Myomo Reports Third Quarter 2025 Financial and Operating Results
MWN-AI** Summary
Myomo, Inc. (NYSE American: MYO), a pioneering company in wearable medical robotics, announced its financial and operational results for the third quarter of 2025. The Company reported a revenue of $10.1 million, representing a 10% increase from the prior year, primarily driven by increased orders and authorizations, with a record 229 orders processed in the quarter. Myomo has reiterated its full-year revenue guidance of $40 million to $42 million, projecting over a 23% growth compared to 2024.
CEO Paul R. Gudonis highlighted the operational improvements, noting that while revenue grew, operating expenses decreased sequentially. The Company’s focus on building relationships with therapists and clinicians through its MyoConnect initiative is designed to enhance patient referrals and reduce customer acquisition costs, demonstrating early positive results.
Despite the revenue growth, Myomo faced rising costs, with a gross margin of 63.8%, down from 75.4% a year earlier, attributed to higher production costs and lower average selling prices. Operating expenses totaled $10.0 million, a 6% decrease from the previous quarter but a 26% increase compared to Q3 2024.
Notably, the operating loss widened to $3.5 million from $1.0 million year-over-year. Year-to-date, the net loss stands at $11.8 million, or $0.28 per share, compared to $5.9 million in the same period of 2024. Myomo has also entered a new debt financing arrangement, securing $17.5 million through a loan security agreement, bolstering its liquidity position.
Myomo's innovative approach in the orthotic and prosthetic sector, particularly with its MyoPro device, continues to show promise, helping address the needs of individuals with upper-limb paralysis. The Company will host a conference call today to discuss these results further.
MWN-AI** Analysis
Myomo, Inc. (NYSE American: MYO) recently reported its third quarter 2025 financial results, showcasing a 10% increase in revenue to $10.1 million compared to Q3 2024, largely attributed to a record number of orders (229) and robust growth in both U.S. and international orthotic and prosthetic (O&P) revenues. This marks the strongest quarter of orders for the company this year, positioning it well as it approaches year-end.
Despite the uplifting revenue growth, several factors should be closely monitored by investors. Operating losses increased to $3.5 million from $1 million in the prior year’s equivalent quarter, and net losses deepened to $3.7 million, underlining the ongoing challenges Myomo faces in managing costs. Notably, the gross margin fell significantly from 75.4% to 63.8%, primarily driven by a 5% decline in average selling price (ASP) and higher operational expenses.
The introduction of the MyoConnect program aligns with Myomo’s strategy to enhance its patient pipeline by fostering stronger relationships with healthcare practitioners. This approach appears promising as it aims to diversify revenue sources away from traditional advertising methods and stimulate recurring patient referrals. Additionally, ongoing cost reduction initiatives may yield an expected 200 basis points of gross margin improvement by the third quarter of 2026, providing potential for future profitability.
As Myomo reiterates its full-year revenue guidance of $40 million to $42 million, investors should weigh the potential growth against operational challenges. The recent debt financing arrangement extending into 2027 will help shore up cash reserves, critical in executing its business plan without further straining financial resources.
Investors may consider a cautious stance, watching for performance in the next quarters, particularly regarding profitability efforts and market reception to the MyoConnect initiative. The upcoming conference call will likely provide additional insights into management’s strategy and outlook.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Revenue of $10.1 million
229 authorizations and orders, highest number this year
Reiterates full year revenue guidance of $40 million to $42 million
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 and nine months ended September 30, 2025.
“Third quarter revenues were at the high end of our expectations, with International and U.S. orthotics and prosthetics ("O&P") revenues at record levels. Revenue increased while operating expenses decreased on a sequential basis, reflecting our focus on improving operating leverage," said Paul R. Gudonis, Myomo's Chairman and Chief Executive Officer. "We also achieved our strongest quarter of the year for authorizations and orders, while the marketing changes we implemented during the quarter contributed to a sequential decline in cost per pipeline add of 5%."
"We believe the key to lowering cost per pipeline add is strengthening relationships with the therapists and physicians that are integrated into the continuum of care our patients receive, while reducing our reliance on advertising for lead generation. Under this new program, called MyoConnect, which is expected to generate recurring patient referrals, our clinical team engages with therapists and physicians nationwide to expand the network of healthcare professionals who understand the benefits of the MyoPro. We view MyoConnect as a more scalable means of growing our patient pipeline, while reducing cost per pipeline add and improving pipeline quality, and we are encouraged by the early results," added Gudonis. "We are also seeing growth from the O&P channel as more clinicians add the MyoPro to their product offerings and begin building their own patient pipelines"
Recent Operational and Strategic Highlights:
- MyoPro Orders and Insurance Authorizations: The 229 MyoPro orders in Q3 represented the strongest quarter of the year, while revenue velocity increased as intra-quarter orders represented 57% of revenue units.
- Recurring Patient Sources: The Company's strategy to grow revenues from recurring sources — U.S. and International O&P providers and MyoConnect — is gaining traction, with record U.S. O&P and International revenue in the third quarter.
- Patient Pipeline and Marketing: 826 new candidates were added to the patient pipeline, up 28%, from Q3 2024, with a record 1,669 patients in the process of obtaining a MyoPro. Adjustments to the advertising media mix resulted in a 5% sequential decline in cost per pipeline add.
- Cost Reduction Projects Underway: Work has begun on several manufacturing cost reduction projects, which are expected to generate 200 basis points of gross margin improvement in the aggregate. Savings are expected to be fully realized starting in the third quarter of 2026.
- New Debt Financing Arrangement: On November 4, 2025, the Company entered into a Loan and Security Agreement (the "Facility") with Avenue Capital. $17.5 million is committed under the Facility, of which $12.5 million was funded at closing. $5.0 million is committed under a second tranche, which is available at the Company's discretion between November 2026 and May 2027 if certain conditions are met. The Company will pay interest only on the initial funding amount for a period of 18 months, after which, principal will be repaid in 24 equal monthly installments. Use of proceeds includes repayment of the borrowings outstanding under the credit facility with Silicon Valley Bank, fees and expenses associated with the transaction and for general corporate purposes. Please refer to our Current Report on Form 8-K filed today for more information. Pro forma for the funding provided under the new Facility, net of debt repayment, fees and expenses, the Company's cash balance was $20.1 million as of September 30, 2025.
Financial Results
For the Three Months | Period- | For the Nine Months | Period- | |||||||||||||||||||||
2025 | 2024 | $ | % | 2025 | 2024 | $ | % | |||||||||||||||||
Revenue | $ | 10,090,699 | $ | 9,207,586 | $ | 883,113 | 10 | % | $ | 29,574,746 | $ | 20,482,742 | $ | 9,092,004 | 44 | % | ||||||||
Cost of revenue | 3,648,451 | 2,262,031 | 1,386,420 | 61 | % | 10,470,696 | 5,912,632 | 4,558,064 | 77 | % | ||||||||||||||
Gross profit | $ | 6,442,248 | $ | 6,945,555 | $ | (503,307 | ) | (7 | )% | $ | 19,104,050 | $ | 14,570,110 | $ | 4,533,940 | 31 | % | |||||||
Gross margin % | 63.8 | % | 75.4 | % | -11.6 | % | 64.6 | % | 71.1 | % | -6.5 | % |
Revenue: Revenue for the third quarter of 2025 was $10.1 million, up 10% compared with the third quarter of 2024, reflecting an increase in the number of revenue units, offset by a lower average selling price ("ASP"). Myomo recognized revenue on 186 MyoPro units in the quarter, up 16% over the same period a year ago. ASP was approximately $54,200, down 5% versus the comparable period in the prior year, which was atypically high due to approximately $700,000 in insurance payments on revenue units recorded in prior periods. Effective with deliveries in the third quarter of 2024, revenue for patients Medicare Part B began to be recorded at delivery. Medicare Part B patients represented 54% of third quarter 2025 revenue. Year-to-date revenue was $29.6 million, up 44% compared with the same period in 2025.
Gross Margin: Gross margin for the third quarter of 2025 was 63.8%, compared with 75.4% for the third quarter of 2024. The decrease was driven primarily by a lower ASP, higher material, payroll and lease costs, and an unfavorable change in overhead absorption compared to the prior year quarter. Labor and overhead spending increases combined with lower absorption accounted for approximately 800 basis points of the gross margin decline. Year-to-date gross margin was 64.6%, compared with 71.1% for the same period in 2024.
Operating Expenses: Operating expenses for the third quarter of 2025 were $10.0 million, a decrease of 6% sequentially but an increase of 26% compared with the third quarter of 2024. The increase compared to the prior year period was primarily due to higher advertising spending to drive increased revenue and higher investments in research and development for an increasing number of product development activities. Cost per pipeline add was $2,589, down 5% sequentially. Year-to-date operating expenses were $30.7 million, an increase of 50% compared with the same period in 2024.
Operating and Net Loss: Operating loss for the third quarter of 2025 was $3.5 million, compared with an operating loss of $1.0 million for the third quarter of 2024. Year-to-date operating loss was $11.6 million, compared with an operating loss of $6.0 million for the same period in 2024. Net loss for the third quarter of 2025 was $3.7 million, or $0.09 per share, compared with a net loss of $1.0 million, or $0.03 per share, for the third quarter of 2024. Year-to-date net loss was $11.8 million, or $0.28 per share, compared with a net loss of $5.9 million, or $0.16 per share, for the same period in 2024.
Adjusted EBITDA: Adjusted EBITDA for the third quarter of 2025 was $(2.7) million, compared with $(0.6) million for the third quarter of 2024. Year-to-date Adjusted EBITDA was $(9.5) million, compared with $(5.3) million for the same period a year ago. 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 September 30, 2025 were $12.6 million. Cash used in operating activities was $1.8 million for the third quarter of 2025, compared with $1.5 million used in the third quarter of 2024.
Business Outlook
"We expect full year 2025 revenue within our previous guidance range of $40 million to $42 million, which represents an increase of more than 23% versus 2024," said Gudonis.
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 November 24, 2025 at 855-669-9658 (U.S. and Canada toll-free) or 412-317-0088 (International), with passcode 4112515.
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 fourth quarter and full year 2025 revenue, and the amount and timing of certain cost reduction actions 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 ability to remediate the material weakness in our internal control over financial reporting;
- 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 (Unaudited) | ||||||||||||||||
For the Three Months ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenue | $ | 10,090,699 | $ | 9,207,586 | $ | 29,574,746 | $ | 20,482,742 | ||||||||
Cost of revenue | 3,648,451 | 2,262,031 | 10,470,696 | 5,912,632 | ||||||||||||
Gross profit | 6,442,248 | 6,945,555 | 19,104,050 | 14,570,110 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 1,527,660 | 1,248,870 | 5,319,015 | 3,212,309 | ||||||||||||
Selling, clinical and marketing | 5,254,246 | 3,401,182 | 14,883,936 | 8,540,161 | ||||||||||||
General and administrative | 3,177,856 | 3,253,056 | 10,529,188 | 8,779,024 | ||||||||||||
9,959,762 | 7,903,108 | 30,732,139 | 20,531,494 | |||||||||||||
Loss from operations | (3,517,514 | ) | (957,553 | ) | (11,628,089 | ) | (5,961,384 | ) | ||||||||
Other expense (income), net | ||||||||||||||||
Interest expense (income), net | 9,743 | (76,020 | ) | (288,797 | ) | (318,555 | ) | |||||||||
9,743 | (76,020 | ) | (288,797 | ) | (318,555 | ) | ||||||||||
Loss before income taxes | (3,527,257 | ) | (881,533 | ) | (11,339,292 | ) | (5,642,829 | ) | ||||||||
Income tax expense | 135,658 | 84,876 | 420,654 | 280,819 | ||||||||||||
Net loss | $ | (3,662,915 | ) | $ | (966,409 | ) | $ | (11,759,946 | ) | $ | (5,923,648 | ) | ||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic and diluted | 42,168,120 | 37,950,515 | 41,737,724 | 37,359,366 | ||||||||||||
Net loss per share attributable to common stockholders | ||||||||||||||||
Basic and diluted | $ | (0.09 | ) | $ | (0.03 | ) | $ | (0.28 | ) | $ | (0.16 | ) |
MYOMO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
September 30, | December 31, | |||||||
2025 | 2024 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 12,553,558 | $ | 24,372,373 | ||||
Short-term investments | — | 492,990 | ||||||
Accounts receivable, net | 5,292,520 | 3,825,291 | ||||||
Inventories, net | 3,645,314 | 3,165,965 | ||||||
Prepaid expenses and other current assets | 1,457,595 | 933,377 | ||||||
Total Current Assets | 22,948,987 | 32,789,996 | ||||||
Restricted cash | 375,000 | 375,000 | ||||||
Operating lease assets with right of use | 6,870,283 | 7,584,663 | ||||||
Equipment, net | 3,714,810 | 1,330,008 | ||||||
Other assets | 168,350 | 164,412 | ||||||
Total Assets | $ | 34,077,430 | $ | 42,244,079 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | 6,668,162 | 9,021,817 | ||||||
Current operating lease liability | 464,239 | 748,021 | ||||||
Income taxes payable | 351,974 | 318,885 | ||||||
Deferred revenue | 134,750 | 83,115 | ||||||
Current portion long-term debt | 583,333 | — | ||||||
Revolving credit line | 1,000,000 | — | ||||||
Total Current Liabilities | 9,202,458 | 10,171,838 | ||||||
Non-current operating lease liability | 7,832,722 | 7,358,184 | ||||||
Long-term debt | 2,416,667 | — | ||||||
Total Liabilities | 19,451,847 | 17,530,022 | ||||||
Commitments and Contingencies | — | — | ||||||
Stockholders’ Equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 3,843 | 3,439 | ||||||
Additional paid-in capital | 129,365,034 | 127,846,026 | ||||||
Accumulated other comprehensive income | 137,653 | (14,406 | ) | |||||
Accumulated deficit | (114,874,483 | ) | (103,114,538 | ) | ||||
Treasury stock, at cost | (6,464 | ) | (6,464 | ) | ||||
Total Stockholders’ Equity | 14,625,583 | 24,714,057 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 34,077,430 | $ | 42,244,079 |
MYOMO, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
For the Nine Months Ended September 30, | 2025 | 2024 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (11,759,946 | ) | $ | (5,923,648 | ) | ||
Adjustments to reconcile net loss to net cash used in operations: | ||||||||
Depreciation | 596,091 | 114,346 | ||||||
Stock-based compensation | 1,519,083 | 552,580 | ||||||
Accretion of discount on short-term investments | (24,708 | ) | — | |||||
Credit losses | 155,422 | 5,257 | ||||||
Inventory reserves | 32,558 | — | ||||||
Amortization of deferred offering costs | 91,051 | — | ||||||
Amortization of right-of-use assets | 714,379 | 196,592 | ||||||
Other non-cash charges | 49,924 | 84,180 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,111,217 | ) | (1,116,352 | ) | ||||
Inventories | (1,018,876 | ) | (1,573,193 | ) | ||||
Prepaid expenses and other current assets | (956,856 | ) | (614,951 | ) | ||||
Other assets | 6,514 | (16,640 | ) | |||||
Accounts payable and accrued expenses | (1,899,337 | ) | 1,895,795 | |||||
Income taxes payable | (7,429 | ) | 202,137 | |||||
Operating lease liabilities | 190,756 | (366,675 | ) | |||||
Deferred revenue | 51,636 | 23,460 | ||||||
Net cash used in operating activities | (13,370,955 | ) | (6,655,632 | ) | ||||
CASH USED IN INVESTING ACTIVITIES | (2,463,748 | ) | 1,613,180 | |||||
CASH PROVIDED BY FINANCING ACTIVITIES | 3,913,494 | 5,162,409 | ||||||
Effect of foreign exchange rate changes on cash | 102,394 | 6,412 | ||||||
'Net (decrease) increase in cash and cash equivalents and restricted cash | (11,818,815 | ) | 126,369 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 24,747,373 | 6,871,306 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 12,928,558 | $ | 6,997,675 |
MYOMO, INC. RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (Unaudited) | ||||||||||||||||
For the Three Months | For the Nine Months | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
GAAP net loss | $ | (3,662,915 | ) | $ | (966,409 | ) | $ | (11,759,946 | ) | $ | (5,923,648 | ) | ||||
Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||||||
Interest income | 9,743 | (76,020 | ) | (288,797 | ) | (318,555 | ) | |||||||||
Depreciation expense | 246,850 | 48,682 | 596,091 | 114,346 | ||||||||||||
Stock-based compensation | 583,991 | 324,185 | 1,519,083 | 552,580 | ||||||||||||
Income tax expense | 135,658 | 84,876 | 420,654 | 280,819 | ||||||||||||
Adjusted EBITDA | $ | (2,686,673 | ) | $ | (584,686 | ) | $ | (9,512,915 | ) | $ | (5,294,458 | ) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251110512761/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 further improve its operating leverage and reduce costs after achieving a sequential decline in cost per pipeline add by 5% in Q3 2025?
With revenue expectations of $40 million to $42 million for 2025, what strategies is Myomo Inc. MYO implementing to maintain this growth trajectory in the face of increasing operating expenses?
Can you elaborate on the MyoConnect program and how Myomo Inc. MYO anticipates it will enhance patient referrals and reduce reliance on advertising for lead generation?
Given the financial results showing a significant net loss for Q3 2025, what measures is Myomo Inc. MYO taking to achieve profitability while scaling its operations and managing debt obligations efficiently?
**MWN-AI FAQ is based on asking OpenAI questions about Myomo Inc. (NYSE: MYO).
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