Myomo Inc (NYSEARCA:MYO) Reports Q3 2025 Revenue Beat Amid Widening Losses

Myomo Inc (NYSEARCA:MYO) Reports Q3 2025 Results: Revenue Beat Amidst Widening Losses

Myomo Inc (NYSEARCA:MYO), a developer of wearable medical robotics, has released its financial results for the third quarter of 2025. The company's report card presents a mixed picture, featuring a top-line revenue beat against analyst expectations but accompanied by a net loss that expanded significantly compared to the prior year.

Earnings and Revenue Versus Estimates

The company's performance against Wall Street's projections is a focal point of the report. Myomo demonstrated solid revenue generation but fell short on profitability for the quarter.

• Revenue: The company reported Q3 2025 revenue of $10.09 million. This surpassed the analyst consensus estimate of $9.53 million, representing a beat of approximately 5.9%.
• Earnings Per Share (EPS): Myomo reported a non-GAAP EPS of -$0.09. This was a narrower loss than the estimated -$0.11, indicating the company performed better than expected on this metric.

Market Reaction

Following the earnings release, Myomo's stock experienced notable upward momentum in after-market trading, with an initial increase of over 2.3%. This positive initial reaction suggests that investors were encouraged by the revenue beat and the smaller-than-anticipated per-share loss. The stock's performance over the recent month, which showed a decline of over 17%, may have also set a lower bar, making the earnings beat a catalyst for a positive reassessment.

Financial and Operational Highlights

Beyond the headline figures, the earnings press release detailed several key operational and financial developments.

Recent Performance

The third quarter was marked by record levels in certain segments and strategic shifts in marketing, though profitability metrics faced pressure.

• Top-Line Growth: Revenue for Q3 2025 increased by 10% year-over-year, driven by a 16% increase in the number of MyoPro units recognized. For the first nine months of the year, revenue was $29.6 million, a 44% increase over the same period in 2024.
• Profitability Challenges: The company's gross margin contracted to 63.8% from 75.4% in the prior-year quarter, primarily due to a lower average selling price and higher material and labor costs. The net loss for the quarter widened to $3.7 million, or $0.09 per share, compared to a net loss of $1.0 million, or $0.03 per share, in Q3 2024.
• Operational Momentum: Myomo recorded its strongest quarter of the year for MyoPro orders, with 229 units ordered. The company also added 826 new candidates to its patient pipeline, a 28% increase from the previous year.

Strategic Initiatives and Outlook

Management highlighted strategic efforts aimed at sustainable growth and improved financial efficiency.

• MyoConnect Program: The company is implementing a new program called MyoConnect, designed to generate recurring patient referrals by strengthening relationships with therapists and physicians. Early results have contributed to a 5% sequential decline in the cost of adding new patients to the pipeline.
• Cost Reduction: Myomo has begun manufacturing cost reduction projects expected to improve gross margins by 200 basis points, with savings anticipated to be fully realized by Q3 2026.
• Strengthened Balance Sheet: Subsequent to the quarter's end, the company entered into a new $17.5 million debt financing arrangement with Avenue Venture Opportunities Fund, L.P., providing additional capital for operations.
• Business Outlook: Myomo reaffirmed its full-year 2025 revenue guidance in the range of $40 million to $42 million. This outlook aligns with the analyst consensus sales estimate of $40.6 million for the full year, suggesting management's confidence in meeting current market expectations.

Conclusion

Myomo's third-quarter results depict a company in a growth phase, successfully expanding its revenue base and patient pipeline while navigating the challenges of scaling its operations. The revenue beat and reaffirmed guidance are clear positives that resonated with the market. However, investors will be watching closely to see if the company's strategic initiatives, like MyoConnect and cost reduction projects, can stem the widening losses and put the company on a clearer path to profitability.

For a more detailed look at Myomo's historical earnings and future estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All investment decisions involve risk, and readers should conduct their own research before making any investment decisions.