Myomo — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue reached $12.3 million, a 22% year-over-year increase compared to $10.1 million in Q3 2025; nine-month revenue totaled $34.1 million, up 15% year-over-year.
• Gross margin expanded to 71.3% in Q3 2026 from 63.8% in Q3 2025, a 750 basis point increase, driven by higher average selling price (ASP), material cost reductions, and volume absorption of fixed costs.
• Operating expenses increased 6% year-over-year to $10.5 million in Q3 2026, primarily due to higher research and development spending for clinical trials and increased general and administrative payroll and legal expenses.
• Operating loss narrowed to $1.7 million in Q3 2026 from $3.5 million in Q3 2025.
• Net loss was $4.2 million ($0.10 per share) in Q3 2026, compared to $3.7 million ($0.09 per share) in Q3 2025, including a non-cash mark-to-market charge of $1.8 million for derivative liabilities.
• The Company achieved breakeven Adjusted EBITDA in Q3 2026, compared to a loss of $2.7 million in Q3 2025.
• Cash used in operating activities was $1.3 million in Q3 2026, down from $1.8 million in Q3 2025.
• Cash, cash equivalents, and short-term investments totaled $11.9 million as of September 30, 2026.
• Deferred revenue decreased to $139,094 as of September 30, 2026, from $218,222 at December 31, 2025.
• Long-term debt net of discount increased to $11.65 million as of September 30, 2026, from $11.22 million at December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance has been narrowed to $46-47 million, positioned at the upper end of the previous raised guidance range.
• Management reiterates expectations for full-year operating leverage and projects cash burn to remain under $2 million during the second half of 2026.

Business Segments and Product Lines:

• Recurring patient sources accounted for 54% of Q3 2026 revenue, up from 33% in Q3 2025, driven by the MyoConnect program which now exceeds 500 referral locations in the U.S.
• Order volume reached a record 258 units in Q3 2026, a 13% year-over-year increase, with an average selling price of approximately $55,500, up 2% year-over-year.
• The MyoConnect program added 600 patients to the pipeline in Q3 2026, with 18% generated by direct billing referrals.
• New payer contracts are in progress covering an additional 35 million lives, and Medicaid enrollments have been completed in seven states with more in progress.
• Product development progress includes the MyoPro3 and a hand-only product for the German market.
• A randomized controlled trial at the University of Utah has enrolled 35 of 50 planned subjects.
• Mary-Katherine McClure joined as Chief Commercial Officer in October to lead the expansion of recurring patient sources and commercial operations.

Market and Competitive Landscape:

• Myomo is the only marketed device in the U.S. that senses patient EMG signals to restore arm and hand function for neurological disorders and upper-limb paralysis.
• Expanded in-network access and higher quality patient referrals contributed to improved order rates.

Risks and Challenges:

• Key risks include dependence on third-party payer reimbursement, reliance on external financing, and revenue concentration with Medicare Part B patients.
• Potential challenges involve supply chain disruptions affecting custom-fabricated device delivery, maintaining intellectual property protection, and achieving regulatory approvals.
• Forward-looking statements note risks related to market acceptance, clinical research results, and general economic factors.

Management Commentary and Tone:

• CEO Paul R. Gudonis stated that the focus on four success pillars delivered record revenue, solid operating leverage, and breakeven Adjusted EBITDA.
• Management expressed confidence that Q3 revenue places the company on track to achieve the midpoint or better of the raised guidance.
• The tone emphasized progress in shifting to recurring revenue sources and expanding market access through payer contracts.

Other Key Points:

• The Company reported a change in cash, cash equivalents, and short-term investments of a decrease of $1.5 million in Q3 2026.
• Stock-based compensation for the nine months ended September 30, 2026, was $2.96 million, compared to $1.52 million in the prior year period.
• A change in fair value of derivative liabilities resulted in a non-cash charge of $1.8 million in Q3 2026 and $2.2 million for the nine-month period.
• The conference call and webcast were scheduled for November 9, 2026, at 4:30 p.m. Eastern time.