Myomo Q1 2025 Earnings Report: Revenue Surges 162%, Pipeline Expands by 700 Patients

Myomo Inc reported Q1 2025 revenue of $9.8 million, a 162% increase from the previous year, with a gross margin of 67.2% and a net loss of $3.5 million. The company added a record 700 patients to its pipeline and completed initial training for over 300 Certified Prosthetists Orthotists. Despite challenges, Myomo expects continued revenue growth, with Q2 revenue projected between $9.0 million and $9.5 million and full-year revenue between $50 million and $53 million.

Myomo Inc (MYO) reported its first-quarter 2025 financial results, showcasing robust revenue growth despite facing several challenges. The company's revenue surged by 162% year-over-year (YoY) to $9.8 million, significantly outperforming the forecast of $9.3 million [1]. This impressive performance was driven by a 100% increase in MyoPro revenue units delivered and a gross margin improvement to 67.2% from 61.2% a year earlier. Despite these gains, the company reported a net loss of $3.5 million for the quarter.

Myomo added a record 700 patients to its pipeline and completed initial training for over 300 Certified Prosthetists Orthotists (CPOs). These initiatives are part of the company's strategy to expand its manufacturing capacity and enhance product offerings in the competitive powered arm brace market. The company forecasts a return to positive operating cash flow by the fourth quarter of 2025.

However, the company faced several challenges during the quarter. The changes in how marketers can direct their messages to individuals with certain health conditions made by Meta, which operates Facebook and other social media platforms, impacted lead generation efforts in January and February. Additionally, Medicare Advantage and certain commercial insurance plans continued to deny or delay authorizations for a significant percentage of physician orders for MyoPro. These factors led to a 18% YoY increase in authorizations and an increase in the cost per pipeline. As a result, the company expects slightly lower revenue in Q2 compared to Q1.

Looking ahead, Myomo projects Q2 revenue between $9.0 million and $9.5 million, representing a 20-26% YoY growth. The company aims to achieve positive operating cash flow by the fourth quarter of 2025. According to InvestingPro analysis, analysts maintain a strong buy consensus on the stock, with target prices ranging from $6.75 to $11.00.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-myomo-q1-2025-reports-strong-revenue-growth-stock-dips-93CH-4030253