Myomo Cuts Revenue Guidance Amid Rising Costs and Lower ASP — Myomo, Inc.

Event summary

Myomo reported $40.9M in full-year 2025 revenue, up 26% YoY but missed Q4 expectations with a 6% drop to $11.4M.
Gross margin contracted by 280 bps sequentially to 68.6%, driven by lower ASP and higher warranty costs.
Operating expenses surged 19% QoQ to $10.6M, with cost per pipeline add spiking 148% YoY to $3,039.
2026 revenue guidance set at $43M–$46M, with plans to halve cash burn and reduce reliance on advertising-driven revenue.

The big picture

Myomo’s strategic pivot toward recurring revenue streams reflects broader industry trends in value-based healthcare, but its execution hinges on controlling costs amid a competitive landscape for wearable medical robotics. The company’s ability to scale while maintaining gross margins will be critical as it transitions into 2026.

What we're watching

Recurring Revenue Shift: Whether Myomo can sustain momentum from recurring patient sources like O&P channels and referrals, which now account for 42% of Q4 revenue.
Cost Optimization: The pace at which material cost reductions and gross margin expansion materialize in H2 2026 amid rising operating expenses.
Clinical Validation: How the University of Utah trial’s outcomes could impact MyoPro’s clinical adoption and reimbursement dynamics.