Full-Year Revenue and Gross Profit Growth
Revenue increased by $2.4 million or 16% year-over-year for FY2025. Gross profit rose to $10.5 million (a 17% increase) while gross margin remained steady at 60% year-over-year.
Strong Diagnostic and Treatment Revenue from SCN
Sleep testing (diagnostic) revenue was approximately $6.0 million in 2025, driven by Sleep Center of Nevada (SCN), representing an increase of about $4.8 million versus 2024. Treatment revenue from SCN locations contributed approximately $2.2 million. Combined, these new-model diagnostic and treatment revenues represent the core growth engine for the company.
In-Network Insurance Access and High Patient Demand
SCN received in-network status with a number of commercial payers and participating status with Medicare, improving patient access. At year-end 2025 the two onboarded SCN locations were fully booked through April 2026 and management reported processing fewer than 40% of patients seeking appointments, indicating strong unmet demand.
New MSO/DSO Affiliation Model and SO Teams with High Potential Economics
Vivos deployed approximately 1.5 Sleep Optimization (SO) teams across two SCN locations and expects more in 2026. Management estimates each SO team could generate collections well in excess of $500,000 per month (net of adjustments) with contribution margins above 50%. Reported revenue per case in Nevada averages just under $5,000 with contribution margins >50%. The affiliation model is presented as capital efficient (<$1M typical outlay) compared with acquisitions.
Post-Period Capital Raises Bolstering Liquidity
After year-end, the company raised $4.6 million gross proceeds from a warrant inducement (Jan 16, 2026) and completed a $2.25 million private placement (Apr 7, 2026) with an existing investor to strengthen post-year-end stockholders' equity.
Operational and Clinical Momentum
Management reported growing clinical endorsement from medical sleep specialists, expanded facilities and staffing at SCN in response to patient demand, ongoing R&D progress with expected case studies/publications, and inbound interest from large specialty medical groups seeking affiliations.