Can you define the current quarterly revenue for the insomnia/EEG program and explain the reimbursement pathway?

The reimbursement pathway for EEG testing services is strong, with broad insurance participation in Nevada and average reimbursements around $800 per patient for testing. It's too early to define quarterly revenue for the program or the reimbursement levels for the actual insomnia treatments, which can include Vivos oral appliances. “So far, so good with the reimbursements. We're seeing broad participation of insurance payers in the Nevada market, in particular, for the EEG testing services with average reimbursements running around $800 plus or minus.”

VVOS

Vivos Therapeutics (VVOS) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 14, 2026

Source: earnings call transcript

Executive summary

Vivos Therapeutics Q2 FY26 — Strategic Pivot Drives Revenue Growth Amidst Going Concern Warning

Vivos Therapeutics reported significant revenue growth in Q2 FY26, driven by its strategic pivot towards sleep centers and service-based offerings, particularly through the Sleep Center of Nevada (SCN) acquisition. The company is actively pursuing multiple initiatives, including remote patient monitoring and DME-based CPAP programs, to establish recurring revenue streams and achieve cash flow positivity by late 2026 or early 2027. Despite operational progress and an expanding gross margin, the company faces substantial financial headwinds, including a going concern warning and NASDAQ non-compliance, necessitating additional financing.

Highlights

Total revenue increased by $1.3 million or 35% to $5.2 million for Q2 FY26, driven by service revenue.
Service revenue increased by $1.9 million in Q2 FY26, primarily from sleep testing services and Vivos treatment at SCN locations.
Gross profit increased by $800,000 to $3 million in Q2 FY26, with gross margin expanding to 57%.
SCN patient volume continues to grow, with referrals to SAMC increasing 3 to 4x since the end of Q2 FY26.
New state-of-the-art Henderson, Nevada facility effectively doubled production capacity to over $10 million annually.

Concerns

The company incurred losses of $5.5 million in Q2 FY26 and $13.3 million year-to-date, resulting in an accumulated deficit of $138 million.
Product revenue decreased by $0.5 million in Q2 FY26, primarily due to a $1.1 million decrease in appliance sales to VIPs.
The company had only $1.8 million in cash and cash equivalents as of June 30, 2026, raising substantial doubt about its ability to continue as a going concern.
Vivos is not in compliance with NASDAQ's minimum stockholders' equity requirement ($2.5 million), facing potential delisting.
General and administrative expenses increased by $700,000 or 11% to $7.1 million in Q2 FY26, mainly due to SCN acquisition and Vivos treatment centers.

Guidance & targets

Category	Target	Timeline	Confidence
Cash flow positive	Near the end of 2026 or in early 2027 high materiality	FY26-FY27	Medium
Positive EBITDA	Significant positive EBITDA high materiality	FY27	Medium
Cardiology group affiliation revenue	More than $6 million in annual revenue per team medium materiality	Annual	Medium
Cardiology group affiliation revenue start	Beginning to generate revenue in Q1 to Q2 2027 medium materiality	Q1 · FY27	Medium

Deals & partnerships

Sleep Center of Nevada (SCN) Acquisition of a sleep center to build a broader clinical platform and add recurring revenue.

Acquired in June 2025, serving as a key part of the strategic pivot.

Cardiology groups Collaboration opportunities to extend operating model and serve more patients.

Actively pursuing options in Arizona and Florida. Each requires $800,000-$1 million in CapEx.

Risks & headwinds

Going concern doubt Next 12 months

Accumulated deficit of $138 million as of June 30, 2026; $1.8 million in cash and cash equivalents as of June 30, 2026, not sufficient to fund operations over next 12 months.

Mitigation:Implemented cost savings measures, funded operations through equity raises, seeking additional financing.

NASDAQ non-compliance Ongoing

Stockholders' equity less than $2.5 million as of December 31, 2025, and June 30, 2026.

Mitigation:Seeking to regain compliance by raising new equity funding and reducing costs; acknowledges potential delisting proceedings.

Increased interest expense Q2 FY26 and YTD Q2 FY26

Other expense increased $900,000 for Q2 FY26 and $2 million YTD Q2 FY26.

Product revenue decline from VIPs Q2 FY26

Product revenue decreased $0.5 million in Q2 FY26, primarily due to $1.1 million decrease in appliance sales to VIPs.

Mitigation:Strategic pivot away from VIPs to sleep centers.

What to watch in Q3 FY26

SCN to SAMC referral impact on financials

Q3 FY26

Current 3 to 4x increase in referral volume since end of Q2 FY26

Target Production from these referrals impacting financial results

Why it matters

This indicates the success of the integrated model and its ability to convert diagnostic patients into treatment revenue, which is key to the company's growth strategy.

Just since the end of the second quarter, we have been seeing 3 to 4x as many patients being referred by SCN physicians and nurse practitioners over to SAMC for treatment. We expect to see production from these referrals begin to impact our financial results in the third quarter.

Find out whether VVOS delivers this. Inve re-checks your case every morning.

Q&A highlights

What is the capital requirement for each cardiology partnership, and when can revenue be expected?

Each cardiology partnership will require between $800,000 and $1 million in capital expenditure. Revenue generation is expected to begin in the first or second quarter of 2027.

“So we would expect that each of those will require CapEx of between $800,000 and $1 million. And we would see them beginning to generate revenue in the first part of -- the first quarter to second quarter of 2027.”

asked by Katherine Degen · answered by R. Huntsman

2 min read 5 chapters

Detailed narrative

Strategic Pivot and SCN Integration

Vivos Therapeutics has successfully pivoted its sales, marketing, and distribution model, moving away from VIPs towards sleep centers, exemplified by the acquisition of Sleep Center of Nevada (SCN) in 2025. This strategic shift has driven significant increases in service revenue, with SCN contributing a full year of operations to the Q2 FY26 results.

The company views SCN as a platform to build broader clinical services, add recurring revenue streams, and expand capacity, integrating diagnostic services with treatment options at its Sleep and Airway Medicine Centers (SAMC).

Recurring Revenue Initiatives

The company is launching several initiatives aimed at generating recurring revenue. These include remote patient monitoring for an estimated 16,000 existing CPAP patients from SCN, with 5,000 to 7,500 candidates for enrollment over the next 6-12 months, potentially generating $40-$50 net revenue per patient per night.

Additionally, a wholly-owned DME-based CPAP program is targeted for early Q4 FY26, with an estimated contribution margin of $150,000-$250,000 per month at scale. These programs are crucial for the company's path to cash flow positivity.

Capacity Expansion and Clinical Programs

Vivos has expanded its infrastructure to support growing patient volumes, including the opening of a new state-of-the-art Henderson, Nevada facility that effectively doubled production capacity to over $10 million annually. The insomnia/EEG testing and treatment program at SCN is also growing rapidly, with average reimbursements of approximately $800 per patient for testing.

The pediatric OSA testing and treatment program is showing significant progress, with hundreds of children receiving treatment, addressing an estimated 10 million children suffering from sleep and breathing disorders in the US.

Cardiology Group Collaborations

Vivos is actively pursuing collaboration and partnership opportunities with large cardiology groups in Arizona and Florida, expecting to finalize negotiations soon. Each affiliation is projected to require $800,000 to $1 million in CapEx and could generate over $6 million in annual revenue with 40-50% contribution margins once fully developed.

These partnerships are expected to begin generating revenue in Q1 to Q2 2027 and extend the operating model across additional affiliation opportunities nationwide.

Financial Performance and Challenges

In Q2 FY26, total revenue grew 35% to $5.2 million, and gross profit increased to $3 million, with gross margin expanding to 57%. However, the company reported a net loss of $5.5 million for the quarter and $13.3 million year-to-date, resulting in an accumulated deficit of $138 million.

With only $1.8 million in cash, Vivos faces a going concern risk and is non-compliant with NASDAQ's minimum stockholders' equity requirement, necessitating additional financing to avoid delisting.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.