Myomo reports Q2 EPS (11c), consensus (11c)
Q2 Revenue Performance: The company reported Q2 revenue of $9.7 million, surpassing the consensus estimate of $9.2 million, with a 28% growth compared to previous quarters.
Strategic Changes for Improvement: CEO Paul R. Gudonis highlighted plans to enhance lead quality and pipeline conversion by shifting advertising focus from digital to television and engaging healthcare professionals to increase patient referrals.
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Myomo, Inc. Activist Investor Pushes Governance Changes
- Governance Change Signal: Horton Capital Partners recently filed a Schedule 13D for Myomo, Inc., indicating it has crossed the 5% ownership threshold and aims to push for governance changes by eliminating the classified board structure for annual elections, which could enhance management accountability and potentially shift the company's strategic direction.
- Market Potential: Myomo focuses on wearable robotic devices primarily serving patients with neuromuscular disorders like stroke-related paralysis; despite uneven revenue growth, its technology addresses a growing clinical need, and governance changes may attract more investor interest.
- Early Stage Activism: Lakeland Industries has seen an 8.38% stake acquired by Global Value Investment Corporation, signaling intent to engage in governance and strategic discussions, which could drive value enhancement in the protective apparel market.
- Microcap Activism: Chicago Rivet & Machine Co. has 6.45% of its shares acquired by Galloway and others, indicating belief in the company's undervaluation, which may prompt management to reassess strategy and alter the company's future trajectory.
Myomo reaffirms its revenue goal of $40M–$42M for 2025, fueled by growth in the O&P channel and MyoConnect.
Management Performance: Myomo, Inc. reported a strong Q3 2025 with revenues of $10.1 million, driven by record international sales and increased authorizations, while also announcing a strategic shift in advertising focus and the hiring of a new marketing head.
Financial Overview: The company experienced a 10% year-over-year revenue increase, with significant growth in the O&P channel and international markets, although gross margins declined due to rising costs. Operating losses were reported at $3.5 million.
Future Outlook: Myomo reiterated its full-year revenue guidance of $40 million to $42 million for 2025, emphasizing plans to diversify revenue streams and improve operating leverage while managing cash burn in 2026.
Analyst Sentiment: Analysts expressed constructive curiosity regarding operational details and strategic shifts, while management maintained a confident tone, highlighting progress in pipeline growth and ongoing efforts to address challenges in payer authorizations.
