Myomo Reports Third Quarter 2025 Financial and Operating Results

BURLINGTON, Mass.--( BUSINESS WIRE)--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:

Financial Results

For the Three Months

Ended September 30,

Period-

to-Period

Change

For the Nine Months

Ended September 30,

Period-

to-Period

Change

2025

2024

2025

2024

Revenue

10,090,699

9,207,586

883,113

29,574,746

20,482,742

9,092,004

Cost of revenue

3,648,451

2,262,031

1,386,420

10,470,696

5,912,632

4,558,064

Gross profit

6,442,248

6,945,555

(503,307

)

19,104,050

14,570,110

4,533,940

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:

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,

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

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

Ended September 30,

For the Nine Months

Ended September 30,

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

)