MYOMO, INC. Q1 FY2026 earnings call

• Four success pillars for 2026:
  • Recurring revenue: Launched MyoConnect program, over 150 rehab facilities referring candidates, O&P revenue grew 79% y-o-y, international revenues reached Q1 record of ~$2 million.
  • Market access: Signed national arrangement with Elevance, increased covered lives to 158 million from 9 million since Medicare coverage in 2024.
  • Operating leverage: Revenue up 3% while OpEx down 1% y-o-y, gross margin expanded by 100 basis points, adjusted EBITDA improved 20%.
  • Innovation: Launched new mobile app, randomized control trial ongoing, MyoPro 3 development in progress.
• Marketing: Added new marketing executive, engaged new digital ad agency, refined strategy, improved lead quality.

Revenue for the first quarter of 2026 was $10.1 million, up 3% compared to the prior-year period. The average selling price (ASP) in the first quarter was $58,800, up 9% versus the prior year due to higher Medicare Part B and Medicare Advantage reimbursement amounts, as well as a positive channel mix including higher international and Medicare Advantage revenues. Gross margin for the first quarter was 68.2%, up from 67.2% a year ago. Revenue from recurring patient sources represented 49% of first quarter revenue, up from 25% in the prior year. International revenue was up 53% year-over-year and the U.S. O&P channel was up 79% year-over-year.

• Second quarter revenue expected in range of $10.3 million to $10.8 million, up 7% to 12% year-over-year and up 2% to 7% sequentially.
• Gross margin in second quarter expected to be higher year-over-year but lower sequentially due to channel mix.
• Operating expenses expected to increase slightly versus first quarter.
• Full-year revenue guidance reiterated in range of $43 million to $46 million, reaffirmed full-year operating leverage expectation to limit operating expenses growth to about one-half the growth of revenue.

Q: On ASP increase, detail drivers and sustainability.

A: ASP increase due to CMS fee increase, Medicare/Advantage fee updates and international foreign currency benefit. Expect ASP to come down a bit in second quarter through channel mix, and assume around $55,000 ASP on a longer-term basis.

Q: On advertising, MyoConnect's impact on pipeline add cost.

A: 11% of first quarter pipeline adds were generated from MyoConnect, these come at a lower cost per pipeline add as they are not from advertising-driven direct patient revenues, plus improved lead quality from marketing efforts.

Q: On international growth potential.

A: German market has upside with over 80 million population, plan to expand to other European markets, and ongoing conversations with China Lead Ventures regarding the Chinese market.

Q: On MyoConnect referrals, runway and conversion.

A: Over 150 rehab facilities currently referring, expect to grow number of rehab clinics, better quality patients referred as clinicians pre-qualify, with higher percentage of Medicare patients compared to general population.

Q: On denied claims adjudicating.

A: Continuing ALJ hearings, but have higher authorization rate with contracted payers compared to non-contracted payers.