Myomo, Inc. (MYO): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Myomo, Inc., and honestly, what you'll find is a classic, high-touch medical device play fighting through the reimbursement maze. This isn't a simple widget; it's about restoring function with a custom myoelectric orthosis, aiming for $40 million to $42 million in revenue for 2025 while managing operating expenses that hit $10.0 million in Q3 alone. The real story is how they are shifting from their legacy direct sales to a broader Orthotics and Prosthetics (O&P) clinic channel to scale, and whether that 63.8% gross margin can eventually cover the high cost of patient acquisition, which currently sits near $2,589 per add. Dive in below to see the full nine blocks of their strategy.

Myomo, Inc. (MYO) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Myomo, Inc. relies on to get the MyoPro into the hands of patients, and honestly, the numbers show a clear focus on expanding reimbursement and channel reach as of late 2025.

The partnerships with Orthotics and Prosthetics (O&P) providers are showing real traction. This channel is emerging as a high-quality, lower-cost source of qualified patients, according to Myomo, Inc.'s Chairman and CEO. As of the third quarter of 2025, revenue from the O&P channel hit a quarterly record of $900,000, marking a year-over-year increase of 154%. This segment accounted for 9% of the total revenue in Q3 2025. Furthermore, as of March 31, 2025, Myomo, Inc. reported that more than 300 Certified Prosthetists Orthotists (CPO's) had completed initial MyoPro training, which is key for scaling clinical service and fitting capabilities.

Payor relationships, especially with Medicare, are central to the business. The Centers for Medicare & Medicaid Services (CMS) has established lump sum reimbursement for HCPCS codes L8701 and L8702, effective January 1, 2025, with published fees. For instance, the fee for L8701 (Motion W) is $34,284, and for L8702 (Motion G) is $67,453. Medicare Part B patients represented 56% of revenue in the second quarter of 2025 and grew to 57% of revenue in the third quarter of 2025. It's worth noting that the 2025 Physician Fee Schedule (PFS) conversion factor saw a reduction of 2.83%. On the commercial side, Myomo, Inc. has entered into contracts with commercial payers covering over 25 million lives, which helps establish an in-network status with established fee schedules.

International expansion is heavily reliant on distributors and joint ventures. The partnership with Jiangxi Myomo Medical Assistive Appliance Co. Ltd. in China remains a key strategic element, though the initial technology license fee was fully received in Q2 2023. Myomo, Inc. maintains a 19.9% ownership stake in that JV Company. The JV has an escalating purchase commitment for a minimum of $10.75 million in MyoPro Control System Units over 10 years, contingent on regulatory approvals. In the third quarter of 2025, International revenue reached a record $1.8 million, up 63% year-over-year, accounting for 18% of total revenue, with Germany being the primary driver.

Financing stability comes through debt partners. Myomo, Inc. secured a significant funding arrangement with Avenue Capital. This committed loan facility totals up to $17.5 million. The initial funding tranche, Tranche 1, was $12.5 million, with a potential second tranche of up to $5.0 million available between November 4, 2026, and May 4, 2027. The Maturity Date for these Loans is set for June 1, 2029.

Clinical validation through research institutions is also a partnership pillar. While the importance of clinical research, including trials with institutions such as the University of Utah, is clear for establishing evidence, the search results did not provide specific financial commitments or statistical outcomes tied directly to this partnership as of late 2025.

Here's a quick view of the revenue channel breakdown from the latest reported quarter:

The company is actively working to diversify revenue streams in 2026, aiming to rely less on advertising-driven revenues and more on the MyoConnect platform and further penetration of the O&P channel.

You'll want Finance to track the utilization management trends from Medicare Advantage plans, as management noted this impacted authorizations and orders in Q1 2025. Finance: draft 13-week cash view by Friday.

Myomo, Inc. (MYO) - Canvas Business Model: Key Activities

You're looking at the core engine of Myomo, Inc. (MYO) as of late 2025-the things the company absolutely must do well to keep the revenue flowing and the product evolving. This isn't just about selling a device; it's a complex interplay of high-tech development, physical production, and navigating the tricky world of medical billing.

Research and development (R&D) for MyoPro 3 and MyConfig mobile app

The R&D function is clearly a major focus, driving the next generation of the product. We see this reflected in the operating expense structure. Total operating expenses for the third quarter of 2025 were reported at $10.0 million, which was an increase of 26% compared to the third quarter of 2024. This increase was driven in part by higher R&D spending. Specifically, this spending funded development efforts on a mobile app for the MyConfig software and the development of the MyoPro 3. In the second quarter of 2025, operating expenses were $10.6 million, an increase of 65% over Q2 2024, with higher R&D spending attributed to increased engineering activity and headcount.

Manufacturing and custom fabrication of the MyoPro orthosis

Manufacturing is scaling up to meet demand, but it's also creating some margin pressure. Myomo, Inc. moved into a new 35,000 sq. ft. facility in Burlington, Mass., in January 2025 to support expected growth with vastly expanded manufacturing capabilities. However, this scaling effort, combined with higher material costs, impacted profitability. The year-to-date gross margin for the first nine months of 2025 was 64.6%, down from 71.1% for the same period in 2024. In Q3 2025, the gross margin was 63.8%, down from 75.4% in Q3 2024, with higher labor and overhead spending, including changes in absorption tied to the new headquarters, impacting the margin by approximately 800 basis points. Capital expenditures for improvements to the additional space in the manufacturing facility were noted in Q2 2025 cash flow.

Managing the complex insurance reimbursement and prior authorization process

This is where a significant amount of administrative effort goes, as the company bills insurance companies directly for a large portion of its sales. Medicare Part B patients represented 59% of Q1 2025 revenue and 56% of Q2 2025 revenue. The Average Selling Price (ASP) was updated effective January 1, 2025, with the Motion W (L8701) at approximately $34,300 and the Motion G (L8702) at approximately $67,500. A major hurdle is preauthorization denials, where management noted they typically see about 45% to 50% overturned on appeal for those patients who remain engaged. To improve access, Myomo, Inc. had signed or pending contracts with state BCBS plans covering 18.6 million lives as of April 2025.

Here's a look at the unit and revenue metrics tied to this process:

Direct-to-consumer lead generation via TV and social media advertising

Direct-to-consumer efforts are a major component of operating expenses, though the strategy is shifting. Advertising costs in Q1 2025 were $1.6 million, a 104% increase over Q1 2024. In Q2 2025, advertising costs rose further to $2.2 million, up 162% over Q2 2024. The cost per pipeline add in Q1 2025 hit $2,300, up 31% due to social media algorithm changes. Recognizing this, the company shifted its media mix to TV from social media in Q3 2025, which helped lower the cost per pipeline add sequentially by 5% to $2,589. The company is also building out the MyoConnect program, which is expected to generate recurring patient referrals and lower the cost per pipeline add.

Training and certifying O&P clinicians (CPOs) on MyoPro use

Scaling the Orthotics and Prosthetics (O&P) channel requires a dedicated focus on clinician education. As of March 31, 2025, more than 300 Certified Prosthetists Orthotists (CPOs) had completed initial MyoPro training. To dispense the device, O&P providers must become a MyoPro Center of Excellence (COE) by completing the MyoPro 2X Certification program. This channel is showing rapid growth; O&P channel revenue reached a quarterly record of $900,000 in Q3 2025, representing a 154% year-over-year increase. This revenue level in Q3 2025 corresponded to roughly 30 units shipped through the O&P channel. The overall international business, which includes strong growth in Germany where over 100 O&P clinics are certified, represented a record $1.8 million in revenue in Q3 2025, up 63% year-over-year.

Finance: draft 13-week cash view by Friday.

Myomo, Inc. (MYO) - Canvas Business Model: Key Resources

You're looking at the core assets Myomo, Inc. (MYO) relies on to execute its business plan. These aren't just line items; they're the proprietary tech, regulatory clearance, and the cash cushion that keeps the lights on and the R&D moving.

The foundation of Myomo, Inc.'s (MYO) Key Resources centers on its unique product technology and the regulatory framework that allows it to operate in the US market. The company's primary tangible asset is its hardware and the software that drives it, supported by its intellectual property portfolio.

• Proprietary MyoPro myoelectric orthosis and control algorithms
• Extensive intellectual property
• Specialized clinical staff for direct patient evaluation and fitting

The technology itself is protected, and the company has secured the necessary governmental approval to market its device to patients suffering from upper-limb paralysis. It's defintely a high-barrier-to-entry resource.

Here's a quick look at the hard numbers and regulatory status we have for late 2025:

The specialized clinical staff is crucial because the MyoPro requires expert evaluation and fitting; this human capital directly supports the value proposition. Also, the company is actively working to scale its patient pipeline, which is another form of human capital investment, as seen by the pipeline growth.

• Patient Pipeline Size
• Pipeline Growth (Year-over-Year)
• New Patient Adds (Q3 2025)

The pipeline metrics show the operational capacity of the clinical and sales teams to generate future revenue, which is a key non-financial resource. As of September 30th, 2025, the pipeline stood at 1,669 patients, an increase of 32% year-over-year. They added 826 patients to the pipeline in the third quarter.

Myomo, Inc. (MYO) - Canvas Business Model: Value Propositions

You're looking at the core reasons why a patient or provider chooses Myomo, Inc.'s MyoPro system over alternatives. It's all about delivering tangible, functional restoration.

Restoring functional use and independence to a paralyzed upper limb

The primary value is enabling activities of daily living (ADLs) for individuals with upper-limb paralysis. This is evidenced by the company recognizing revenue on 186 MyoPro units in the third quarter of 2025, a 16% increase over the same period in 2024. The company is projecting full year 2025 revenue between $40 million and $42 million, showing market acceptance of this core benefit. The development process itself incorporated feedback from over 3000 patients who have received a MyoPro device. That's a lot of real-world experience driving the product.

Non-invasive, myoelectric-controlled assistance via EMG signals

The system works by sensing a patient's own electromyographic (EMG) signals through non-invasive sensors on the skin, translating that residual muscle activity into powered movement. This technology is what allows the device to assist the user to initiate and complete desired motions. The power assist speed is proportional to the user's exertion. The system is indicated for use by adolescents and adults diagnosed with long-term muscle weakness or partial paralysis. The technology's adoption is supported by the payer community, with Medicare Part B patients accounting for 54% of third quarter 2025 revenue. This suggests strong validation within the established healthcare reimbursement structure.

Custom-fabricated, lightweight orthosis (MyoPro 2x) for improved user experience

The latest iteration, the MyoPro 2x, was introduced in the U.S. on April 30, 2025. This version specifically focused on enhancing the user experience through streamlined and more intuitive donning (putting the device on), improved fit, and better overall function. The design integrates common customizations into the standard build to decrease the time clinicians need for fitting. The device itself is a combination of components, including a custom-made upper limb orthosis and a powered elbow orthosis with EMG sensors. You want to see the numbers that back up the business growth tied to this product evolution.

Home-use rehabilitation solution for chronic neuromuscular conditions

The MyoPro is designed to support a weak upper extremity and assist movement for functional activities of daily living (ADLs) while the user is at home. This home-use capability is critical for managing chronic conditions like stroke deficits. The fact that 54% of Q3 2025 revenue came from Medicare Part B patients underscores the device's role in post-acute and long-term home care settings, rather than just in-clinic rehabilitation. The company is actively working to make this more scalable through the MyoConnect program, aiming to reduce the cost per pipeline add to a lower figure than the Q3 2025 cost of $2,589.

Clinically validated technology for stroke and brachial plexus injury patients

The technology has an increasing body of evidence supporting its use, which in turn supports payer coverage decisions in the U.S. and Germany. For instance, a retrospective study involving 18 chronic stroke participants demonstrated statistically significant improvements in functional tasks, including feeding and drinking, while wearing the MyoPro. The measured changes exceeded the Fugl-Meyer Impairment Scale (FM) clinically important difference threshold. Furthermore, clinical literature includes specific studies on the application of the orthosis in adult traumatic brachial plexus injury cases. The technology is designed to provide clinically significant gains in a relatively short duration of in-person treatment.

• Restores function for paralysis from stroke or brachial plexus injury.
• MyoPro 2x launched on April 30, 2025, improving fit.
• Device uses non-invasive EMG signals for voluntary control.
• Clinical data shows significant functional task improvements.
• Over 3000 patients informed the MyoPro 2x development.

Finance: review the Q4 2025 cash burn rate against the $15.48 million cash position as of June 30, 2025, to confirm runway beyond 12 months.

Myomo, Inc. (MYO) - Canvas Business Model: Customer Relationships

You're looking at how Myomo, Inc. keeps its patients and the referring clinical community engaged. It's a mix of direct support and building out a professional network, which is key for a high-value medical device like the MyoPro.

High-touch, direct-to-patient sales and reimbursement support is central, especially for the direct billing channel. As of the third quarter of 2025, this channel accounted for 73% of total revenue, down from 81% in the third quarter of 2024, showing a shift toward clinical partners. Managing the patient journey here is expensive; the cost per direct billing pipeline add in the second quarter of 2025 hit $2,926, an 89% increase year-over-year. Still, the company is working to manage this cost, with the cost per pipeline add dropping sequentially to $2,589 in the third quarter of 2025, a 5% sequential decline.

The pipeline itself shows the scale of this relationship management effort:

• Pipeline as of September 30, 2025: 1,669 patients.
• New candidates added in Q3 2025: 826.
• Total medically-qualified patients added in Q2 2025: 816.
• Medicare Part B patients in the pipeline (Sept 30, 2025): 266.

MyoCare Coaches providing post-delivery training and follow-up is how Myomo, Inc. ensures long-term user success and satisfaction. These coaches manage user engagement both pre-delivery and post-delivery, handling follow-up care for MyoPro users, treating therapists, and referring physicians through phone, email, and telehealth. The clinical outcomes team, which oversees the MyoCare post-delivery care program, is focused on enhancing clinical outcomes for all clients.

Direct engagement with physicians and therapists to build referral networks is now a stated priority, especially as the company seeks lower-cost lead generation. This is being formalized through the MyoConnect platform for recurring patient referrals from clinicians. Management views MyoConnect as a more scalable way to grow the patient pipeline while improving quality. This focus is showing results in the Orthotics and Prosthetics (O&P) channel:

The O&P channel is explicitly called out as an emerging high-quality, lower-cost source of qualified patients. Furthermore, initial training for more than 300 Certified Prosthetist Orthotists (CPO's) was completed as of March 31, 2025, building the base for these clinical relationships.

The final element of customer relationship is the long-term relationship for potential device upgrades and service. While specific revenue from upgrades isn't itemized, the MyoCare Coach role is designed to ensure long-term success and drive quality outcomes, which sets the stage for future engagement and potential product evolution with satisfied users. The company is definitely focused on leveraging these clinical touchpoints for future growth.

Finance: draft 13-week cash view by Friday.

Myomo, Inc. (MYO) - Canvas Business Model: Channels

You're looking at how Myomo, Inc. gets its MyoPro devices into the hands of patients as of late 2025. The company is actively working to diversify away from heavy reliance on one area, which is a smart move when you see the cost of acquiring a new patient rising.

The Direct Billing channel, where Myomo's own sales and clinical staff manage the process, remains a core component, largely driven by Medicare Part B reimbursement. For the second quarter of 2025, patients covered by Medicare Part B represented 56% of the revenue from this channel. Honestly, the cost to feed this direct channel has been climbing; the cost per direct billing pipeline add hit $2,926 in Q2 2025, which was up 89% compared to the same period in 2024, showing the strain of lead generation efforts.

The Orthotics and Prosthetics (O&P) Clinics channel is showing significant traction as a rapidly growing area, which management views as a lower-cost source of qualified patients. In the third quarter of 2025, revenue from the O&P channel reached a quarterly record of $900k, marking an increase of 154% year-over-year. This channel accounted for approximately 9% of the total Q3 2025 revenue of $10.1 million.

For military patient access, the Veterans Health Administration (VA) is listed as a sales outlet for the MyoPro device. While Myomo, Inc. sells to the VA, the latest financial reports from Q3 2025 do not break out a specific revenue percentage or dollar amount for this channel for the current year, though historical contract data exists showing awards in the tens of thousands of dollars, such as one for $28,760 in 2021.

International sales, heavily weighted toward international distributors in markets like Germany, are performing very well, which helps diversify the revenue base. International revenue hit a record of $1.8 million in Q3 2025, representing a 63% year-over-year increase. This segment contributed roughly 18% of the total Q3 revenue. Back in Q1 2025, international revenue was over $1.3 million, up 42% year-over-year.

Regarding lead generation, Myomo, Inc. has been adjusting its approach to digital and TV advertising. Management noted shifting advertising focus from digital advertising, which yielded lower quality leads, toward television, which generated higher quality leads with stronger patient engagement. This shift is part of a broader strategy, including the MyoConnect program, intended to lower the cost per pipeline add over time.

Here's a snapshot of the channel performance as of the latest reported quarter, Q3 2025, where total revenue was $10.1 million:

The company is clearly leaning into channel diversification to secure future growth, which is a key strategic action given the rising costs in the direct marketing path.

• Cost per direct billing pipeline add (Q2 2025): $2,926.
• Total 2025 Revenue Guidance (Reiterated): $40 million to $42 million.
• New in-network private payer lives added (Q3 2025): 35 million.
• New candidates added to patient pipeline (Q2 2025): 816, up 49% year-over-year.

Finance: draft 13-week cash view by Friday.

Myomo, Inc. (MYO) - Canvas Business Model: Customer Segments

You're looking at the specific groups Myomo, Inc. targets for its MyoPro device as of late 2025. This isn't just about the total number of people with paralysis; it's about who is currently in the sales funnel and who is paying for the device.

Individuals with chronic upper-limb paralysis from stroke or TBI

This group represents the core market need. Nationally, nearly 800,000 people in the U.S. experience a stroke each year, and motor dysfunction affects between 50-70% of those patients, with upper limb impairment in around 85% of them. Myomo, Inc.'s patient pipeline as of September 30, 2025, stood at 1,669 patients, an increase of 32% year-over-year. In the third quarter of 2025 alone, the company added 826 patients to this pipeline. Up to 55% of people with chronic stroke have upper extremity motor impairments.

Patients with neuromuscular disorders like brachial plexus injury

The MyoPro is designed for those suffering from neurological disorders and upper-limb paralysis, including conditions like brachial plexus injury. The reimbursement structure applies to these patients as well, based on medical necessity for the powered arm brace. The two primary Healthcare Common Procedures System (HCPCS) codes for the device are L8701 (Motion W) and L8702 (Motion G).

Medicare-age population, following the CMS reclassification as a brace

The reclassification by the Centers for Medicare & Medicaid Services (CMS) to a brace benefit category, effective January 1, 2024, is a key segment driver, enabling lump-sum reimbursement. As of the second quarter of 2025, 56% of Myomo, Inc.'s revenue came from Medicare Part B patients. Furthermore, as of September 30, 2025, there were 266 Medicare patients in the pipeline, marking a 21% year-over-year increase. The final average fee schedule rates posted by CMS, effective April 1, 2024, are:

Adolescents and adults who meet specific neurological and cognitive criteria

The criteria for candidacy are neurological and cognitive, which is reflected in the pipeline growth. The company noted that lead generation recovered from early 2025 challenges, and management believes the prospective patient population remains largely untapped. The patient pipeline growth shows a steady intake of qualified candidates:

• Patient Pipeline as of June 30, 2025: 1,611 candidates.
• New Candidates Added in Q2 2025: 816.
• New Candidates Added in Q3 2025: 826.

O&P clinics seeking to expand their offering with advanced robotics

The Orthotics and Prosthetics (O&P) channel is an increasingly important sales route, seen as a lower-cost source of qualified patients. The company is actively developing this channel. The financial contribution from this segment shows rapid adoption:

• O&P Channel Revenue in Q3 2025: $900,000.
• Year-over-Year O&P Revenue Growth (Q3 2025): 154%.
• Aspirational O&P Channel Revenue Target by 2028: $20 million annually.

Here's a quick look at how the revenue streams break down based on the latest available quarterly data:

Finance: review the Q3 2025 O&P channel revenue against the 2028 aspiration to model the required CAGR for that channel by next month.

Myomo, Inc. (MYO) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive the delivery of the MyoPro system, and the numbers from late 2025 show some clear pressures, especially around production and customer acquisition.

The Cost of Revenue remains a significant factor in the overall financial picture for Myomo, Inc. (MYO). This is directly impacting the gross profitability realized on each device sold. For the third quarter of 2025, the reported Gross Margin stood at 63.8%. This represents a compression from the 75.4% Gross Margin achieved in the third quarter of 2024. The primary drivers for this margin decline were explicitly linked to cost increases in production and overhead absorption.

Here's a quick look at the key cost-related metrics from Q3 2025:

Operating expenses were substantial, totaling $10.0 million in the third quarter of 2025. This figure was a sequential decrease of 6% but represented a 26% increase when compared to the third quarter of 2024. This spending level is what led to the reported operating loss of $3.5 million for the quarter.

Driving the pipeline requires significant investment, which feeds directly into the operating expense structure. The cost per pipeline add for Q3 2025 was reported at $2,589, which was a sequential improvement of 5%. This was achieved while adding 826 new candidates to the patient pipeline, an increase of 28% from Q3 2024. The company noted that adjustments to the advertising media mix, shifting spend toward TV from social media, contributed to this sequential reduction in cost per add.

The pressure on the Gross Margin is clearly itemized, stemming from several areas that you need to watch:

• Higher material costs.
• Higher payroll costs.
• Lease costs tied to the new headquarters.
• Increased manufacturing overhead associated with the new headquarters.

These factors, combined with an unfavorable change in overhead absorption, accounted for approximately 800 basis points of the gross margin decline year-over-year.

Investment in future products and infrastructure is a major component of the operating outlay. Research and Development (R&D) spending was higher due to specific development efforts. You should note the focus areas for this R&D investment:

• Development efforts on a mobile app for the MyConfig software.
• Work on the MyoPro 3.
• Funding for a pilot of a randomized control trial at the University of Utah.

Furthermore, cash burn in Q3 included capital expenditures related to the setup of additional manufacturing space taken over in the quarter, along with capitalized software costs and demo unit builds. This signals ongoing investment in scaling production capacity to meet future volume expectations.

Myomo, Inc. (MYO) - Canvas Business Model: Revenue Streams

You're looking at the current revenue mix for Myomo, Inc. (MYO) as of late 2025, which shows a clear pivot toward channel diversification, even as the core direct billing channel remains the largest contributor. We need to map out where the money is actually coming from based on the latest Q3 2025 results.

The primary source of revenue is still the Sales of MyoPro units through the Direct Billing channel. Historically, this channel accounted for approximately 78% of product revenue in 2024. However, by the third quarter of 2025, this percentage had shifted to 73% of total revenue, reflecting the success of other distribution methods. This channel involves Myomo, Inc. (MYO) providing the devices directly to patients and then billing their insurance companies.

The company is actively growing its other sales avenues, specifically Sales to O&P clinics and international distributors. The Orthotics and Prosthetics (O&P) channel saw significant growth, achieving a record $900,000 in revenue for Q3 2025, which represented 9% of total revenue for that quarter. The International revenue, which was a record $1.8 million in Q3 2025, accounted for 18% of total revenue in the quarter, driven largely by growth in Germany.

Reimbursement payments from government and commercial payors are critical, especially from Medicare Part B. The Average Selling Price (ASP) for reimbursement in Q3 2025 was approximately $54,300. Medicare Part B patients represented 54% of Q3 2025 revenue.

Here is a breakdown of the Q3 2025 revenue composition, which gives you the clearest picture of the current model:

Looking forward, the company has set its expectations for the full fiscal year. The Full-year 2025 revenue guidance is between $40 million and $42 million. This guidance represents an expected growth of 23% to 29% versus 2024.

The current revenue streams can be summarized by the channels contributing to the top line:

• Sales via Direct Billing: 73% of Q3 2025 revenue.
• International Sales: 18% of Q3 2025 revenue.
• U.S. O&P Channel Sales: 9% of Q3 2025 revenue.

The shift is defintely visible; the O&P channel is emerging as a high-quality, lower-cost source of qualified patients, which is a key strategic focus for Myomo, Inc. (MYO).

Finance: draft 13-week cash view by Friday.