Myomo Reports 162% Revenue Growth to $9.83 Million in Latest Quarter

Myomo, Inc. reported significant financial growth in its latest quarterly filing, with product revenue reaching $9.83 million for the three months ended March 31, 2025, a 162% increase from $3.75 million in the same period last year. The company’s gross profit also saw a substantial rise, climbing to $6.61 million, compared to $2.30 million in the prior year, resulting in a gross margin of 67.2%, up from 61.2%. Despite this revenue growth, Myomo recorded a net loss of approximately $3.47 million, slightly improved from a net loss of $3.84 million in the first quarter of 2024.

The increase in revenue was primarily driven by higher direct billing revenues, which accounted for approximately 79% of total product revenue, compared to 60% in the previous year. This growth was facilitated by the company’s ability to serve more Medicare Part B beneficiaries at published fees starting in April 2024. Myomo's operational expenses also increased, with total operating expenses rising to $10.13 million, up 64% from $6.19 million in the same quarter last year. This increase was attributed to higher research and development costs, as well as increased selling, clinical, and marketing expenses, reflecting the company's strategy to expand its market presence.

In terms of operational developments, Myomo reported a total of 35,978,922 shares of common stock outstanding as of May 2, 2025. The company has been focusing on enhancing its direct billing channel while also working to grow revenues through its Orthotics and Prosthetics (O&P) channel. Myomo's marketing strategy includes increased advertising spending and adding clinical and manufacturing headcount to support anticipated demand. The company has also made significant investments in research and development, with R&D expenses increasing by 87% year-over-year.

Geographically, Myomo generated 87% of its revenue from the United States and 13% from Germany during the first quarter of 2025. The company has been actively expanding its market reach, particularly in the U.S. and Europe, and has established relationships with over 100 Veterans Administration facilities. Looking ahead, Myomo anticipates continued investment in its operations, which may lead to negative cash flows for the first three quarters of 2025. The company remains optimistic about its growth trajectory, supported by its recent equity offerings and a loan agreement with Silicon Valley Bank, which provides access to additional capital for operational needs.