Eargo

Market position

Eargo positioned itself as a direct-to-consumer hearing health brand working to reduce the stigma associated with hearing loss. Its parent LXE Hearing's US wind-down was characterized as one of the more notable exits from the over-the-counter hearing aid space since the FDA established the OTC category in 2022. Reported revenue was $45 million as of 2020, with 184 employees that year.

Near-invisible in-canal design using silicone Flexi Fibers that preserve natural bass while amplifying treble, rechargeable batteries, remote custom calibration by licensed professionals, and direct-to-consumer pricing positioned against the average pair of hearing aids.

Technology

Eargo hearing aids are certified Class 2 medical devices whose design is modeled after a fishing fly: a small speaker surrounded by medical-grade silicone fibers (trademarked Flexi Fibers) that allow natural bass sound to enter the ear canal so that only treble ranges require amplification. Devices came in two sizes with four pre-programmed sound profiles, switched by double-tapping the ear via an acoustic switch, with left and right settings adjustable independently. Users could send personal audiograms to Eargo's licensed hearing professionals for custom calibration. The devices are rechargeable, designed to hold a charge for up to 16 hours, with a portable charger designed to last up to a week per charge. Later products were configured through Eargo mobile apps supporting the Eargo 8, SE, 7, 6, 5, Neo HiFi and Neo, and the LINK by Eargo line.

Go-to-market

Direct-to-consumer sales supported by marketing and branding investment, phone and live-chat support from Eargo hearing professionals, and an expanding retail footprint that included a partnership with Best Buy. Within LXE Hearing, the Lexie brand was sold in more than 16,000 US retail locations.

Consumers with hearing loss, particularly those seeking inconspicuous, comfortable and simple-to-use devices; sibling LXE brand Go Hearing targeted first-time hearing aid users.

Geography

Primarily the United States, headquartered in San Jose, California (previously Mountain View, California). Merger partner hearX's technology is deployed in more than 70 countries.

History

Founded in 2010 by ENT surgeon Florent Michel (inventor and designer), his son Raphael Michel (first CEO) and Daniel Shen (chief science and clinical officer). Seed funding followed in 2013, a $13.6 million Series A in June 2015, a $25 million Series B in December 2015, the first tranche of a Series C of up to $45 million in October 2017, a $52 million Series D in 2019 and a $71 million Series E in mid-2020. Christian Gormsen became CEO in summer 2016 and served until June 2023, when William Brownie succeeded him alongside a cost reduction plan. The company IPO'd on Nasdaq in October 2020, was taken majority-owned by Patient Square Capital in 2022 and private in January 2024, settled a US Department of Justice matter in April 2024, merged with hearX to form LXE Hearing in April 2025, and saw LXE announce a US wind-down in July 2026.

Risks & controversies

In April 2024, Eargo agreed to a $34.37 million settlement with the U.S. Department of Justice over allegations that it submitted claims for hearing aid devices to the Federal Employees Health Benefits Program containing unsupported hearing loss diagnosis codes; Eargo denied the allegations. The company also received a Nasdaq notification related to a delayed Form 10-K annual report, undertook a cost reduction plan with a CEO change in July 2023, and its parent's 2026 US wind-down leaves future app updates, support and warranty administration uncertain.