MYO

Myomo is a genuine top-line growth story wrapped around a broken cash-flow profile. The MyoPro direct-billing model — where Myomo dispenses the myoelectric brace and bills insurers itself (now with dedicated HCPCS codes, Medicare Part B coverage that skips pre-authorization, and 130+ VA facilities ordering) — has driven revenue from $13.9M (FY2021) to $40.9M (FY2025), +25.7% YoY, at a healthy 65.7% gross margin. That is the bull case, and it is legitimate: this is not a company that can't sell its product.

The problem is that scaling this reimbursement-driven model is getting more expensive, not less. Despite $8.4M more revenue, net income swung from -$6.18M to -$15.6M (-152%), operating income to -$14.4M (-35.2% margin), and operating cash flow to -$14.5M (a -341% deterioration). R&D jumped 45.5% to $6.94M. So after four years of narrowing losses, FY2025 reversed hard — the losses are widening as the top line grows, which is the opposite of what a maturing model should show.