Vivos Therapeutics Reports $3.0 Million Revenue and $3.9 Million Net Loss in Q1 2025

Vivos Therapeutics, Inc. reported a total revenue of $3.0 million for the first quarter of 2025, a decrease of approximately 12% from $3.4 million in the same period of 2024. The decline was primarily driven by a significant drop in service revenue, which fell by $0.5 million, while product revenue saw a modest increase of $0.1 million. The company attributed the decrease in service revenue to a strategic shift away from its traditional VIP enrollment model towards acquiring and operating sleep medicine centers. This transition has resulted in a 75% reduction in VIP enrollment revenue, which amounted to approximately $0.2 million in Q1 2025 compared to $0.9 million in Q1 2024.

In terms of profitability, Vivos reported a net loss of $3.9 million for the first quarter of 2025, slightly higher than the $3.8 million loss recorded in the same quarter of the previous year. The company's gross profit also decreased to $1.5 million, reflecting a gross margin of 50%, down from 57% in the prior year. Operating expenses were relatively stable, totaling $5.4 million, with general and administrative costs remaining consistent at approximately $4.9 million. The company continues to face challenges in achieving positive cash flow, with net cash used in operating activities increasing to $3.8 million from $2.5 million year-over-year.

Vivos is actively pursuing strategic developments, including a pending acquisition of The Sleep Center of Nevada, which is expected to enhance its operational capabilities and revenue potential. The acquisition, valued at $6 million, is anticipated to close in the second or third quarter of 2025, subject to various conditions. This move aligns with Vivos's new business model, which focuses on establishing contractual alliances and acquiring sleep specialty providers to drive sales of its proprietary oral appliances.

Operationally, Vivos has reported a total of 3,736 oral appliance arches sold in Q1 2025, generating approximately $1.8 million in revenue, an 8% increase from the previous year. The company has also expanded its product offerings and distribution agreements, including a collaboration with NOUM DMCC to distribute its products in the Middle East-North Africa region. However, the company has acknowledged that it will require additional financing to support its operations and strategic objectives, raising concerns about its ability to continue as a going concern without securing sufficient capital.

Looking ahead, Vivos remains focused on refining its business strategy and enhancing its market presence through acquisitions and partnerships. The company is also evaluating its revenue recognition practices as it transitions to its new business model. Despite the challenges faced in the first quarter, Vivos aims to leverage its acquisitions and strategic alliances to improve patient access to its products and services, ultimately driving revenue growth and achieving profitability in the future.