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Tuesday, August 12, 2025

Why Medical Device Maker Myomo’s Stock Crashed 42% In After-Hours Trading

 The wearable medical robotics maker slashed its 2025 revenue forecast and posted a wider-than-expected quarterly loss due to weaker lead quality, slower conversions, and rising costs.

The company now sees full-year revenue of $40 million to $42 million, compared with prior guidance of $50 million to $53 million, and attributed the downward revision to lower-than-expected operating trends. It also sees third-quarter revenue of $9.5 million to $10 million.

Revenue for the three months ended June 30 rose 28% from a year earlier to $9.7 million, above the estimate of $9.15 million. However, the company’s losses widened. 

More than half of Q2 revenue came from Medicare Part B patients, helped by higher unit volumes and average selling prices. 

However, key forward indicators weakened: orders and insurance authorizations slipped 3% to 207 units, backlog fell 18% to 230 units, and gross margin narrowed to 62.7% from 70.8% due to higher material and overhead costs.

https://stocktwits.com/news-articles/markets/equity/why-medical-device-maker-myomo-s-stock-crashed-42-in-after-hours-trading/chrDsgSRd7b

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