Myomo, Inc. (MYO): History, Ownership, Mission, How It Works & Makes Money

As a seasoned investor, are you defintely tracking the medical robotics sector, and specifically a company like Myomo, Inc. (MYO), which is redefining recovery for upper-limb paralysis patients?

The company is projecting full-year 2025 revenue guidance between $40 million and $42 million, an increase of over 23% from the prior year, driven by record Q3 2025 international revenue of $1.8 million and a growing Orthotics and Prosthetics (O&P) channel. But with a Q3 2025 net loss of $3.7 million, how does this wearable MyoPro technology actually make money, and what does its ownership structure-where institutional holders own over 40%-tell us about its long-term viability?

Myomo, Inc. (MYO) History

You're looking for the foundational story of Myomo, Inc. (MYO), and it's a classic medtech tale: academic breakthrough meets commercial reality. The company's trajectory is defined by its shift from an MIT research project to a publicly traded firm focused on securing reimbursement for its unique myoelectric orthosis (a powered brace for the upper limb). That shift, particularly the push for Medicare coverage, is the real story.

Given Company's Founding Timeline

Year established

Myomo, Inc. was established in 2004, incorporating in the State of Delaware on September 1, 2004.

Original location

The company started in Cambridge, Massachusetts, USA, with its principal executive office initially located at One Broadway.

Founding team members

The core technology that became the MyoPro device originated from research at the Massachusetts Institute of Technology (MIT) by Professors Woodie Flowers and Hermano Igo Krebs. Early leadership included experienced medical device executives who commercialized the spin-out technology.

Initial capital/funding

Initial funding came from a mix of grants and seed investments, followed by venture capital rounds. The company's Initial Public Offering (IPO) in 2017 raised approximately $5 million to scale operations. As of November 2025, Myomo has raised a total of $17.2 million in funding across 12 rounds.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's evolution wasn't linear; a few decisions fundamentally changed its business model and market access. The biggest challenge for any medical device company is getting paid, so the reimbursement milestones are defintely the most impactful.

• The MIT Spin-Out: Moving the MyoPro technology out of the lab and into a commercial entity was the first transformative step, leveraging patented myoelectric technology to create a new product category-the powered upper-limb orthosis.
• The 2017 IPO: Going public raised capital and gave Myomo the financial visibility and structure to scale its commercial operations, shifting focus from pure product development to market penetration.
• Securing Medicare Part B Coverage: The sustained effort to secure unique Medicare billing codes, and the subsequent inclusion of Medicare Part B patients, was a game-changer. In Q1 2025, Medicare Part B patients accounted for 60% of the quarter's revenue, proving the massive impact of this reimbursement victory.
• The 2025 Growth and Refocus: Despite an increase in year-to-date operating loss to $11.6 million through Q3 2025, the company is focused on top-line growth and operational leverage. The full-year 2025 revenue guidance is between $40 million and $42 million, a significant increase of more than 23% over 2024, showing the commercial model is now hitting its stride.

The company is now positioned to grow, but maintaining a cash balance of $12.6 million as of September 30, 2025, while managing a high operating expense growth, means execution is everything. You can read more about their strategic direction here: Mission Statement, Vision, & Core Values of Myomo, Inc. (MYO).

Myomo, Inc. (MYO) Ownership Structure

Myomo, Inc. is a publicly traded company on the NYSE American exchange under the ticker MYO, meaning its ownership is distributed among institutional funds, company insiders, and the general public.

The company's governance is heavily influenced by institutional investors, who collectively hold the majority of the stock, a common structure for a microcap medical device company. This concentration of ownership means that a few large funds-like Rosalind Advisors, Inc. and BlackRock, Inc.-have significant sway over major strategic decisions.

Myomo, Inc.'s Current Status

Myomo, Inc. is a publicly listed company, trading on the NYSE American exchange. Being public means the company is subject to stringent regulatory oversight by the Securities and Exchange Commission (SEC), ensuring transparency through regular filings like the 10-K and 10-Q.

The company's market capitalization as of November 2025 is around $27.67 million, placing it firmly in the micro-cap space. This size often leads to higher stock volatility, but it also means that positive catalysts, like the expected 2025 revenue of approximately $4.5 million from Germany or strong Q3 2025 revenue of $10.1 million, can have a disproportionately large impact on valuation. To be fair, micro-cap stocks defintely carry more risk.

Myomo, Inc.'s Ownership Breakdown

As a seasoned analyst, I look at the ownership breakdown to understand who controls the vote. What you see here is a company where institutional money holds the reins, while retail investors still own a significant chunk of the float. Here's the quick math based on the latest November 2025 data, showing how the shares are distributed:

The high institutional ownership-nearly two-thirds of the stock-suggests a degree of confidence from professional money managers, even with the stock trading near its 52-week low of $0.71. The largest individual shareholder is Paul R. Gudonis, the CEO, owning about 3.30% of the company, which is a healthy alignment of management and shareholder interests.

Myomo, Inc.'s Leadership

The company is steered by a small but experienced leadership team, combining long-tenured executives with medical device industry veterans on the board. This structure is crucial for navigating the complex regulatory and reimbursement landscape of medical robotics.

• Paul R. Gudonis: Chairman and Chief Executive Officer. He has led Myomo for over a decade, positioning the company as a leader in upper-limb medical robotics.
• David Henry: Chief Financial Officer. The CFO's role is critical right now, especially as the company focuses on achieving sustainable positive cash flow.
• Thomas F Kirk: Lead Independent Director. A key figure in the Orthotics & Prosthetics industry, his expertise is vital for Myomo's core market strategy and reimbursement efforts.
• Thomas Aloysius Jr. Crowley: Director. He brings decades of experience in the medical device markets, focusing on strategic planning and optimizing shareholder value. He recently purchased shares in November 2025, a sign of insider confidence.
• Milton M. Morris, Ph.D.: Chair of the Technology, Quality and Regulatory Committee. His background as a medical technology C-Suite executive is essential for managing product development and regulatory hurdles.

The leadership's primary near-term action is to convert the growing backlog of MyoPro orders into recognized revenue, especially as Q3 2025 revenue hit $10.1 million, beating analyst expectations.

Myomo, Inc. (MYO) Mission and Values

Myomo, Inc.'s core focus is leveraging neuro-robotic technology to restore independence for individuals with upper-limb paralysis, translating their patient-centric mission into tangible financial growth, like the Q3 2025 revenue of $10.1 million. This purpose goes beyond the bottom line; it's about giving people back the ability to perform daily activities.

Myomo, Inc.'s Core Purpose

Honestly, a company's mission is its cultural DNA-it tells you what they actually value when the market gets rough. For Myomo, Inc., their entire operation, from R&D to getting the MyoPro device reimbursed, is rooted in improving a patient's quality of life. They are a medical robotics company, but their real product is functional independence.

Official Mission Statement

The company's mission is centered on restoring movement and independence to individuals affected by neurological disorders. They achieve this by developing and offering innovative medical solutions that improve the quality of life for patients with conditions like stroke, spinal cord injury, and brachial plexus injury. Here's the quick math on impact: in Q1 2025, they delivered 182 MyoPro revenue units, a 100% increase over Q1 2024, showing their commitment to scaling patient access.

• Restore functional use of paralyzed or weakened upper limbs.
• Empower individuals to participate more fully in daily activities.
• Improve emotional, social, and psychological well-being, not just physical function.

Vision Statement

Myomo, Inc.'s vision is straightforward but ambitious: to become the worldwide standard of care for individuals with upper-limb paralysis. This isn't just about selling more units; it's about establishing the MyoPro orthosis as the definitive, first-line treatment. To be fair, this vision is supported by their growth in key markets, especially with the Q2 2025 Average Selling Price (ASP) per unit reaching approximately $54,200, up 14% year-over-year, which reflects the premium, specialized nature of their technology.

• Establish MyoPro as the definitive, global standard of care.
• Continuously innovate myoelectric technology.
• Expand market access through broader reimbursement, like the new Medicare Advantage contracts driving Q3 2025 revenue.

Myomo, Inc. Slogan/Tagline

While a snappy, consumer-facing slogan isn't the priority for a B2B medical device company, their core message is clear: they are a wearable medical robotics company that offers improved arm and hand function for those suffering from neurological disorders and upper-limb paralysis. This is a defintely powerful statement. Their values are baked into the product itself: Patient-Centricity, Innovation, Empowerment, and Independence.

• Patient-Centricity: Deep commitment to improving patient outcomes.
• Innovation: Focus on cutting-edge myoelectric technology.
• Empowerment: Enabling users to perform everyday tasks like feeding themselves.
• Independence: Reducing reliance on caregivers and improving self-esteem.

If you want to understand how this mission impacts their financial structure and shareholder base, you should be Exploring Myomo, Inc. (MYO) Investor Profile: Who's Buying and Why?

Myomo, Inc. (MYO) How It Works

Myomo, Inc. operates as a medical robotics company, developing and marketing the MyoPro myoelectric orthosis, a powered brace that restores function to weakened or paralyzed arms and hands by reading faint muscle signals from the user's skin. The company generates revenue by selling these custom-fabricated devices primarily through direct billing to insurance providers, including Medicare, which accounted for 56% of its Q2 2025 revenue.

The core business model is straightforward: identify medically-qualified patients, secure insurance authorization (often a complex, multi-month process), manufacture the custom device, and then bill for the lump-sum payment, aiming for the high end of their 2025 revenue guidance of $40 million to $42 million.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The company's operational framework is built around a high-touch, patient-centric sales and delivery cycle, which is necessary because the MyoPro is a custom-fabricated, prescription-only device. It's not a simple e-commerce transaction; it's a medical process.

• Patient Identification & Qualification: Uses direct-to-consumer advertising (shifting toward television from digital in 2025) to generate leads, which are then medically-qualified by an internal team.
• Reimbursement & Authorization: This is the crucial bottleneck. The team secures prior authorization from commercial payers, Medicare, or the VA. Medicare Part B reclassification as a brace allows for a lump-sum payment, which is a huge tailwind.
• Manufacturing & Customization: Devices are custom-fabricated and assembled at the new 35,000 sq. ft. headquarters in Burlington, Massachusetts, which they relocated to in January 2025 to boost capacity.
• Delivery & Clinical Fitting: Devices are delivered and fitted either directly by Myomo's field clinicians-Certified Prosthetist Orthotists (CPOs) and Occupational Therapists (OTs)-or through the expanding Orthotics and Prosthetics (O&P) channel.
• Value Creation: The entire process, from lead to revenue, can take months, but it results in a high Average Selling Price (ASP) of approximately $54,200 per unit, and a strong gross margin of 62.7% in Q2 2025.

Given Company's Strategic Advantages

Myomo's market success hinges on a few clear, defensible advantages in the niche of myoelectric orthotics, but they still face intense competition from larger players like Ottobock and other rehabilitation methods.

• Favorable Reimbursement Landscape: The January 2024 CMS reclassification of MyoPro as a brace, reimbursable under Medicare Part B as a lump-sum, is the single biggest recent catalyst. This has driven Medicare Part B patients to account for over half of their revenue.
• Proprietary Technology and FDA Status: The MyoPro is one of the few FDA-registered devices that uses myoelectric signals to restore functional motion, giving it a clinical and regulatory edge over many competitors.
• Direct-to-Payer Expertise: Unlike many smaller medical device companies, Myomo has built a sophisticated, in-house direct billing and reimbursement infrastructure, which is defintely necessary to navigate the complex US payer system. This expertise is a high barrier to entry for newcomers.
• Growing Pipeline and International Reach: As of June 30, 2025, the patient pipeline stood at 1,611 patients, showing strong underlying demand. Plus, international markets, like Germany, contributed 13% of Q1 2025 revenue, offering a hedge against US market fluctuations.

You can read more about the company's long-term goals here: Mission Statement, Vision, & Core Values of Myomo, Inc. (MYO).

Myomo, Inc. (MYO) How It Makes Money

Myomo, Inc. makes money by selling its flagship product, the MyoPro myoelectric upper limb orthosis, which is a robotic arm brace that helps people with neuromuscular disorders regain function. The company primarily generates revenue by directly billing U.S. health insurance payers, like Medicare, for the device and by selling units to international distributors and domestic orthotics and prosthetics (O&P) clinics.

Myomo, Inc.'s Revenue Breakdown

In the third quarter of 2025, Myomo, Inc. reported total revenue of approximately $10.1 million, which was a 10% increase year-over-year. The core of the business remains its direct-to-patient model in the U.S., but the company is defintely diversifying its sales channels, as you can see in the shift in percentages.

Here's the quick math: The Direct Billing channel is still the largest, making up nearly three-quarters of revenue, but the International and O&P channels are growing much faster. International sales, driven primarily by Germany, grew by a massive 63% year-over-year in Q3 2025, while the domestic O&P channel more than doubled its contribution, up 154%.

Business Economics

The economics of Myomo, Inc.'s business center on a high-value product, the MyoPro, which commanded an Average Selling Price (ASP) of approximately $54,300 per unit in Q3 2025. This high ASP is necessary to cover the significant costs of manufacturing a Class II medical device and the long, complex process of securing insurance authorization and payment, which is a key bottleneck in the direct billing model.

• Gross Margin Pressure: The Q3 2025 gross margin contracted to 63.8%, down from 75.4% in the prior-year quarter. This drop is due to a lower ASP and higher material and labor costs.
• Customer Acquisition Shift: The company is strategically moving away from expensive, advertising-driven lead generation toward a new platform called MyoConnect. This platform aims to build recurring patient referrals through therapists and physicians, which should lower the cost per patient added to the pipeline over time.
• Breakeven Target: Management has indicated that the company is targeting breakeven at a quarterly revenue run-rate of $16 million to $17 million. This gives you a clear number to track against the Q3 2025 revenue of $10.1 million.

The shift to the O&P channel is smart because it outsources some of the patient-finding costs and leverages existing clinical networks, which is a more scalable model. You can dig deeper into who is betting on this strategy by Exploring Myomo, Inc. (MYO) Investor Profile: Who's Buying and Why?

Myomo, Inc.'s Financial Performance

Myomo, Inc.'s financial performance as of Q3 2025 shows a company in a high-growth, pre-profitability phase, focused on scaling its core product. The full-year 2025 revenue guidance is between $40 million and $42 million, representing a growth of more than 23% over 2024.

• Revenue Velocity: Q3 2025 revenue was $10.1 million, driven by 186 MyoPro units delivered.
• Profitability: The company continues to operate at a loss, with a Q3 2025 net loss of approximately $3.7 million, or $0.09 per share. This loss is widening as the company invests in growth and new facilities.
• Cash Position: As of September 30, 2025, the company had $12.6 million in cash, cash equivalents, and short-term investments. They did bolster this with a new $17.5 million debt financing arrangement, which is a necessary lifeline for a growing company with negative cash flow.
• Year-to-Date Performance: For the first nine months of 2025, total revenue was $29.6 million, up 44% compared to the same period in 2024.

The bottom line is that while revenue is growing fast, the company is still burning cash to fund that growth. What this estimate hides is the execution risk in the shift to the MyoConnect and O&P channels; if those don't ramp up quickly, the reliance on high-cost advertising will continue to pressure the operating loss.

Myomo, Inc. (MYO) Market Position & Future Outlook

Myomo, Inc. is positioned as a niche leader in the myoelectric upper-limb orthotics (powered braces) market, capitalizing on a crucial 2024 Medicare reclassification that significantly broadened its addressable patient pool. The company's future outlook hinges on converting its growing pipeline and achieving operating leverage, with management guiding for full-year 2025 revenue in the range of $40 million to $42 million.

Competitive Landscape

The competitive landscape for Myomo's flagship MyoPro device is complex, sitting at the intersection of traditional orthotics and advanced medical robotics. While the overall prosthetics and orthotics market is valued at approximately $7.64 billion in 2025, Myomo operates in the more specialized upper-limb orthosis segment, which is projected to reach $1.5 billion by 2025. The company's key advantage is its non-invasive, myoelectric (muscle signal-sensing) orthosis classification, which differentiates it from both passive braces and full exoskeletons.

Opportunities & Challenges

As a growth-stage medical robotics company, Myomo faces the classic challenge of scaling revenue faster than its operating expenses. The strategic pivot to new distribution channels and international markets is defintely the right move to capture the full market opportunity.

Industry Position

Myomo holds a unique, defensible position within the broader medical robotics sector, primarily due to its non-invasive technology and regulatory classification. The company is not a pure-play exoskeleton competitor like Ekso Bionics, nor is it a massive, diversified orthotics giant like Ottobock. It sits right in the middle, creating its own category of myoelectric orthosis.

• Dominates the niche of non-invasive, myoelectric upper-limb orthoses (braces), which is distinct from the more complex, lower-limb exoskeletons used for gait training.
• The company's Q3 2025 gross margin was 63.8%, which, while down from the prior year, remains attractive and suggests a strong value proposition for the MyoPro device.
• The goal to reach quarterly revenue of $16 million to $17 million is the stated breakeven target, making execution on the MyoConnect and O&P channels the immediate financial priority.

You need to look closely at the conversion rates from the new MyoConnect program over the next two quarters; that metric will tell you if the strategic shift is working. For more on the capital structure and institutional interest, you can check out Exploring Myomo, Inc. (MYO) Investor Profile: Who's Buying and Why?