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    VVOS
    Earnings call· Jun 2026(Q2 FY26)

    Vivos Therapeutics Q2 FY26 earnings call VVOS

    Aug 14, 2026 Source

    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

    5

    • 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

    5

    • 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

    4
    CategoryTargetConfidence
    Cash flow positive
    Near the end of 2026 or in early 2027
    high materiality
    Medium
    Positive EBITDA
    Significant positive EBITDA
    high materiality
    Medium
    Cardiology group affiliation revenue
    More than $6 million in annual revenue per team
    medium materiality
    Medium
    Cardiology group affiliation revenue start
    Beginning to generate revenue in Q1 to Q2 2027
    medium materiality
    Medium

    Operational metrics

    36
    Total revenue
    $5.2 millionup 35% YoY
    Q2 FY26

    Compared to $3.8 million in Q2 FY25.

    Total revenue
    $10.3 millionup 51% YoY
    YTD Q2 FY26

    Compared to $6.8 million in YTD Q2 FY25.

    Service revenue
    increased $1.9 million
    Q2 FY26

    Impacted total revenue growth.

    Service revenue
    increased $4.4 million
    YTD Q2 FY26

    Impacted total revenue growth.

    Product revenue
    decreased $0.5 million
    Q2 FY26

    Due to strategic pivot away from VIPs to sleep centers.

    Product revenue
    decreased $900,000
    YTD Q2 FY26

    Due to strategic pivot away from VIPs to sleep centers.

    Oral appliance arches sold
    5,180
    Q2 FY26

    Reflects a shift in product mix.

    Oral appliance arches sold
    10,484
    YTD Q2 FY26

    Reflects a shift in product mix.

    Cost of sales
    $2.2 millionup 29% YoY
    Q2 FY26

    Compared to $1.7 million in Q2 FY25.

    Cost of sales
    $4.3 millionup 33% YoY
    YTD Q2 FY26

    Compared to $3.2 million in YTD Q2 FY25.

    Gross profit
    $3 millionincreased $800,000
    Q2 FY26

    Driven by increased revenue and cost of sales.

    Gross margin
    57%increased from 55%
    Q2 FY26

    Compared to Q2 FY25.

    Gross profit
    $6 millionincreased $2.4 million
    YTD Q2 FY26

    Driven by increased revenue and cost of sales.

    Gross margin
    58%increased from 53%
    YTD Q2 FY26

    Compared to YTD Q2 FY25.

    General and administrative expenses
    $7.1 millionup 11% YoY
    Q2 FY26

    Compared to $6.4 million in Q2 FY25.

    General and administrative expenses
    $6.1 millionup 42% YoY
    YTD Q2 FY26

    Compared to $11.3 million in YTD Q2 FY25. Note: The transcript states 'increased $4.8 million or 42% to $6.1 million as compared to $11.3 million' for 6 months ended this year, which is mathematically inconsistent ($11.3M + $4.8M = $16.1M, not $6.1M). Assuming $6.1M is the correct current period value and $11.3M is the prior period, the increase would be a decrease. Given the context of 'primary driver of this increase related to the costs associated with acquiring and integrating SCN', it's likely the $6.1M is a typo and should be higher, or $11.3M is the current period and $6.1M is prior. I will capture the stated numbers and flag the inconsistency. Transcription note: The transcript states 'increased $4.8 million or 42% to $6.1 million as compared to $11.3 million for the 6 months ended last year'. This implies a decrease from $11.3M to $6.1M, which contradicts 'increased $4.8 million'. I am capturing the stated values as is.

    Sales and marketing expenses
    $200,000decreased $100,000
    Q2 FY26

    Compared to $300,000 in Q2 FY25.

    Sales and marketing expenses
    $400,000decreased $200,000
    YTD Q2 FY26

    Compared to $600,000 in YTD Q2 FY25.

    Depreciation and amortization expense
    increased $200,000
    Q2 FY26

    YoY increase.

    Depreciation and amortization expense
    $1 millionincreased $0.5 million
    YTD Q2 FY26

    YoY increase.

    Other expense
    increased $900,000
    Q2 FY26

    YoY increase.

    Other expense
    increased $2 million
    YTD Q2 FY26

    YoY increase.

    Net cash used in operating activities
    $9.2 millionincreased from $7.3 million
    YTD Q2 FY26

    Compared to YTD Q2 FY25.

    Cash and cash equivalents
    $1.8 million
    as of June 30, 2026

    Not sufficient to fund operations over next 12 months.

    Total liabilities
    $28.1 million
    as of June 30, 2026

    Stated balance.

    ATM shares sold
    694,564
    YTD Q2 FY26

    Through ATM sales agreement.

    ATM program remaining availability
    $2.3 million
    as of June 30, 2026

    Amount available for future sales under the ATM offering.

    SCN legacy CPAP patient population
    16,000
    current

    Estimated addressable population for remote patient monitoring.

    Remote patient monitoring candidates
    5,000 to 7,500
    next 6-12 months

    Estimated candidates for enrollment from SCN's legacy CPAP patient population.

    Net revenue per patient per night
    $40 to $50
    per night

    Estimated for remote patient monitoring program.

    DME-based CPAP program contribution margin
    $150,000 to $250,000
    per month

    Estimated if the program reaches contemplated scale, targeted for early Q4 FY26 launch.

    Insomnia/EEG testing reimbursement
    around $800
    per patient

    Average reimbursement for EEG testing services.

    Henderson facility production capacity
    over $10 milliondoubled
    annually

    New state-of-the-art facility effectively doubled capacity.

    Cardiology group affiliation CapEx
    $800,000 and $1 million
    per affiliation

    Expected capital expenditure for each new cardiology partnership.

    Pediatric OSA patient population
    10 million
    estimated

    Estimated number of children suffering from sleep and breathing disorders.

    SCN to SAMC referral volume
    3 to 4x
    since end of Q2 FY26

    Significant uptick in referrals from SCN physicians to SAMC for treatment.

    Industry KPIs

    2
    MetricValueDetails
    Utilization trends3 to 4xmultiplier
    Same facility volumesover $10 millionUSD

    Deals & partnerships

    2
    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 groupsCollaboration 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

    4
    Going concern doubtNext 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-complianceOngoing

    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 expenseQ2 FY26 and YTD Q2 FY26

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

    Product revenue decline from VIPsQ2 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

    4

    SCN to SAMC referral impact on financials

    Q3 FY26
    Current3 to 4x increase in referral volume since end of Q2 FY26
    TargetProduction 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.

    Q&A highlights

    2

    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 read5 chapters

    Detailed Narrative

    01

    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).

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.