Vivos Therapeutics Reports 2025 Financial Results: Strategic Shift, Revenue Growth, and Operating Losses Highlight Challenging Year

Key Highlights

• 2025 revenue increased 16% year-over-year to \$17.4 million.
• Gross profit rose 17% to \$10.5 million with a steady 60% gross margin.
• Operating loss widened to \$19.9 million, compared to \$11.2 million in 2024.
• Acquisition of The Sleep Center of Nevada (SCN) in June 2025 drove both growth and higher expenses.
• Cash and cash equivalents dropped to \$2.0 million at year-end, but subsequent financings raised \$6.8 million.
• Strategic transition away from VIP dentist enrollments to direct ownership/alliances with sleep centers and medical providers.
• Management targets cash flow positive operations by the end of 2026, following cost-savings initiatives and capital structure improvements.
• Significant increase in liabilities and negative stockholders’ equity position at year-end 2025.

In-Depth Financial Review

Vivos Therapeutics, Inc. (NASDAQ: VVOS), a medical device and healthcare services provider specializing in breathing-related sleep disorders such as obstructive sleep apnea (OSA), released its audited financial results for the year ended December 31, 2025.

Revenue and Gross Profit

• Total revenue for 2025 was \$17.4 million, a 16% increase over 2024’s \$15.0 million. This growth was driven primarily by increased sleep testing services and the integration of two Nevada locations of The Sleep Center of Nevada (SCN), both offset partially by the anticipated decline in Vivos Integrated Practice (VIP) enrollment revenue after a strategic pivot away from this segment.
• Gross profit rose 17% to \$10.5 million, compared to \$9.0 million in 2024. The company maintained a consistent gross margin of 60% over both years, reflecting operational discipline despite a changing business mix.

Operating Expenses and Losses

• Operating expenses surged by 51% to \$30.4 million in 2025 (up from \$20.2 million in 2024), driven by costs associated with the SCN acquisition, integration efforts, and expanded OSA treatment center operations.
• As a result, Vivos reported a significantly larger operating loss of \$19.9 million for 2025, compared to a loss of \$11.2 million in the prior year.
• Net loss to shareholders ballooned to \$21.2 million, or \$2.07 per share, up from \$11.1 million (\$2.22 per share) in 2024, despite a larger share base.

Balance Sheet and Liquidity

• As of December 31, 2025, Vivos’ cash and cash equivalents had fallen sharply to \$2.0 million from \$6.3 million a year earlier. The company subsequently raised \$6.8 million in gross proceeds via two financing transactions after year-end to bolster its liquidity position.
• Total assets increased to \$25.2 million from \$15.3 million, reflecting the SCN acquisition. Goodwill and intangible assets rose substantially as a result.
• Total liabilities soared to \$26.7 million from \$7.3 million, driven by a sharp rise in debt (current portion of \$8.4 million), accrued expenses, and other obligations incurred in the SCN transaction and ongoing operations.
• Stockholders’ equity turned negative, with a deficit of \$1.55 million at year-end, compared to positive equity of \$8.0 million in 2024—a point that may be of particular concern to investors regarding ongoing Nasdaq listing compliance and financial flexibility.

Business Model Transformation

2025 marked a pivotal year for Vivos as it shifted away from its prior VIP dentist enrollment model in favor of establishing contractual alliances and outright acquisitions of sleep specialty medical providers, sleep testing centers, and similar entities. The SCN acquisition illustrates this strategy and is expected to support improved revenue quality and contribution margins in the future.

CEO Kirk Huntsman commented, “2025 was a pivotal year for Vivos. We grew full-year revenue by 16%, maintained gross margin despite significant investment, driven primarily by the continued ramp of our sleep testing services and the integration of The Sleep Center of Nevada. While our operating loss reflects the upfront investments in this new model, we believe these actions, together with recent significant cost-savings initiatives and strengthened capital structure, position Vivos to drive higher top-line growth, better contribution margins, and a clear path toward our goal of cash flow positive operations by end of this year.”

Product and Market Position

• Vivos’ proprietary Complete Airway Repositioning and Expansion (CARE) devices are the only FDA 510(k) cleared technology for treating severe OSA in adults and moderate-to-severe OSA in children (ages 6–17). This regulatory position could prove a competitive advantage if the company can execute on its commercial strategy.
• The company emphasizes that OSA affects over 1 billion people globally, with 80% undiagnosed—illustrating the size of the potential market.
• Vivos’ method is non-surgical, non-invasive, and non-pharmaceutical, aiming to address the root causes of OSA, unlike traditional CPAP therapies.

Shareholder Considerations and Price-Sensitive Items

• Liquidity and Going Concern: The reduction in cash and a negative equity position present significant financial risks, raising questions about ongoing liquidity and the ability to maintain Nasdaq listing standards. The company has raised additional capital post-year end, but continued access to financing is crucial.
• Business Model Transition Risks: While management is optimistic about the new strategy, the upfront investments have increased losses. There is no guarantee these will result in sufficient revenue or margin improvements, and execution risks remain.
• Debt Load: The company’s debt position has increased sharply, with \$8.4 million in current portion of debt as of year-end. This could become a major issue if not managed prudently.
• Cost-Saving Initiatives: Management has implemented cost-saving measures, but the effectiveness and actual impact on cash flow in 2026 will need to be closely monitored by investors.
• Regulatory and Market Risks: Vivos faces risks related to regulatory scrutiny, patient outcomes, and competition, all of which could materially impact the company’s performance and share price.

Conference Call and Additional Information

Vivos management will hold a conference call to discuss the results and future outlook. Further details, including condensed consolidated financial statements and additional explanations, are available in the company’s 2025 Annual Report on Form 10-K filed with the SEC.

Conclusion

Vivos Therapeutics’ 2025 financial results reflect both the promise and the challenges of its strategic transformation. While revenue growth and maintenance of gross margins are positive, the steep increase in operating losses, heavier debt load, and negative equity position raise significant concerns. The company’s ability to achieve cash flow positive operations and realize the benefits of its new business model will be critical for future share price performance.

Disclaimer

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those anticipated. Investors should review all relevant filings and consult their financial advisors before making investment decisions related to Vivos Therapeutics, Inc.

View Vivos Therapeutics, Inc. Historical chart here