Vivos Therapeutics Unveils New Model

Vivos Therapeutics(NASDAQ:VVOS) reported second quarter 2025 results on August 20, 2025, marking a pivotal shift from its legacy dentist-focused model to a direct, patient-centric sleep center strategy. Revenue declined 6% year over year to $3.8 million, but the recent acquisition of the Sleep Center of Nevada (SCN) contributed $500,000 in service revenue in just 20 days, and management highlighted rapid operational integration and strong patient demand. The company raised $11.5 million in new capital to fund this transition, but operating loss widened to $4.9 million as Vivos Therapeutics invested in scaling its new model.

SCN acquisition drives Vivos Therapeutics' model shift

SCN, acquired in June 2025, historically served over 200,000 obstructive sleep apnea (OSA) patients since 2019, providing a large patient funnel as Vivos Therapeutics transitions away from its legacy VIP (dentist training) revenue. The company reported $500,000 in incremental sleep testing revenue from SCN in just 20 post-close days, and is already expanding facilities and staff to meet demand.

"First, the level of cooperation and buy-in from the existing SCN medical team and support personnel in Nevada has exceeded our expectations. In fact, two of the lead sleep MDs at SCN and their families were among our very first patients. Having the full and unwavering endorsement of the medical team at SCN, who have been waiting for a viable alternative option for CPAP for their patients, is critical to the ultimate success of our model. Second, there appears to be far more OSA patients interested in and willing to accept Vivos Therapeutics, Inc.'s treatment as alternatives to CPAP than we had forecast. So much so that we are already working to expand our physical facilities and also to recruit, hire, and train additional providers and staff in order to handle the patient demand."
— Kirk Huntsman, Chairman and CEO

This early validation of the new model, with strong provider buy-in and patient demand, suggests Vivos Therapeutics could accelerate its transition to a vertically integrated, recurring-revenue business and reduce reliance on legacy dentist enrollment fees.

SO team rollout positions Vivos Therapeutics for scalable growth

The company has developed a sleep optimization (SO) team structure, with each team comprising about 16 cross-functional staff, to address patient backlogs and facility constraints. Management projects deploying 3.5 SO teams in Las Vegas by year-end 2025, with each team potentially able to process up to 250 patients monthly and targeting contribution margins above 50%.

"To quantify this, based on our limited operating experience to date, we believe 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%. Obviously, there will be some ramp-up times associated with each team being able to operate at optimal levels. The existing SO teams are experiencing multi-week backlogs, and there is a sense of urgency to onboard new SO teams as quickly as possible."
— Kirk Huntsman, Chairman and CEO

If the SO team model delivers as projected, Vivos Therapeutics could achieve significant scale and margin expansion, supporting recurring revenue and improved profitability as more teams are deployed in additional markets.

Vivos Therapeutics strengthens liquidity but faces high capital costs

To finance the SCN acquisition and ongoing expansion, Vivos Therapeutics raised $11.5 million net through debt and equity, including capital from major investor Seneca Partners. As of June 30, 2025, the company reported $4.4 million in cash and $21.5 million in total liabilities, with management acknowledging the high cost of current debt but expressing confidence in qualifying for conventional bank lending as revenue predictability improves.

"Well, we always are seeking to reduce the cost of capital. And we realized that the financing that we secured for SCN was very much on the expensive end of the scale. We also realized that we have a model now that we didn't have before that has a certain predictability to it and consistency. And the things that lenders or more conventional financing entities would look for. And so we're always looking to reduce our cost of capital."
— Kirk Huntsman, Chairman and CEO

While leverage is currently high and costly, successful execution of the SO team strategy and improved revenue visibility could enable Vivos Therapeutics to access lower-cost capital and support further acquisitions.

Looking Ahead

Management aims to reach cash flow breakeven in the fourth quarter of 2025, driven by the deployment of additional SO teams and expanded facility capacity. The company plans to have 3.5 SO teams operating at SCN by year-end 2025, expand into Michigan under a new management collaboration, and pursue further sleep center acquisitions and affiliations. No explicit numerical revenue guidance for the third or fourth quarter was provided, but future growth is expected to track the pace of SO team scale-up and market entry.

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This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.