Myomo, Inc. (MYO) Market Cap
Myomo, Inc. has a market capitalization of $31.6M.
Financials based on reported quarter end 2025-12-31
Price: $0.82
▲ 0.01 (1.60%)
Market Cap: 31.55M
AMEX · time unavailable
CEO: Paul R. Gudonis
Sector: Healthcare
Industry: Medical - Devices
IPO Date: 2017-06-12
Website: https://www.myomo.com
Myomo, Inc. (MYO) - Company Information
Market Cap: 31.55M · Sector: Healthcare
Myomo, Inc., a wearable medical robotics company, designs, develops, and produces myoelectric orthotics for people with neuromuscular disorders in the United States. The company offers MyoPro, a myoelectric-controlled upper limb brace or orthosis product used for supporting a patient's weak or paralyzed arm to enable and improve functional activities of daily living. Its products are designed to help improve function in adults and adolescents with neuromuscular conditions due to brachial plexus injury, stroke, traumatic brain injury, spinal cord injury, and other neurological disorders. The company sells its products to orthotics and prosthetics providers, the Veterans Health Administration, and rehabilitation hospitals, as well as through distributors. Myomo, Inc. was incorporated in 2004 and is headquartered in Boston, Massachusetts.
Analyst Sentiment
Based on 8 ratings
Analyst 1Y Forecast: $4.55
Average target (based on 2 sources)
Consensus Price Target
Low
$1
Median
$1
High
$1
Average
$1
Potential Upside: 34.3%
Price & Moving Averages
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Fundamentals Overview
Management’s tone is upbeat on growth (record Germany revenue, rising pipeline, and early traction from MyoConnect/O&P referrals), and they reiterate 2025 revenue guidance of $40M–$42M. However, the Q&A surfaces the actual operational stress points: Medicare Advantage remains constrained by pre-authorization denials, and even with appeals, only ~45%–50% of cases are overturned when patients stay engaged. While backlog is down 34% YoY, management explains this is partly “cleanup” (not conversion failure) and partly a mix shift toward faster intra-quarter fills (57% of units vs 24% a year ago). The most candid gap vs the growth narrative is profitability: Q3 shows worsening losses (operating loss $3.5M; adjusted EBITDA -$2.7M) and major gross margin pressure driven by labor/overhead absorption impacts (~800 bps) and higher material costs. Analysts pressed for breakeven mechanics; management guided that quarterly revenue must be about $16M–$17M to breakeven after July cost cuts, with more detail deferred until 2026 guidance.
Growth Catalysts
- Record international revenues (Germany) with a growing pipeline
- Growing number of O&P (orthotics & prosthetics) providers sending qualified patients
- Sequential increase in quarterly authorizations and orders for the first time this year
- MyoConnect recurring referral program (clinical referral program + field clinical team rollout)
- Advertising media mix shift: more TV vs social media leading to higher % of leads meeting clinical criteria
Business Development
- Signed additional payer contract to become an in-network provider for direct billing; now 35 million covered lives among private payers
- Meetings and collaboration with large and small O&P groups; specific named firms: Hanger (interest), Ottobock, and Equal (about 90 clinics)
- O&P channel expansion via certified prosthetists/orthotists; training/support cited at AOPA National Assembly (Sept)
Financial Highlights
- Revenue: $10.1M in Q3 2025, +10% YoY and at the high end of expectations
- MyoPro revenue units: 186, +16% YoY; 57% of units from authorizations and orders received in Q3
- ASP decreased 5% YoY to ~$54,300; management notes accounting change in prior-year impacted ASP
- Medicare Part B revenue: 54% of revenue in Q3; Medicare Advantage: 18% of revenue and down 18% YoY (constrained by pre-authorization denials)
- Appeal outcomes: typically 45% to 50% overturned on appeal for patients who stay engaged
- Revenue mix shift: direct billing 73% of revenue vs 81% prior year; international 18% of revenue; O&P channel 9% of revenue
- International revenue: $1.8M, +63% YoY (primarily Germany) and record quarter
- O&P channel revenue: $900k, +154% YoY, record quarter
- Pipeline: 1,669 patients as of 09/30/2025, +32% YoY; added 826 patients in Q3 (+28% YoY, +1% sequential); Medicare patients in pipeline 266 (+21% YoY, +4% sequential)
- Backlog: 208 patients, down 34% YoY (management attributes to reduced Medicare Advantage authorizations and higher intra-quarter fill conversion)
- Intra-quarter fill units: 57% of Q3 revenue units vs 24% a year ago (record conversion speed)
- Gross margin: 63.8% in 2025 (vs 75.4% prior-year quarter); drivers include accounting compare (+~200 bps in prior-year), higher payroll/lease and overhead absorption impacts (~800 bps), plus higher material costs
- Operating expenses: $10.0M, +26% YoY but -6% sequential; higher payroll/advertising and R&D for mobile app/MyConfig, MyoPro 3, plus University of Utah randomized control trial pilot
- Operating loss: $3.5M (vs $1.0M operating loss prior year); net loss: $3.7M or $0.09/share (vs $1.0M or $0.03/share prior year)
- Adjusted EBITDA: -$2.7M (vs -$0.6M prior year)
- Cash: $12.6M at 09/30/2025; Q3 cash burn: $2.9M (incl. $1.8M from operating activities; ~$1.0M capex for manufacturing space + capitalized software + demo units)
Capital Funding
- 11/04/2025 term loan with Avenue Capital: $17.5M committed; $12.5M funded at closing; remaining $5.0M available at discretion (Nov 2026–May 2027 subject to conditions)
- Interest-only for next 18 months; principal repaid over 24 equal monthly installments thereafter
- Use of proceeds: repay $4.0M Silicon Valley Bank credit facility + fees; $7.6M for general corporate purposes
- Pro forma cash balance after closing funding (net of repayment/fees): $20.1M
- Pre-funded warrants exercised during 2025: ~600,000; remaining outstanding: ~3.8M as of 09/30/2025 (GAAP common stock equivalents)
Strategy & Ops
- Advertising media mix optimization: shifted more spend to TV from social in Q3; yielded higher % of leads meeting clinical criteria and better motivation to complete screening
- Hired new head of marketing (started ~2 weeks prior to Q&A) focused on multi-channel DTC and B2B marketing
- MyoConnect field clinical rollout: launched mid-year; 12 field clinicians (primarily occupational therapists) training therapists and generating increasing clinical referrals
- O&P channel scaling via education/certification and reimbursement/clinical seminars
- Manufacturing changes implemented to improve gross margin; continued focus on operating leverage as volumes scale
- Headcount and cost reductions implemented earlier in 2025; sequential Opex down 6% in Q3
Market Outlook
- Reiterated full-year 2025 revenue guidance: $40M to $42M (+>23% vs last year)
- No specific 2026 guidance provided; stated focus on diversifying revenue streams and lowering cash burn/achieving operating leverage in 2026
- Breakeven framing: previously stated quarterly revenue requirement ~$17M–$18M; after July headcount reduction, updated to ~$16M–$17M quarterly (from Q&A)
Risks & Headwinds
- Medicare Advantage reimbursement remains constrained by high pre-authorization denials requiring appeals; typically only 45%–50% overturned (patients who stay engaged)
- Backlog decline in Q3 driven by reduced Medicare Advantage authorizations and faster conversion of intra-quarter fills
- Gross margin pressure vs prior-year quarter: overhead absorbed in inventory, higher labor/overhead spending, and higher material costs; combined impact mentioned as ~800 bps for labor/overhead/absorption and prior-year compare ~200 bps accounting benefit
- Cash burn ongoing and profitability still negative (Q3 operating loss $3.5M; adjusted EBITDA -$2.7M)
- Debt/financial risk acknowledged by analyst; management response indicates they expect to avoid burning cash by the time amortization begins (18-month interest-only window)
Sentiment: MIXED
Note: This summary was synthesized by AI from the MYO Q3 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.