Vivos Therapeutics (NASDAQ:VVOS) reported second-quarter revenue growth as its acquisition of The Sleep Center of Nevada, or SCN, and expansion of treatment services shifted the company toward a sleep-center-based operating model. Management said it is pursuing additional recurring-revenue programs, facility expansion and potential cardiology affiliations as it works toward positive cash flow.
Revenue for the three months ended June 30 rose 35% to $5.2 million from $3.8 million a year earlier. For the first six months of 2026, revenue increased 51% to $10.3 million, compared with $6.8 million in the prior-year period.
Margins Improve as Service Revenue Expands
Cost of sales increased 29% to $2.2 million during the second quarter, primarily reflecting higher diagnostic-service and patient-therapy expenses, including additional staffing at Vivos treatment centers. Gross profit nevertheless increased by about $800,000 to $3 million, while gross margin improved to 57% from 55% a year earlier.
For the first half, gross profit rose to $6 million and gross margin increased to 58% from 53% in the comparable 2025 period.
Vivos sold 5,180 oral appliance arches during the quarter, generating approximately $1.4 million in revenue. While the number of arches sold rose from 4,116 a year earlier, related revenue declined 28% from $1.9 million. Amman attributed the decline to a higher mix of lower-revenue preformed appliances relative to Vivos CARE devices.
General and administrative expenses rose about 11% to $7.1 million in the second quarter. Amman cited $600,000 in salary and wage costs related to the SCN acquisition and Vivos treatment-center openings, as well as $300,000 of higher rent expense, partly offset by lower bad-debt and allowance costs. Sales and marketing expenses declined to $200,000 from $300,000 as the company reduced campaigns, commissions, digital-media services and marketing supplies.
The company reported a net loss of $5.5 million for the second quarter, compared with a $5 million loss a year earlier. Its six-month net loss was $13.3 million, compared with $8.9 million in the prior-year period.
Liquidity and Nasdaq Compliance Remain Key Issues
Vivos ended June with approximately $1.8 million in cash and cash equivalents and total liabilities of about $28.1 million. Net cash used in operating activities was approximately $9.2 million in the first six months of 2026, versus $7.3 million a year earlier.
Amman said the company’s cash balance would not be sufficient to fund operations and strategic objectives for the next 12 months without additional financing, raising substantial doubt about its ability to continue as a going concern. The company has funded operations through equity raises and sold 694,564 shares under its at-the-market program during the first half, generating about $500,000 in net proceeds. About $2.3 million remained available under the program as of June 30.
Vivos also said its stockholders’ equity was below Nasdaq’s $2.5 million minimum requirement as of both Dec. 31, 2025, and June 30, 2026. Management said it is seeking to regain compliance through additional equity funding and cost reductions, while warning that it could face delisting proceedings if it does not remedy the deficiency.
Management Outlines New Service Initiatives
Chairman and Chief Executive Officer Kirk Huntsman said the SCN acquisition was intended to create a broader clinical platform that combines diagnostic testing, patient consultations and treatment pathways through Sleep and Airway Medicine Centers, or SAMC centers.
Among the initiatives discussed on the call:
- Vivos is pursuing remote patient monitoring for SCN’s legacy CPAP patient population. Huntsman said the company estimates approximately 16,000 existing CPAP patients could represent an addressable population, with 5,000 to 7,500 potentially eligible for enrollment over the next six to 12 months, subject to clinical appropriateness, consent, coverage and enrollment.
- The company plans a phased launch of a wholly owned durable medical equipment-based CPAP program in early fourth quarter. Based on preliminary planning assumptions, Huntsman said the program could generate $150,000 to $250,000 in monthly contribution margin if it reaches the contemplated scale.
- Vivos is expanding its insomnia and EEG testing and treatment program at SCN. Huntsman said insurance reimbursement for EEG testing in Nevada has shown broad payer participation, with average reimbursement of roughly $800 per patient for testing.
- The company expanded its Henderson, Nevada, sleep testing and treatment facility, which Huntsman said more than doubled annual production capacity there to more than $10 million.
Huntsman also said referrals from SCN physicians and nurse practitioners to SAMC had increased threefold to fourfold since the end of the second quarter. He said the company expects production from those referrals to begin affecting financial results in the third quarter.
Cardiology Affiliations Targeted for 2027 Revenue
Vivos is continuing negotiations for affiliations with cardiology groups in Arizona and Florida. During the question-and-answer session, Huntsman said each affiliation is expected to require capital expenditures of between $800,000 and $1 million. He said the company would expect revenue from the programs to begin in the first or second quarter of 2027.
Management also cited progress in its pediatric obstructive sleep apnea testing and treatment program, saying hundreds of children are receiving treatment across its current markets.
Looking ahead, Huntsman said Vivos sees a potential path to cash-flow positivity near the end of 2026 or early 2027 and positive EBITDA in fiscal 2027, subject to implementation, enrollment, reimbursement, vendor economics, capacity and execution. He said management expects more of the operational progress to become visible in third-quarter financial results.
About Vivos Therapeutics (NASDAQ:VVOS)
Vivos Therapeutics, Inc is a medical technology company focused on the development and commercialization of oral appliance therapy for the treatment of obstructive sleep apnea (OSA) and other airway-related disorders. The company’s proprietary Vivos System integrates clinical diagnostic protocols, three-dimensional imaging, and custom-designed dental appliances to address mild to moderate forms of sleep-disordered breathing through non-surgical, non-invasive means.
The Vivos System comprises a range of custom oral devices, digital workflow tools, and a structured treatment protocol.
