Myomo Q2 Earnings Call Highlights

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.

Chief Executive Officer Paul Gudonis said the company is emphasizing recurring referrals, reimbursement access, operating discipline and product development rather than relying primarily on direct-to-consumer marketing.

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.

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 mobil...