Vivos Therapeutics Inc. (NASDAQ: VVOS) Q2 2025 Earnings | 08/20/2025

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Earnings Calls

AI Summary

Overall Performance & Strategic Pivot:
Vivos is in the midst of a significant strategic pivot, moving away from its legacy model of training dental providers (VIP enrollments) to a new focus on acquiring and collaborating with sleep medicine centers. The quarter was dominated by the acquisition of Sleep Center of Nevada (SCN) on June 10, 2025, which management sees as a transformative milestone and a validation of their new strategy.

Financial Highlights (Reflecting the Transition):

Revenue: Slightly decreased by 6% to $3.8 million YoY. This was expected due to the decline in legacy VIP enrollment revenue (-$1M), which was partially offset by new revenue from SCN.
Encouraging Signs: SCN contributed $500k in sleep testing revenue in just the last 20 days of the quarter. Sponsorship and seminar revenue also increased by $400k.
Increased Losses: The operating loss widened to $4.9 million (from $2.7M in Q2 2024), primarily due to ~$1.8 million in one-time costs associated with acquiring and integrating SCN (legal fees, salaries, infrastructure).
Balance Sheet: The company raised $11.5 million in financing (debt and equity) to fund the acquisition. Cash and equivalents stood at $4.4 million as of June 30, 2025.

The New Model: "Sleep Optimization" (SO) Teams
The core of the new strategy is the deployment of "Sleep Optimization" (SO) Teams.

Structure: Each SO team consists of ~16 medical, dental, and support staff trained by Vivos to educate patients on all treatment options, with a focus on Vivos' FDA-cleared oral appliances as an alternative to CPAP.
Financial Potential: Management believes each fully operational SO team can process ~250 patients per month, generating over $500,000 in monthly net collections with contribution margins above 50%.
Current Deployment: 1.5 SO teams are currently deployed across two SCN locations in Las Vegas, and they are already experiencing multi-week backlogs due to high patient demand.

Growth Strategy & Outlook:

Scalability: The model is designed to be highly replicable. Plans are to expand to 3.5 SO teams in Las Vegas by year-end 2025 and potentially up to 8 teams total at SCN based on current demand.
Expansion Beyond Acquisition: Vivos has also created a "Collaboration Management Model" for sleep centers not interested in being acquired. The first such agreement was signed with a center in Michigan (MI Sleep, LLC), with a team expected to deploy in Q4 2025.
Pipeline: The M&A team is in negotiations with several other potential acquisition and affiliation candidates across the country.
Path to Profitability: Management expressed strong confidence that the new model is highly accretive. They are pushing to achieve cash flow positivity by Q4 2025 as more SO teams are deployed and begin generating significant, high-margin revenue.

About this video

Vivos Therapeutics reported second quarter 2025 revenue of $3.8 million, down 6% year over year as the company shifts from its legacy dentist-focused, Vivos Integrated Provider (VIP) model to a direct, patient-centric sleep center strategy. The recently acquired Sleep Center of Nevada contributed $500,000 in diagnostic revenue in just 20 post-acquisition days, highlighting the early success of the company’s operational pivot. Gross profit for the quarter was $2.1 million, with gross margin falling to 55% from 65% last year due to increased costs tied to scaling and integration. Operating expenses surged 52% to $7 million, primarily related to acquisition and integration of SCN, resulting in an operating loss of $4.9 million (widening from $1.9 million last year). Net loss was -$0.55 per share, missing analyst estimates by $0.16. Vivos ended the quarter with $4.4 million in cash, bolstered by a new $11.5 million capital raise to support the new model and expansion efforts. Strategic progress included successful service launches at the Sleep Center of Nevada and the company’s first management agreement with MISleep Solutions, aiming to broaden the footprint for sleep disorder treatments. The company is consolidating toward a vertically integrated, recurring-revenue business, distancing itself from one-time dentist training fees and traditional product sales. Risks remain around the ability to achieve profitability, rising operational costs, and the speed at which the integrated sleep center strategy can scale recurring revenue to offset legacy declines. The company maintains a pipeline of new patient intake and ongoing provider buy-in but must demonstrate sustainable cost discipline and improved margins to meet investor expectations. About Inside Ticker: Inside Ticker delivers timely, in-depth financial news and earnings analysis to empower investors with actionable insights on global companies across sectors. For comprehensive video analysis and real-time updates, visit https://www.insideticker.com/. HashTags: #VivosTherapeutics #VVOS #Q22025 #Earnings #FinancialResults #Revenue #NetLoss #EPS #SleepApnea #Healthcare #MedicalDevices #SleepCenters #Diagnostics #GrossMargin #OperatingLoss #Growth #Innovation #BusinessModel #Integration #PatientCare #Acquisition #Expansion #RecurringRevenue #Strategy #ProviderNetwork #OperationalUpdate #CapitalRaise #HealthTech #ShareholderValue #StockMarket #InsideTicker

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