Myomo Q2 2026 Earnings Call Transcript

Myomo (AMEX: MYO ) held its second-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

The full earnings call is available at Summary Myomo Inc. 7 million, driven by a shift to recurring patient sources, which now account for 53% of total revenue. The company is focusing on four strategic pillars: expanding recurring patient referrals, increasing market access through contracts and reimbursements, demonstrating operating leverage, and continuing product development and clinical research. Operating expenses grew only 1%, while adjusted EBITDA improved significantly, indicating strong operational execution.

1%, and cash burn was reduced substantially. A new hand-only device prototype was introduced in Germany, expanding market opportunities. The MyoConnect referral program is gaining traction, contributing to higher patient conversion rates and improved insurance reimbursement. Full-year revenue guidance was raised to $45-47 million, reflecting strong business momentum.

The company anticipates further growth through its expanded board and ongoing strategic initiatives. Full Transcript OPERATOR Good day and welcome to the Myomo second quarter 2026 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded.

I would now like to turn the conference over to Vivian Cervantes, Investor Relations. Please go ahead. Vivian Cervantes, Investor Relations Thank you, operator, and good afternoon, everyone. This is Vivian Cervantes with Alliance Advisors, IR.

Welcome to the Myomo second quarter 2026 financial results conference call. With me today are Myomo's Chief Executive Officer, Paul Gudonis, and Chief Financial Officer, Dave Henry. Before we begin, I'd like to caution listeners that statements made during this call by management other than historical facts are forward-looking statements. The words anticipate, believe, estimate, expect, intend, guidance, outlook, confidence, target, project, and other similar expressions are typically used to identify such forward-looking statements.

These forward-looking statements are not guarantees of future performance and may involve and are subject to risks and uncertainties and other factors that may affect Myomo's business, financial condition, and operating results. These risks, uncertainties, and other factors are discussed in Myomo's filings with the SEC. Actual outcomes and results may differ materially from what's expressed or implied by these forward-looking statements. Furthermore, except as required by law, Myomo undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.

Today, August 5th, 2026. It's now my pleasure to turn the call over to Myomo CEO, Paul Gudonis. Paul, please go ahead. Paul Gudonis, Chief Executive Officer Thanks, Vivian, and good afternoon, everyone.

Thank you all for joining us today. Our mission here at Myomo remains straightforward: to restore function and independence to people living with chronic arm and hand paralysis. Every day we hear from patients whose lives have been changed by the MyoPro—individuals who can once again feed themselves, carry groceries, return to work, or simply use both hands for everyday activities. This mission and our goal to serve a much larger number of patients continue to guide every decision we make.

From a business perspective, the second quarter demonstrated continued progress in executing the strategy we introduced earlier this year. Rather than relying primarily on direct-to-consumer marketing, we're building a more durable and scalable business by evolving our go-to-market strategy by emphasizing recurring patient referrals, expanding reimbursement coverage, tightly managing our operational execution, and continuing our market leadership through innovation on our wearable robotics platform. Importantly, we're seeing measurable progress across all four of our success pillars, which I set out earlier this year.

Our first success pillar is the shift to recurring patient sources. 7 million, and recurring patient sources represented 53% of total revenue during the quarter. That's double the 26% of revenue from these sources a year ago. Our shift to recurring patient sources is resulting in an improvement in patient quality as well.

The conversion rate of referral leads into pipeline adds is significantly higher than the conversion rate of advertising-sourced leads to pipeline adds. We added more than 150 referral sites, bringing us to over 300 active locations, with a growing number already referring a second patient or more. O&P revenue doubled versus the prior year, and the Bach Care national rollout is progressing well, alongside discussions with other national O&P organizations. Our second success pillar is to increase market access.

We signed additional LVANCE state contracts under our national agreement, further expanding our in-network footprint. Among other payer relationships established in the quarter, we are now in network with Optum's workers' compensation product, which is a part of UnitedHealthcare. The benefit of being in network is higher authorization rates from contracted payers, a still small but growing number of cases. We're seeing higher authorization rates compared with non-contracted payers, which demonstrates the value of these agreements in improving patient access and reimbursement efficiency.

Meanwhile, we continue to serve a growing number of Medicare Part D patients with a 100% reimbursement rate for patients with complete medical documentation supporting the delivery of a MyoPro to them. Our third success pillar is to demonstrate operating leverage. As I mentioned, revenue increased 21% while operating expenses grew only 1%, and we improved our adjusted EBITDA by over $3 million compared to the second quarter of last year. Revenue per employee continues to improve as we implement new systems and efficient processes in our manufacturing organization.

We now have a trained Six Sigma team that has been executing cost reduction initiatives, which include the mobile app rollouts to replace the cost of a laptop for each device. We're using our new facility here in Burlington, Massachusetts to expand in-house assembly from outsourced contractors, and we've made a new investment in 3D printing capabilities. We still remain confident that these and other initiatives will result in expanding margins and lower cash burn. We're demonstrating the ability to grow revenues at a faster rate than operating expenses, which puts us on the path to profitability and sustainable positive cash flows.

Our fourth success pillar is continued progress on product development and clinical research. Development of the next-generation MyoPro 3 continues on schedule. At the OTWorld conference in Germany in May, which is the largest O&P industry event in Europe, we introduced a hand-only prototype for the German market, thus expanding future market opportunities by serving the patient population that needs only a device for hand function. This is the latest example of building upon our wearable robotics platform, which now includes a cloud-based data collection system and mobile app for communicating with patients and clinicians.

Meanwhile, we're making good progress at the University of Utah randomized controlled trial, which has enrolled 25 of 50 patients, and an updated six-month outcomes publication is planned for the second half of this year. As you can see, the key operating metrics continue to move forward in the right direction. We're expanding recurring referral sources, increasing payer access, demonstrating operating leverage, investing in innovation based on our platform, and most importantly, helping more patients regain the use of their arms and hands.

And some additional highlights in the quarter as I wrap up my remarks: The evolution in our go-to-market strategy to recurring patient sources is yielding terrific results, including record quarterly orders totaling 255 MyoPro units in the second quarter. One example of how the strategy is working is the case of Barbara, who was referred to Myomo by her therapist at a major rehab hospital in New Jersey where she'd been attending therapy after her stroke. Barbara is 14 months post-stroke and had plateaued with her upper extremity progress with limited ability to use her right arm. The therapist contacted us as a potential MyoPro candidate.

After a positive evaluation, her physician provided the necessary medical documentation. Her MyoPro was authorized by her health insurance plan, Blue Cross Blue Shield, within 30 days of the assessment, and she was fit with her custom MyoPro within 90 days of the referral, and she's doing well. She's making great progress with her therapy and training on how to use her new MyoPro. She's also able to take advantage of our recently released four-finger saddle, which will help improve her functional grasp for the activities of daily living, which she can now do at home.

Barbara's case exemplifies the effectiveness of our patient referral program, which engages recurring rehabilitation sources at the point of care to advance the patient's return to mobility and independence and can lead to a faster revenue cycle. I'd also like to highlight that we enhanced our board with the appointment of Joe Manco of Horton Capital, one of our largest shareholders, and Will Febbo, a seasoned healthcare and medtech executive. Our expanded board strengthens our governance framework and strategic capabilities by adding directors with significant industry experience, financial expertise, and proven leadership in building shareholder value.

With that overview, I'll now turn the call over to Dave Henry to review our financial results in greater detail. Dave Henry, CFO Thank you, Paul, and good afternoon, everyone. As Paul just discussed, our go-to-market evolution continues to gain traction, and I'm pleased to report another quarter of solid financial and operational execution. 7 million, up 21% versus the prior-year period.

The increase was driven by both a higher average selling price, or ASP, and a higher number of revenue units. ASP for the quarter was approximately $55,500, up about 2% versus the prior year, and we recognized revenue on 211 MyoPro units, an increase of 19% over the second quarter of 2025. Looking at payer mix, Medicare Part B patients represented 50% of second quarter revenue compared with 56% in the prior-year period. Medicare Advantage plans represented 16% of second quarter revenue compared with 20% in the prior-year period.

Our transition toward recurring patient sources continued to accelerate during the quarter. Recurring patient sources represented 53% of second quarter revenue compared with 26% in the prior-year quarter, achieving our objective of 50% of revenues from recurring patient sources six months ahead of schedule. Within these recurring channels priority, 23% of total revenue was generated by direct billing referrals through our MyoConnect program, up from 20% in the first quarter. S.

O&P channel representing 10% of revenue, growing 130% year over year. VA patients represented 3% of revenue in the second quarter. Turning to our metrics, we received a record 255 MyoPro orders during the quarter, up 23% year over year. Higher conversion of orders to revenue reflects the efficiency of our operations, as 57% of second quarter revenue units came from orders received during the quarter.

We added 739 patients to the pipeline during the quarter, up 2% sequentially. Advertising spending was up 11% sequentially. Pipeline adds in the quarter were impacted by maintenance activities on our website, which resulted in a temporary pause in data sharing with our digital ad agency. Those activities have been completed, and the website is functioning normally.

Patient quality in the pipeline is improving, however, as 17% of pipeline adds in the second quarter were generated by direct billing referrals, which is reflective of our progress in adding referring sites and is an increase from 11% in the first quarter. To illustrate the impact of MyoConnect, typically about 25% of our pipeline adds on a quarterly basis are Medicare patients. Looking at only MyoConnect pipeline adds so far in 2026, roughly 50% of patients entering the pipeline are Medicare patients.

As a result, increasing direct billing referrals combined with our continuing market access efforts are improving patient quality and are starting to translate into a higher authorization rate as well. We ended the quarter with a backlog of 218 patients, down modestly from the first quarter, as higher revenue velocity offset stronger order growth. 7% in the prior-year quarter. The improvement was driven primarily by the higher ASP, lower overhead spending, and the favorable impact of material cost reductions, including the rollout of the Myomo Mobile App, partially offset by somewhat higher clinical costs reclassified to cost of goods sold.

7 million, representing an increase of less than 1% compared with the second quarter of 2025. Higher general and administrative expenses offset lower advertising and R&D spending. 6 million in the prior-year quarter. Adjusted EBITDA improved to a loss of $800,000 compared with a loss of $4 million a year ago, representing a 79% year-over-year improvement.

Note that a portion of the improvement in adjusted EBITDA is due to higher stock-based compensation expense, as certain employee incentive payments were paid in stock during the quarter as part of our cash management initiatives. 2 million related to a mark-to-market adjustment on the valuation of our derivative liabilities as well as cash and non-cash interest expense associated with the Avenue Capital Term Loan. 11 per share, in the second quarter of 2025. 5 million.

9 million used in the second quarter of 2025. Prior-year cash burn was impacted by a temporary payment hold imposed by the DME MACs and payment of 2024 incentive payments in cash. Let me conclude with our outlook for the third quarter. 5 million to $12 million, representing 14% to 19% year-over-year growth.

Given the strong first-half performance and continued momentum across the business, we're raising our full-year revenue guidance to a range of $45 million to $47 million, up from our previous guidance of $43 million to $46 million. We expect a modest sequential increase in operating expenses in the third quarter. We're also maintaining our previously communicated operating leverage objective to limit the growth of operating expenses in 2026 to half the rate of revenue growth. In addition, we expect total cash burn during the second half of the year to be less than $2 million.

Overall, we're very pleased with the progress we're making. The evolution of our go-to-market approach, continued improvement in operating leverage, and strong execution position us well for the balance of 2026. With that financial overview, I'll turn the call back to Paul. Paul Gudonis, Chief Executive Officer Thanks, Dave.

Well, to summarize, we're keenly focused on implementing our four success pillars to grow MyoPro volume and revenues while improving the key financial metrics, including gross margin, adjusted EBITDA, and cash usage. We've now delivered over 3,000 devices to patients, and our technology platform is making a dramatic difference in their lives.

And while we established Myomo as the market leader in addressing this large unmet need, we're still at the early stage of market penetration with a prevalence population of hundreds of thousands of qualified individuals who are suffering with chronic arm paralysis and tens of thousands more each year going through rehab clinics that could be potential MyoPro candidates as well. Now, Dave and I are ready to take your questions. Operator. OPERATOR Thank you.

We will now begin the question-and-answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question from the queue, please press star then two.

At this time, we will pause momentarily to assemble our roster.