Myomo Inc. (NYSE:MYO) shares tumbled 42.05% in pre-market trading to $1.02 despite reporting second-quarter revenue that exceeded expectations, as investors focused on the medical robotics company’s significantly reduced full-year guidance and widening losses.
Check out the current price of MYO stock here.
What Happened: The company posted second-quarter revenue of $9.7 million, up 28% year-over-year, beating internal projections. Revenue units increased 13% to 178 MyoPro devices, with average selling prices rising 14% to approximately $54,200. Medicare Part B patients represented 56% of quarterly revenue.
Myomo’s cash position remains adequate at $15.5 million as of June 30, bolstered by $4.0 million in borrowings.
“Several forward-looking operating metrics were not as strong as we anticipated due to factors affecting lead quality and pipeline conversion,” said Paul Gudonis, Myomo's CEO.
The medical robotic assistive devices manufacturer trades near the bottom of its yearly range of $1.67 to $7.17, with a market capitalization of $63.32 million and an average volume of 595.1 thousand shares.
Why It Matters: Myomo slashed its 2025 revenue guidance to $40-42 million from the previous range of $50-53 million, citing lead quality issues and lower conversion rates. The revised outlook represents just 23% to 29% growth versus 2024, well below earlier expectations.
Operating losses widened dramatically to $4.6 million from $1.1 million in the prior year quarter. Net loss per share increased to $0.11 from $0.03, while adjusted EBITDA loss expanded to $4.0 million from $1.2 million year-over-year.
The gross margins of Myomo also compressed 810 basis points to 62.7% due to higher material and overhead costs. Operating expenses surged 65% to $10.6 million, driven by increased headcount, research and development spending, and advertising costs that jumped 162% to $2.2 million.
Despite generating a record number of leads, conversion rates disappointed. The patient pipeline grew 37% to 1,611 candidates, but the backlog of insurance authorizations fell 18% to 230 units. Management noted that 40-50% of pipeline additions typically come from leads generated a year or more earlier.
Price Action: According to Benzinga Pro data, MYO stock jumped 72.67% during regular trading on Monday, closing at $1.76.
Benzinga’s Edge Stock Rankings indicate that Myomo has a negative price trend across all time frames. Here is how the stock fares on other parameters.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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