Myomo Inc Reports 28% Revenue Surge in Q2 2025 Amid Rising Costs and Strategic Expansion

Myomo Inc reported a 28% increase in Q2 2025 revenue due to higher revenue units and average selling price. International revenue rose 41% YoY. However, operating expenses increased 65% YoY, and the cost per pipeline ad rose to $2,900. Gross margin decreased to 62.7% from 70.8% in the prior year quarter. The company expanded its contracting to cover 35 million lives and achieved a record number of leads in June.

Title: Myomo Inc Reports Mixed Q2 2025 Financial Performance

Myomo Inc (MYO) reported its second-quarter (Q2) 2025 financial results, showing a 28% increase in revenue to $9.7 million, driven by a 13% increase in revenue units and a 14% rise in the average selling price (ASP) to approximately $54,200 [1]. International revenue surged by 41% year-over-year (YoY), primarily from Germany, contributing significantly to the overall revenue growth.

However, the company's gross margin decreased to 62.7% from 70.8% in the prior year quarter, largely due to higher material costs and overhead spending. Operating expenses increased by 65% YoY to $10.6 million, with advertising expenses rising by 162% to $2.2 million. The cost per pipeline ad climbed to approximately $2,900, up from about $1,500 in recent quarters. As a result, Myomo reported an operating loss of $4.6 million and a net loss of $4.6 million or $0.11 per share [1].

Myomo expanded its contracting to cover 35 million lives and achieved a record number of leads in June, with four times as many leads generated as in January earlier this year. The company has trained over 1,500 occupational therapists on the MyoPro across the country, which is expected to result in more high-quality patients entering the pipeline. Despite these positive developments, the conversion rate from leads to pipeline ads was lower than expected due to poor lead quality, particularly from Facebook [1].

For the full year, Myomo expects revenue to be between $40 million and $42 million, indicating a growth rate of 23% to 29% compared to 2024. The company aims to improve its pipeline conversion and expand its orthotics and prosthetics channel. Myomo's stock experienced a post-market decline of 3.83% despite a positive aftermarket adjustment, reflecting investor concerns over the earnings miss and margin pressures [2].

References
1. [Myomo Inc (MYO) Q2 2025 Earnings](https://finance.yahoo.com/news/myomo-inc-myo-q2-2025-190048439.html)
2. [Myomo Inc (MYO) Q2 2025 Earnings Call Transcript](https://www.investing.com/news/transcripts/earnings-call-transcript-myomo-q2-2025-results-show-revenue-growth-93CH-4183962)