Breaking Down Myomo, Inc. (MYO) Financial Health: Key Insights for Investors

You're looking at Myomo, Inc. (MYO) and seeing the classic biotech growth-vs-burn story, and you need to know which side of the ledger is winning as we close out 2025. Honestly, the third quarter results, released in November 2025, show a mixed picture: the company is defintely selling more MyoPro units, but the cost of that growth is rising fast. They reported Q3 2025 revenue of $10.09 million, which beat the street and was a solid 10% increase year-over-year, driven by a record 229 MyoPro orders for the quarter. But here's the quick math: that top-line growth came at a cost, with the net loss widening significantly to $3.7 million, or $0.09 per share, compared to just $1.0 million in the prior year quarter, and the gross margin contracted sharply to 63.8% from 75.4% a year ago. Management is still guiding for full-year revenue between $40 million and $42 million, but with a cash position of $12.6 million as of September 30, 2025, and a widening loss, the focus shifts immediately to their ability to execute on their new $17.5 million term loan facility and hit that revenue target without burning through their runway too quickly. The question isn't just about revenue growth; it's about the path to profitability, and that path looks steeper than ever.

Revenue Analysis

You're looking for a clear picture of Myomo, Inc. (MYO)'s sales engine, and the 2025 numbers show a company in a significant, but uneven, transition. The direct takeaway is that Myomo is on track for a solid year of top-line growth, projecting full-year revenue between $40 million and $42 million, but the underlying revenue mix is shifting fast, which is where the real risk and opportunity lie.

The core of Myomo, Inc.'s revenue is the sale of its MyoPro® myoelectric upper limb orthosis-a wearable medical robotic device. This is a product-based revenue model, not a service one, so sales velocity is tied to insurance authorization and delivery. The average selling price (ASP) per unit in Q3 2025 was approximately $54,300, though this was down about 5% year-over-year, largely due to a high prior-year comparison.

Here's the quick math on growth: Management expects full-year 2025 revenue growth to be in the range of 23% to 29% over 2024. That's defintely a strong recovery from past volatility. For the third quarter of 2025 alone, revenue hit $10.1 million, an increase of 10% compared to the same period in 2024, driven by a 16% increase in the number of MyoPro units delivered.

The contribution of different business segments is changing, and this is the most important trend for investors to watch. Myomo is actively diversifying away from its traditional advertising-driven, direct-to-consumer model.

• Direct Billing Channel: This remains the largest segment, accounting for 73% of Q3 2025 revenue. A significant portion of this-54% of Q3 revenue-came from Medicare Part B patients, a crucial payer source.
• International Revenue: This is a high-growth area, hitting a record $1.8 million in Q3 2025, a jump of 63% year-over-year. It now makes up 18% of total revenue, with Germany being the primary driver.
• O&P Channel: Revenue from the Orthotics and Prosthetics (O&P) channel was a record $900,000 in Q3 2025, a massive 154% increase year-over-year, and now represents 9% of total revenue. This channel is emerging as a lower-cost, high-quality source of patients.

The significant change is the strategic push toward recurring patient sources like the O&P channel and the MyoConnect clinical referral program, which aims to generate patient referrals from therapists and physicians. This is a deliberate move to reduce reliance on expensive advertising for lead generation, a necessary action to improve operating leverage and lower cash burn in 2026. You can read more about this strategic shift and the company's full financial picture in Breaking Down Myomo, Inc. (MYO) Financial Health: Key Insights for Investors.

To see the shift clearly, look at the Q3 2025 numbers:

The growth in the International and O&P segments is a clear signal that the company's diversification strategy is gaining traction. Still, the Direct Billing channel, particularly Medicare Part B patients at 54% of Q3 revenue, is the one that pays the bills today.

Profitability Metrics

You're looking for a clear picture of Myomo, Inc. (MYO)'s financial health, and the Q3 2025 results show a critical divergence: revenue is growing, but profitability margins are under serious pressure. The company is successfully selling more units, but the cost to deliver those units and run the business is expanding faster than the top line.

For the third quarter of 2025, Myomo, Inc. reported revenue of $10.1 million, a 10% increase year-over-year, but the bottom line expanded its losses significantly. The core challenge is evident in the margin compression across the board, which you need to map against their growth strategy to assess near-term risk.

• Gross Margin: 63.8% in Q3 2025.
• Operating Margin: -34.65% in Q3 2025.
• Net Margin: -36.63% in Q3 2025.

Gross Profit and Operational Efficiency

The gross profit margin is where the operational efficiency story begins. For the third quarter of 2025, Myomo, Inc.'s gross margin was 63.8%, a substantial drop from 75.4% in the prior-year quarter. This is a clear red flag for cost management.

Here's the quick math on the year-to-date (YTD) trend: YTD 2025 gross margin stands at 64.6%, down from 71.1% in YTD 2024. This decline is largely due to a lower Average Selling Price (ASP) and higher material, payroll, and lease costs, plus an unfavorable change in overhead absorption-meaning their fixed costs are not being spread efficiently across a higher volume of production yet. The good news is management is focused on manufacturing cost reduction projects, but the full 200 basis points of improvement won't be realized until Q3 2026. You can explore more on their market position and investor base here: Exploring Myomo, Inc. (MYO) Investor Profile: Who's Buying and Why?

Operating and Net Profit Margins

The operating and net margins highlight the steep cost of customer acquisition and overhead. In Q3 2025, the operating loss widened to $3.5 million (a -34.65% operating margin), compared to a $1.0 million loss in Q3 2024. This is a significant increase in the burn rate. Total operating expenses for Q3 2025 were $10.0 million, up 26% year-over-year, driven by higher advertising to fill the sales pipeline and increased research and development spending.

The net loss for Q3 2025 was $3.7 million (a -36.63% net margin), compared to a net loss of $1.0 million in the same period last year. The YTD 2025 net loss is even starker at $11.8 million, representing a -39.86% net margin on $29.6 million in revenue. This means for every dollar of revenue, the company is losing nearly 40 cents after all costs.

Comparison to the MedTech Industry

When you compare Myomo, Inc.'s profitability to the broader Medical Device (MedTech) sector, the challenges become clearer. While MedTech companies are generally highly profitable, averaging margins around 22%, Myomo, Inc. is operating at a significant loss as a high-growth, pre-profit company.

For example, a comparable medical technology company, Varex Imaging, reported a Non-GAAP Gross Margin of 35% and a Non-GAAP Operating Margin of 9% for its full fiscal year 2025, which provides a realistic target for a profitable operation in this space. Another peer, Zynex, reported a Q3 2025 gross profit of 60% of revenue, which is actually lower than Myomo, Inc.'s 63.8%. Myomo, Inc.'s gross margin is defintely strong for a hardware-based medical device, but its negative operating margin shows the immediate risk is in selling, general, and administrative expenses, not just the cost of goods sold.

Here is a quick look at the key profitability metrics for Myomo, Inc. (MYO) in Q3 2025 compared to the YTD 2025 period:

The action item here is to watch the Q4 2025 results for any sequential improvement in operating expenses, as the current burn rate is simply not sustainable without significant future capital raises.

Debt vs. Equity Structure

You're looking at Myomo, Inc. (MYO) and trying to understand how they fund their operations, which is smart. The direct takeaway is that while the company historically maintained a low debt-to-equity ratio, a recent $12.5 million debt infusion in November 2025 has significantly increased its leverage, moving it closer to the industry median for medical device companies.

As of September 30, 2025, Myomo, Inc. was not heavily leveraged, reporting total debt of approximately $4.0 million (consisting of $3.0 million from a term loan and $1.0 million from a revolving line of credit) against a total stockholders' equity of $14.6 million. This gave the company a very low debt-to-equity (D/E) ratio of about 0.273 (or 27.3%). This is a low ratio, especially when you compare it to the median D/E ratio of 0.70 for the Surgical and Medical Instruments and Apparatus industry.

But that picture changed in November 2025. The company announced a new senior secured term loan facility of up to $17.5 million. Here's the quick math: $12.5 million was funded immediately on November 4, 2025, with the proceeds used to repay the old debt facility. This new debt, which matures in June 2029, is a substantial shift toward debt financing.

• New Debt Funded: $12.5 million at closing.
• Pro Forma Cash: $20.1 million after funding and fees.
• Pro Forma D/E: Rises to approximately 0.86 (or 86%).

The new, higher debt-to-equity ratio of around 0.86 is still manageable, but it's a clear move to finance growth with debt rather than diluting shareholders further through equity. The company has a history of raising capital through equity, such as a public offering in late 2024 that generated net proceeds of approximately $15.8 million. This new debt facility, however, provides a cash runway for at least the next year and is a sign of a lender's confidence in the company's future revenue projections of $40 million to $42 million for the full year 2025. You can read more about the full financial picture in Breaking Down Myomo, Inc. (MYO) Financial Health: Key Insights for Investors.

What this estimate hides is the potential for an additional $5.0 million in term loans available in 2026-2027, which would push the D/E ratio even higher. The company is balancing its capital structure, but the primary risk now shifts from equity dilution to interest rate and debt repayment risk, especially given their goal to return to positive operating cash flow by the fourth quarter of 2025.

Liquidity and Solvency

You need to know if Myomo, Inc. (MYO) has enough cash on hand to cover its near-term bills, especially as they scale up. Honestly, their liquidity position as of the third quarter of 2025 looks solid on paper, but you have to look past the ratios to the underlying cash flow. The company has done a good job shoring up its balance sheet, but the core business is still a cash burner.

Current and Quick Ratios: A Strong Buffer

The balance sheet shows a healthy cushion against short-term obligations. Myomo, Inc.'s current ratio-which measures total current assets against total current liabilities-stands at a strong 2.49 as of September 30, 2025. That means for every dollar of debt coming due in the next year, the company has about $2.49 in assets to cover it. The quick ratio, which strips out less-liquid inventory, is also robust at approximately 2.09. For a growth-stage medical device company, these ratios are defintely a strength, showing they are not in immediate distress. A ratio over 1.0 is generally good; a ratio over 2.0 is excellent.

• Current Assets: $22.94 million
• Current Liabilities: $9.202 million
• Current Ratio: 2.49 (Strong)
• Quick Ratio: 2.09 (Very good)

Working Capital Trends: Growth Requires Cash

Myomo, Inc.'s working capital (Current Assets minus Current Liabilities) was approximately $13.7 million at the end of Q3 2025. This is a positive number, indicating a surplus of liquid assets. However, the trend here is complex. The company is actively investing to grow its patient pipeline and international sales, and this growth demands cash upfront. You see this in the increase in accounts receivable and inventory as they deliver more MyoPro units. The positive working capital is a result of past financing, not yet consistent internal cash generation. This is a classic growth-stage trade-off: you burn cash to build a bigger future asset base.

Cash Flow Statements Overview

This is where the rubber meets the road. Looking at the cash flow statement for the nine months ended September 30, 2025, you see the real challenge. The business is still in a heavy investment phase, which is why they continue to rely on external funding to keep the lights on and expand operations. Here's the quick math on the major cash flow categories:

Near-Term Liquidity Concerns and Strengths

The main liquidity concern is the substantial cash used in operating activities, totaling $13.4 million in the first nine months of 2025. This means the company is not yet generating enough cash from selling its MyoPro devices to cover its daily costs. The strength, however, is their ability to secure capital. On November 4, 2025, Myomo, Inc. secured a new $17.5 million term loan facility, with $12.5 million funded at closing. This new debt immediately bolstered the cash position, giving them a pro forma cash balance of $20.1 million as of the end of Q3 2025. That is a critical lifeline that buys them time to execute their growth strategy and work toward operating cash flow breakeven. Without that financing, the liquidity picture would be far more concerning. For a deeper dive into the valuation, check out Breaking Down Myomo, Inc. (MYO) Financial Health: Key Insights for Investors.

The action item here is clear: watch the operating cash flow in the next two quarters. If the negative number starts shrinking, the new financing will have been a smart bridge to self-sufficiency.

Valuation Analysis

You're looking at Myomo, Inc. (MYO) at a critical juncture: the stock has been hammered, but analyst targets suggest a massive upside. So, is it a value play or a value trap? The short answer is that, based on near-term 2025 financial projections, Myomo, Inc. appears to be undervalued on a relative basis, but you must remember this is a growth company with negative earnings right now.

The core issue is profitability. Since Myomo, Inc. is not profitable, traditional valuation metrics like the Price-to-Earnings (P/E) ratio are unusable-they come out negative, like -3.46 as of early November 2025, which just tells you they're losing money per share. We have to look at sales and book value to get a clearer picture.

Here's the quick math on key 2025 valuation multiples:

• Price-to-Sales (P/S): Around 0.7x to 0.91. This is defintely a low multiple, especially compared to the US Medical Equipment industry average of 3.1x.
• Price-to-Book (P/B): The ratio sits between 1.81 and 2.23.
• Enterprise Value-to-EBITDA (EV/EBITDA): This is negative, approximately -2.8x, because the company's LTM (Last Twelve Months) EBITDA is negative, around ($8.7774 million).

What this estimate hides is the high-risk nature of a company projecting 2025 total revenue between $40 million and $42 million but still operating at a loss. The low P/S ratio suggests the market is discounting the stock heavily, likely due to the profitability challenges and the stock's volatile performance.

Stock Performance and Analyst Sentiment

The stock price trend over the last 12 months has been brutal. The 52-week range is a wide chasm, spanning from a low of $0.780 to a high of $7.170. As of November 2025, the stock is trading near the bottom of that range, around $0.81 to $0.85, after declining a steep 82.490% over the past year. It's a classic high-risk, high-reward situation.

Still, the analyst community is surprisingly bullish. The consensus rating from five analysts is a Strong Buy. Four analysts recommend buying, and zero recommend selling or holding, which is a rare sight. Their average 12-month price target is aggressive, ranging from $5.10 to $6.60, with a high estimate of $10.50. This implies a potential upside of over +525.00% from the current price, assuming Myomo, Inc. executes on its growth strategy.

A quick note on investor profile: Myomo, Inc. does not pay a dividend. The dividend yield is 0.00%, and the payout ratio is not applicable, as they have no dividend history. This is purely a growth-focused investment, not an income play. If you want to dive deeper into who is buying and why, you can check out Exploring Myomo, Inc. (MYO) Investor Profile: Who's Buying and Why?

Finance: Re-evaluate the analyst consensus price target against the Q4 2025 revenue actuals once released to see if the implied upside still holds.

Risk Factors

You're looking at Myomo, Inc. (MYO) because you see the promise of wearable medical robotics, and honestly, the Q3 2025 revenue of $10.1 million is a solid beat on expectations. But as a seasoned analyst, I have to map the near-term risks, and the financial health indicators are flashing bright yellow. The core challenge is simple: the company is still burning cash to fuel growth, and that comes with a cost.

The biggest financial red flag is the liquidity crunch and leverage. As of September 30, 2025, Myomo's cash, cash equivalents, and short-term investments stood at only $12.6 million. They did secure a new $17.5 million term loan facility (with $12.5 million funded at close) in November 2025, which gives them runway, but it also adds significant debt to the balance sheet. This is a high-wire act: debt is cheaper than equity, but it means the path to profitability is defintely a race against the clock.

• Year-to-Date Net Loss: The net loss for the first nine months of 2025 was $11.8 million, a significant widening from the prior year.
• Volatility: The stock exhibits substantial volatility, with a high beta of 2.2 and a volatility percentage of 88.72%, making it a speculative growth play.
• Financial Distress: The company's Altman Z-Score is a concerning -2.3, placing it in the distress zone and implying a potential bankruptcy risk within the next two years if the financial trajectory doesn't improve.

Operational and Strategic Headwinds

The operational risks center on their ability to scale efficiently and navigate the complex reimbursement landscape. The gross margin contracted to 63.8% in Q3 2025, down from 75.4% in the prior-year quarter. Here's the quick math: higher labor, material costs, and changes in overhead absorption accounted for about 800 basis points of that decline, which is a structural issue they have to fix.

The reimbursement process, particularly with Medicare Advantage plans, remains a major bottleneck. The company faces high preauthorization denials, with only about 45% to 50% of those denials typically overturned on appeal for engaged patients. This regulatory friction slows down revenue conversion and adds to administrative costs. Also, the backlog of patient orders not yet converted to revenue was 208 patients as of the last report, a 34% year-over-year decrease, signaling a need for better pipeline conversion.

Mitigation and Actionable Focus

Management is taking clear steps to address these risks, which is what you want to see. Strategically, they are shifting away from expensive direct-to-consumer advertising toward the MyoConnect program, which focuses on recurring patient referrals from therapists and physicians. This is a smart move to lower customer acquisition costs over time.

On the cost side, they have initiated manufacturing cost reduction projects expected to generate 200 basis points of gross margin improvement, though the full savings won't be realized until Q3 2026. The ultimate goal is to achieve breakeven at a quarterly revenue run rate of $16 million to $17 million, which is the key metric you should monitor in 2026. You should read more about the company's full financial picture in Breaking Down Myomo, Inc. (MYO) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking at Myomo, Inc. (MYO) and seeing a medical robotics company with a history of losses, but the near-term growth narrative for 2025 is defintely compelling, driven by strategic pivots and product innovation. The key takeaway is that management is executing on a plan to shift toward more scalable, lower-cost patient acquisition channels, which is critical for long-term profitability.

The company has reiterated its full-year 2025 revenue guidance to a range of $40 million to $42 million, which represents an increase of more than 23% over the previous year. While the consensus Earnings Per Share (EPS) forecast for the fourth quarter of 2025 is still negative at -$0.080, the trajectory shows improvement, as seen by the Q3 2025 EPS loss of -$0.09 beating the analyst consensus of -$0.11.

Key Growth Drivers and Strategic Shifts

Myomo's growth is no longer solely reliant on direct-to-consumer advertising; the focus has shifted to two more sustainable channels. This is a smart move. The first is a major push into the Orthotics and Prosthetics (O&P) channel, which saw revenue jump 154% year-over-year to $900,000 in Q3 2025. The second is the new MyoConnect program, a clinical referral network that aims to generate patient leads more efficiently and lower the overall customer acquisition cost (CAC).

International expansion is also a powerhouse. Q3 2025 international revenue hit a record $1.8 million, soaring 63% year-over-year, with Germany being the primary growth engine due to favorable reimbursement access. This geographical diversification provides a necessary buffer against U.S. insurance authorization challenges, particularly with Medicare Advantage plans. You can dive deeper into the institutional backing here: Exploring Myomo, Inc. (MYO) Investor Profile: Who's Buying and Why?

• Product Innovation: Launched the MyoPro 2x in April 2025, enhancing ease of use and fit.
• Market Expansion: Record international revenue, up 63% in Q3 2025.
• Channel Growth: O&P channel revenue more than doubled, up 154% in Q3 2025.
• Payer Coverage: Expanded in-network contracts to cover 35 million private payer lives.

Competitive Advantages

Myomo's core competitive advantage lies in its product, the MyoPro myoelectric upper limb orthosis. It's an FDA-registered Class II medical device, and it's one of the few devices on the market that senses a patient's own electromyography (EMG) signals to restore functional motion. This first-mover advantage in the specialized myoelectric orthosis category is a significant barrier to entry for competitors.

Another structural advantage is the company's direct billing model, which accounted for 79% of Q1 2025 revenue. This allows Myomo to control the entire patient experience, from qualification to insurance reimbursement, even though it introduces complexity and risk. Here's the quick math on the 2025 revenue outlook:

What this estimate hides is the continued pressure on gross margin and operating loss, which increased to $3.5 million in Q3 2025. The company is targeting a quarterly revenue of $16 million to $17 million to reach breakeven, so the current guidance of $40M-$42M for the full year means they still have a considerable climb ahead to hit profitability.