awareness and referral patterns. Sales and marketing expense in Q3 2025 was $12.6 million, reflecting investment in scaling commercial activities that target this wider physician base.

Clinical-stage biotechnology companies for data collaboration

This segment provides a secondary, high-margin revenue stream based on the unique data asset NeuroPace, Inc. collects. Research service revenue, derived from these collaborations, contributed approximately $770,000 in the third quarter of 2025. This data is proprietary, patient-level brain data captured through the RNS System, which is foundational for developing AI-enabled tools like Seizure ID™, which was submitted to the FDA for approval in Q3 2025. The gross margin for the total company in Q3 2025 was a strong 77.4%, and the RNS segment margins are expected to remain above 80% moving into 2026, suggesting data services are a high-value component.

Here's how the financial performance ties to the data collaboration segment:

If you're tracking the business model, you see the core device sales driving the bulk, but the data partnerships are a clean, high-margin component. Finance: draft 13-week cash view by Friday.

NeuroPace, Inc. (NPCE) - Canvas Business Model: Cost Structure

You're looking at the cost side of the NeuroPace, Inc. (NPCE) equation, which is heavily weighted toward innovation and commercial expansion, typical for a complex implantable medical device maker. The nature of the RNS System-a brain-responsive platform-means that even with strong manufacturing efficiencies, the cost to produce and deliver that technology is significant.

To give you a clear picture of the cost base as of late 2025, here are the key operating expense figures from the third quarter ended September 30, 2025. Honestly, the gross margin shows they are managing product costs well, but the operating expenses are where the growth investment is concentrated.

The high cost of goods sold (COGS) is implied by the device complexity, though the company reported a strong Q3 2025 gross margin of 77.4%, which is up from 73.2% in Q3 2024. This margin improvement is driven by increasing revenue from the higher-margin RNS System and manufacturing efficiencies. Still, for every dollar of revenue, about 22.6% went to COGS in that quarter.

Sales and Marketing expenses are substantial, hitting $12.6 million in Q3 2025. This reflects the ongoing scaling of commercial activities necessary to drive adoption of the RNS System. You can see the full-year expectation is now between $47 million and $48 million, which is slightly up due to performance-based variable compensation.

Research and Development (R&D) investment remains a core cost driver, reported at $6.6 million for the quarter. This is a deliberate spend to secure future value. The R&D spend is funding critical, forward-looking projects.

Personnel-related costs are a major component across the board, especially with the scaling commercial team and R&D efforts. Stock-based compensation, a non-cash expense, was $2.6 million in Q3 2025 alone, with the full-year 2025 expectation set around $11 million. This is how NeuroPace, Inc. compensates key talent driving these complex initiatives.

Clinical trial and regulatory submission costs are embedded within R&D, but they represent specific, lumpy expenditures. The company confirmed its timeline remains on track to submit the PMA supplement for the NAUTILUS indication expansion before the end of 2025. This submission is a direct result of the investment in clinical trials.

Here's a quick look at what is driving the R&D investment:

• Development of a next-generation platform.
• Investment in AI-enabled tools, including NeuroPace AI™ and Seizure ID™.
• Funding for ongoing clinical trials, like the one supporting the NAUTILUS submission.

Finance: draft 13-week cash view by Friday.

NeuroPace, Inc. (NPCE) - Canvas Business Model: Revenue Streams

You're looking at how NeuroPace, Inc. is bringing in the cash as we head into the final quarter of 2025. The story here is a clear pivot toward the high-margin, core product, the RNS System, while intentionally winding down a lower-margin legacy stream.

The primary engine for revenue is definitely the sales of the RNS System, which includes the neurostimulator and the leads. This is where the real value is, and it shows in the margins. For the third quarter of 2025, RNS System sales hit $22.6 million, marking a 31% jump year-over-year. To be fair, the company is seeing strong momentum across geographies, accounts, and utilization for this core product.

This focus is driving the overall financial picture. NeuroPace, Inc. increased its full-year 2025 revenue guidance to a range of $97 million to $98 million. That new guidance reflects expected year-over-year growth of 21% to 23%.

The quality of that revenue is just as important as the amount. The total company gross margin for Q3 2025 came in strong at 77.4%. Management has since raised the full-year 2025 gross margin guidance to 76% to 77%. The RNS System segment itself is carrying the weight, with its gross margin consistently reported as above 80%.

Here's a quick look at the revenue breakdown from that strong third quarter:

You'll notice the DIXI product revenue stream is on its way out. The company is phasing out this lower-margin distribution revenue, which carries margins of sub-50%. While Q3 saw about $4 million from DIXI sales, management stated they expect to be substantially done with those sales by the end of 2025. This exit is a key driver for the projected gross margin improvement in 2026, which is expected to be greater than 80% once DIXI is fully out of the mix.

Beyond the hardware sales, NeuroPace, Inc. also generates revenue from its proprietary data:

• Research service revenue from data collaborations was approximately $770,000 in Q3 2025.
• The company projects similar service revenue, around $0.75 million, for the fourth quarter of 2025.

Finance: draft 13-week cash view by Friday.