Myomo Inc. ( MYO ) shares tumbled 42.05% in pre-market trading to $1.02 despite reporting second-quarter revenue that exceeded expectations, as investors focused on the medical robotics company’s significantly reduced full-year guidance and widening losses.

Check out the current price of MYO stock here. 

What Happened: The company posted second-quarter revenue of $9.7 million, up 28% year-over-year, beating internal projections. Revenue units increased 13% to 178 MyoPro devices, with average selling prices rising 14% to approximately $54,200. Medicare Part B patients represented 56% of quarterly revenue.

Myomo’s cash position remains adequate at $15.5 million as of June 30, bolstered by $4.0 million in borrowings.

“Several forward-looking operating metrics were not as strong as we anticipated due to factors affecting lead quality and pipeline conversion,” said Paul Gudonis, Myomo's ( MYO ) CEO.

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The medical robotic assistive devices manufacturer trades near the bottom of its yearly range of $1.67 to $7.17, with a market capitalization of $63.32 million and an average volume of 595.1 thousand shares.

Why It Matters: Myomo ( MYO ) slashed its 2025 revenue guidance to $40-42 million from the previous range of $50-53 million, citing lead quality issues and lower conversion rates. The revised outlook represents just 23% to 29% growth versus 2024, well below earlier expectations.

Operating losses widened dramatically to $4.6 million from $1.1 million in the prior year quarter. Net loss per share increased to $0.11 from $0.03, while adjusted EBITDA loss expanded to $4.0 million from $1.2 million year-over-year.

The gross margins of Myomo ( MYO ) also compressed 810 basis points to 62.7% due to higher material and overhead costs. Operating expenses surged 65% to $10.6 million, driven by increased headcount, research and development spending, and advertising costs that jumped 162% to $2.2 million.

Despite generating a record number of leads, conversion rates disappointed. The patient pipeline grew 37% to 1,611 candidates, but the backlog of insurance authorizations fell 18% to 230 units. Management noted that 40-50% of pipeline additions typically come from leads generated a year or more earlier.

Price Action: According to Benzinga Pro data, MYO stock jumped 72.67% during regular trading on Monday, closing at $1.76.

Benzinga’s Edge Stock Rankings indicate that Myomo ( MYO ) has a negative price trend across all time frames. Here is how the stock fares on other parameters.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.