Vivos Therapeutics(VVOS) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Release Highlights Vivos Therapeutics' Q2 2025 highlights include a strategic pivot in its sales model through the SCN acquisition and a decline in financial performance due to this transition Business and Strategic Highlights The second quarter of 2025 was marked by Vivos Therapeutics' strategic pivot in its sales, marketing, and distribution model, highlighted by the acquisition of The Sleep Center of Nevada (SCN) - Vivos completed the key acquisition of The Sleep Center of Nevada (SCN), the largest operator of medical sleep centers in Nevada, marking a pivot in its core sales, marketing, and distribution model[3] - The new model allows Vivos to capture both OSA diagnostic and treatment revenue through more direct relationships with patients[3] - SCN generated approximately $500,000 of diagnostic sleep testing services revenue over just twenty days from the June 10 closing to the end of the quarter[3] - Patient demand at SCN locations adapted to the Vivos model so far continues to exceed current capacity, with appointments booked out for weeks and less than 40% of patients currently being served, validating the new model[3] Financial Performance Summary Vivos Therapeutics reported a decline in Q2 2025 revenue and gross profit, primarily due to its strategic pivot in sales and distribution model, leading to a larger operating loss Q2 2025 and YTD June 30, 2025 Key Financials | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (YoY) | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | Change (YoY) | | :----- | :--------------------- | :--------------------- | :----------- | :---------------------- | :---------------------- | :----------- | | Revenue | $3.8 | $4.1 | -7.3% | $6.8 | $7.5 | -9.3% | | Gross Profit | $2.1 | $2.7 | -22.2% | $3.6 | $4.6 | -21.7% | | Gross Margin | 55% | 65% | -10 pp | 53% | 61% | -8 pp | | Operating Expenses | $7.0 | $4.6 | +52.2% | $12.4 | $10.3 | +20.4% | | Operating Loss | $(4.9) | $(1.9) | +157.9% | $(8.8) | $(5.7) | +54.4% | Cash and Stockholders' Equity | Metric | June 30, 2025 (Millions USD) | Dec 31, 2024 (Millions USD) | Change | | :----- | :--------------------------- | :-------------------------- | :----- | | Cash and Cash Equivalents | $4.4 | $6.2 | -29.0% | | Stockholders' Equity | $4.6 | $8.0 | -42.5% | - The decline in revenue and gross profit was expected and attributed to the ongoing pivot in Vivos' sales, marketing, and distribution model, focusing on sleep center provider-based alliances and acquisitions[4][7] - The increase in operating expenses was due to higher general and administrative costs, including professional fees related to equity and debt financings for the SCN acquisition and integration, much of which is expected to be non-recurring[7] Strategic Business Model Transformation Vivos Therapeutics is strategically transforming its business model through the acquisition of SCN and the development of a new OSA provider management model Acquisition of The Sleep Center of Nevada (SCN) Vivos completed the acquisition of The Sleep Center of Nevada (SCN) on June 10, 2025, as a cornerstone of its strategic shift, aiming to directly engage patients for OSA diagnosis and treatment - Vivos acquired The Sleep Center of Nevada (SCN) on June 10, 2025, pivoting its sales, marketing, and distribution model[3][4] - The acquisition enables Vivos to capture both OSA diagnostic and treatment revenue through direct patient relationships, moving away from a model solely reliant on dentists[3] - SCN generated approximately $500,000 in diagnostic sleep testing services revenue in the 20 days following the acquisition[3] - Patient demand at SCN locations, adapted to the Vivos model, currently exceeds capacity, with appointments booked for weeks and less than 40% of patients being served, validating the new model[3] - Vivos plans to scale this model in the future through additional sleep center alliances or acquisitions[3] Updated OSA Provider Management Model Vivos is developing a new sleep practice management model, exemplified by its agreement with MISleep Solutions LLC, to offer its full suite of OSA treatments and services through equity stakes in management companies - Vivos is developing an updated sleep practice management model for medical practices not interested in being purchased but willing to offer Vivos' OSA diagnostic and treatment options[5] - On July 14, 2025, Vivos entered its first management agreement with MISleep Solutions LLC in Auburn Hills, Michigan, to provide its full suite of Vivos treatments and services[6] - Vivos holds a supermajority equity stake in the management services company under this model, with sleep doctors having minority ownership[6] - Facilities for these operations are being remodeled, with an estimated opening in October 2025, and Vivos is exploring similar arrangements in other states[6] Detailed Financial Results Detailed financial results for Q2 2025 show decreased revenue and increased operating losses, alongside significant balance sheet changes reflecting recent acquisitions and debt Condensed Consolidated Statements of Operations For Q2 2025, Vivos Therapeutics experienced a decrease in total revenue and gross profit compared to Q2 2024, primarily driven by lower service revenue, leading to a substantial rise in operating and net loss Condensed Consolidated Statements of Operations (Q2 2025 vs Q2 2024) | Metric (Thousands USD) | Q2 2025 | Q2 2024 | Change | | :-------------------- | :------ | :------ | :----- | | Product revenue | $1,885 | $1,975 | -4.6% | | Service revenue | $1,935 | $2,079 | -6.9% | | Total revenue | $3,820 | $4,054 | -5.8% | | Cost of sales | $1,710 | $1,403 | +21.9% | | Gross profit | $2,110 | $2,651 | -20.4% | | General and administrative | $6,409 | $4,122 | +55.5% | | Sales and marketing | $260 | $320 | -18.8% | | Depreciation and amortization | $306 | $145 | +111.0% | | Total operating expenses | $6,975 | $4,587 | +52.1% | | Operating loss | $(4,865) | $(1,936) | +151.3% | | Net loss | $(5,013) | $(1,930) | +159.7% | | Net loss per share (basic and diluted) | $(0.55) | $(0.60) | -8.3% | | Weighted average shares outstanding | 9,087,202 | 3,228,363 | +181.5% | Condensed Consolidated Statements of Operations (Six Months Ended June 30, 2025 vs 2024) | Metric (Thousands USD) | YTD 2025 | YTD 2024 | Change | | :-------------------- | :------- | :------- | :----- | | Product revenue | $3,698 | $3,650 | +1.3% | | Service revenue | $3,137 | $3,823 | -17.9% | | Total revenue | $6,835 | $7,473 | -8.5% | | Cost of sales | $3,219 | $2,885 | +11.6% | | Gross profit | $3,616 | $4,588 | -21.2% | | General and administrative | $11,298 | $9,043 | +24.9% | | Sales and marketing | $615 | $973 | -36.8% | | Depreciation and amortization | $483 | $291 | +66.0% | | Total operating expenses | $12,396 | $10,307 | +20.3% | | Operating loss | $(8,780) | $(5,719) | +53.5% | | Net loss | $(8,877) | $(5,692) | +55.9% | | Net loss per share (basic and diluted) | $(1.00) | $(2.06) | -51.4% | | Weighted average shares outstanding | 8,842,604 | 2,768,934 | +219.3% | Condensed Consolidated Balance Sheets As of June 30, 2025, Vivos Therapeutics reported a significant increase in total assets, primarily driven by goodwill, property and equipment, and intangible assets, reflecting recent acquisitions Condensed Consolidated Balance Sheets (June 30, 2025 vs Dec 31, 2024) | Metric (Thousands USD) | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------- | :------------ | :----------- | :----- | | Cash and cash equivalents | $4,402 | $6,260 | -29.7% | | Accounts receivable, net | $1,633 | $430 | +279.8% | | Total current assets | $6,730 | $7,473 | -9.9% | | Goodwill | $8,450 | $2,843 | +197.2% | | Property and equipment, net | $5,129 | $3,350 | +53.1% | | Intangible assets, net | $2,225 | $370 | +501.4% | | Total assets | $26,033 | $15,284 | +70.3% | | Accounts payable | $1,763 | $1,098 | +60.6% | | Total current liabilities | $6,426 | $4,978 | +29.1% | | Employee retention credit liability | $2,904 | $1,220 | +138.0% | | Debt, net of current portion | $7,760 | $0 | N/A | | Total liabilities | $21,450 | $7,330 | +192.6% | | Total stockholders' equity | $4,583 | $7,954 | -42.4% | Company Information Vivos Therapeutics is a medical technology company focused on innovative diagnostic and treatment methods for Obstructive Sleep Apnea (OSA) using FDA-cleared CARE devices About Vivos Therapeutics, Inc. Vivos Therapeutics is a medical technology company specializing in innovative diagnostic and treatment methods for breathing and sleep issues, particularly Obstructive Sleep Apnea (OSA) - Vivos Therapeutics (NASDAQ: VVOS) is a medical technology company focused on developing and commercializing diagnostic and treatment methods for breathing and sleep issues, including Obstructive Sleep Apnea (OSA) and snoring[11] - Vivos' CARE devices are FDA 510(k) cleared for all severity levels of OSA in adults and moderate-to-severe OSA in children (ages 6-17), being the only technology cleared for severe OSA in adults and the first for children[11] - OSA affects over 1 billion people worldwide, with 90% remaining undiagnosed, and is closely linked to many serious chronic health conditions[12] - The Vivos Method offers a proprietary, clinically effective solution that is nonsurgical, noninvasive, and nonpharmaceutical, providing hope to allow patients to Breathe New Life[14] - Founded in 2016 and based in Littleton, CO, Vivos aims to empower healthcare providers through innovative technology, education, and acquisitions of, or commercial collaborations with, sleep healthcare providers[13] Additional Information This section provides details on the Q2 2025 investor conference call and a cautionary note regarding forward-looking statements and associated risks Investor Conference Call and 10-Q Filing Vivos Therapeutics hosted an investor conference call on August 19, 2025, to discuss Q2 2025 financial results, strategic collaborations, and their anticipated impact on revenue growth and cash burn - Vivos hosted an investor conference call on August 19, 2025, at 5:00 p.m. ET to discuss Q2 2025 results, strategic collaborations, and their effect on near-term revenue growth and cash burn[8] - Details for accessing the live call, replay, and webcast are provided, with the replay available until September 2, 2025[9] - Further financial information is included in the attached unaudited condensed consolidated balance sheets and statements of operations, and the full Quarterly Report on Form 10-Q will be filed with the SEC[10] Cautionary Note Regarding Forward-Looking Statements This section highlights that the press release contains forward-looking statements regarding the future impact of the SCN acquisition and the benefits of Vivos' new marketing model, warning of potential material differences in actual results - The press release contains forward-looking statements concerning future events, including the actual future impact of the SCN acquisition on Vivos' future revenues and results of operations and the anticipated benefits and potential expansion of Vivos' marketing and distribution model[16] - These statements involve significant known and unknown risks and are based upon several assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond Vivos' control[16] - Factors that could cause actual results to differ materially include the risk that Vivos may be unable to successfully integrate SCN's business, the risk that some patients may not achieve desired results, risks associated with regulatory scrutiny, and the risk that Vivos may be unable to secure additional financing[16] - Vivos expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements, except to the extent required by law[16]