Myomo Q2 2025 Earnings: Revised Revenue Growth Target of 23%-29% Amid Lead Quality and Pipeline Conversion Shifts

Myomo has revised its 2025 revenue growth target to 23%-29% due to shifts in lead quality and pipeline conversion. The company's Q2 2025 earnings showed revenues slightly ahead of expectations, but certain operating metrics fell below plans, which will impact short-term performance.

Myomo, Inc. (NYSE: MYO) has revised its 2025 revenue growth target to a range of 23% to 29%, following the company's second quarter (Q2) 2025 earnings report. The Q2 revenue of $9.7 million was slightly ahead of expectations, but certain operating metrics fell below plans, impacting short-term performance [1].

Paul R. Gudonis, CEO of Myomo, stated that while the company's second quarter revenues were slightly ahead of expectations, several operating metrics were below plans. Gudonis emphasized the company's commitment to market leadership with its MyoPro product line and outlined adjustments to grow the business sustainably [2].

Key highlights from the earnings call include:
- Revenue for the second quarter of 2025 was $9.7 million, representing a 28% increase year-over-year.
- The company delivered 178 MyoPro revenue units during the quarter, with 95 units from authorizations and orders received in the second quarter.
- Gross margin for Q2 2025 was 62.7%, down from 70.8% in the prior year quarter, primarily due to higher material costs and overhead spending.
- Operating expenses for Q2 2025 were $10.6 million, up 65% over the second quarter of 2024, driven by higher advertising spending and headcount throughout the organization.
- The company's net loss for the second quarter of 2025 was $4.6 million, or $0.11 per share.

The revised revenue guidance for 2025 assumes recent history regarding Medicare Advantage authorization and pipeline conversion rates and moderate improvement in Medicare Part B patient flow. The company expects third quarter revenue to be between $9.5 million and $10.0 million, up 3% to 9% year-over-year. For the full year, the company now expects revenue to be in the range of $40 million to $42 million, up 23% to 29% versus 2024 [2].

Challenges cited by Gudonis and David A. Henry, CFO, include lower lead quality and increased cost per pipeline add. Gudonis also noted that Medicare Advantage plans are trying to deny authorizations to delay approvals, but the company is winning more appeals. Additionally, the company is expanding its clinical referral program and O&P channel, with the number of O&P orders doubling from Q1 to Q2 of this year [2].

The company's operational and marketing adjustments include engaging a new digital ad agency and shifting advertising dollars from social media to television. Gudonis reported that the company hit a record level of leads in June, with 4x as many leads generated as in January earlier this year. However, he acknowledged that the leads from Facebook were not as high quality as expected [2].

The company's stock price performance has been disappointing, but Gudonis expressed optimism about the July results on the metrics. Analysts focused on pipeline quality, lead conversion, O&P channel growth, guidance credibility, and advertising ROI. The tone was probing and slightly concerned, especially regarding pipeline efficiency and guidance adjustments [2].

In conclusion, Myomo's revised revenue growth target reflects the company's efforts to address operational challenges and improve efficiency. The company is focusing on expanding its clinical referral program, O&P channel growth, and ongoing payer contract negotiations to drive sustainable growth and profitability.

References:
[1] https://seekingalpha.com/news/4483440-myomo-gaap-eps-of-0_11-in-line-revenue-of-9_65m-beats-by-0_5m
[2] https://seekingalpha.com/news/4483588-myomo-outlines-revised-2025-revenue-growth-target-of-23-percentminus-29-percent-as-lead
[3] https://www.businesswire.com/news/home/20250811819979/en/Myomo-Reports-Second-Quarter-2025-Financial-and-Operating-Results