Myomo (NYSEAMERICAN:MYO) reported second-quarter 2026 revenue growth of 21% as the wearable robotics company continued shifting its patient acquisition strategy toward recurring referral sources and expanded reimbursement relationships.
Revenue for the quarter totaled $11.7 million, compared with the prior-year period, driven by a 2% increase in average selling price to approximately $55,500 and a 19% rise in recognized revenue units to 211 MyoPro devices. The company recorded a quarterly record of 255 MyoPro orders, up 23% year over year.
Referral Strategy Gains Momentum
Recurring patient sources represented 53% of second-quarter revenue, doubling from 26% a year earlier and reaching Myomo’s 50% objective six months ahead of schedule. The company said it added more than 150 referral sites during the quarter, bringing its active network to more than 300 locations.
Within recurring channels, direct-billing referrals through the MyoConnect program accounted for 23% of total revenue, up from 20% in the first quarter. International revenue represented 17% of revenue and grew 32% year over year, while the U.S. orthotics and prosthetics, or O&P, channel represented 10% of revenue and grew 130%. Veterans Affairs patients accounted for 3% of quarterly revenue.
Chief Financial Officer Dave Henry said MyoConnect-generated referrals accounted for 17% of pipeline additions during the quarter, compared with 11% in the first quarter. Of the 739 patients added to the pipeline, approximately 122 came from referral sources, according to management.
Henry said patient quality is improving through MyoConnect. Roughly half of patients entering the pipeline through the program so far in 2026 have been Medicare patients, compared with approximately 25% of pipeline additions overall. Management said referral-sourced patients tend to have fewer contraindications, better access to reimbursement documentation and a higher proportion of Medicare Part B coverage.
Myomo ended the quarter with 1,491 patients in its overall pipeline and a backlog of 218 patients. The backlog declined modestly from the first quarter as higher revenue velocity offset order growth. Management said 57% of second-quarter revenue units came from orders received during the quarter.
Margins Improve as Expenses Remain Nearly Flat
Gross margin expanded to 72.1% from 62.7% in the second quarter of 2025. Henry attributed the improvement primarily to a higher average selling price, lower overhead spending and material-cost reductions, including deployment of the company’s mobile app. Somewhat higher clinical costs reclassified into cost of goods sold partially offset those gains.
Operating expenses were $10.7 million, an increase of less than 1% from a year earlier. Higher general and administrative expenses were offset by lower advertising and research and development spending.
Operating loss narrowed to $2.3 million from $4.6 million in the prior-year quarter. Adjusted EBITDA loss improved to $800,000 from a $4 million loss a year earlier, although Henry noted that part of the improvement reflected certain employee incentive payments being paid in stock as part of cash-management measures.
Net loss was $4 million, or $0.09 per share, compared with a net loss of $4.6 million, or $0.11 per share, in the second quarter of 2025. Second-quarter results included a roughly $1.2 million non-cash mark-to-market charge related to derivative liabilities, as well as interest expense associated with the Avenue Capital term loan.
Cash equivalents and short-term investments totaled $13.5 million as of June 30. Operating cash use was $1.9 million during the quarter, compared with $8.9 million in the prior-year period. The prior-year figure was affected by a temporary payment hold imposed by DME Medicare Administrative Contractors and cash payment of 2024 incentive compensation, the company said.
Reimbursement and Product Development Updates
Myomo said it signed additional Elevance state contracts under its national agreement and became in network with Optum’s workers’ compensation product, which is part of UnitedHealthcare. Gudonis said contracted payer arrangements have produced higher authorization rates in a small but growing number of cases compared with non-contracted payers.
The company also said it continued to receive 100% reimbursement for Medicare Part B patients who have complete medical documentation supporting delivery of a MyoPro device.
On product development, Gudonis said the next-generation MyoPro 3 remains on schedule. The company introduced a hand-only prototype for the German market at the OTWorld conference in May. Management said Germany was selected as the initial market because a hand-only device can be reimbursed there, while the company would need to pursue appropriate U.S. HCPCS codes before a domestic launch.
Myomo is also continuing a University of Utah randomized controlled trial. The study has enrolled 25 of its planned 50 patients, with an updated six-month outcomes publication expected in the second half of 2026. Gudonis said the company expects full publication of the trial results in 2027.
Outlook Raised
For the third quarter, Myomo expects revenue of $11.5 million to $12 million, representing year-over-year growth of 14% to 19%. The company raised its full-year revenue outlook to $45 million to $47 million from prior guidance of $43 million to $46 million.
Management expects a modest sequential increase in operating expenses during the third quarter but maintained its target of limiting 2026 operating-expense growth to half the rate of revenue growth. Myomo also expects total cash burn during the second half of 2026 to be less than $2 million.
Gudonis said the company expects direct-to-consumer advertising to remain an important contributor, though it typically reduces spending in the fourth quarter because of holiday advertising competition and, this year, election-related media activity. He said Myomo plans to continue expanding its field organization and referral network to support MyoConnect growth.
About Myomo (NYSEAMERICAN:MYO)
Myomo, Inc (NYSE American: MYO) is a medical robotics company specializing in developing and commercializing powered orthotic devices designed to restore mobility and function for individuals with upper-limb weakness. The company’s flagship product, the MyoPro®, is an FDA-cleared, wearable robotic orthosis that leverages proprietary sensors and actuators to detect and amplify users’ own muscle signals, enabling patients with conditions such as stroke, spinal cord injury, muscular dystrophy and other neuromuscular disorders to perform daily activities with greater independence.
Myomo markets the MyoPro through a network of licensed orthotic and prosthetic professionals, clinics and hospitals across North America.
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