MYO

Strategic Go-To-Market Transformation

• The company is shifting from a primary reliance on direct-to-consumer marketing to a more scalable, durable model focused on recurring patient referrals, expanded reimbursement coverage, disciplined operational execution, and platform innovation, aligned with four core strategic pillars.
• The shift to recurring patient sources has delivered measurable progress: referral lead conversion to pipeline is significantly higher than advertising-sourced leads, the company added over 150 new referral sites to reach 300+ active locations, and O&P revenue doubled year-over-year. The national out-of-box care rollout is progressing alongside discussions with other national O&P organizations.
• The quarter achieved a record 255 MyoPro orders, up 23% YoY. The company recognized revenue from 211 units, up 19% YoY, with an average selling price of $55,500, up 2% YoY.

Payer Access Expansion

• Additional LVANCE state contracts were signed under the national agreement, expanding the in-network footprint. The company is now in-network with Optum's workers' compensation product (UnitedHealthcare), which has already delivered higher authorization rates for contracted cases compared to out-of-network cases.
• Medicare Part D patients currently receive a 100% reimbursement rate when complete supporting medical documentation is provided.

Operating Leverage Initiatives

• 21% YoY revenue growth was achieved with only 1% YoY operating expense growth, delivering an over $3 million improvement in adjusted EBITDA compared to Q2 2025.
• Operational efficiency improvements include a trained Six Sigma manufacturing team executing cost reduction initiatives (such as replacing per-device laptops with a mobile app), expanded in-house assembly at the new Burlington, Massachusetts facility (transitioned from outsourced contractors), and new investment in 3D printing capabilities.
• These initiatives are expected to expand margins and reduce cash burn, putting the company on a path to profitability and positive sustainable cash flow.

Product Development and Clinical Progress

• Development of the next-generation MyoPro3 remains on schedule. A hand-only device prototype was introduced at the OT World Conference in Germany, expanding the addressable patient population to those only needing hand function support.
• The platform now includes a cloud-based data collection system and mobile app for patient and clinician communication.
• The University of Utah randomized control trial has enrolled 25 of 50 planned patients, with an updated six-month outcomes readout planned for H2 2026 and full publication expected in 2027.

Governance Updates

• The board of directors was expanded with two new appointments: Joe Manko of Horton Capital (one of the company's largest shareholders) and Will Feble, a seasoned healthcare and medtech executive, strengthening governance and strategic capabilities.

• Q3 2026 revenue is projected to be between $11.5 million and $12 million, representing 14% to 19% year-over-year growth.
• Full-year 2026 revenue guidance was raised to a range of $45 million to $47 million, up from the prior guidance range of $43 million to $46 million.
• A modest sequential increase in operating expenses is expected for Q3 2026. The company maintains its operating leverage objective of limiting 2026 full-year operating expense growth to half the rate of revenue growth.
• Total cash burn for the second half of 2026 is expected to be less than $2 million.

Total Q2 2026 revenue was $11.7 million, a 21% year-over-year increase. By revenue source: 1. Recurring Patient Sources: Revenue contributed 53% of total revenue (up from 26% YoY), reaching the 50% target six months ahead of schedule. Within recurring channels: MyoConnect direct billing referrals contributed 23% of total revenue (up from 20% Q1 2026); International contributed 17% of total revenue, growing 32% YoY; US O&P channel contributed 10% of total revenue, growing 130% YoY; VA patients contributed 3% of total revenue. 2. Non-recurring direct-to-consumer advertising sourced revenue contributed 47% of total revenue. By payer mix: Medicare Part D represented 50% of Q2 revenue (down from 56% YoY); Medicare Advantage plans represented 16% of Q2 revenue (down from 20% YoY). Gross margin for the quarter was 72.1%, up from 62.7% YoY. Operating expenses were $10.7 million, an increase of less than 1% YoY. Operating loss improved to $2.3 million from $4.6 million YoY. Adjusted EBITDA loss improved to $800,000 from $4 million YoY. Net loss was $4 million ($0.09 per share), compared to $4.6 million ($0.11 per share) YoY.

• Forward-looking statements are subject to general risks and uncertainties that could cause actual results to differ materially from projected outcomes, with additional risks detailed in the company's SEC filings.
• Website maintenance activities temporarily paused digital ad agency data sharing during the quarter, impacting new pipeline additions from advertising-sourced leads (activities are now complete and the website is fully functional).
• Medicare Advantage patients can experience extended authorization wait times, leading to longer pipeline retention for these cases.
• U.S. election cycle advertising competition and holiday advertising clutter typically reduce the efficacy of fourth-quarter direct-to-consumer advertising.
• The hand-only device for the U.S. market requires new HCPCS code approval before commercial launch, creating uncertainty for domestic rollout timing.

Q: Is the current growth inflection primarily driven by MyoConnect, what conversion improvements are seen from MyoConnect patients, and what share of the current pipeline comes from MyoConnect referrals? / A: MyoConnect is the primary driver of current growth, but the company also sees strong growth from the O&P business and European operations. MyoConnect delivers higher-quality patients that are more likely to be medically qualified, have better insurance (a larger share are Medicare patients, for which reimbursement is easier to obtain), leading to higher conversion rates. 17% of Q2 2026 pipeline additions came from MyoConnect, up from 11% in Q1 2026.

Q: When will the Utah RCT readout happen, and what benefits will positive data deliver for payer coverage and demand generation? / A: A six-month interim readout is planned for H2 2026, with full publication expected in 2027. Positive data will benefit the business across multiple areas: it will allow the company to demonstrate to payer medical directors that MyoPro is not experimental/investigational, supporting expanded coverage outside of Medicare Part B, and will also drive demand generation within the O&P channel and MyoConnect referral network.

Q: How will the mix between recurring referral revenue and direct-to-consumer revenue evolve through the end of 2026 and longer term, and will direct-to-consumer advertising be phased out? / A: Direct-to-consumer advertising will remain an important ongoing part of the business, it will not be eliminated. The company expects recurring referral sources to reach 55% of total revenue by the end of 2026, with a longer-term stable mix of roughly 60% recurring referral / 40% direct-to-consumer. Modest Q3 operating expense growth includes a planned increase in advertising spending, with a typical pullback in ad spending during Q4.

Q: What is the long-term growth runway for the MyoConnect referral network, how many additional clinics can be added? / A: There are thousands of stroke rehab clinics and O&P clinics across the U.S., so the company is still in the very early stages of penetration. Growth will come from two sources: adding new referral clinics, and increasing per-clinic referral volume as existing sites see patient outcomes and make repeat referrals, creating exponential growth potential. International expansion in markets like Germany also adds additional growth runway.

Q: Why is the hand-only device launching first in Germany, and will it launch in the U.S. later? How large is the required R&D investment? / A: The hand-only device launches first in Germany because reimbursement for this product category is already available there, and an existing smaller competitor already operates in the market. The company will need to secure appropriate HCPCS codes for the U.S. market before launching domestically, where there is unmet demand for this product from patients with retained upper arm function but lost hand function. It requires a relatively small incremental R&D investment that is already included in the current operating expense plan, as it leverages the existing MyoPro platform.