Myomo Reports 28% Revenue Growth to $9.65 Million in Q2 2025, Despite Increased Net Loss

Myomo, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated revenues of $9.65 million for the three months ended June 30, 2025, marking a 28% increase from $7.52 million in the same period of 2024. For the first half of 2025, revenues reached $19.48 million, a substantial 73% increase compared to $11.28 million in the prior year. Despite this revenue growth, Myomo recorded a net loss of $4.63 million for the second quarter, up from a loss of $1.12 million in the same quarter of 2024. The increased losses were attributed to higher operating expenses, which rose to $10.64 million from $6.44 million year-over-year.

The company's operational metrics indicate a strategic shift towards direct billing, which accounted for approximately 77% of total revenue in the second quarter of 2025, compared to 55% in the same quarter of 2024. This transition has been facilitated by recent changes in reimbursement policies from the Centers for Medicare and Medicaid Services (CMS), which now allow for lump-sum payments for MyoPro devices. Myomo's customer base has expanded, with the company reporting a significant increase in the number of revenue units sold, contributing to the overall revenue growth.

In terms of operational changes, Myomo has been investing in its workforce and infrastructure to support its growth strategy. The company increased its research and development expenses by 99% to $2.00 million in the second quarter, reflecting its commitment to enhancing product offerings. Selling, clinical, and marketing expenses also surged by 88% to $5.23 million, driven by increased advertising efforts and the hiring of additional clinical staff. As of June 30, 2025, Myomo's total assets stood at $38.67 million, down from $42.24 million at the end of 2024, primarily due to a decrease in cash and cash equivalents.

Myomo's liquidity position remains a focus, with cash and cash equivalents totaling $14.24 million as of June 30, 2025, down from $24.37 million at the end of 2024. The company utilized approximately $11.54 million in cash for operating activities during the first half of 2025, influenced by a payment hold from a Medicare contractor that temporarily increased accounts receivable. To bolster its financial position, Myomo has engaged in financing activities, including a public offering in December 2024 that raised approximately $15.8 million and a registered direct equity offering in January 2024 that generated $5.4 million.

Looking ahead, Myomo anticipates continued investment in its direct billing channel and the expansion of its operational capacity to meet growing demand. The company expects to maintain its focus on increasing revenues through enhanced marketing efforts and product development initiatives. However, it acknowledges the ongoing challenges of achieving cash flow breakeven and sustaining operations, contingent on reimbursement from insurance providers and government health plans.