Myomo, Inc. (MYO) Q3 2026 Earnings Call Transcript

Thank you.

Hi, and welcome to the MIOMO's Third Quarter 2026 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Vivian Cervantes, Investor Relations. Please go ahead.

Thank you, Operator, and good afternoon, everyone. This is Vivian Cervantes with Alliance Advisors, IR. Welcome to my almost third quarter 2026 financial results conference call. With me today are my almost Chief Executive Officer, Paul Godonis, and Chief Financial Officer, Dave Henry. Before we begin, I'd like to caution listeners that statements made during this call by management, other than historical facts, are forward-looking statements. The words anticipate, believe, estimate, expect, intend, guidance, outlet, confidence, target, project, and other similar expressions are typically used to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and may involve and are subject to risks and uncertainties and other factors that may affect MIOMO's business, financial condition, and operating results. These risks, uncertainties, and other factors are discussed in MIOMO's filings with the SEC. Actual outcomes and results may differ materially from what's expressed in or implied by these forward-looking statements. Furthermore, except as required by law, MIOMO undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call today, November 9, 2026. Now my pleasure to turn the call over to MIOMO CEO, Paul Godonis. Paul, please go ahead.

Thanks, Vivian, and good afternoon, everyone. Thank you all for joining us today. IOMO's purpose is to help people living with chronic arm and hand paralysis to regain function and independence with our powered arm braces. In the third quarter, we made progress in reaching more of these patients we serve while improving the economics of our business. Revenue reached a quarterly record of $12.3 million, up 22% from a year ago. Most margin rose to 71.3%, and we delivered approximately a break-even adjusted EBITDA. These results reflect continued execution on the four success pillars we discussed on our last call, including building recurring patient sources, expanding payer access, demonstrating operating leverage, and investing in product development and clinical research. Let me walk through the progress on each. The first success pillar relates to increasing revenue from recurring patient sources. Patients referred from rehab hospitals and stroke clinics, orthotics and prosthetics partners, and the VA represented 54% of third quarter revenue compared with 33% a year ago. This reflects the success of our MyoConnect program, which is now entering its second year. Since its launch, health care professionals at more than 500 rehabilitation facilities and therapy centers have referred potential MyoPro patients to us, which is an increase of over 200 locations in the past quarter. That milestone gives us a broader base of relationships through which patients can learn about the device during their care and enables us to build a more durable business over time versus relying solely on direct-to-patient marketing. We see a growing number of physicians and therapists recommending a Myopro for their patients, and we expect a larger number of referrals per facility as they see the benefits of the Myopro for their patients. We're already seeing this same-store sales growth. Over 30% of our recent referrals came from the existing sites with therapists and physicians that know our company, the product line, the clinical research that's been published, and their patients' good outcomes with the Myopro. The increase in referring locations contributed to the record number of orders in the quarter, which came in at 258 in the third quarter. Our success pillar number two is to increase market access so that more qualified patients can obtain a myoprobe. During the quarter, we've either entered into agreements or are in the process of finalizing agreements with payers that covered an additional 35 million lives. For the payers with contracts that have been completed, we're in the process of going live as an in-network provider, and these agreements include the payers' Medicare Advantage and commercial plans. We also made progress with state Medicaid agencies, where we are now enrolled with seven states, such as Pennsylvania, Michigan, and Wisconsin. We have other state Medicaid plans in the queue. This will help us with patients that have Medicaid in these states, Subject to individual medical coverage policies, plus the ability to receive secondary insurance payments for our Medicare patients who may reside in these states. Our plan is to continue to enter into more such contracts, given our track record of a higher preauthorization rate for the MyoPro when we are an in-network provider. Our third success pillar is generating operating leverage. Our target is to grow revenues at least twice as fast as operating expenses. We achieved that goal again in the third quarter, as revenue grew 22% year over year, while operating expenses grew just 6%. In addition, gross margin improved by 750 basis points in the third quarter compared with the prior year. We are continuing our path to profitability and sustainable positive cash flow by working on additional cost savings, such as the insourcing of 3D printing of the custom-fabricated shells for each MyoPro, which should go online by the end of this year. Our efficiency efforts in the other functional areas are also making a financial impact, with our overall volumes up, while our headcount is down over the past two years. Our fourth success pillar is continued progress with product development and clinical research. The randomized control trial at the University of Utah continues to make steady progress, with 35 of the planned 50 subjects now enrolled, up from 25 at the time of our second quarter call. Development work also continued on the MyoPro3 and on the hand-only product for the German market. These efforts are part of our longer-term work to expand the evidence base and the applications of our wearable robotics platform. We'll provide further updates as milestones are reached. In summary, the quarter showed how executing across our four pillars of success reinforce each other. More referral relationships and payer access help drive record orders and revenue. Higher volume and cost reduction support a stronger gross margin and improved operating performance. We are building on our market-leading position by investing in the clinical, commercial, and prod capabilities needed to serve more patients. To continue scaling our commercial operations, last month we announced that Katie McClure has joined MyOMO as their new chief commercial officer. She has a successful track record of growing revenues, establishing strong referral partnerships, and leading a sales and field clinical team from her experience at fast-growing Inspire Medical and other medical device companies. I'm pleased to have her bring this experience to MIOMO as we execute our plan to further address this large, unmet need of chronic arm paralysis in the country. With that overview, I'll turn the call over to Dave Henry to review our financial results in greater detail.

Thank you, Paul, and good afternoon, everyone. Our revenue for the third quarter of 2026 was a record $12.3 million, up 22% versus the prior year period. The increase was driven by both a higher average selling price, or ASP, and a higher number of revenue units. ASP for the quarter was approximately $55,500, about 2% versus the prior year, and we recognized revenue on a record 222 mile pro units, an increase of 19% over the third quarter of 2025. Looking at payer mix, Medicare Part B patients represented 54% of both third-quarter revenue and prior-year period revenue. Medicare Advantage plans represented 17% of third-quarter revenue, compared with 18% in the second quarter of 2025. Our transition toward recurring patient sources continued to accelerate during the quarter. Recurring patient sources represented 54% of third-quarter revenue, compared with 33% in the prior year quarter. Within those recurring channels, 27% of total revenue was generated by direct billing referrals through our MyoConnect program, up from 23% in the second quarter and 20% in the first quarter of 2026. We continue to see strong results from our other recurring channels. International revenue, representing 17% of revenue, and USOMP revenue, representing 8% of revenue. VA patients represented 2% of revenue in the third quarter. Turning to our metrics, we received a record 258 MyoPro orders during the quarter, up 13% year-over-year. We added 600 patients to the pipeline during the quarter, down compared with the second quarter of 2026. MileConnect referrals represented 18% of pipeline ads in the third quarter. Third quarter MileConnect pipeline ads were influenced by seasonality in the third quarter, from summer vacations among referring sources, as well as temporary internal staffing constraints. Staffing constraints have been alleviated entering the fourth quarter. Our direct-to-patient advertising spending was up 2% year-over-year. Advertising-driven pipeline ads in the quarter were impacted by inefficiency in our lead generation, which resulted in fewer workable leads and a lower conversion rate among those generated in the quarter. We continuously test new methodologies for patient targeting in order to maximize spend effectiveness and optimize customer acquisition costs. With the aforementioned MyoConnect resource constraints alleviated and the implementation of improvements in direct-to-patient lead generation, we generated approximately 30% more direct billing pipeline ads in October than the per-month average in the third quarter. We ended the quarter with a backlog of 217 patients down modestly from the second quarter as the efficiency of our operations turned record orders in the quarter into a record number of revenue units. Turning to our financial results, gross margin in the second quarter was 71.3%, up from 63.8% in the prior year quarter. The improvement was driven primarily by the higher ASP, material cost reductions, and the spreading of fixed costs over a higher number of revenue units, partially offset by somewhat higher clinical costs, we classified the cost of goods sold. Operating expenses were $10.5 million, representing an increase of 6% compared with the third quarter of 2025. Higher general and administrative expenses in R&D was tempered by lower sales, clinical, and marketing spending in the quarter. Operating loss improved significantly to $1.7 million compared with $3.5 million in the prior year quarter. We achieved adjusted EBITDA break-even in the third quarter compared with a loss of $2.7 million a year ago. We are keenly focused on operating leverage and minimizing cash burn as we carefully invest in MyoConnect. Note that a portion of the improvement in adjusted EBITDA is due to higher stock-based compensation expense, as certain employee incentive payments were paid in stock during the third quarter as part of our cash management initiatives. We expect stock-based compensation expense to return to its typical run rate in the fourth quarter. A low operating loss, second quarter results include a non-cash charge of approximately $1.8 million related to a market adjustment to the valuation of our derivative liabilities, as well as cash and non-cash interest expense associated with the Avenue Capital Term Loan. Including the aforementioned non-cash charge, that loss for the third quarter was $4.2 million, or $0.10 per share, compared with $3.7 million, or $0.09 per share, in the third quarter of 2025. Turning now to our balance sheet and cash flow, as of September 30, 2026, cash, cash equivalents, and short-term investments totaled $11.9 million. Cash used in operating activities during the second quarter was $1.3 million compared to $1.8 million used during the third quarter of 2025. Cash burn, or the change in cash in the quarter, was $1.5 million and improvement from $2.2 million in the second quarter. Let me conclude with our outlook. Last quarter, we raised our full-year guidance to a range of $45 million to $47 million. We are narrowing that guidance today to $46 million to $47 million at the upper end of that previous range. We expect that the beneficial effect of manufacturing cost reduction initiatives will result in a modest sequential increase in gross margin in the fourth quarter. One-time costs associated with the transition of our chief commercial officer and higher headcount in support of our MIO Connect program is expected to result in a modest sequential increase in operating expenses in the fourth quarter. Despite this expected increase, we are maintaining our previously communicated operating leverage objective to limit the growth of operating expenses in all of 2026 to half the rate of 2026 revenue growth. We continue to expect total cash earned during the second half of the year to be less than $2 million for less than $500,000 in the fourth quarter. Overall, we're pleased that we are poised to meet or exceed our financial and operating objectives for 2026, and we look forward to continued execution in 2027. With that financial overview, I'll turn the call back to Paul.

Thanks, Dave. Well, to summarize, over the past year, we've executed on all four of our success pillars to grow my OMO at volume and revenues, while improving key financial metrics, including gross margin, adjusted EBITDA, and cash usage. In September, I attended the American Orthotics and Prosthetics Association National Conference. Where we met with new and existing O&P partners to establish a deeper engagement with this channel so that they can have another product included in their treatment plans for their stroke patients. As an example of how these relationships are working, one of the national providers recently brought our MyoConnect clinicians into one of their possible referral sources, which resulted in several patients added to their candidate pipeline and the delivery of their first MyoPro to a patient who is now able to use their arm and hand again for the first time in years. We look forward to replicating these successes in our markets in the U.S. and Germany, as we have a very large opportunity in front of us to improve the lives of many individuals with our proprietary technology. We've established Myomo as the market leader with over 4,000 devices provided to patients with paralysis, and yet this is only about 1% penetration of the addressable market. Over 3 million individuals in the U.S. suffer from chronic arm paralysis, and there are another 250,000 cases that result from the 800,000 strokes that occur annually in the U.S. We've already laid the foundation for executing our strategy of continued market penetration and revenue growth by hiring additional field clinical staff across the U.S. and Germany to develop more referral relationships with the physicians and therapists that treat these patients. And this evolution of our go-to-market strategy will lead to a growing, durable business serving in this patient population for years to come. Now Dave and I are ready to take your questions. Operator?

We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster.

While we're waiting for the first question, I'd like to mention that next week we'll be participating in the Craig Hallam's 17th Annual Alpha Select Conference in New York on November 17th. Dave and I, along with our new Chief Commercial Officer, Katie McClure, will attend in person at this conference and will be available for one-on-one meetings. Hey, Operator, let's go with the first question whenever you're ready.

The first question comes from Chase Knickerbocker with Craig Hallam. Please go ahead.

Good afternoon. Thanks for taking the questions. For me, maybe just first on pipeline ads, you know, we haven't seen this seasonality in Q3 before. Do you kind of expect this going forward now that MileConnect is a bigger piece of the pipeline strategy? And then second to that, You know, guidance implies most of the change was kind of in Q3 here. Appreciate your thoughts on October for kind of pipeline activity. Now that MyoConnect kind of brings a higher percentage of ads that are fill, is there some potential conservatism in Q4 or how to think about some of the positive kind of indicators that you gave around October?

Yeah, so regarding the pipeline ads, there were a couple of things. The seasonality that I mentioned was more around Mile Connect and trying to schedule screening days and things like that at these referring locations just found it was a bit harder to do so during the summer months. The other part, on the advertising side, I did mention that there were inefficiencies in the quarter, so that contributed to the 600 pipeline ads. And what I mentioned was that the combination of You know, the staffing constraints that we also had on the MyoConnect side during the third quarter combined with what we think is, you know, fixing some of these inefficiencies on the DTC side resulted in the 30% increase in pipeline ads in October. So, you know, we're, you know, remember, though, that pipeline ads are, you know, Advertising is seasonally lower in the fourth quarter compared to third. It's something that we always do. So keep that in mind as you look at any projections for pipeline ads in fourth quarter. And in terms of the servitism or in our forecast, I would just say that we try to give guidance that we believe is achievable.

Understood. Maybe just around the commercial organization, you know, under Katie's new leadership, you know, what should we expect to change around commercial strategy and go to market?

Thanks, Chase. So she's been on board for a month, been out in the field meeting with our team. She is looking at how we're organized, where we ought to be staffing. We've already added several more clinicians in the field in the last 30 days because we've got this tremendous opportunity. She's looking at how to organize, where should we add more clinical staff, compensation plans, and the like. So stay tuned. She's only been here 30 days, but she brings a wealth of experience from a tremendous track record of growing Inspire Medical's business over the eight years that she was there.

Understood. Just last for me, appreciate that you're, you know, certainly not giving guidance here. But, you know, just would appreciate some early thoughts on 27. You know, I guess, do you think your guided range in 2026, from a revenue growth perspective, is sustainable into 2027 and a decent way for us to think about potential growth? And then, secondly, on 27, do you expect the same leverage target that you've given in 26, growing revenue twice as much as operating expenses? Thank you.

Yeah, sure. I guess I'll take the second one first. I think we're in the process now of doing our planning for 2027. So, I'll defer my answer on the leverage target until we finalize those plans. But then in terms of the revenue, you know, we are trying to, you know, we're making this transition. We're in the midst of it now, and I think we've done a pretty good job in 2026, you know, trying to bring more of our revenues, have them come from recurring patient sources. We want to continue to build on that in the 2027 and to continue with, you know, with the progress that we've made. While I'm not giving any revenue guidance today, you know, we are, you know. We're focused on trying to grow revenue at a rate that as quickly as we can grow it while at the same time making sure that we maximize that operating leverage and minimizing the burden.

Understood. Thank you, guys.

The next question comes from Jeremy Perlman with Maxim Group. Please go ahead.

Okay, good afternoon. Thank you for taking my question. Firstly, of the 500-plus MyoConnect locations, maybe how should we look at what percentage of them are actually submitting and generating orders for you? Should we look at the 80-20 rule, 20%, the top 20% are generating 80% of the referrals? And if that's the case, what are your plans to maybe bridge that divide between the top performers, maybe the lower performers?

Thanks, Jeremy. Well, the Smile Connect program is really just a little over a year old now. So most of these referring facilities, we went in, we met with the physicians, the therapists, conducted the services and education, and received an initial referral. Typically, the process would be refer one patient to us. They want to make sure that the patient is medically qualified, that their insurance will pay for the device, and then after they get the device, these referring facilities will then treat the patient. You know, there's a 12-week myomotherapy training protocol, and after that, as they see these good outcomes, they will then refer second and third patients. So we're seeing that. So the ones that first came on a year ago are already starting to refer the second, third, or more patients, but a lot of them, like, as I mentioned, we had over 200 new ones in this third quarter, typically have just done their first patients. So I expect that over time we'll see the same store sales growth as we see the good outcomes from their patients that are referred, and about 30% of the referrals in the quarter came from these referring facilities that already had experience with Myopro.

Understood. And is there a better conversion rate, a higher conversion rate from the MyoConnect versus historically like the DTC, let's say?

Yes, in a couple respects. One, we find that these are better qualified patients medically, because unlike the direct-to-consumer marketing where anybody sees an ad that will contact us and we do an evaluation of that patient, because our clinicians do such a good job explaining who makes for a good myoprope candidate in terms of their inclusion criteria, we find that more of these patient referrals actually enter the pipeline. And then because we outline what are the typical payers in an area, whether it's Medicare Part B, certain Blue Cross or other plans covering the device, we see a higher authorization rate as well. So I look at the quality of the pipeline coming from these referrals as much higher, both from a medical qualification as well as a reimbursement qualification.

I understand. Okay, great. And then just this last question from us. You said that you're having some, you know, the marketing, the DTC was having some headwinds this quarter. Is it, I know we've heard from other companies that it's related to the, you know, Google, the AI overview. It's really preventing some of like the click-throughs that you would usually get. Is that, how should we look at that, you know, what the issues were and then how, what did you do to, what steps did you take to rectify them? Thanks.

Yeah, I don't think most of our, when we look at social media and lead generation, most of it comes from meta. So I'm not sure if Google and whatever issues that they had, I'm not actually aware of them, actually had much of an impact with respect to our pipeline ads in third quarter.

Okay, understood. All right, I'll hop back in the queue. Thank you.

The next question comes from Scott Henry with AGP. Please go ahead.

Thank you, and good afternoon. I guess, for starters, David, did you give us a cumulative reimbursement pipeline number?

I did not, but it's around a little over 1,400 at the end of the third quarter. Okay, great.

And You know, as we look at the metrics and kind of the model, which most people use to get down to product placements, you know, the top of the funnel was always pipeline ads, which was always the key number to try to gauge growth. Now, with over 50% now coming from recurrent patient sources, I guess, first of all, do all of those... People make it through the top of the funnel. And, you know, the second thing is, is it, you know, should we be looking at it a little different now, given that half the patients are coming from recurrent sources?

We, I mean, We still, for pipeline ads, we still gather information for like O&P providers to the extent that they provide it to us. We also gather it from our operations in Germany, and obviously as well as direct to patient marketing. So regardless of like, now speaking of direct billing specifically, regardless of whether the patient comes from a referral or it comes through advertising, we still track pipeline ads. And so, you know, I think, you know, for your modeling, I would say that, you know, the pipeline ads is still the key metric to look at, but I will say, and I think Paul just mentioned it, you know, in response to a previous question. That the conversion rate, as the pipeline ads become more weighted in the future toward MyoConnect, we would expect a better conversion of those pipeline ads into revenue as compared to direct-to-patient. And I think I gave a stat, I think, last quarter, which, you know, still holds true, that about, you know, 10 times MyoConnect pipeline ads turn into... Turn into revenue at a rate 10 times better than direct-to-patient advertising. So I still think that pipeline ads is still a good metric to model off of here going forward.

Okay. And as the hit rate goes up, because the quality of the ads is higher, do you think the total pipeline to ads will still drift up? And, you know, might they drift up? At a lower rate because the hit rate's higher. Just trying to get a thing because it looked like we were on our way to, you know, 800, you know, consistently in the 800s and, you know, perhaps eventually getting to four digits. But maybe that may take longer now if the hit rate's higher, which, you know, isn't a bad thing. But I just want to get your sense of how we should think about that top of the file.

Well, we would like to see that top of the funnel be, you know, obviously as high as we can, but that hit rate, as you say, will have an effect because it's more about, in terms of growing revenue, it's more about the quality of those pipeline ads as opposed to the sheer volume of them because that's, you know, that's ultimately what will drive revenue going forward. So, under my – so, the other way to say it, you know, 800 pipeline ads yesterday is not the same as 800 pipeline ads in the future going forward because of this transition we're making towards recurring patient sources. Okay.

And, you know, anything different on the Medicare front? That you're seeing in kind of Q4 versus Q3 or even Q3 versus Q2, you know, how is that evolving or should, you know, maybe we think more about the beginning of next year for where we may see some changes?

Well, we continue to get reimbursement under our HCPCS code for the Medicare Part D patients, so that was the proper medical documentation. You know, all those patients are getting reimbursed for their device, and where we're in networks with a payer's contract, those contracts often include Medicare Advantage or commercial plans, And we have a higher authorization rate in those instances compared to being an out-of-network provider. So that's why we continue to invest in getting more payer contracts because we do get more Medicare Advantage authorizations that way.

Okay, great. Final question for me. I know you were asked on prior questions about your outlook in 2027 for revenue growth. Perhaps even drilling it down a little bit, how do you think about the pricing environment going forward? Should we expect incremental gains or perhaps as you come out with new models, maybe even larger pricing gains? Just wanted to get your thoughts on the topic.

Well, thanks, Scott. I mean, most of the pricing really is established here in the U.S. by the CMS allowable fees. You know, it's now $68,800 for the flagship MyoPro-G. You know, we've seen price increases from Medicare based on the cost of living increases over the last couple of years, around two, two and a half percent. I don't know if those will continue, but the pricing is really set by CMS, and then that becomes sort of the benchmark for all these commercial contracts that we enter into. And then our O&P pricing is more of a wholesale pricing because then they have to do all the clinical work, the reimbursement work to provide the device to the patients. In Germany, the pricing is really set, again, by the payers, the statutory health insurers, such as TK and others, who basically take our pricing and work with the O&P who actually gets reimbursed for the device. So we're not going to plan to make any changes to that. It's really dependent on what CMS does.

Okay, great. Thank you for taking the questions. You're welcome.

The next question comes from Sean Lee with H.C. Wainwright. Please go ahead.

Hey, good afternoon, Paul and Dave, and congrats on a great quarter. I just have a couple questions. First, on the gross margin, we see that it's up quite a bit year over year, but down a little bit sequentially. So I was wondering, what are some of the pushes and pulls on that number? And also with things like the 3D printing in the brain house, and also the hand-only device in Germany, we're thinking about those, how do we expect the margins to move going forward?

Yeah, thanks for the question. Sort of the components of that 750 basis point increase in gross margin year-over-year, about 90 points, 90 basis points was related to the 2% year-over-year ASP increase. About 190 basis points was related to the material cost reductions that we put in place, and there are still others coming down the road, like, for example, as you mentioned, The 3D printing, and then the rest of it was just primarily due to higher volume and the spreading of fixed costs over that higher volume. You know, Paul mentioned the headcount is, you know, we've been holding down the headcount to the extent that we are able to, and that's translating into benefits at the gross margin line. And then, you know, as you look at... Gross margins going forward, I would still say sort of a A low 70s gross margin is something that you should think of modeling, and there will be incremental improvements. We would expect, as I mentioned, fourth quarter gross profit, gross margin is expected to be modestly higher as we have some of these improvements take effect. And then, like I said, I would continue in that sort of that low 70s vein as you move into 2027.

Got it. That's very helpful. And my last question is on the reimbursement side. So, as you mentioned, you tend to get better authorization rates once you're in network and approve from these payers. I was wondering, can you provide some color on, you know, what's the increasing authorization rates that you're seeing once you're in network? And also, where do you, how many patients, I guess, or payers do you expect to expand over the next year or so? In terms of new coverage.

Well, without going through this on a plan-by-plan basis, I would tell you that, you know, certain payers have a much higher authorization rate. They're not at 100% like we have with the Medicare Part B patients, but they are certainly up higher than when we don't have a contract, and that's why we're going to continue to get more of these contracts. Then where we get enrolled in state Medicaid plans, those plans will often pay for the secondary copay for Medicare Part B patients. So that helps raise our ASP by collecting that secondary insurance payment from the state Medicaid plan for certain patients.

Got it. That's all I have, and thanks again for taking my questions.

Great. Well, thanks, Sean. It was good to see you at the H.C. Wainwright conference back in September.

Again, if you have a question, please press star, then 1. The next question comes from Edward Wu with Ascendian Capital. Please go ahead.

Yeah, congratulations on the quarter. My question is on Germany. You guys have done very well. Is it time to expand your focus beyond Germany into other EU countries? Thank you.

Yeah, thanks, Ed. Germany is doing very well. Another year of record revenues, year-over-year growth, and so on. So we're going to continue to double down in Germany. I mean, it's a big market. You know, again, just like the U.S., you know, very small market penetration so far. We've already added a couple more clinical staff, business development staff to keep growing that business for us. You know, when I look at the best return on a euro, do I invest to try and open up a new market or just doing more in Germany because that converts the revenue much more quickly? So for right now, even though there are certainly other market opportunities across Europe, we're doubling down and just doing up more in Germany. And the new hand product that's being developed for Germany that gets released in 2027, that will even further open up the market because right now some patients are not medically qualified for the Myopro because they may have elbow movement, but they don't have hand function. So that will address a need and further expand the market potential for us in Germany, and then we'll bring that here to the U.S.

Great.

Thanks for answering my questions, and I wish you guys good luck. Thank you. Great. Thank you, Edward.

This concludes our question and answer session. I would like to turn the conference back over to Paul Godonis for any closing remarks.

Well, thank you, Operator, and thanks to all of you for joining us today and for your questions. We look forward to seeing and hearing from you in the coming months, so please have a good evening, and thanks again. Goodbye.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.