Vivos 2025 Q3 Earnings Record Revenue Surge Despite Widening Losses

Vivos (VVOS) reported a 75.7% year-over-year revenue increase to $6.78 million in Q3 2025, driven by strategic acquisitions and operational shifts. However, the company’s net loss expanded to $5.4 million, a 106.4% increase from 2024 Q3, as management emphasized continued investment in growth initiatives.

Revenue

Total revenue surged 75.7% to $6.78 million in Q3 2025, with service revenue and product segments contributing significantly. Product revenue reached $2.19 million, while service revenue totaled $4.59 million, led by sleep testing services ($2.56 million) and treatment centers ($1.32 million). Notably, VIP and billing intelligence services added $82,000 and $184,000, respectively, while guides and appliances generated $790,000 and $1.41 million.

Earnings/Net Income

The net loss widened to $5.4 million in Q3 2025, a 106.4% increase from the $2.62 million loss in 2024 Q3, with a 22.5% year-over-year decline in earnings per share to -$0.49. The EPS reflects ongoing financial challenges, with losses deepening despite revenue growth.

Post-Earnings Price Action Review

The strategy of buying Vivos shares on the date of its revenue raise announcement and holding for 30 days yielded positive returns over the past three years, with a cumulative 17.5% gain and a 11.9% maximum drawdown. This historical performance suggests a robust short-term strategy for capturing earnings-driven movements in VVOS shares.

CEO Commentary

CEO R. Huntsman highlighted Q3 2025 as a “watershed quarter,” driven by the acquisition of the Sleep Center of Nevada (SCN) and a pivot to a medical practice acquisition model. He emphasized scalability through Sleep and Airway Medicine Centers (SAMC) and optimism about 50%-60% contribution margins at steady state, despite upfront costs for team expansion and credentialing delays.

Guidance

Management expects revenue growth to outpace expenses in coming quarters, with contribution margins targeting 50%-60% for SAMC operations. While no specific quantitative targets were provided, the company aims for cash flow breakeven as profit accretion from new centers offsets infrastructure costs.

Additional News

1. M&A Activity: Vivos completed the $6 million acquisition of The Sleep Center of Nevada (SCN), a key pivot to direct patient treatment and diagnostic revenue capture.

2. C-Level Changes: Michael E. Bruhn and Dr. Terry Jones joined as Executive Vice President of Business Operations Integration and Senior Vice President of Human Resources, respectively, to support expansion.

3. Product Approval: The VidaSleep™ oral appliance received Medicare approval for treating mild to moderate OSA, expanding access to 55 million beneficiaries and reinforcing Vivos’ market position.

Revenue and Strategic Shifts

The acquisition of SCN and expansion of Sleep and Airway Medicine Centers (SAMC) positioned Vivos to capture diagnostic and treatment revenue directly, a departure from its prior reliance on dental distribution channels. This pivot, combined with increased service revenue from sleep testing and treatment centers, drove the 76% year-over-year revenue growth.

Earnings and Operational Costs

Despite robust revenue, operating expenses rose to $8.7 million in Q3 2025, reflecting upfront costs for team expansion, credentialing, and infrastructure. Management acknowledged these costs as temporary, with expectations of improved operating leverage as SAMC centers scale.

Price Volatility and Investor Sentiment

The stock fell 17.19% month-to-date following earnings, though historical data suggests a 30-day holding period after earnings announcements has historically yielded positive returns. Analysts remain divided, with two firms issuing “Buy” ratings but no sell-side coverage.

Future Outlook

Vivos plans to expand SAMC operations, launch pediatric OSA programs, and replicate its model through affiliations. Management emphasized partnerships with cardiology practices and a focus on optimizing provider credentialing to accelerate revenue growth.