Myomo (MYO) Shares Plunge 9.09% as Revised 2025 Forecast and Wider Q2 Losses Spur Investor Fears

Myomo (NYSEAMERICAN: MYO) shares plummeted 6.46% in intraday trading, reaching their lowest level since September 2023. The stock experienced a sharper 9.09% drop during the session, reflecting ongoing investor concerns over the company’s operational and financial challenges.

The selloff followed a revised 2025 revenue forecast and wider-than-expected second-quarter net losses. Myomo slashed its full-year revenue guidance to $40–42 million from $50–53 million, citing weaker-than-anticipated operating trends. Key metrics such as orders, insurance authorizations, and backlog for its MyoPro wearable robotics device declined, while gross margins narrowed due to rising material and overhead costs. Despite a 28% year-over-year revenue increase in Q2 to $9.7 million, the company reported a $4 million adjusted EBITDA loss and a $4.6 million net loss.

Operational issues further weighed on sentiment. Management highlighted challenges with digital advertising strategies, which led to lower-quality leads and reduced conversion rates. A significant portion of quarterly pipeline additions originated from outdated leads, undermining recent marketing efforts. Clinical eligibility barriers also limited patient access, as stricter criteria excluded potential users. Delays in converting leads to orders exacerbated these issues, compounding the impact of declining demand.

Financial pressures intensified as operating expenses surged 65% year-over-year to $10.6 million, driven by higher payroll, engineering, and advertising costs. Cash flow used in operations reached $8.9 million in Q2, partly due to non-recurring expenses and delayed insurance reimbursements. While the company reduced its workforce by 8% and cut external spending to save $2 million annually, these measures risked stifling innovation and operational agility.

Analyst sentiment turned bearish, with price targets slashed by key firms. Retail investor activity showed short-term volatility, though institutional investors sold shares, signaling skepticism about near-term recovery. Despite management’s confidence—reflected in insider purchases—executives acknowledged risks from Medicare Part B reimbursement policies and delayed returns on recent advertising investments. Strategic adjustments, including a revised 2025 growth target and product innovations like the MyoPro 2x, remain unproven in their ability to restore momentum.