Vivos Therapeutics, Inc. ((VVOS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Vivos Therapeutics Navigates Transition with Strategic Investments
The recent earnings call from Vivos Therapeutics, Inc. reveals a company in the midst of a strategic transition. The sentiment expressed during the call highlights significant investments and strategic changes aimed at fostering long-term growth. The acquisition of the Sleep Center of Nevada (SCN) and the deployment of Sleep Optimization (SO) teams are central to this strategy. Despite securing financing and reporting early successes with SCN, the company faces challenges with decreased revenue and increased operating losses.
SCN Acquisition and Integration
Vivos Therapeutics completed the acquisition of the Sleep Center of Nevada on June 10, 2025. This acquisition has already begun to bear fruit, contributing $500,000 in sleep testing service revenue within just 20 days of closing. The company is optimistic about the acquisition, citing strong cooperation and buy-in from the SCN medical team as a positive indicator for future integration and success.
Deployment of Sleep Optimization Teams
The deployment of Sleep Optimization teams is a key component of Vivos’ growth strategy. The company has already deployed 1.5 new SO teams and plans to expand to 4.5 teams across two SCN locations by the end of 2025. Each team is projected to generate over $500,000 in monthly net collections, with contribution margins exceeding 50%, signaling a promising revenue stream.
Significant Financing Secured
To support its strategic initiatives, Vivos has secured $11.5 million in net cash from financing activities, with backing from an affiliate of Seneca Partners. This financial boost is intended to fund the SCN acquisition and support future growth, providing the company with the necessary resources to execute its strategic plans.
Revenue Decline
Vivos reported a 6% decline in revenue to $3.8 million for Q2 2025 compared to the same period in 2024. The overall revenue for 2025 also saw a 9% decrease, largely due to a $1.7 million drop in VIP enrollment revenue. This decline reflects the challenges faced during the company’s strategic transition.
Increased Operating Loss
The company’s operating loss widened to $4.9 million in Q2 2025 and $8.8 million for the year, driven by higher expenses associated with the SCN acquisition and lower revenues. This increase in operating loss underscores the financial challenges Vivos is navigating as it implements its strategic changes.
Increased Costs
The cost of sales and operating expenses rose significantly, primarily due to the acquisition and integration of SCN, which incurred $1.8 million in associated costs. These increased expenses highlight the financial impact of Vivos’ strategic investments.
Forward-Looking Guidance
Despite the current challenges, Vivos Therapeutics remains optimistic about its strategic transition. The company anticipates future revenue growth through the deployment of SO teams and additional acquisitions. Vivos expects to achieve cash flow positivity in the fourth quarter of 2025 as it continues to expand its operations and facilities, signaling a positive outlook for the future.
In conclusion, Vivos Therapeutics is navigating a period of transition marked by strategic investments and challenges. While the company faces decreased revenue and increased operating losses, its strategic initiatives, including the SCN acquisition and deployment of SO teams, position it for potential long-term growth. The secured financing and optimistic forward-looking guidance suggest that Vivos is committed to overcoming current hurdles and achieving future success.