Myomo (MYO) Q2 FY26 earnings call: guidance and Q&A

Is MyoConnect the primary driver of growth, and what are the conversion rates and pipeline contribution from MyoConnect referrals?

MyoConnect is gaining momentum, driving growth with better medically qualified patients and higher Medicare Part B insurance coverage. MyoConnect referrals represented 17% of pipeline adds in Q2, up from 11% in Q1, with roughly 50% of these being Medicare patients compared to 25% for advertising-driven adds.

“You're right. It's -- we see the MyoConnect program really gaining momentum here. We are adding more sites. We're up to 300 referral sites. Now, what we're seeing is, as Dave mentioned, not only better medically qualified patients because the therapists have been informed by us who makes a good MyoPro candidates, they tend to have better insurance. So a larger percentage of them have Medicare Part B, which is easier to get reimbursed for that patient.”

asked by Unknown Analyst · answered by Paul Gudonis

What is the timing for the Utah RCT readout, and how will good data benefit the company in terms of covered lives and demand generation?

A 6-month readout is expected in H2 2026, with full publication in 2027. Positive data will help convince medical directors at payers that MyoPro is not experimental, increasing covered lives, and will also boost demand generation in O&P and MyoConnect channels.

“Well, I believe the answer to the second part is, all of the above. I think we'll be able to go with our Chief Medical Officer to medical directors at various payers and make the case that MyoPro is not experimental. It's not investigational. It's proven.”

asked by Unknown Analyst · answered by Paul Gudonis

Are 'orders' equivalent to 'authorizations', and what is the current cumulative pipeline number?

Yes, 'orders' are the same as 'authorizations', encompassing insurance authorizations and purchase orders from O&P providers or the VA. The overall pipeline at quarter-end was 1,491 patients.

“Same thing, yes. Scott, it's a combination of insurance authorizations that we get from our direct billing operation and then orders -- POs we get from an O&P provider or a PO from a VA.”

asked by Scott Henry · answered by Paul Gudonis

Will the midterm election year impact advertising effectiveness in the second half of the year?

The company typically scales back direct-to-consumer advertising in Q4 due to increased competition from election and holiday advertising. The focus will remain on the MyoConnect program and expanding referral sites, which are less affected by advertising competition.

“Well, typically, fourth quarter every year, we tend to scale back the direct-to-consumer advertising for some of the reasons you mentioned, Scott. This year, it's an election year. So there's more competition for those eyeballs. And there's also the holiday advertising that we have to deal with and so on.”

asked by Scott Henry · answered by Paul Gudonis

Given the improved operating loss of $2.3 million, what is the expected sequential trend for operating income?

Operating income is expected to improve sequentially. Gross margin is stable or improving due to cost reductions and higher second-half revenues. Modest operating expense growth is expected in Q3, but Q4 expenses are not expected to be higher than Q3, leading to continued improvement in operating loss.

“Then, in terms of the operating expenses, I said that we would expect some modest operating expense growth in the third quarter. And then, fourth quarter, I mean, it's not going to -- I don't expect fourth quarter to be higher than third. And so, I would expect it to be along those same lines, I would say.”

asked by Scott Henry · answered by David Henry

What is the remaining runway for signing up new referral clinics and O&P partners?

There are several thousand stroke rehab clinics and O&P clinics nationwide, indicating significant runway. MyoConnect has two growth vectors: increasing penetration by adding more sites (currently 300+) and 'same-store sales growth' from existing sites making more referrals over time. The O&P channel also has substantial growth potential both in the U.S. and Germany.

“There are several thousand stroke rehab clinics around the country, whether they're affiliated with major hospitals like Spaulding Rehab here in Boston or Kessler and so on, but there's a lot of smaller neuro clinics around the country that see stroke patients. So we're just at the early stage of this.”

asked by Jeremy Pearlman · answered by Paul Gudonis

Will the hand-only device be exclusive to Germany initially, and are there plans for a U.S. rollout?

The hand-only prototype will launch in Germany first because reimbursement is already established there. The company will then work on obtaining appropriate HCPCS codes for a U.S. rollout, as there is patient demand for distal function devices. This product expands the addressable market and requires a relatively small R&D investment covered by existing OpEx plans.

“The reason we're starting in Germany is because a hand-only product will be reimbursed in Germany. There's already a small competitor, HKK, which already has a hand-only device. We're bringing our technology platform to build a superior device to that. And we know it will get reimbursed in Germany. So we're starting there.”

asked by Edward Woo · answered by Paul Gudonis