Financial Data and Key Metrics Changes - The company reported full-year revenue of $40.9 million, representing a 26% growth over 2024 [5][21] - Fourth quarter revenue was $11.4 million, the highest revenue quarter of the year, up 13% from the third quarter but down slightly year-over-year [15][19] - Gross margin for the fourth quarter was 68.6%, down from 71.4% a year ago, but up from 63.8% in the third quarter [19][21] - Operating loss for the fourth quarter was $2.8 million, compared to an operating loss of about $200,000 in the prior year quarter [20][21] - Net loss for the fourth quarter was $3.8 million, or $0.09 per share, compared to a net loss of $300,000 or $0.01 per share for the same quarter last year [20][21] Business Line Data and Key Metrics Changes - The U.S. Orthotics and Prosthetics (O&P) channel achieved quarterly revenue exceeding $1 million for the first time, up 81% year-over-year [7][18] - International revenue reached a record $2.2 million, up 46% year-over-year, representing 19% of total revenue [18] - The company recorded 241 MyoPros ordered during the fourth quarter, up 5% sequentially from the third quarter [5][19] - Recurring patient sources, including referrals under the MyoConnect program, represented 42% of fourth quarter revenue, up from 26% in the fourth quarter of 2024 [8][18] Market Data and Key Metrics Changes - The company signed in-network contracts with additional Medicare Advantage and commercial payers, including a multi-state agreement with Elevance Health covering 45 million lives [10][11] - The patient pipeline stood at 1,528 patients as of December 31, 2025, an increase of 10% year-over-year [18] - The company faced challenges with Medicare Advantage payers, which issued a high number of pre-authorization denials [16][17] Company Strategy and Development Direction - The company aims to grow revenue through direct-to-patient marketing and expand orders from recurring sources [4] - A strategic pivot towards recurring patient sources is evident, with a focus on the MyoConnect program to engage therapists and physicians [8][12] - The company plans to limit advertising spending while building out the MyoConnect program and adding direct sales resources [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the O&P channel and international markets, despite challenges with Medicare Advantage [10][17] - The company expects revenue in 2026 to be in the range of $43 million to $46 million, with a focus on recurring sources [23][24] - Management anticipates a reduction in cash burn by roughly half in 2026 compared to 2025 [24] Other Important Information - The company launched the MyoPro Center of Excellence program to educate O&P practices on the new MyoPro 2X product [6] - A randomized controlled trial is being conducted to further validate the MyoPro's effectiveness, with results expected by the end of the year [79] Q&A Session Summary Question: What drove the increase in cost per pipeline ad in the MyoConnect program? - Management noted that the fourth quarter typically has higher advertising costs due to competition and that a new marketing head and agency have been brought on to address this [34][35] Question: Can you provide KPIs around the O&P channel? - The company has trained and certified a couple of dozen O&P providers, generating over $1 million in revenue in the quarter [38][39] Question: What are the assumptions for the U.S. O&P business in 2026 guidance? - Growth is expected in the O&P channel and international markets, while direct billing is anticipated to remain flat [41][42] Question: What is the status of the pipeline ads and dropout rate? - The pipeline ads were lower due to a shutdown in late December, and the dropout rate was noted to be around 20% [46][50] Question: How is the German market performing? - The German market is growing well due to favorable reimbursement policies and a strong recruitment of O&P practices [78] Question: What is the timeline for the MyoPro 3 model? - The MyoPro 3 will be a next-generation platform with significant improvements, but specific timelines were not provided [81]

Financial Data and Key Metrics Changes - The company reported full-year revenue of $40.9 million, representing a 26% growth over 2024 [9][25] - Fourth quarter revenue was $11.4 million, the highest quarterly revenue of the year, up 13% sequentially but down slightly year-over-year [25][9] - Gross margin for the fourth quarter was 68.6%, down from 71.4% year-over-year but up from 63.8% in the previous quarter [34][25] - Operating loss for the fourth quarter was $2.8 million, compared to an operating loss of about $200,000 in the prior year quarter [36][37] - Net loss for the fourth quarter was $3.8 million, or $0.09 per share, compared to a net loss of $300,000 or $0.01 per share for the same quarter last year [37][25] Business Line Data and Key Metrics Changes - The U.S. Orthotics and Prosthetics (O&P) channel achieved record quarterly revenue of over $1 million, up 81% year-over-year [32][11] - International revenue reached a record $2.2 million, up 46% year-over-year, primarily driven by growth in Germany [32][15] - The number of MyoPro units ordered in the fourth quarter was 241, up 5% sequentially [9][10] - Recurring patient sources represented 42% of fourth quarter revenue, up from 26% in the fourth quarter of 2024 [13][32] Market Data and Key Metrics Changes - The company signed in-network contracts with additional Medicare Advantage and commercial payers, including a multi-state agreement with Elevance Health covering 45 million lives [19][18] - The patient pipeline stood at 1,528 patients, an increase of 10% year-over-year [33][25] - The company faced challenges with Medicare Advantage payers, resulting in a decrease in authorizations and revenue from this segment [28][29] Company Strategy and Development Direction - The company aims to grow revenue through direct-to-patient marketing and expand orders from recurring sources [7][9] - A focus on managing cost structure and enhancing manufacturing processes to demonstrate operating leverage as the company scales [8][21] - Continued innovation in product development, including the launch of the MyoPro 2X and plans for the MyoPro 3 [46][39] - The strategic pivot towards recurring patient sources is expected to reduce customer acquisition costs and improve operating leverage [23][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the O&P channel and international markets [90][91] - The company anticipates a challenging environment with Medicare Advantage payers but is working to secure more payer contracts [29][62] - For 2026, the company expects revenue in the range of $43 million to $46 million, with a focus on recurring sources [43][45] - Management aims to reduce cash burn by approximately 50% in 2026 compared to 2025 [45][41] Other Important Information - The company is investing in R&D, including a randomized controlled trial to support the efficacy of MyoPro [23][104] - The MyoConnect program has generated over 100 qualified candidates in its first six months, contributing to the patient pipeline [12][11] - The company plans to activate the Myomo mobile app for patients and clinicians, which is expected to reduce costs [21][23] Q&A Session Summary Question: What drove the increase in cost per pipeline ad in the fourth quarter? - Management noted that higher advertising costs in the fourth quarter were due to competition with holiday advertising and election cycles [55] Question: Can you provide details on the O&P channel's performance? - The company reported over $1 million in revenue from the O&P channel, with approximately 36 units ordered in the fourth quarter [60] Question: What are the assumptions for the U.S. O&P business in 2026 guidance? - Growth in the O&P channel and international markets is expected to drive overall growth, while direct billing is anticipated to remain flat [61] Question: What is the current status of the pipeline ads and dropout rates? - The pipeline ads were lower due to a shutdown in the last days of 2025, and the dropout rate was affected by challenges in obtaining authorizations from Medicare Advantage [66][70] Question: How does the company plan to use data from the randomized controlled trial? - The data will be used to convince payers of the MyoPro's medical necessity and to support reimbursement efforts [104] Question: What is the expected gross margin for international operations compared to domestic? - International gross margins are expected to be slightly lower than domestic margins, but both will benefit from increased volume [110]

Financial Data and Key Metrics Changes - The company reported full-year revenue of $40.9 million, representing a 26% growth over 2024 [5][21] - Fourth quarter revenue was $11.4 million, the highest revenue quarter of the year, up 13% from the third quarter but down slightly year-over-year [14][19] - Gross margin for the fourth quarter was 68.6%, down from 71.4% a year ago, but up from 63.8% in the third quarter [19] - Operating loss for the fourth quarter was $2.8 million, compared to an operating loss of about $200,000 in the prior year quarter [20] Business Line Data and Key Metrics Changes - The U.S. Orthotics and Prosthetics (O&P) channel achieved quarterly revenue exceeding $1 million for the first time, up 81% year-over-year [6][18] - Revenue from the O&P channel was up 81% for the quarter and doubled for the year [6][8] - The MyoConnect program contributed to 42% of fourth quarter revenue, up from 26% in the fourth quarter of 2024 [8] Market Data and Key Metrics Changes - International operations delivered quarterly revenues exceeding $2 million for the first time, growing 46% for the quarter and 48% for the year [8][18] - The company signed in-network contracts with additional Medicare Advantage and commercial payers, including a significant agreement with Elevance Health covering 45 million lives [10] Company Strategy and Development Direction - The company aims to grow revenue through direct-to-patient marketing and expand orders from recurring sources [4] - A focus on managing cost structure and enhancing manufacturing processes to demonstrate operating leverage as the company scales [4] - Continued innovation in product development to maintain market leadership, including the launch of the MyoPro 2X and development of MyoPro 3 [12][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in recurring patient sources and the MyoConnect program, which is expected to reduce customer acquisition costs [8][28] - The company anticipates a revenue range of $43 million to $46 million for 2026, with a focus on stroke patients and recurring sources [24][25] - Management acknowledged challenges with Medicare Advantage payers but is encouraged by new payer contracts leading to more authorizations [17][41] Other Important Information - The company plans to activate the Myomo mobile app for patients and clinicians, which is expected to reduce costs associated with shipping laptops [12] - Cash burn was reported at $1.5 million in the fourth quarter, with operating cash flow negative at $1.1 million [22] Q&A Session Summary Question: What drove the increase in cost per pipeline ad in the MyoConnect program? - Management noted that the fourth quarter typically has higher advertising costs due to competition and has implemented changes to reduce costs moving forward [34][35] Question: Can you provide details on the O&P channel's performance? - The O&P channel had over $1 million in revenue with approximately 36 units ordered in the fourth quarter [39] Question: What are the assumptions for the U.S. O&P business in 2026 guidance? - Growth is expected in the O&P channel and international markets, while direct billing is anticipated to remain flat [40][41] Question: What is the current status of the pipeline and dropout rates? - The pipeline added 676 patients, slightly lower than previous quarters, with a dropout rate around 20% due to challenges with Medicare Advantage authorizations [45][56] Question: What is the expected gross margin for the upcoming quarters? - Management expects first quarter gross margin to be lower than the fourth quarter but aims to improve gross margin to the 70% range by the end of 2026 [59][61]