This article first appeared on GuruFocus.

Release Date: November 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Myomo Inc (MYO) reported strong Q3 2025 revenue of $10.1 million, reaching the high end of expectations.

The company saw record revenues in international markets, particularly in Germany, with a 63% increase year-over-year.

There was a sequential increase in quarterly authorizations and orders, driven by new in-network contracts with Medicare Advantage payers.

The Myo nect program and OP channel are showing initial traction, potentially providing scalable and cost-efficient sources of high-quality referrals.

Myomo Inc (MYO) has expanded insurance coverage, now covering 35 million lives among private payers, with additional contracts pending.

The average selling price (ASP) decreased by 5% compared to the prior year, impacting revenue growth.

Gross margin for Q3 2025 was 63.8%, down from 75.4% in the prior year, due to higher payroll, lease expenses, and material costs.

Operating expenses increased by 26% year-over-year, driven by higher payroll, advertising spending, and R&D costs.

The company reported a net loss of $3.7 million for Q3 2025, compared to a net loss of $1 million in the prior year.

Medicare Advantage revenue was down 18% year-over-year, constrained by a high number of pre-authorization denials.

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Q: Could you help us quantify the scale of your US OP business at this point? How many units did you ship into that channel in the 3rd quarter? A: It was about $900,000, and I want to say it was roughly 30 units, but I'll get you the exact number. - Dave Henry, CFO

Q: Can you discuss the levers identified by your new head of marketing to improve customer acquisition costs? A: We are conducting a comprehensive review of our media channels, including television and social media, to generate more leads at a lower cost per lead for qualified patients. Our new head of marketing started about two weeks ago. - Paul Goddoni, CEO

Q: There was a noticeable uptick in backlog drops. Can you explain what might be driving this? A: About 40% of the backlog drops came from Germany due to some cleanup in the third quarter. The rest is just normal activity. - Dave Henry, CFO

Q: How should we think about operating expenses and the timeline for returning to positive adjusted EBITDA? A: We plan to grow operating expenses minimally, focusing on generating operating leverage and growing revenues faster than expenses. We will provide more updates when we give our 2026 guidance. - Dave Henry, CFO

Q: How do you view the potential for pipeline ads to grow, given the current market saturation? A: We are not near saturation. We expect growth through the OP channel and Myoect referral program, targeting patients coming out of rehab hospitals and stroke clinics. - Paul Goddoni, CEO

Q: With a smaller backlog entering Q4, how do you plan to achieve sequential growth? A: Growth will come from fill units and authorizations/orders received within the quarter. Our operations can convert these into revenue faster. - Dave Henry, CFO

Q: Is the decision to take on debt a sign that you expect to be close to break-even in 18 months? A: We would not have taken on debt if we didn't feel we could pay it back. We expect not to be burning cash by the time we start repayments, focusing on revenue growth and operating expense management. - Dave Henry, CFO

Q: Can you provide an update on your international business, particularly in Germany and China? A: Germany continues to perform well with a strong pipeline and statutory health insurer support. In China, the JV is conducting clinical trials for NMPA approval, but progress is slow. - Paul Goddoni, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.