Vivos 2025 Q1 Earnings Revenue Declines Amid Strategic Shifts

Vivos (VVOS) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company's total revenue decreased by 11.8% to $3.02 million compared to the same quarter in 2024. Despite a revenue miss, Vivos remains optimistic about future growth, largely driven by its strategic acquisition plans. The recent acquisition of the Sleep Center of Nevada is expected to bolster revenue and profitability moving forward. Vivos has reaffirmed its guidance and anticipates a cash flow positive status by the end of 2025.

Revenue
Vivos reported a decline in total revenue to $3.02 million for Q1 2025, down from $3.42 million in the prior year. This decrease stems from reduced service revenue due to a strategic shift away from legacy fee revenue. Product revenue reached $1.81 million, driven by $1.27 million from appliances and $540,000 from guides. Service revenue totaled $1.20 million, which included contributions of $223,000 from VIP, $181,000 from billing intelligence services, $323,000 from sleep testing services, $148,000 from myofunctional therapy services, and $328,000 from sponsorship/seminar/other activities.

Earnings/Net Income
Vivos narrowed its losses to $0.45 per share in 2025 Q1, a 72.4% improvement from a loss of $1.63 per share in 2024 Q1. However, the net loss widened slightly to $-3.86 million compared to $-3.76 million in the previous year. While the EPS improvement is notable, the persistent net losses highlight ongoing financial challenges.

Price Action
The stock price of Vivos edged up 2.68% during the latest trading day, climbed 7.75% during the most recent full trading week, and surged 36.00% month-to-date.

Post Earnings Price Action Review
The post-earnings strategy of purchasing VVOS shares when revenues fall short and holding for 30 days has a historical win rate of 60.95% and a loss rate of 17.24%, with a drawdown rate of 21.81%. This approach yields an average profitability of 0.76% per trade, resulting in a total gain of 2.33% over 30 days. Although the strategy shows reasonable performance, the relatively low win rate and drawdown rate suggest inherent risks. Investors should exercise caution as past performance may not predict future outcomes.

CEO Commentary
Kirk Huntsman, Chairman and CEO of Vivos, highlighted the company's strategic pivot towards forming alliances and acquiring sleep medical providers. He emphasized the potential for revenue diversification and sales growth from OSA treatment appliances. The decline in service revenues was attributed to changes in sales strategy, though product sales, notably pediatric guides, showed significant growth. Huntsman remains optimistic about the Sleep Center of Nevada acquisition, viewing it as essential for expanding patient capture, enhancing revenue, and achieving profitability by the end of 2025.

Guidance
Vivos anticipates that the acquisition of the Sleep Center of Nevada will enhance revenue and gross profit shortly, with an expected cash flow positive status by year-end 2025. The company forecasts considerable revenue generation from diagnostic services starting in Q3 2025 and aims to convert a significant percentage of 3,000 monthly tested patients into treatment sales, thereby driving revenue growth.

Additional News
In recent developments, Vivos has entered into a definitive agreement to acquire the Sleep Center of Nevada for up to $9 million in cash and stock, marking a significant expansion in its business model. This acquisition is expected to close within two months and will make Vivos' OSA treatments available to thousands of patients in the Nevada region. Additionally, Vivos has been enhancing its marketing and distribution model, focusing on direct sales and strategic alliances with sleep-focused medical practices. These efforts are expected to diversify revenue streams and expand patient access to Vivos' innovative treatments.