Vivos Therapeutics (NASDAQ:VVOS) executives told investors the company’s shift toward a medical provider-focused model, anchored by the June 2025 acquisition of the Sleep Center of Nevada (SCN), drove higher revenue in 2025 and is reshaping its growth strategy heading into 2026.
2025 results reflect SCN acquisition and model pivot
Chief Financial Officer Bradford Amman said Vivos’ fourth quarter marked its “second full quarter of activity” following the SCN acquisition, with revenue “positively impacted by the sales strategy shift and focus towards sleep center affiliations.”
Those gains were partially offset by declines tied to Vivos’ legacy VIP dentist-focused programs. Amman cited a decline in product revenue to legacy VIP dentists of about $1.4 million from appliance and tooth positioner sales, along with a decrease of approximately $2 million in VIP enrollment revenue and a $700,000 decline in sponsorship, conference, and training-related revenue. He said Vivos “fully expected” legacy revenue to decline as it reduced reliance on enrolling and training VIP dentists.
Appliance sales declined amid heavier discounting
Amman said Vivos sold 25,441 oral appliances and tooth positioners in 2025 for about $6.5 million, an 18% revenue decrease compared with 2024, when it sold 16,182 units for $7.9 million. He attributed the decline to increased discounting and product mix.
“The revenue decrease is directly attributable to an increase in discounts offered during the same period,” Amman said, pointing to $1.6 million in discounts during 2025 versus about $200,000 in 2024, as well as higher tooth positioner sales, which carry a lower price point than the company’s advanced appliances.
However, Amman said the company expects the mix to improve after early integration steps, noting that after achieving “critical insurance coverage for our more advanced OSA appliances,” Vivos expects more revenue from higher-price products “in 2026 and beyond.”
Margins held steady as operating expenses rose
Cost of sales increased about $900,000, or 15%, to $6.9 million in 2025, compared with $6.0 million in 2024. Amman said the increase was driven primarily by about $1.1 million in higher diagnostic services costs related to new sleep center affiliations and an additional $500,000 tied to staffing associated with affiliations in Nevada and the company’s Detroit-area center.
Gross profit rose to $10.5 million from $9.0 million, up 17%, while gross margin held at 60% for both 2025 and 2024.
Operating expenses climbed to $30.4 million in 2025 from $20.2 million in 2024, largely due to general and administrative costs. Amman said general and administrative expenses increased $9.8 million to $27.7 million, primarily reflecting $6.7 million in costs associated with running SCN operations and related Vivos treatment centers. He also cited approximately $1.6 million in professional fees, “most of which were one-time expenses,” plus $800,000 in salaries and wages and $600,000 in infrastructure costs compared with 2024.
Sales and marketing expense fell $300,000 to $1.4 million, which Amman said was driven by lower commissions and reduced convention and trade show spending, reflecting the company’s operational focus on SCN rather than the legacy VIP model. Depreciation and amortization increased to about $1.3 million from $600,000 due to SCN-related depreciable assets and other affiliation-model assets.
Vivos reported a 2025 net loss of $21.2 million, which Amman said reflected higher costs associated with the company’s strategic transition. He said approximately $1.4 million of expenses were one-time out-of-pocket costs, and the company also invested in recruiting and training staff, “rightsizing the team,” and procuring space and equipment.
Liquidity, debt, and post-year-end financings
Net cash used in operating activities totaled about $15.3 million in 2025 versus $12.7 million in 2024. As of Dec. 31, 2025, Vivos had approximately $2 million in cash and cash equivalents.
Total liabilities were approximately $26.7 million at year-end 2025, up from $7.3 million at the end of 2024, reflecting debt used “to acquire and fund SCN,” Amman said.
After year-end, the company announced additional financing activity. Amman said Vivos raised $4.6 million in gross proceeds from a warrant inducement transaction announced Jan. 16, 2026, and later completed a private placement with existing investor New Seneca Partners that raised $2.25 million in gross proceeds, announced April 7, 2026. Amman said the financings “bolstered our post-year-end stockholders’ equity,” which he said Vivos needs to continue to augment with additional equity financing to remain in compliance with Nasdaq’s minimum stockholders’ equity requirement.
During the Q&A, Amman also addressed the balance sheet classification of debt. He said $8.3 million had been reclassified as short-term because “the maturity date on that is in 2026.” He said the company has been compliant with debt covenants and could “either raise capital to pay it off or roll it over into additional debt and extend those terms.”
Operational updates: SCN capacity, insurance participation, and expansion plans
Chairman and CEO R. Kirk Huntsman said the company’s provider support model implemented at SCN “has proven to be everything we expected it to be,” and he described 2025 as a “pivotal year” in which Vivos advanced insurance coverage efforts and gained clinical support from sleep specialists.
Huntsman said SCN has received notices of in-network status with multiple commercial health insurance payers and participating status with Medicare, which he believes will improve patient access and support revenue and profitability. He also outlined the company’s “sleep optimization” (SO) teams—approximately 16 medical, dental, and support staff trained and equipped by Vivos—designed to educate patients on treatment options and support care delivery. Huntsman said Vivos has about “one and a half SO teams deployed across two SCN locations” and expects additional deployments during 2026, while also cautioning that it can take up to 60 days for teams to become fully functional and “up to six months or longer before net revenue collections match” revenue-generating activities.
He said constraints at SCN have included physical space, provider staffing, and third-party payer credentialing. Huntsman added that at the end of 2025, the two onboarded SCN locations were “fully booked for appointments through April of 2026,” and the operation was processing “less than 40% of patients attempting to get appointments for treatment.”
Huntsman also addressed quarterly variability after an analyst asked why fourth-quarter revenue fell relative to the third quarter. He said the model is dependent on “total doctor days” and that provider absences and unexpected dentist attrition in Q4 reduced production. He said replacements were recruited and trained, with the full impact expected to be seen toward the end of Q1 and into Q2, alongside incremental benefits from in-network access beginning to flow in late Q1.
On expansion, Huntsman said Vivos is exploring partnering and affiliation opportunities with medical specialty groups nationwide and argued affiliations are more capital efficient than acquisitions, with typical capital outlays under $1 million versus much higher acquisition costs. He also referenced the opening of a SAMC center near Detroit in Auburn Hills, Michigan, as part of the company’s national expansion strategy. In addition, he noted Vivos has begun publishing plans for case studies and clinical results tied to research and development led by Dr. Bahar Esmaili at the company’s Highlands Ranch clinic in Colorado, which Huntsman said could begin later in 2026 and into 2027.
Asked about a recently announced partnership with SoundHealth, Huntsman said it was “still fairly early,” but demand in Las Vegas has been strong enough that the company has had trouble keeping units in stock. He added that he does not expect it to be a material component of earnings, but said patients “are loving the treatment” and Vivos is seeking to expand the relationship.
Huntsman said the company has a clearer path toward its goal of “cash flow positive operations by the end of this year,” citing cost savings initiatives and a strengthened capital structure. Amman added in response to a question on cash flow targets that reaching profitability is tied to both revenue growth and cost reductions, and said that “on a run rate basis, we need to be close to double” 2025’s $17 million in revenue “by 2027” to reach net income positive results.
About Vivos Therapeutics (NASDAQ:VVOS)
Vivos Therapeutics, Inc is a medical technology company focused on the development and commercialization of oral appliance therapy for the treatment of obstructive sleep apnea (OSA) and other airway-related disorders. The company’s proprietary Vivos System integrates clinical diagnostic protocols, three-dimensional imaging, and custom-designed dental appliances to address mild to moderate forms of sleep-disordered breathing through non-surgical, non-invasive means.
The Vivos System comprises a range of custom oral devices, digital workflow tools, and a structured treatment protocol.
