Myomo Reports Fourth Quarter and Full Year 2025 Financial and Operating Results
MWN-AI** Summary
Myomo, Inc. (NYSE American: MYO) reported its fourth quarter and full year financial results for 2025, reflecting significant progress and ongoing challenges. The company achieved fourth-quarter revenue of $11.4 million, a 6% decline from the prior year, with full-year revenue reaching $40.9 million—up 26% compared to 2024. Recurring patient sources contributed to 42% of fourth-quarter revenue, signaling a strategic shift towards establishing sustainable revenue streams.
In terms of operational milestones, Myomo recorded a record 241 MyoPro authorizations and orders in the fourth quarter. Additionally, 676 new candidates were added to the patient pipeline, suggesting ongoing demand for its wearable medical robotics products that assist individuals with upper-limb paralysis. Myomo emphasized its new marketing strategy, which includes a refreshed approach to patient referrals and social media outreach, aimed at reducing acquisition costs and enhancing brand visibility.
Despite revenue growth, Myomo faced increased operational challenges, reporting a fourth-quarter operating loss of $2.8 million, narrowing from a $0.2 million loss in the same quarter last year. The net loss widened to $3.8 million, compared to a $0.3 million loss in the previous year. The company’s gross margin also decreased to 68.6%, down from 71.4% in the prior year due to higher costs and lower average selling prices.
Looking ahead, Myomo introduced revenue guidance for 2026, estimating between $43 million and $46 million as it intensifies focus on recurring sources of revenue. The company is committed to reducing operational expenses and improving cash flow, aiming for a reduction in cash burn by roughly half compared to 2025. Myomo's management expressed optimism for the impact of new marketing initiatives and strategic partnerships in enhancing business performance in the coming year.
MWN-AI** Analysis
Myomo, Inc.'s recent fourth-quarter and full-year 2025 results highlight both challenges and opportunities for the company as it navigates the evolving landscape of wearable medical robotics. The reported revenue of $11.4 million for Q4 and $40.9 million for the full year reflects a modest decline in quarter-over-quarter sales but a notable 26% year-over-year increase. Of particular interest is the company’s pivot towards recurring patient revenue, which comprised 42% of fourth-quarter earnings, up significantly from 26% a year earlier. This shift indicates a strategic focus that could enhance stability in revenue streams.
Despite strong quarterly authorizations and orders for MyoPro units, the decrease in the average selling price (ASP) and the overall gross margin—down to 68.6% from 71.4% a year prior—may give investors pause. Heightened operational expenses, notably a 19% increase in Q4, can be attributed to expanded marketing and clinical initiatives. However, Myomo's strategic emphasis on relationship-driven growth—especially through the MyoConnect program—could mitigate some of these challenges moving forward.
Looking ahead, Myomo has guided a revenue forecast for 2026 between $43 million and $46 million, which suggests a commitment to improving operational efficiencies and enhancing customer acquisition strategies. The anticipated transition toward lower advertising-driven revenue is a prudent move in today's market where cost-effective growth strategies can provide an edge.
Investors should monitor the successful execution of these initiatives and the effects on both cash flow and net losses, as the company reported a net loss of $15.6 million in 2025. Maintaining focus on its recurring revenue model will be crucial for Myomo's growth trajectory. Overall, a cautious but optimistic approach seems warranted given these developments, coupled with the potential for significant upside should operational improvements materialize effectively.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Fourth quarter revenue of $11.4 million, full year revenue of $40.9 million
42% of fourth quarter revenue from recurring patient sources
Record 241 authorizations and orders in the quarter
Introduces 2026 revenue guidance of $43 million to $46 million as Company emphasizes recurring sources of revenue
Conference call begins today at 4:30pm Eastern time
Myomo, Inc. (NYSE American: MYO) (“Myomo” or the “Company”), a wearable medical robotics company that offers increased functionality for those suffering from neurological disorders and upper-limb paralysis, today reported financial results for the three months and year ended December 31, 2025.
“We delivered 2025 revenue at the midpoint of our updated guidance range with record fourth quarter revenues from the U.S. orthotics and prosthetics ("O&P") and International sales channels. We also achieved our strongest quarter of the year for MyoPro authorizations and orders," said Paul Gudonis, Myomo's Chairman and Chief Executive Officer. "We look forward to improved results from our 2026 marketing initiatives as we place greater emphasis on referrals and other recurring patient sources with a lower customer acquisition cost."
Recent Operational and Strategic Highlights:
- MyoPro Orders, Insurance Authorizations and Pipeline: The 241 MyoPro orders in the fourth quarter represented the strongest quarter of the year, while revenue velocity continued to increase as intra-quarter orders represented 62% of revenue units, up from 57% of revenue units in the third quarter. In the fourth quarter, 676 new candidates were added to the patient pipeline, up 3%, from Q4 2024.
- Recurring Patient Sources: The Company's strategy to grow revenues from recurring sources — U.S. and International O&P providers and referrals from its MyoConnect program — is gaining traction, with two successive quarters of record U.S. O&P and International revenue. With more than 10% of authorizations and orders in the fourth quarter generated by referrals under the MyoConnect program, recurring patient sources represented 42% of fourth quarter revenue, compared with 26% in the prior year quarter.
- New Marketing Strategy: A new advertising agency has been retained to implement a comprehensive social media strategy to support both direct-to-patient advertising as well as the MyoConnect program and O&P channel building efforts. New television and social media ad placements have already been launched.
- Randomized Controlled Trial: The Company is partnering with the University of Utah to conduct a 50-subject randomized controlled trial to evaluate the clinical impact of the MyoPro compared to usual care therapy. Subjects will be followed for six months to assess changes in validated functional outcome measures.
- Improving Gross Margin: Gross margin expanded by 480 basis points sequentially driven by higher sales volume. Efforts are underway to reduce material costs by approximately 20%, with the full benefit from these initiatives expected to be realized by the second half of 2026.
Financial Results
For the Three Months Ended | Period- | For the Year Ended | Period- | |||||||||||||||||||||
2025 | 2024 | $ | % | 2025 | 2024 | $ | % | |||||||||||||||||
Revenue | $ | 11,353,296 | $ | 12,068,456 | $ | (715,160 | ) | (6 | )% | $ | 40,928,042 | $ | 32,551,199 | $ | 8,376,843 | 26 | % | |||||||
Cost of revenue | 3,569,021 | 3,453,224 | 115,797 | 3 | 14,039,718 | 9,365,856 | 4,673,862 | 50 | ||||||||||||||||
Gross profit | $ | 7,784,275 | $ | 8,615,232 | $ | (830,957 | ) | (10 | )% | $ | 26,888,324 | $ | 23,185,343 | $ | 3,702,981 | 16 | % | |||||||
Gross margin | 68.6 | % | 71.4 | % | (2.8 | )% | 65.7 | % | 71.2 | % | (5.5 | )% |
Revenue: Revenue for the fourth quarter of 2025 was $11.4 million, down 6% compared with the fourth quarter of 2024, reflecting a modest decrease in the number of revenue units and a lower average selling price ("ASP"). Myomo recognized revenue on 208 MyoPro units in the quarter, down 5% over the same period a year ago. ASP was approximately $54,600, down 1% versus the comparable period in the prior year. Medicare Part B patients represented 49% of fourth quarter 2025 revenue. 2025 revenue was $40.9 million, up 26% compared with 2024.
Gross Margin: Gross margin for the fourth quarter of 2025 was 68.6%, compared with 71.4% for the fourth quarter of 2024. The decrease was driven primarily by the lower ASP, an unfavorable change in overhead capitalized to inventory compared to the prior year and higher warranty costs. 2025 gross margin was 65.7%, compared with 71.2% for 2024.
Operating Expenses: Operating expenses for the fourth quarter of 2025 were $10.6 million, an increase of 19% compared with the fourth quarter of 2024. The increase was primarily due to higher sales. clinical and marketing spending, including higher advertising expense. Cost per pipeline add was $3,039, up 148% compared with the same period a year ago. A new marketing program supported by a new agency has been implemented for 2026. 2025 operating expenses were $41.3 million, an increase of 40% compared with 2024.
Operating and Net Loss: Operating loss for the fourth quarter of 2025 was $2.8 million, compared with an operating loss of $0.2 million for the fourth quarter of 2024. During the fourth quarter of 2025, the Company incurred $1.0 million in other non-operating expenses, reflecting one-time expenses associated with the refinancing of its debt facility, interest expense and an unfavorable mark-to-market adjustment on derivative liabilities bifurcated from the term loan facility with Avenue Capital. Net loss for the fourth quarter of 2025 was $3.8 million, or $0.09 per share, compared with a net loss of $0.3 million, or $0.01 per share, for the fourth quarter of 2024. Operating loss for 2025 was $14.4 million, compared with an operating loss of $6.2 million for 2024. Net loss for 2025 was $15.6 million, or $0.37 per share, compared with a net loss of $6.2 million, or $0.16 per share, for 2024.
Adjusted EBITDA: Adjusted EBITDA for the fourth quarter of 2025 was $(1.9) million, compared with $0.2 million for the fourth quarter of 2024. Adjusted EBITDA for 2025 was $(11.5) million, compared with $(5.1) million for 2024. A reconciliation of GAAP net loss to this non-GAAP financial measure appears below.
Cash, Cash Equivalents and Cash Flows: Cash, cash equivalents and short-term investments as of December 31, 2025 were $18.4 million. Cash used in operating activities was $1.1 million for the fourth quarter of 2025, compared with $3.4 million generated from operating activities in the fourth quarter of 2024.
Business Outlook
"We expect 2026 to be a transition year as we focus on growing revenues from recurring patient sources, including the U.S and German O&P channels, and generating more referrals from our MyoConnect program, while reducing our dependence on advertising-driven revenue," said Gudonis. "We expect full year 2026 revenue to be in the range of $43 million to $46 million. We also intend to improve operating leverage, and expect the growth of operating expenses to be roughly half of the growth of revenue, while cutting the negative free cash flow, or cash burn, by roughly half compared with 2025. For the first quarter of 2026, we expect our historical seasonal pattern to continue, with revenue in the range of $9.0 million to $9.5 million."
Conference Call and Webcast
Myomo will hold a conference call today at 4:30 p.m. Eastern time to discuss these results and answer questions. Participants are encouraged to pre-register for the call at this link . Callers who pre-register will receive a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time up to and after the start of the call. Those unable to pre-register may participate by dialing 844-707-6932 (U.S.) or 412-317-9250 (International). A webcast of the call will also be available at Myomo’s Investor Relations page at http://ir.myomo.com/ .
A replay of the webcast will be available beginning approximately one hour after the completion of the live conference call at http://ir.myomo.com/ . A dial-in replay of the call will be available until March 23, 2026 at 855-669-9658 (U.S. and Canada toll-free) or 412-317-0088 (International), with passcode 8067458.
Non-GAAP Financial Measures
Myomo is providing financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. This information includes Adjusted EBITDA. This non-GAAP financial measure is not in accordance with, or an alternative for, GAAP and may be different from similar non-GAAP financial measures used by other companies. Myomo believes the use of this non-GAAP financial measure provides supplementary information for investors to use in evaluating operating performance and in comparing Myomo’s financial measures with other companies in its industry, many of which present similar non-GAAP financial measures. Adjusted EBITDA is EBITDA adjusted for stock-based compensation expense. This non-GAAP financial measure is not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP, and should be viewed in conjunction with GAAP financial measures. Investors are encouraged to review the reconciliation of this non-GAAP measure to its most directly comparable GAAP financial measure. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.
About Myomo
Myomo, Inc. is a wearable medical robotics company that offers improved arm and hand function for those suffering from neurological disorders and upper-limb paralysis. Myomo develops and markets the MyoPro product line. MyoPro is a powered upper-limb orthosis designed to support the arm and restore function to the weakened or paralyzed arms of certain patients suffering from CVA stroke, brachial plexus injury, traumatic brain or spinal cord injury or other neuromuscular disease or injury. It is currently the only marketed device in the U.S. that, sensing a patient’s own EMG signals through non-invasive sensors on the arm, can restore an individual’s ability to perform activities of daily living, including feeding themselves, carrying objects and doing household tasks. Many are able to return to work, live independently and reduce their cost of care. Myomo is headquartered in Burlington, Massachusetts, with sales and clinical professionals across the U.S. and representatives internationally. For more information, please visit www.myomo.com .
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s future business expectations, including expectations for first quarter and full year 2026 revenue, operating expenses and cash flows, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors.
These factors include, among other things:
- our ability to obtain sufficient reimbursement from third-party payers for our products;
- our dependence on external sources for the financing of our operations;
- our ability to scale the business to achieve positive cash flow from operations;
- our revenue concentration with patients who carry Medicare Part B;
- our ability to continue normal operations and patient interactions without supply chain disruption in order to deliver and fit our custom-fabricated devices;
- our marketing and commercialization efforts;
- our ability to obtain and maintain our strategic collaborations and to realize the intended results of such collaborations;
- our expectations as to our product development programs, including improving our existing products and developing new products;
- our ability to maintain and grow our reputation and to achieve and maintain the market acceptance of our products;
- our expectations as to our clinical research program and clinical results;
- our ability to maintain adequate protection of our intellectual property and to avoid violation of the intellectual property rights of others;
- our ability to gain and maintain regulatory approvals;
- our ability to compete and succeed in a highly competitive and evolving industry; and
- general market, economic, environmental and social factors that may affect the evaluation, fitting, delivery and sale of our products to patients.
More information about these and other factors that potentially could affect our financial results is included in Myomo’s filings with the Securities and Exchange Commission, including those contained in the risk factors section of the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and other filings with the Commission. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Although the forward-looking statements in this release of financial information are based on our beliefs, assumptions and expectations, taking into account all information currently available to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material or adverse. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
(Tables follow)
MYOMO, INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenue | 11,353,296 | 12,068,456 | 40,928,042 | 32,551,199 | ||||||||||||
Cost of revenue | 3,569,021 | 3,453,224 | 14,039,718 | 9,365,856 | ||||||||||||
Gross profit | 7,784,275 | 8,615,232 | 26,888,324 | 23,185,343 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 1,624,824 | 1,559,704 | 6,943,838 | 4,772,013 | ||||||||||||
Selling, clinical, and marketing | 5,501,162 | 3,696,748 | 20,385,098 | 12,236,910 | ||||||||||||
General and administrative | 3,432,047 | 3,604,094 | 13,961,235 | 12,383,118 | ||||||||||||
10,558,033 | 8,860,546 | 41,290,171 | 29,392,041 | |||||||||||||
Loss from operations | (2,773,758 | ) | (245,314 | ) | (14,401,847 | ) | (6,206,698 | ) | ||||||||
Other expense (income) | ||||||||||||||||
Interest expense (income), net | 739,629 | (70,031 | ) | 450,832 | (388,586 | ) | ||||||||||
Change in fair value of derivative liabilities | 216,673 | — | 216,673 | — | ||||||||||||
956,302 | (70,031 | ) | 667,505 | (388,586 | ) | |||||||||||
Loss before income taxes | (3,730,060 | ) | (175,283 | ) | (15,069,352 | ) | (5,818,112 | ) | ||||||||
Income tax expense (benefit) | 83,879 | 84,798 | 504,532 | 365,617 | ||||||||||||
Net loss | $ | (3,813,939 | ) | $ | (260,081 | ) | $ | (15,573,884 | ) | $ | (6,183,729 | ) | ||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic and diluted | 42,205,413 | 38,905,739 | 41,855,607 | 37,758,837 | ||||||||||||
Net loss per share attributable to common stockholders | ||||||||||||||||
Basic and diluted | $ | (0.09 | ) | $ | (0.01 | ) | $ | (0.37 | ) | $ | (0.16 | ) |
MYOMO, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
December 31, | ||||||||
2025 | 2024 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 14,132,027 | $ | 24,372,373 | ||||
Short-term investments | 4,261,782 | 492,990 | ||||||
Accounts receivable, net | 4,096,327 | 3,825,291 | ||||||
Inventories | 3,123,089 | 3,165,965 | ||||||
Prepaid expenses and other current assets | 1,943,860 | 933,377 | ||||||
Total Current Assets | 27,557,085 | 32,789,996 | ||||||
Restricted cash | 575,000 | 375,000 | ||||||
Operating lease assets with right of use, net | 6,679,349 | 7,584,663 | ||||||
Equipment, net | 2,212,901 | 1,330,008 | ||||||
Software development costs | 1,590,864 | — | ||||||
Other assets | 21,374 | 164,412 | ||||||
Total Assets | $ | 38,636,573 | $ | 42,244,079 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | 5,819,767 | 9,021,817 | ||||||
Current operating lease liability | 494,662 | 748,021 | ||||||
Taxes payable | 813,260 | 318,885 | ||||||
Deferred revenue | 218,222 | 83,115 | ||||||
Warrant derivative liability | 999,418 | — | ||||||
Total Current Liabilities | 8,345,329 | 10,171,838 | ||||||
Non-current operating lease liability, net of current | 7,665,622 | 7,358,184 | ||||||
Long-term debt, net of discount | 11,222,155 | — | ||||||
Total Liabilities | 27,233,106 | 17,530,022 | ||||||
Commitments and Contingencies | — | — | ||||||
Stockholders’ Equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 3,847 | 3,439 | ||||||
Additional paid-in capital | 129,929,989 | 127,846,026 | ||||||
Accumulated other comprehensive (loss) income | 164,517 | (14,406 | ) | |||||
Accumulated deficit | (118,688,422 | ) | (103,114,538 | ) | ||||
Treasury stock, at cost | (6,464 | ) | (6,464 | ) | ||||
Total Stockholders’ Equity | 11,403,467 | 24,714,057 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 38,636,573 | $ | 42,244,079 |
MYOMO, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
For the Year Ended December 31, | 2025 | 2024 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (15,573,884 | ) | $ | (6,183,729 | ) | ||
Adjustments to reconcile net loss to net cash used in operations: | ||||||||
Depreciation | 859,354 | 205,910 | ||||||
Stock-based compensation | 2,084,042 | 874,438 | ||||||
Accretion of discount on short-term investments | (43,012 | ) | (118,598 | ) | ||||
Credit losses | 158,012 | 43,657 | ||||||
Amortization of final payment fees on old debt | 215,000 | — | ||||||
Amortization of right-of-use assets | 905,314 | 571,061 | ||||||
Amortization of deferred offering costs | 520,419 | 41,552 | ||||||
Change in fair value of derivative liabilities | 216,673 | 41,552 | ||||||
Other non-cash charges, net | 3,772 | 16,020 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 376,966 | (1,559,604 | ) | |||||
Inventories | (662,680 | ) | (1,395,042 | ) | ||||
Prepaid expenses and other current assets | (1,300,998 | ) | (887,525 | ) | ||||
Other assets | 6,512 | 84,773 | ||||||
Accounts payable and accrued expenses | (2,902,860 | ) | 4,693,127 | |||||
Operating lease liabilities | 54,079 | (503,543 | ) | |||||
Deferred revenue | 135,108 | 74,604 | ||||||
Income tax payable | 436,729 | 236,721 | ||||||
Tenant improvement allowance | — | 516,274 | ||||||
Net cash used in operating activities | (14,511,454 | ) | (3,289,904 | ) | ||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (7,057,968 | ) | 259,981 | |||||
CASH PROVIDED BY FINANCING ACTIVITIES | 11,427,379 | 20,932,429 | ||||||
Effect of foreign exchange rate changes on cash | 101,697 | (26,439 | ) | |||||
Net increase in cash, cash equivalents and restricted cash | (10,040,346 | ) | 17,876,067 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 24,747,373 | 6,871,306 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 14,707,027 | $ | 24,747,373 |
MYOMO, INC. | ||||||||||||||||
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Three Months Ended | For the Year Ended | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
GAAP net loss | $ | (3,813,939 | ) | $ | (260,081 | ) | $ | (15,573,884 | ) | $ | (6,183,729 | ) | ||||
Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||||||
Interest expense (income), net | 739,629 | (70,031 | ) | 450,832 | (388,586 | ) | ||||||||||
Depreciation expense | 263,264 | 91,565 | 859,354 | 205,910 | ||||||||||||
Stock-based compensation | 564,959 | 321,858 | 2,084,042 | 874,438 | ||||||||||||
Change in fair value of derivative liabilities | 216,673 | — | 216,673 | — | ||||||||||||
Income tax expense | 83,879 | 84,798 | 504,532 | 365,617 | ||||||||||||
Adjusted EBITDA | $ | (1,945,535 | ) | $ | 168,109 | $ | (11,458,451 | ) | $ | (5,126,350 | ) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260309467133/en/
Myomo:
ir@myomo.com
Alliance Advisors IR:
Tirth T. Patel
tpatel@allianceadvisors.com
212-201-6614
FAQ**
How does Myomo Inc. (MYO) plan to enhance its recurring patient revenue sources in 2026, considering the 42% contribution from recurring sources in Q4 2025?
2. What marketing initiatives is Myomo Inc. (MYO) implementing to achieve its new revenue guidance of $4to $46M for 2026 after a reported decline in Q4 revenue?
3. With Myomo Inc. (MYO) reporting a significant increase in operating expenses, what specific strategies will the company employ to improve operating leverage in 2026?
4. How does Myomo Inc. (MYO) anticipate the outcomes of its randomized controlled trial with the University of Utah will impact its market position and financial performance moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Myomo Inc. (NYSE: MYO).
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