Q3 FY2026
Filed Nov 9, 2026Myomo Q3 2026 revenue of $12.3 million rose 22% year over year to a record, Adjusted EBITDA was breakeven, and FY2026 revenue guidance was narrowed to $46-47 million
Revenue growth of 22% in the quarter, 36% gross profit growth, and breakeven Adjusted EBITDA (from a $(2,686,673) loss a year earlier) show operating progress. Offsetting this, GAAP net loss widened to $(4,232,759) from $(3,662,915) on a $1,845,549 derivative fair value charge and higher interest expense, stockholders' equity fell to $2,750,692, and the company still reports cash used in operations and a shrinking cash balance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026 (GAAP)GAAP | $12,330,517 | – | 22% |
| Revenue, nine months 2026 (GAAP)GAAP | $34,148,370 | – | 15% |
| Cost of revenue, Q3 2026GAAP | $3,540,423 | – | (3)% |
| Cost of revenue, nine months 2026GAAP | $10,014,121 | – | (4)% |
| Gross profit, Q3 2026GAAP | $8,790,094 | – | 36% |
| Gross profit, nine months 2026GAAP | $24,134,249 | – | 26% |
| Gross margin, Q3 2026GAAP | 71.3% | – | +750 basis points |
| Gross margin, nine months 2026GAAP | 70.7% | – | 6.1% |
| Research and development, Q3 2026GAAP | $1,809,544 | – | – |
| Research and development, nine months 2026GAAP | $5,153,167 | – | – |
| Selling, clinical and marketing, Q3 2026GAAP | $5,119,483 | – | – |
| Selling, clinical and marketing, nine months 2026GAAP | $15,200,332 | – | – |
| General and administrative, Q3 2026GAAP | $3,584,631 | – | – |
| General and administrative, nine months 2026GAAP | $10,915,852 | – | – |
| Total operating expenses, Q3 2026GAAP | $10,513,658 | – | 6% |
| Total operating expenses, nine months 2026GAAP | $31,269,351 | – | – |
| Loss from operations, Q3 2026GAAP | $(1,723,564) | – | – |
| Loss from operations, nine months 2026GAAP | $(7,135,102) | – | – |
| Interest expense (income), net, Q3 2026GAAP | $559,772 | – | – |
| Interest expense (income), net, nine months 2026GAAP | $1,600,212 | – | – |
| Change in fair value of derivative liabilities, Q3 2026GAAP | $1,845,549 | – | – |
| Change in fair value of derivative liabilities, nine months 2026GAAP | $2,206,211 | – | – |
| Loss before income taxes, Q3 2026GAAP | $(4,128,885) | – | – |
| Loss before income taxes, nine months 2026GAAP | $(10,941,525) | – | – |
| Income tax expense, Q3 2026GAAP | $103,874 | – | – |
| Income tax expense, nine months 2026GAAP | $321,993 | – | – |
| Net loss, Q3 2026GAAP | $(4,232,759) | – | – |
| Net loss, nine months 2026GAAP | $(11,263,518) | – | – |
| Net loss per share, basic and diluted, Q3 2026GAAP | $(0.10) | – | – |
| Net loss per share, basic and diluted, nine months 2026GAAP | $(0.26) | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $(1,513) | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $(3,097,009) | – | – |
| Net cash used in operating activities, Q3 2026GAAP | $1.3M | – | – |
| Net cash used in operating activities, nine months 2026GAAP | $(5,448,321) | – | – |
| Record orders, Q3 2026other | 258 orders | – | 13% |
| Revenue units, Q3 2026other | 19% increase in number of revenue units (company-reported change) | – | 19% |
| MyoPro units recognized as revenue, Q3 2026other | 222 units | – | – |
| Average selling price (ASP), Q3 2026other | approximately $55,500 | – | 2% |
| Revenue from recurring patient sources, Q3 2026other | 54% of third quarter revenue | – | – |
| Patients added to pipeline, Q3 2026other | 600 patients | – | – |
| Pipeline patients generated by MyoConnect direct billing referrals, Q3 2026other | 18% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Recurring patient sources (share of revenue)Company states recurring sources include provider referrals, orthotic and prosthetic (O&P) partners and the Department of Veteran's Affairs (VA). The filing gives the prior-year share as 33% for the third quarter of 2025 but does not print a change. | 54% of third quarter 2026 revenue | – | – |
FY2026 outlook
- Revenue$46-47 million
- NoteFull-year revenue guidance narrowed to $46-47 million, described by the company as at the upper end of previous guidance
- NoteFull-year operating leverage expectation reiterated; no figure given
- NoteCash burn expected to be less than $2 million during the second half of 2026
Capital returns
- No share repurchases or dividends are reported in the filing.
- Weighted average shares, basic and diluted: 43,570,260 for Q3 2026 versus 42,168,120 for Q3 2025 (per the statement of operations).
What drove it
- Company states revenue growth reflected a 19% increase in revenue units combined with a 2% increase in ASP.
- Company states gross margin expansion was driven primarily by higher ASP, material cost reductions and higher volume (improving absorption of fixed costs), partially offset by higher clinical costs classified to cost of goods sold.
- Company states operating expense growth of 6% was primarily due to higher research and development spending from the randomized controlled trial at the University of Utah, and higher general and administrative expenses driven by higher payroll and legal expense.
- Company states the net loss included a non-cash charge of $1.8 million for the mark-to-market of derivative liabilities.
- Company states the trial has enrolled 35 of a planned 50 subjects.
- Company states MyoConnect has obtained referrals from more than 500 rehabilitation facilities and therapy centers since its inception a year ago, and it now exceeds 500 referral locations in the U.S.
- Company states new payer contracts in progress cover an additional 35 million lives, and Medicaid enrollments are complete in seven states with more in progress.
Concerns
- GAAP net loss widened to $(4,232,759) from $(3,662,915) in Q3, while the operating loss narrowed to $(1,723,564) from $(3,517,514). The gap is explained by the $559,772 interest expense (income), net line and the $1,845,549 derivative fair value change.
- Stockholders' equity fell to $2,750,692 from $11,403,467 at December 31, 2025, and the accumulated deficit increased to $(129,951,940) from $(118,688,422).
- Cash, cash equivalents and short-term investments decreased by $1.5 million in Q3, and the company still reports net cash used in operating activities of $(5,448,321) for nine months 2026.
- Company provides no figure for operating leverage, and its cash burn target applies only to the second half of 2026.
- Accounts receivable rose to $5,922,058 from $4,096,327 at December 31, 2025, a change the filing does not explain.
- The filing's Operating and Net Loss section refers to the 'second quarter of 2026' when describing the Q3 operating loss; the figures given match the third quarter.
What to watch
- Whether full-year revenue lands in the $46-47 million range given the company's statement that Q3 places it on track for the midpoint or better of raised guidance.
- Whether cash burn stays below $2 million in the second half of 2026, as the company states.
- Operating expense trajectory as the University of Utah trial continues (35 of 50 subjects enrolled).
- Derivative liability and interest expense, which drove the gap between operating and net loss in Q3.
- Progress of the new Chief Commercial Officer and the new payer contracts on recurring patient sources, which the company reports at 54% of Q3 revenue.
- Whether the Q3 gross margin of 71.3% holds as clinical costs are classified to cost of goods sold.
Balance sheet and cash flow
- Cash, cash equivalents and short-term investments at September 30, 2026: $11.9 million (company text). Balance sheet lines: cash and cash equivalents $11,099,159 and short-term investments $847,027 at September 30, 2026, versus $14,132,027 and $4,261,782 at December 31, 2025.
- Change in cash, cash equivalents and short-term investments in Q3 2026: a decrease of $1.5 million (company text).
- Net cash provided by investing activities for nine months 2026: $2,847,828 (prior period: $(2,463,748)). Net cash provided by financing activities: $(370,656) (prior period: $3,913,494).
- Total assets: $33,804,876 at September 30, 2026, versus $38,636,573 at December 31, 2025.
- Total liabilities: $31,054,184 at September 30, 2026, versus $27,233,106 at December 31, 2025.
- Total stockholders' equity: $2,750,692 at September 30, 2026, versus $11,403,467 at December 31, 2025.
- Debt: current portion of long-term debt, net of discount of $295,486, was $1,787,848 at September 30, 2026. Long-term debt, net of discount of $1,994,528, was $11,654,570 (December 31, 2025: $11,222,155).
- Warrant derivative liability: $1,772,084 at September 30, 2026, versus $999,418 at December 31, 2025.
- Restricted cash: $575,000 at both dates.
Analysis
Myomo reported record third-quarter revenue of $12,330,517, up 22% from $10,090,699, with 19% growth in revenue units and a 2% rise in ASP as the company states. Nine-month revenue was $34,148,370, up 15%. Gross profit grew 36% in the quarter to $8,790,094, and gross margin rose to 71.3% from 63.8%, a 750 basis point expansion the company attributes primarily to higher ASP, material cost reductions and higher volume, partly offset by higher clinical costs classified to cost of goods sold. Cost of revenue fell 3% year over year, so the revenue growth came with a lower absolute cost base.
Operating expenses rose 6% to $10,513,658, which the company attributes to higher research and development from the University of Utah trial and higher general and administrative expense from payroll and legal costs. Revenue growth outpaced expense growth, which produced an operating loss of $(1,723,564) against $(3,517,514) a year earlier and Adjusted EBITDA of $(1,513) against $(2,686,673). The release describes this as breakeven Adjusted EBITDA. GAAP net loss widened to $(4,232,759) from $(3,662,915), or $(0.10) per share against $(0.09). The gap between operating loss and net loss comes from the interest expense (income), net line of $559,772 and the change in fair value of derivative liabilities of $1,845,549, which the company describes as a non-cash mark-to-market charge.
On mix, the company reports that 54% of third-quarter revenue came from recurring patient sources (provider referrals, O&P partners and VA), up from 33% in the third quarter of 2025, and that orders reached a record 258, up 13%. The filing does not provide a dollar figure for recurring-source revenue, so the share cannot be converted to an amount.
On cash and capital, cash, cash equivalents and short-term investments were $11.9 million at September 30, 2026, after a $1.5 million decrease in the quarter. Net cash used in operating activities was $1.3 million in Q3 against $1.8 million a year earlier, and $(5,448,321) for nine months against $(13,370,955). Total stockholders' equity fell to $2,750,692 from $11,403,467 at year-end 2025, and debt lines were $1,787,848 current and $11,654,570 long-term, net of discounts. The company issued no capital returns, and the share count rose to 43,570,260 weighted shares from 42,168,120.
On guidance, the company narrowed full-year 2026 revenue guidance to $46-47 million and said it is at the upper end of the previous range. Management reiterated its full-year operating leverage expectation without a figure and expects cash burn below $2 million in the second half. The previous guidance range is not printed in this filing, so no comparison to the prior range can be made from these documents.
Management, verbatim
The focus on our four success pillars helped deliver record revenue and solid operating leverage in the quarter, resulting in breakeven Adjusted EBITDA and sequentially lower cash burn
Paul R. Gudonis, Chairman and Chief Executive Officer
We raised our full year revenue guidance last quarter, and today we are updating that revenue guidance to be in the upper half of that range,
Paul R. Gudonis, Chairman and Chief Executive Officer
We also reiterate our full year operating leverage expectation, and we continue to expect cash burn to be less than $2 million during the second half of the year,
Paul R. Gudonis, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Second quarter 2026 (prior quarter) figures are not printed in the release, so all sequential changes are null.
- Prior-year percentage changes for research and development, selling, clinical and marketing, general and administrative, interest, derivative charge, pre-tax loss, tax, net loss and EPS are not printed and are left null.
- The prior-year same-quarter figure for Q3 operating cash used is printed only as a rounded $1.8 million; no nine-month percentage change is printed for cash flow.
- Cash, cash equivalents and short-term investments as of December 31, 2025 are not printed as a single total; the two balance sheet lines are shown separately in balance_sheet_cash_flow and not combined.
- The previous full-year revenue guidance range is not printed in this filing, and no previous outlook was provided, so vs_prior_guidance is empty.
- No gross margin, operating expense or tax rate guidance is given.
- The filing contains no segment or product-line revenue breakdown in dollars; the recurring-source share is the only revenue split and is given as a percentage.
- Orders, ASP, pipeline and MyoConnect figures carry no prior-period amounts beyond the percentage changes printed.
- The Operating and Net Loss paragraph refers to the 'second quarter of 2026'; the figures match Q3 and this is treated as a labeling error in the filing.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.