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1. Company Snapshot

1.a. Company Description

Myomo, Inc., a wearable medical robotics company, designs, develops, and produces myoelectric orthotics for people with neuromuscular disorders in the United States.The company offers MyoPro, a myoelectric-controlled upper limb brace or orthosis product used for supporting a patient's weak or paralyzed arm to enable and improve functional activities of daily living.Its products are designed to help improve function in adults and adolescents with neuromuscular conditions due to brachial plexus injury, stroke, traumatic brain injury, spinal cord injury, and other neurological disorders.


The company sells its products to orthotics and prosthetics providers, the Veterans Health Administration, and rehabilitation hospitals, as well as through distributors.Myomo, Inc.was incorporated in 2004 and is headquartered in Boston, Massachusetts.

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1.b. Last Insights on MYO

Myomo, Inc.'s recent performance was negatively impacted by a widened quarterly loss, with a Q2 loss of $0.11 per share, compared to a loss of $0.03 per share a year ago. The company's earnings call highlighted challenges, with management citing factors that led to the increased loss. Additionally, the company's revenue growth seems insufficient to offset rising expenses, contributing to the negative trend. The Q2 2025 earnings release revealed a concerning year-over-year decline in profitability.

1.c. Company Highlights

2. Myomo's Q3 Earnings: A Strong Performance with Record International Revenues

Myomo reported a strong third quarter with revenue of $10.1 million, driven by record international revenues and a growing number of O&P providers. The company's gross margin was 63.8%, down from 75.4% in the prior year quarter, due to higher payroll and lease expenses. The operating loss was $3.5 million, compared to a loss of $1 million in the prior year quarter. The actual EPS came out at '-0.09', beating estimates at '-0.11'.

Publication Date: Dec -02

📋 Highlights
  • Revenue Growth:: Q3 revenue reached $10.1M, driven by 63% YoY international revenue growth ($1.8M, primarily from Germany) and 154% YoY O&P channel revenue increase.
  • Operating Loss Expansion:: Operating loss widened to $3.5M (vs. $1M prior year) due to 26% YoY operating expenses ($10M) from higher payroll, advertising, and R&D.
  • Pipeline Expansion:: Patient pipeline grew 32% YoY to 1,669, with 826 new adds in Q3 (up 28% YoY), fueled by O&P and MyoConnect programs.
  • Debt Financing:: Secured $17.5M loan facility with Avenue Capital, with $12.5M drawn and $5M available until 2027, supporting breakeven target in 18 months.

Revenue Growth Drivers

The company's revenue growth was driven by a 63% year-over-year increase in international revenue, primarily from Germany, and a 154% year-over-year increase in revenue from the O&P channel. The pipeline stood at 1,669 patients, a 32% year-over-year increase, with 826 patients added in the third quarter, up 28% from the prior year. As CEO Paul Gudonis noted, the company's focus on improving patient identification and qualification, expanding the MyoConnect program and O&P channel, and expanding insurance coverage is paying off.

Operational Highlights

The company has made significant progress in its key initiatives, including shifting its advertising spend to TV from social media, which has yielded a higher percentage of leads that meet clinical criteria. The MyoConnect clinical referral program is off to a good start, generating high-quality patient referrals without incurring advertising expenses. The company's new Head of Marketing is working to reduce customer acquisition costs, with levers identified for improvement.

Valuation and Outlook

With a P/S Ratio of 0.84 and an EV/EBITDA of -3.9, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 17.5%. The company's guidance for full-year 2025 revenue is $40 million to $42 million, representing a 23% increase over last year. The quarterly revenue run rate required to breakeven is estimated to be around $16 million to $17 million. Given the company's progress and growth prospects, the current valuation appears reasonable.

Debt and Breakeven

The company entered into a loan and security agreement with Avenue Capital, providing a committed term loan facility of $17.5 million. The decision to take on debt was based on the company's ability to pay it back, and they expect to be close to breakeven in eighteen months. With a Net Debt / EBITDA ratio of 0.22, the company's debt burden is manageable.

3. NewsRoom

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Myomo, Inc. (MYO) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

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Myomo, Inc. (MYO) Reports Q3 Loss, Tops Revenue Estimates

Nov -11

Source: zacks.com

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Myomo (MYO) to Release Quarterly Earnings on Wednesday

Nov -04

Source: defenseworld.net

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Myomo, Inc. (MYO) Reports Q2 Loss, Tops Revenue Estimates

Aug -12

Source: zacks.com

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Myomo, Inc. (MYO) Q2 2025 Earnings Conference Call Transcript

Aug -11

Source: seekingalpha.com

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Myomo, Inc.(NYSEAM:MYO) added to Russell 3000 Growth Index

Jun -30

Source: https://www.marketscreener.com

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11,499 Shares in Myomo, Inc. (NYSEAMERICAN:MYO) Acquired by Squarepoint Ops LLC

Jun -11

Source: https://www.defenseworld.net

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Myomo, Inc. (MYO) Q1 2025 Earnings Call Transcript

May -08

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.13%)

6. Segments

Direct-to-Patient

Expected Growth: 8.5%

Myomo's Direct-to-Patient segment growth of 8.5% is driven by increasing adoption of its MyoPro orthotics, expansion into new markets, and rising demand for non-invasive, personalized rehabilitation solutions. Additionally, the company's direct sales model and strategic partnerships with healthcare providers contribute to its growth momentum.

Clinical/Medical Providers

Expected Growth: 10.95%

Myomo's 10.95% growth in Clinical/Medical Providers is driven by increasing adoption of its MyoPro orthotics, expansion into new markets, and growing demand for non-invasive, non-pharmacological treatments. Additionally, the company's focus on improving patient outcomes, reducing healthcare costs, and enhancing the overall quality of life for individuals with neurological disorders also contributes to its growth.

License

Expected Growth: 8.4%

Strong demand for Myomo's myoelectric orthotics, increasing adoption in rehabilitation centers, and expansion into new markets drive 8.4% growth. Additionally, strategic partnerships and investments in R&D enhance product offerings, further fueling growth.

7. Detailed Products

MyoPro

A non-invasive, wearable device that uses electromyography (EMG) to detect electrical signals from muscles, allowing individuals with upper limb paralysis or weakness to regain mobility and independence.

MyoPlus

A customizable, wearable device designed for individuals with more severe paralysis or weakness, providing additional support and functionality for daily activities.

MyoCycle

A wearable device designed for individuals with hand paralysis or weakness, allowing them to cycle and exercise their arms and hands.

MyoSupport

A comprehensive support program offering training, resources, and assistance for individuals using Myomo products.

8. Myomo, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Myomo, Inc. faces moderate threat from substitutes as there are limited alternatives to its myoelectric orthotics and prosthetics. However, advancements in technology could lead to the development of new substitutes.

Bargaining Power Of Customers

Myomo, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often reimbursed by insurance providers, further reducing customer bargaining power.

Bargaining Power Of Suppliers

Myomo, Inc. relies on a few key suppliers for components and materials. While the company has some bargaining power due to its size, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the medical device industry, including regulatory hurdles and the need for significant investments in research and development.

Intensity Of Rivalry

The orthotics and prosthetics industry is highly competitive, with several established players competing for market share. Myomo, Inc. must differentiate its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.27%
Debt Cost 3.95%
Equity Weight 93.73%
Equity Cost 11.45%
WACC 10.98%
Leverage 6.69%

11. Quality Control: Myomo, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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LENSAR

A-Score: 5.7/10

Value: 8.8

Growth: 5.0

Quality: 5.8

Yield: 0.0

Momentum: 10.0

Volatility: 4.7

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Semler Scientific

A-Score: 4.9/10

Value: 7.5

Growth: 7.3

Quality: 7.2

Yield: 0.0

Momentum: 6.5

Volatility: 1.0

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NeuroPace

A-Score: 4.3/10

Value: 6.4

Growth: 4.8

Quality: 3.9

Yield: 0.0

Momentum: 8.5

Volatility: 2.0

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Quipt Home Medical

A-Score: 3.8/10

Value: 8.7

Growth: 6.7

Quality: 3.8

Yield: 0.0

Momentum: 2.5

Volatility: 1.3

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Talis Biomedical

A-Score: 3.7/10

Value: 8.2

Growth: 4.6

Quality: 4.4

Yield: 0.0

Momentum: 3.5

Volatility: 1.7

1-Year Total Return ->

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Myomo

A-Score: 2.9/10

Value: 8.0

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.04$

Current Price

1.04$

Potential

-0.00%

Expected Cash-Flows