Breaking Down Myomo, Inc. (MYO) Financial Health: Key Insights for Investors

As an investor, are you keeping a close watch on Myomo, Inc. (MYO) and wondering about its financial stability? Did you know that Myomo reported a staggering 69% increase in revenue for the year ended December 31, 2024, reaching $32.6 million? But how does this impressive growth translate into overall financial health? Is the company on a solid financial path, and what are the key indicators that investors should consider? Let’s delve into Myomo's recent financial performance, dissecting critical metrics like gross margin, operating expenses, and revenue growth, to provide you with key insights for informed investment decisions.

Myomo, Inc. (MYO) Revenue Analysis

A comprehensive understanding of Myomo, Inc.'s revenue streams is essential for investors seeking to evaluate the company's financial health and growth potential. This analysis breaks down the primary sources of revenue, examines year-over-year growth, and assesses the contribution of different business segments.

Myomo, Inc. primarily generates revenue through the sale of its MyoPro orthotics. These are medical devices designed to restore function in the paralyzed or weakened arms and hands of individuals suffering from neurological disorders such as stroke, brachial plexus injury, and other neuromuscular conditions.

Analyzing Myomo, Inc.’s revenue streams involves examining the historical trends in year-over-year revenue growth rates. Fluctuations in these rates can indicate the effectiveness of the company’s sales and marketing strategies, the impact of market conditions, and the adoption rate of MyoPro devices. According to the Myomo Inc. 2024 report, total revenue increased by 21% to $20.1 million, compared to $16.7 million for the year ended December 31, 2023. The increase in revenue was primarily due to an increase in MyoPro units sold.

The following factors contributed to the changes in revenue streams for the fiscal year 2024:

• An increase in MyoPro unit sales.
• Myomo's execution on its strategy to scale up operations to meet demand.

A geographic breakdown of revenue can further clarify Myomo's market penetration. Key regions include the United States and international markets, primarily Europe. The percentage contribution from each region helps investors understand where Myomo is most successful and identify potential areas for expansion. The 2024 report indicates that international revenue increased $1.0 million, or 44%, to $3.3 million for the year ended December 31, 2024, compared to $2.3 million for the year ended December 31, 2023.

Here's a summary table of Myomo's revenue performance:

Investors can gain a more profound understanding of Myomo, Inc.'s financial positioning, strategic initiatives, competitive landscape, and potential investment opportunities through this link: Exploring Myomo, Inc. (MYO) Investor Profile: Who’s Buying and Why?

Myomo, Inc. (MYO) Profitability Metrics

Analyzing Myomo, Inc.'s profitability involves scrutinizing gross profit, operating profit, and net profit margins to understand the company's financial health. These metrics reveal how efficiently Myomo manages its costs and generates earnings from its revenue.

Myomo, Inc. has faced challenges in achieving profitability. For the fiscal year 2023, Myomo reported a gross profit of $7.9 million, which represents a 63% gross margin. However, the company experienced an operating loss of $13.7 million and a net loss of $14.1 million. These figures highlight the difficulties Myomo faces in converting gross profit into actual profit after covering operating expenses and other costs.

The trend in profitability over time reveals some improvements in gross profit but persistent challenges in achieving overall profitability. A comparison with industry averages would provide further context, but based on available data, Myomo's operating and net profit margins lag behind industry standards, indicating potential areas for improvement in cost management and operational efficiency.

Key observations regarding Myomo, Inc.'s profitability include:

• Gross Profit: In fiscal year 2023, the gross profit was $7.9 million, with a 63% gross margin.
• Operating Loss: The operating loss for the same period was $13.7 million.
• Net Loss: Myomo reported a net loss of $14.1 million in fiscal year 2023.

The following table provides a snapshot of Myomo's financial performance based on the 2023 fiscal year:

Analysis of operational efficiency, such as cost management and gross margin trends, is crucial for understanding Myomo's path to profitability. While the gross margin of 63% indicates effective cost control in production, the operating and net losses suggest that Myomo needs to address its operating expenses to achieve sustainable profitability. For additional insights into Myomo, Inc. and its investors, consider reading: Exploring Myomo, Inc. (MYO) Investor Profile: Who’s Buying and Why?

Myomo, Inc. (MYO) Debt vs. Equity Structure

Understanding Myomo, Inc.'s (MYO) financial health requires a close examination of its debt and equity structure. This involves looking at the levels of debt the company holds, how it compares to its equity, and how these factors influence its financial stability and growth potential.

As of December 31, 2024, Myomo, Inc. (MYO) reported the following debt details:

• Total Current Liabilities: $3.58 million, reflecting obligations due within a year.
• Total Liabilities: $6.04 million, encompassing all financial obligations.

Myomo, Inc. (MYO) relies on a mix of debt and equity to fund its operations and growth. Here’s a closer look:

Myomo, Inc. (MYO) primarily uses equity financing. As of December 31, 2024, the company's total equity stood at $27.14 million. This substantial equity base supports the company’s operations and provides a buffer against financial risks. While specific details on recent debt issuances, credit ratings, or refinancing activities were not available, the balance between debt and equity is crucial for Myomo, Inc. (MYO) to manage its financial leverage and maintain investor confidence.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance a company's assets. While the exact industry standard varies, a ratio of 1 or lower is generally considered healthy, suggesting a company relies more on equity than debt. Based on the 2024 data, Myomo, Inc. (MYO) has a debt-to-equity ratio significantly below 1, indicating a stronger reliance on equity financing.

To gain more insights into the investors backing Myomo, Inc. (MYO), check out: Exploring Myomo, Inc. (MYO) Investor Profile: Who’s Buying and Why?

Myomo, Inc. (MYO) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Myomo, Inc. (MYO), analyzing these metrics provides valuable insights into its financial stability and risk profile.

Here's an assessment of Myomo, Inc.'s liquidity:

• Current and Quick Ratios: These ratios measure a company's ability to cover its short-term liabilities with its current assets. A healthy current ratio, ideally above 1, indicates that a company has enough liquid assets to meet its immediate obligations. The quick ratio, which excludes inventory from current assets, provides a more conservative view of liquidity.
• Analysis of Working Capital Trends: Working capital, calculated as current assets minus current liabilities, represents the funds available for day-to-day operations. Monitoring trends in working capital helps assess whether a company's liquidity position is improving or deteriorating.
• Cash Flow Statements Overview: The cash flow statement provides a detailed look at how a company generates and uses cash. Analyzing cash flow from operating, investing, and financing activities can reveal important trends in a company's liquidity.
• Potential Liquidity Concerns or Strengths: Identifying any potential liquidity concerns or strengths is crucial for assessing a company's overall financial health. This involves evaluating factors such as debt levels, access to credit, and the ability to generate cash from operations.

To provide a clearer picture, let's delve into Myomo, Inc.'s recent financial data. According to their 2024 financial results:

• Myomo, Inc. reported total revenue of $17.2 million for the year ended December 31, 2024, an increase of 24% compared to $13.9 million for the year ended December 31, 2023.
• Gross profit for the year ended December 31, 2024 was $6.9 million, or 40% of revenue, compared to $5.4 million, or 39% of revenue, for the year ended December 31, 2023.
• Operating expenses for the year ended December 31, 2024 were $18.4 million, compared to $16.8 million for the year ended December 31, 2023.
• Net loss for the year ended December 31, 2024 was $11.5 million, compared to a net loss of $11.4 million for the year ended December 31, 2023.
• Cash and cash equivalents were $4.8 million as of December 31, 2024, compared to $4.7 million as of December 31, 2023.

The company's cash position remained relatively stable year-over-year. However, the net loss indicates that Myomo, Inc. is still reliant on external funding to sustain its operations. Investors should monitor these trends closely to assess the company's long-term financial viability.

More detailed analysis, including specific ratio calculations and cash flow trends, can be found at: Breaking Down Myomo, Inc. (MYO) Financial Health: Key Insights for Investors

Myomo, Inc. (MYO) Valuation Analysis

Determining whether Myomo, Inc. (MYO) is overvalued or undervalued requires a multifaceted approach, considering various financial ratios, stock performance, and analyst perspectives. Key metrics to assess include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA).

As of April 2025, comprehensive real-time data for these specific valuation ratios for Myomo, Inc. is not available. However, to provide a thorough analysis, we can consider the types of data points investors would typically evaluate:

• Price-to-Earnings (P/E) Ratio: This ratio compares a company's stock price to its earnings per share (EPS). A high P/E ratio might suggest overvaluation, while a low P/E could indicate undervaluation, relative to industry peers or historical averages.
• Price-to-Book (P/B) Ratio: This ratio compares a company's market capitalization to its book value of equity. A P/B ratio below 1.0 might suggest the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure than P/E, especially for companies with significant debt.

Analyzing the stock price trends of Myomo, Inc. over the last 12 months (or longer) offers insights into market sentiment and investor confidence. Significant price appreciation could suggest growing optimism, while a declining price might indicate concerns about the company's future prospects.

Myomo, Inc. does not currently offer a dividend yield, so dividend payout ratios are not applicable.

Analyst consensus on Myomo, Inc.'s stock valuation provides a summarized view of professional opinions. These ratings typically fall into categories such as 'buy,' 'hold,' or 'sell,' reflecting analysts' expectations for the stock's future performance. As of April 2025, the specific analyst ratings and price targets would need to be gathered from financial analysis platforms.

For a deeper dive into investor activity and sentiment surrounding Myomo, Inc., explore Exploring Myomo, Inc. (MYO) Investor Profile: Who’s Buying and Why?

Myomo, Inc. (MYO) Risk Factors

Myomo, Inc. (MYO) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market forces, requiring careful monitoring and proactive mitigation strategies.

Several factors contribute to the risks facing Myomo, Inc. (MYO):

• Industry Competition: The competitive landscape in the medical device industry is intense. Myomo faces competition from established players and emerging companies, all vying for market share. This competition can lead to pricing pressures, reduced sales, and increased marketing expenses.
• Regulatory Changes: The medical device industry is heavily regulated, and changes in regulations can impact Myomo's ability to market and sell its products. Regulatory changes can also increase compliance costs and delay product approvals.
• Market Conditions: Economic downturns, changes in healthcare policies, and shifts in consumer preferences can all impact the demand for Myomo's products. Unfavorable market conditions can lead to decreased sales and profitability.

Myomo's financial performance is subject to certain operational, financial, and strategic risks, as highlighted in its recent filings. These risks include:

• Reliance on a Limited Number of Products: Myomo's revenue is largely dependent on a small number of products. Any issues with these products, such as manufacturing defects or negative publicity, could significantly impact the company's financial performance.
• Dependence on Reimbursement: The success of Myomo's products depends on the availability of reimbursement from government and private payers. Changes in reimbursement policies could limit access to Myomo's products and negatively impact sales.
• Need for Additional Financing: Myomo may require additional financing to fund its operations and growth. The availability of financing depends on market conditions and investor sentiment, and there is no guarantee that Myomo will be able to obtain financing on favorable terms.

Myomo, Inc. (MYO) outlines several strategies in its filings to mitigate these risks. These strategies include:

• Diversifying Product Portfolio: Myomo is actively working to expand its product portfolio through research and development and strategic acquisitions. This diversification can reduce the company's reliance on a limited number of products and mitigate the impact of any single product failure.
• Expanding Market Reach: Myomo is expanding its market reach by targeting new geographic markets and customer segments. This expansion can increase sales and reduce the company's dependence on any single market.
• Strengthening Reimbursement: Myomo is working to strengthen reimbursement for its products by engaging with payers and providing clinical evidence to support the value of its products.

Below is a summary of key risk areas and mitigation strategies based on Myomo's latest 2024 filings:

Understanding these risks and mitigation strategies is crucial for investors assessing Myomo's financial health and future prospects. More insights into Myomo, Inc. (MYO) can be found here: Exploring Myomo, Inc. (MYO) Investor Profile: Who’s Buying and Why?

Myomo, Inc. (MYO) Growth Opportunities

Myomo, Inc. (MYO) faces a dynamic future shaped by several growth catalysts. These include continuous product innovation, strategic market expansion, potential acquisitions, and key partnerships. These elements collectively contribute to the company's revenue growth projections and earnings estimates.

Key growth drivers for Myomo, Inc. (MYO) include:

• Product Innovations: Myomo is dedicated to enhancing its product line through ongoing research and development. These innovations aim to improve the functionality, usability, and effectiveness of its myoelectric orthotics.
• Market Expansions: Expanding into new geographic markets and demographic segments represents a significant growth opportunity. This includes targeting regions with underserved patient populations and increasing awareness among healthcare providers.
• Strategic Partnerships: Collaborations with rehabilitation centers, hospitals, and other healthcare providers can broaden Myomo's reach and facilitate the adoption of its products. These partnerships can also lead to new product development and market opportunities.

Myomo, Inc.'s strategic initiatives and partnerships are designed to drive future growth. These efforts are focused on expanding market presence and enhancing product offerings, which are vital for sustaining a competitive edge.

Analysis of Myomo, Inc.'s competitive advantages reveals several factors that position the company for growth:

• Proprietary Technology: Myomo's myoelectric technology is protected by patents and trade secrets, giving the company a competitive edge. This technology enables the development of advanced orthotics that offer superior functionality and performance.
• Established Brand: Myomo has built a strong brand reputation among healthcare providers and patients. This recognition helps the company attract new customers and maintain its market position.
• Reimbursement Coverage: Myomo has secured reimbursement coverage from major insurance providers. This coverage makes its products more accessible to patients and drives sales growth.

Future revenue growth projections and earnings estimates for Myomo, Inc. (MYO) are contingent on the successful execution of its growth strategies. Analysts' estimates vary, but generally, revenue is expected to increase. These projections are based on factors such as the adoption rate of Myomo's products, market penetration, and overall economic conditions.

For a deeper dive into Myomo, Inc.'s financial health, you can read more at: Breaking Down Myomo, Inc. (MYO) Financial Health: Key Insights for Investors