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Vivos Therapeutics, Inc. (VVOS)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $3.8M, up 27% sequentially from Q1 ($3.0M) but down 6% year over year due to the strategic pivot away from legacy VIP service revenue; gross margin was 55% vs 50% in Q1 and 65% in Q2 2024 .
  • VVOS delivered a revenue beat and EPS miss versus Wall Street: revenue $3.82M vs $3.36M consensus (beat), EPS -$0.55 vs -$0.38 consensus (miss) as SCN integration (only ~20 days consolidated) and transaction-related costs elevated OpEx .
  • The Sleep Center of Nevada (SCN) acquisition marked a model pivot, adding ~$0.5M diagnostic sleep testing revenue in just ~20 days and catalyzing a direct-to-patient pathway with capacity expansions underway (SO teams) .
  • Management targets reaching cash flow positivity “sometime in the fourth quarter,” positioning SCN and new sleep-center affiliations as primary near-term catalysts .

What Went Well and What Went Wrong

What Went Well

  • Strong validation of new model: “appointments booked out for weeks and less than 40% of patients currently being served,” underscoring demand; ~$500K diagnostic revenue recognized from SCN in ~20 days .
  • Sequential improvement and product volume: revenue rose ~27% Q/Q to $3.8M; 4,116 arches sold in Q2, with guide sales offsetting discount impacts; SCN referrals expected to shift mix toward higher-margin product revenue .
  • Execution on capacity build-out and operating model: SO teams deployed and ramping; management expects each fully operational SO team to process ~250 patients/month and generate >$0.5M monthly net collections with >50% contribution margins .

What Went Wrong

  • Elevated operating expenses (+52% YoY to $7.0M) and wider operating loss (-$4.9M) driven by SCN acquisition/integration costs and professional fees; ~$700–$800K of Q2 OpEx was non-recurring .
  • Gross margin declined year over year to 55% (from 65%) on pricing discounts, product/service mix shifts, and transition effects; gross profit fell to $2.1M from $2.7M YoY .
  • EPS missed consensus (-$0.55 vs -$0.38) as operating cost inflation outpaced short-term revenue additions during the pivot .

Financial Results

P&L vs prior periods

MetricQ2 2024Q1 2025Q2 2025
Total Revenue ($USD Millions)$4.054 $3.016 $3.820
Product Revenue ($USD Millions)$1.975 $1.813 $1.885
Service Revenue ($USD Millions)$2.079 $1.203 $1.935
Gross Profit ($USD Millions)$2.651 $1.509 $2.110
Gross Margin %65% 50% 55%
Operating Expenses ($USD Millions)$4.587 $5.427 $6.975
Operating Loss ($USD Millions)$(1.936) $(3.918) $(4.865)
Net Loss per Share (EPS, $USD)$(0.60) $(0.45) $(0.55)

Balance sheet highlights

MetricQ4 2024Q2 2025
Cash and Cash Equivalents ($USD Millions)$6.260 $4.402
Total Debt ($USD Millions)- $7.917 (current $0.157; LT $7.760)
Total Stockholders’ Equity ($USD Millions)$7.954 $4.583
Total Assets ($USD Millions)$15.284 $26.033

KPIs

KPIQ2 2024Q1 2025Q2 2025
Oral Appliance Arches Sold (units)n/a3,736 4,116
Diagnostic Sleep Testing Revenue from SCN ($USD)n/an/a~$0.500M (20 days post-close)
Weighted Avg Shares (Basic & Diluted)3,228,363 8,595,288 9,087,202

Actuals vs Consensus (S&P Global)

MetricQ1 2025 ActualQ1 2025 Consensus*Q2 2025 ActualQ2 2025 Consensus*
Revenue ($USD)$3,016,000 $3,666,400*$3,820,000 $3,364,600*
EPS ($USD)$(0.45) $(0.40)*$(0.55) $(0.38)*
# of Estimates (Revenue / EPS)2 / 2*2 / 2*1 / 1*1 / 1*

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash FlowQ4 2025Not providedTargeting cash flow positive “sometime in the fourth quarter” Introduced (target)
SCN AccretionQ3 2025Q1 call: accretive “in the third quarter” Reinforced by Q2 integration pace; only ~20 days consolidated in Q2 Maintained
Operating Expenses (one-time items)Q2 2025Not quantified~$700–$800K of non-recurring professional/transaction costs within OpEx Clarified
SO Team Deployment2H 2025–2026Not detailed priorPlan to reach 3.5 SO teams by YE 2025 and 4.5 in 2026; capacity per team ~250 patients/month; >$0.5M net collections/month; >50% contribution margin Introduced/expanded

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q4 2024; Q-1: Q1 2025)Current Period (Q2 2025)Trend
Business Model Pivot (dentist to sleep-center alliances/acquisitions)Pivot launched with Rebis alliance; focus on provider-based alliances to increase access and economics SCN acquisition closed; direct diagnostic and treatment revenue; demand outpaces capacity Accelerating execution
Financing & Balance Sheet2024: ~$17.9M equity raised to strengthen liquidity Closed $8.225M senior loan and $3.755M equity for SCN; acknowledges high cost of capital; plans to refinance as model matures Increased leverage with intent to lower cost
Capacity Build-Out (SO teams)Not detailedSO teams deployed; target 3.5 by YE; per-team throughput and margin disclosed Scaling capacity
Product & VolumeFY 2024 product revenue +26%; Q1 2025 arches +87% YoY Q2: 4,116 arches; product discounts pressed revenue; guide sales offset ~$0.5M Volume rising; mix/price pressure
Regulatory/ReimbursementPediatric DNA FDA clearance highlighted PDAC approval for VidaSleep device (Medicare coverage) expands reimbursed options and addressable market Strengthening reimbursement
Clinical EvidenceNot emphasizedEuropean Journal of Pediatrics study: pediatric OSA efficacy and safety validated (79% improved; 17% resolved) Bolstering clinical validation

Management Commentary

  • “We recognized approximately $500,000 of diagnostic sleep testing services revenue over just twenty days from the June 10 closing to the end of the quarter.” — Kirk Huntsman, CEO .
  • “Appointments booked out for weeks and less than 40% of patients currently being served… validates our belief in our new model.” — CEO .
  • “Each fully operational SO team can process approximately 250 patients per month, potentially generating over $500,000 in monthly net collections, with contribution margins above 50%.” — CEO .
  • “Operating loss widened to $4.9M… primarily due to ~$1.8M in costs associated with acquiring and integrating SCN.” — CFO .
  • “We should be cash flow positive sometime in the fourth quarter.” — CEO .

Q&A Highlights

  • Trajectory: Q2 revenue grew ~$800K sequentially to $3.8M; management expects growth increasingly driven by product referrals from SCN .
  • OpEx composition: ~$700–$800K in non-recurring professional/transaction costs; recurring increases include ~$500K salaries and ~$300K infrastructure tied to SCN .
  • SCN consolidation & contribution: Only ~20 days consolidated in Q2; ~$500K legacy sleep-center revenue recognized; capacity expansion underway .
  • Recruiting & scalability: Robust labor pool enables rapid formation/training of SO teams; first regional manager hired to lead local scaling .
  • Financing strategy: Management acknowledges expensive debt and seeks to lower cost of capital as predictability improves; bank facilities possible as model matures .

Estimates Context

  • Q2 2025 vs consensus: Revenue $3.82M vs $3.36M consensus (beat); EPS -$0.55 vs -$0.38 (miss) as near-term integration costs outpaced limited-period SCN revenue consolidation .
  • Q1 2025 vs consensus: Revenue $3.02M vs $3.67M consensus (miss); EPS -$0.45 vs -$0.40 (miss) amid VIP revenue wind-down .
  • Coverage is thin (Q2 had one estimate), suggesting higher dispersion and revision sensitivity ahead as SCN ramps and PDAC-supported devices expand payer coverage. Values retrieved from S&P Global.*

Key Takeaways for Investors

  • The SCN acquisition is a structural catalyst: direct access to high patient volumes with immediate diagnostic revenue and a pathway to higher-margin appliance sales; early results show ~$0.5M revenue in ~20 days and capacity-constrained demand .
  • Near-term margin pressure stems from transition and integration costs; management quantified non-recurring OpEx and expects scaling economics through SO teams (>50% contribution margins per team) .
  • Reimbursement momentum (VidaSleep PDAC approval) expands Medicare-accessible offerings alongside mmRNA, broadening adoption and supporting margins for providers .
  • Clinical validation continues to strengthen the pediatric thesis (European Journal of Pediatrics data), a potential medium-term growth driver as pediatric programs roll out .
  • Liquidity improved via debt and equity for SCN; cost of capital is high but management is pursuing lower-cost financing as the model’s predictability improves .
  • Management guides to cash flow positive in Q4 2025; watch SO team deployment pace and throughput against stated per-team productivity and net collections metrics .
  • Estimate dispersion likely remains elevated given low coverage; monitor revisions and beats/misses as SCN integration and additional affiliations progress. Values retrieved from S&P Global.*