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Myomo Inc (MYO)
:MYO
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Myomo
(MYO)
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Rating:47Neutral
Price Target:
$0.67
▼(-5.00% Downside)
Action:ReiteratedDate:03/11/26
MYO scores low-to-mid primarily due to weak financial performance (widening losses, higher cash burn, and reduced balance-sheet flexibility) and poor technical setup (below key moving averages with negative MACD). The earnings call provides some support via reaffirmed revenue guidance and channel/international growth, but margin pressure, higher operating losses, and Medicare Advantage headwinds keep overall risk elevated. Valuation offers limited clarity given negative earnings and no dividend.
Positive Factors
High Gross Margins
Sustained mid-60% gross margins indicate the core MyoPro device commands favorable unit economics versus direct costs. This margin profile provides a durable buffer to absorb SG&A investments, supports eventual operating leverage as revenue scales, and helps the company pursue profitability if sales growth resumes.
International Revenue Growth
Rapid international expansion (notably Germany) diversifies demand beyond the U.S. payer environment and proves product-market fit in new geographies. Durable international traction reduces reliance on any single reimbursement regime and expands long-term addressable market if the company can replicate commercial playbooks abroad.
Reimbursement-Driven Business Model
A payer-backed revenue model (commercial insurers and government programs) makes adoption more accessible to patients and embeds the product into clinical workflows. Durable reimbursement relationships and clinician prescriptions can create repeatable sales channels and higher lifetime patient value versus purely cash-pay devices.
Negative Factors
Negative Cash Flow / High Cash Burn
Persistent negative operating and free cash flow increases funding dependency and heightens dilution or debt risk. Over a multi-quarter horizon, continued cash burn constrains investment in commercial scaling and R&D, and forces trade-offs between growth initiatives and balance sheet preservation if improved cash conversion is not achieved.
Widening Operating and Net Losses
Increasing operating and net losses show the cost base rising faster than revenue. If this trend persists, it will delay the path to sustainable profitability, undermine operating leverage potential, and necessitate either deeper cost cuts that could impact growth or additional capital raises that dilute shareholders.
Deteriorating Balance Sheet Cushion
A shrinking equity cushion and worsening leverage reduce financial flexibility to withstand continued losses or execute strategic initiatives. This elevated balance-sheet risk increases the likelihood of constrained capital access or unfavorable financing terms, hampering long-term investment and scale-up plans.
Myomo (MYO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.83M
Dividend YieldN/A
Average Volume (3M)431.27K
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth64.99%
EPS Growth-25.54%
CountryUS
Employees184
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.09
Shares Outstanding38,511,715
10 Day Avg. Volume529,386
30 Day Avg. Volume431,271
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)3.34
Price to Sales (P/S)0.93
P/FCF Ratio-2.34
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue0.78
Enterprise Value/Gross Profit1.19
Enterprise Value/Ebitda-2.53
Forecast
1Y Price Target
$3.03Price Target Upside332.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.29
Revenue Forecast (FY)$46.97M
Myomo Business Overview & Revenue Model
Company DescriptionMyomo, Inc., a wearable medical robotics company, designs, develops, and produces myoelectric orthotics for people with neuromuscular disorders in the United States. The company offers MyoPro, a myoelectric-controlled upper limb brace or orthosis product used for supporting a patient's weak or paralyzed arm to enable and improve functional activities of daily living. Its products are designed to help improve function in adults and adolescents with neuromuscular conditions due to brachial plexus injury, stroke, traumatic brain injury, spinal cord injury, and other neurological disorders. The company sells its products to orthotics and prosthetics providers, the Veterans Health Administration, and rehabilitation hospitals, as well as through distributors. Myomo, Inc. was incorporated in 2004 and is headquartered in Boston, Massachusetts.
How the Company Makes MoneyMyomo makes money primarily by selling and providing its wearable myoelectric orthosis devices (notably the MyoPro) to patients, typically through the clinical prescription and fitting process. Revenue is generated from the delivered device and associated clinical services tied to evaluation, custom fitting, training, and follow-up support that accompany patient adoption. A significant driver of monetization is reimbursement: the company works within U.S. insurance pathways (including coverage from commercial insurers and government programs where applicable) so that device provision can be paid by third-party payers rather than solely out-of-pocket by patients. The company’s earnings are therefore influenced by the volume of patients who qualify clinically, the success and timing of obtaining payer authorization and reimbursement, and the effectiveness of its clinical and sales channel (including relationships with prescribing clinicians, orthotics/prosthetics providers, and rehabilitation facilities). Specific named partnerships or revenue breakdown by stream: null.
Myomo Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable revenue growth and strategic expansions, particularly in international markets and the O&P channel. However, challenges such as decreased gross margin, increased operating loss, and high cash burn were significant concerns. The company's reaffirmation of financial guidance and steps to optimize costs and advertising were positive, but the issues with Medicare Advantage revenue and increased losses present challenges.Q3-2025 Updates
Positive Updates
Revenue Growth and International Success
Myomo reported a revenue of $10.1 million for Q3 2025, marking a 10% increase compared to the prior year, driven by record revenues in international markets, especially Germany.
Increased Authorizations and Orders
For the first time this year, Myomo saw a sequential increase in quarterly authorizations and orders, supported by more Medicare Advantage payer authorizations.
Expanding O&P Channel
Revenue from the O&P channel increased by 154% year over year, reaching $900,000. The international revenue, particularly from Germany, was a record $1.8 million, up 63%.
Cost Reduction and Operating Leverage
Steps were taken to reduce operating costs and improve gross margin, along with plans to optimize advertising spend and expand the MyoConnect program.
Financial Guidance Reaffirmed
Myomo reiterated its full 2025 annual guidance of $40 million to $42 million in revenue, representing an increase of more than 23% over the previous year.
Negative Updates
Decline in Medicare Advantage Revenue
Medicare Advantage revenue was down 18% compared to the prior year, constrained by high pre-authorization denial rates, resulting in a time-consuming appeals process.
Decreased Gross Margin
Gross margin for Q3 2025 was 63.8%, down from 75.4% in the prior year, impacted by higher payroll and lease expenses, material costs, and unfavorable overhead absorption.
Increased Operating Loss
The operating loss for Q3 2025 was $3.5 million, compared to $1 million in the prior year. The net loss increased to $3.7 million from $1 million in the prior year.
High Cash Burn
Cash burn was $2.9 million in Q3 2025, driven by operating activities and capital expenditures related to manufacturing space expansion and product development.
Company Guidance
During the Myomo Third Quarter 2025 Financial Results Conference Call, CEO Paul Gudonis provided guidance that the company anticipates achieving full-year 2025 revenue within the range of $40 million to $42 million, reflecting an over 23% increase compared to the previous year. This optimistic outlook is supported by a robust performance in the third quarter, where the company reported revenues of $10.1 million, driven by a 16% increase in MyoPro revenue units and strong international sales, notably a 63% rise in Germany. Additionally, the company is expanding its MyoConnect program and O&P channel to lower customer acquisition costs while also seeing a positive trend in Medicare Advantage authorizations. Myomo's strategic initiatives include expanding insurance coverage, reducing operating costs, and enhancing patient identification processes. CFO Dave Henry highlighted a gross margin of 63.8% and operating expenses totaling $10 million, with a focus on improving operating leverage and lowering cash burn in 2026. The company reiterated its commitment to scaling its business towards sustainable profitability and positive cash flow.Myomo Financial Statement Overview
Summary
Financials reflect a turnaround profile: despite solid mid-60% gross margins and meaningful multi-year revenue expansion, the latest annual period shows a sharp revenue decline, widening net losses, and increased cash burn. Balance sheet risk is rising as equity erodes, reducing financial flexibility if losses persist.Income Statement
Revenue scaled meaningfully from 2020 to 2024, but 2025 annual revenue declined sharply versus 2024, signaling demand volatility. Gross margin remains solid (mid-60% range in 2025), but profitability is weak: net losses persist every year and the 2025 annual net margin worsened versus 2024, indicating the cost base rose faster than revenue. Overall, the business shows commercial progress historically, but near-term execution and profitability remain key pressure points.28
Negative
Balance Sheet
Leverage is still moderate on a debt-to-equity basis in 2025, but it deteriorated materially versus 2024 as equity fell and debt stayed elevated. Total assets are down from 2024, and returns to shareholders are deeply negative given ongoing losses. The balance sheet is not highly levered in absolute terms, but the shrinking equity cushion increases financial risk if losses persist.41
Neutral
Cash Flow
Cash generation is a major weakness: operating cash flow and free cash flow are negative across all years, with a significant cash burn in 2025 annual versus 2024. While free cash flow growth shows improvement in some earlier years, the latest period reverses that progress and suggests higher funding needs. Cash flow is broadly tracking net losses rather than demonstrating improving cash efficiency.22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.93M | 32.55M | 19.24M | 15.56M | 13.86M |
| Gross Profit | 26.89M | 23.19M | 13.18M | 10.25M | 10.31M |
| EBITDA | -12.64M | -5.04M | -7.71M | -10.13M | -9.93M |
| Net Income | -15.57M | -6.18M | -8.15M | -10.72M | -10.37M |
Balance Sheet | |||||
| Total Assets | 38.64M | 42.24M | 14.58M | 10.16M | 20.10M |
| Cash, Cash Equivalents and Short-Term Investments | 18.39M | 24.87M | 8.87M | 5.35M | 15.52M |
| Total Debt | 19.38M | 8.11M | 601.30K | 553.91K | 735.00K |
| Total Liabilities | 27.23M | 17.53M | 5.59M | 3.80M | 4.69M |
| Stockholders Equity | 11.40M | 24.71M | 8.99M | 6.36M | 15.41M |
Cash Flow | |||||
| Free Cash Flow | -16.25M | -4.65M | -6.32M | -10.35M | -9.87M |
| Operating Cash Flow | -14.51M | -3.29M | -6.17M | -10.23M | -9.55M |
| Investing Cash Flow | -7.06M | 259.98K | -2.03M | -310.79K | -326.46K |
| Financing Cash Flow | 11.43M | 20.93M | 9.71M | 376.86K | 13.17M |
Myomo Technical Analysis
Negative
0.70
Price Trends
0.85
Negative
0.89
Negative
1.29
Negative
Market Momentum
-0.03
Positive
41.05
Neutral
18.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYO, the sentiment is Negative. The current price of 0.7 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.85, and below the 200-day MA of 1.29, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 18.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MYO.
Myomo Risk Analysis
Myomo disclosed 50 risk factors in its most recent earnings report. Myomo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Myomo Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $49.09M | -3.07 | -337.84% | ― | 27.90% | 1.62% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $26.83M | -2.45 | -95.35% | ― | 64.99% | -25.54% | |
43 Neutral | $22.24M | -0.74 | -210.36% | ― | -70.54% | 70.03% | |
42 Neutral | $3.85M | -0.26 | -181.79% | ― | ― | 15.03% | |
42 Neutral | $24.19M | -1.78 | ― | ― | ― | ― |
* Healthcare Sector Average
MYO
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IINN
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.