Vivos Therapeutics, Inc. ((VVOS)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Vivos Therapeutics, Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company is navigating significant strategic shifts, particularly with the acquisition of Sleep Center of Nevada (SCN) and the expansion of its pediatric product line. However, financial challenges persist, marked by declining service revenue, increased losses, and dwindling cash reserves. Additionally, the underperformance of the Rebis alliance underscores potential integration risks.
Pediatric Guide Appliance Line Growth
The earnings call highlighted a remarkable 87% growth in the number of pediatric arches shipped, increasing from 1,996 last year to 3,736 this year. This surge contributed to an 8% rise in product revenue for the quarter, despite lower price points on certain pediatric products.
SCN Acquisition Potential
Vivos Therapeutics is on the verge of acquiring the Sleep Center of Nevada, a move expected to close in the next month or two. This acquisition could significantly boost diagnostics and treatment revenue, as SCN currently sees approximately 3,000 sleep patients monthly.
Strategic Shift to Sleep Medical Providers
The company is transitioning towards forming strategic alliances or acquiring sleep medical providers. This strategic shift aims to drive sales and diversify revenue streams, particularly in the realm of sleep apnea treatment appliances.
Cost Reduction Initiatives
Vivos has implemented cost-cutting measures, reducing sales and marketing expenses from $700,000 to $400,000. Overall, operating expenses decreased by 5% compared to the previous year, reflecting the company’s commitment to financial prudence.
Decline in Service Revenue
The earnings report revealed a decline in total revenue, which fell from $3.4 million in the first quarter of 2024 to $3 million in 2025. This decrease was primarily driven by a drop in service and VIP enrollment revenue.
Operating and Net Loss
The company reported an operating loss of $3.9 million, slightly up from $3.8 million in the previous year. Similarly, the net loss for the first quarter of 2025 was $3.9 million, compared to $3.8 million in the first quarter of 2024.
Cash Position Decrease
Vivos Therapeutics experienced a significant decrease in cash and cash equivalents, dropping from $6.3 million as of December 31, 2024, to $2.3 million as of March 31, 2025. This decline highlights the financial challenges the company is facing.
Rebis Alliance Underperformance
The strategic alliance with Rebis Health has not met expectations, progressing more slowly due to internal issues. This underperformance has negatively impacted patient volume and revenue.
Forward-Looking Guidance
Looking ahead, Vivos Therapeutics is focused on strategic developments to bolster its financial standing. The company plans to close the acquisition of SCN soon, which is expected to enhance revenue and gross profit significantly. Additionally, Vivos has secured a non-binding term sheet for a $7.5 million senior loan to support this acquisition and is actively seeking a $1.5 million equity infusion. Despite a $3.9 million net loss for the first quarter of 2025, the company remains optimistic about its strategic pivot and cost-cutting initiatives.
In summary, Vivos Therapeutics’ earnings call reflects a company in transition, with promising growth in its pediatric line and strategic acquisitions on the horizon. However, financial hurdles, including declining revenue and cash reserves, pose significant challenges. The company’s strategic shift towards alliances and acquisitions in the sleep medical provider space is expected to drive future growth, despite current setbacks.