Full Year 2025 Vivos Therapeutics Inc Earnings Call

April 15, 2026

<unk> full year 2025 earnings conference call at.

At this time all participants are in a listen only mode. A question and answer session will follow management's remarks. This conference call is being recorded and a replay of today's call will be available on the Investor Relations section that'd be dose ESCO upsides and will remain posted Barracuda next 30 days.

I will now hand, the call over to Brad Allen Chief Financial Officer for introductions and the reading of the Safe Harbor statement. Please go ahead.

Thank you operator, Hello, everyone and welcome to our 2025 conference call.

Copy of our earnings press release is available on the Investor Relations section of our website at Www Dot vivo dot com.

With me on the call today is Kirk Huntsman vivo as chairman and Chief Executive Officer.

Today, We will review the financial results for the full year 2025, as well as more recent developments and <unk> plans for 2026 and beyond.

Following these formal remarks, we will be happy to take questions. I would also like to remind everyone that today's call will contain forward looking statements from our management made within the meaning of section 27, a of the Securities Act of 1933 as amended and section 21 E.

Of the Securities and Exchange Act of 1034 as amended concerning future events.

Words, such as aim MAGE could should projects expects intends plans believes anticipates hopes estimates goal and variations of such words and similar expressions are intended to identify forward looking statements.

These statements involve significant known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant risks and certainties uncertainties contingencies.

Many of which are beyond the company's control.

Actual results, including without limitation the results of <unk> growth strategies operational plans, including sales marketing distribution medical sleep provider acquisition and integration research and development.

Regulatory initiatives cost savings plans and plans to generate revenue as well as future potential results of operations, our operating metrics such as the potential for vivo to achieve future positive cash flows or profitability.

And other matters to be addressed by vivo management in this conference call may differ materially and adversely from those expressed or implied by such forward looking statements.

Factors that could cause actual results to differ materially include but are not limited to the risk factors described and other disclosures contained in <unk> filings with the Securities and Exchange Commission, including the risk factors and other disclosures in our Form 10-K for the year ended December 30 <unk>.

<unk> 2025, which was filed with the SEC today are interim quarterly reports and other filings with the SEC all of which are or will be accessible on the investor Relations section of the <unk> website as well as the Sec's website.

Except to the extent required by law <unk> assumes no obligation.

To update statements as circumstances change.

Finally, please be aware that the U S food and drug administration has given certain specific veeva appliances, five 10-K clearance to treat mild to severe OSA with the FDA clearance of certain veeva products for severe OSA in November 2023, and moderate to severe OSA and <unk>.

Children Ages six to 17 years of age in September of 2024.

Treatment of patients with severe OSA with these specific appliances is no longer needed to be performed off label at the clinical discretion of the treating doctor and is now an integral part of the Beavis treatment protocol.

Treatment of OSA of any severity or any other condition.

With any other of vivo us FDA cleared devices remains at the clinical discretion of the treating doctor.

For further information on our results for the years ended December 31, 2025, and 2024. Please see our earnings release, which was distributed earlier today and our annual report filed on Form 10-K, which is available on the SEC filings portion of the Investor Relations section.

Of our web site.

With that I'll turn to a discussion of our 2025 year end results.

In the fourth quarter of 2025 vivo completed its second full quarter of activity. Following our June 10th 2025 acquisition of the sleep Center of Nevada.

Demonstrating that our pivot of our sales marketing and distribution model has taken hold.

Overall revenue was positively impacted by the sales strategy shift and focus towards sleep center affiliations.

The full year 2025 revenue increase of $2 4 million or 16% was due primarily to an increase of approximately $4 8 million in sleep testing services and an increase of approximately $2 $2 million of revenue generated from the treatment to patients.

<unk> launched at two of <unk> seven sleep center locations.

The increase in revenue during the year was partially offset by the decline in product revenue to our legacy VIP Dennis of approximately $1 $4 million in appliance and tooth position our sales.

Additionally, we had a decrease in service revenue of approximately $2 million in our VIP Rolling revenue and a decrease of 700000 in sponsorship conference and training related revenue.

As we pivoted our business model to a medical provider focused business strategy and reduced our dependence on enrolling in training VIP Dennis to sell our products.

We fully expected revenue from these legacy programs to decline.

For the year ended December 31 2025.

We sold 25441 oral appliances and to physicians for a total of approximately $6 5 million an 18% decrease decrease in revenue from the year ended 2024, when we sold 16182 oral clients and tooth position us for a total of <unk>.

One $9 million.

The revenue decrease is directly attributable to a increase in discounts offered during the same period with $1 $6 million in discounts offered during the year ended December 31, 2025, when compared to approximately $200000 of discounts offered during the year ended 2024.

Sure.

Coupled with an increase in tooth position our sales.

Lower price point product when compared to give us more advanced appliances.

We will discuss this more in a bit but now that we've gotten through the initial integration phase of SDN.

Including the achievement of critical insurance coverage for our more advanced OSA appliances, we are expecting more revenue from higher price point products in 2026 and beyond.

Cost of sales increased by approximately $900000 or 15% to $6 9 million for the full year ended 2025 compared to $6 million for the year ended 2024.

This was primarily due to approximately $1 $1 million and higher costs in diagnostic services related to new sleep center affiliations and an increase of a half a million dollars related to additional staff associated with the sleep center affiliations in both Nevada and our Detroit.

Affiliated center.

Gross gross product gross profit was $10 5 million for the full year ended December 31, 2025, compared with $9 million for the full year ended.

December 31, 2024, an increase of 17%.

The 17% increase in gross profit during the full year 2025, compared to 2024 was attributable to an increase in revenue of approximately $2 4 million offset by an increase in cost of sales of $900000.

Gross margin remained constant at 60% for the years ended December 31, 2025 and 2024.

Operating expenses for the first for the full year ended December 31, 2025 were $30 4 million compared to $20 2 million for the full year ended 2024. This.

This increase resulted primarily from an increase in general and administrative expenses related to our new model.

General and administrative expenses increased $9 8 million to $27 7 million for the year ended 12, 31, 2025 compared to approximately $17 9 million for 2024.

This increase was primarily due to $6 $7 million and costs associated with running at CN operations and related vivo treatment centers.

In addition, we incurred approximately $1 $6 million related to professional fees, most of which were one time expenses and 800000 associated with salaries and wages and vivo personnel.

As well as in our infrastructure cost.

Approximately $600000 when compared to the year ended December 31 2024.

Sales and marketing expenses decreased by $300000 to $1 4 million for 2025 compared to $1 7 million.

For 2024.

This decrease was primarily driven by a $200000 decrease in commissions as well as $100000 decrease in can mention and trade show expenses.

This is again attributable to our focus on bringing SCN online rather than our legacy business model.

Depreciation.

<unk> and amortization expense was approximately.

$1 $3 million for the year ended 2025 compared to $600000 for the year ended 2024.

Depreciation and amortization.

Increased due to an increase in depreciable assets related to the <unk> asset acquisition and additional depreciation on affiliations model assets.

For the full year ended December 31, 2025, our net loss increased to $21 $2 million, reflecting higher costs of our strategic transition during the year.

Approximately $1 4 million of expenses were one time out of pocket costs.

In addition resources were used in recruiting and training staff right sizing the team in anticipation of demand and procuring space and equipment requirements.

Regarding cash flow.

Net cash used in operating activities amounted to approximately $15 3 million and $12 7 million for the years ended December 31, 2025 and 2024.

Respectively.

As of December 31, 2025, we had total liabilities of approximately $226 $7 million compared with $7 3 million as of December 31, 2024, reflecting the debt, we incurred to acquire and fund SCN.

As of December 31, 2025, we had approximately $2 million in cash and cash equivalents set subsequent to the end of fiscal year 2025 on January 16, 2026, we announced that we raised $4 $6 million in gross proceeds.

From a warrant inducement transaction.

On April seven 2026, we announced the completion of a private placement with our existing private equity investor New Seneca partners raising gross proceeds of.

Two and a quarter million dollars.

These financings bolstered our post year end stockholders equity, which we need to continue to augment with additional equity financing in order to stay in compliance with nasdaq's minimum stockholders' equity requirement.

In summary, we're seeing significant increases in revenue, reflecting the acquisition of SCN and related treatment revenue from providing.

Providing patients with OSA treatment options, which is extremely encouraging.

We are also seeing increased costs from hiring SDN personnel on the diagnostic side.

As well as additional hiring on the treatment side.

We believe the strategic move to acquire SCN and other potential affiliate alliances and acquisitions set the stage for stronger performance in the coming quarters.

For more detailed information I refer you to.

To our earnings release, and our full Form 10-K filed today.

With that I'll now hand over the call to our chairman and CEO, Kurt <unk> to discuss the progress we have made to date on SDN or Detroit affiliation and our business generally.

Kirk Thank you Brad.

Thank you Brad.

Good afternoon, everyone and thank you for joining us on today's conference call.

After many years of actively searching for a business and distribution model capable of more fully realizing the monetary and profit potential of our advanced proprietary technology. We are pleased to announce today that we are beginning to see the emergence of the very kind of improved financial results, we always believe where possible.

As we moved to acquire sleep centers of Nevada in June of 2020.

We said, we believed that our new business and distribution model could deliver impressive financial returns for the company as many more patients will be exposed to in select b was treatment.

And whereas the company would at the same time.

We have far superior economics, as compared to our legacy VIP model.

Today, we are pleased to report that our MSA DSO providers support model as implemented at SCE and Theyre in Las Vegas has proven to be everything we expected to be at.

As a result of our emerging momentum and success in Las Vegas at CN.

Any other revenue and profit opportunities are also emerging which we believe will further grow and expand our top line revenue with strong margins and enhance patient outcomes.

Thus 2025 was it was a pivotal year for <unk> a.

A year in which we proved our core thesis around patient demand and preference for Opdivo method over other more traditional treatment modalities, such as CPAP or surgery.

A year in which we experienced strong clinical support and endorsement from actual medical sleep specialists.

A year in which we take great strides forward with insurers towards providing more comprehensive coverage for our treatments and a year in which our pathway forward came boldly and clearly into focus.

As Brad mentioned in 2025, we grew full year revenue by 16%.

Something we regard as quite an achievement considering that much of our financial gains from the SCN transaction were directly offset by revenue losses attributable to our strategic pivot away from our prior market selling through dentists we.

We also maintained gross margin despite significant ramp up investments.

In our sleep testing and treatment services and the integration of the Sleep Center, Nevada.

So.

While our 2025 operating loss includes material onetime upfront investments in this new model.

We believe these actions together with recently announced significant cost savings initiatives.

And strengthened capital structure have now positioned diebold to drive higher top line growth better contribution margins and a clear path forward towards our goal.

Cash flow positive operations by the end of this year.

Of course in June 2025, we completed the acquisition of <unk> and have been ramping up our operations there in Las Vegas.

Generally speaking what we found there since closing the transaction in early June has been extremely encouraging.

We note that the enthusiastic endorsement of devens treatments by medical specialists at CN, who have been patiently waiting many years for a viable alternative option to CPAP for their patients has been critical to our ultimate success in that market.

Thus far we are seeing many more OSA patients from FCS, who are interested and willing to accept Ebola treatment as alternatives to CPAP and we had forecast.

So much so that we have expanded the physical facilities and.

Also our staffing and number of clinical providers to handle the patient demand.

No doubt it has taken time investment and hard work to integrate <unk> into our operations.

And more work remains to be done.

Put simply.

These important efforts are starting to pay off.

Notably, we recently announced that SDN has received notices of in network status with a number of commercial health insurance payers.

Along with participating status with Medicare.

We believe this major development along with the addition of several newly trained providers will positively impact patient access to our patented and proprietary OSA treatments and modalities and the resulting top line revenue and gross profitability from operations in that market.

The insurance payers now covering our season operations collectively cover a substantial portion of the insured population in the greater Las Vegas Metropolitan area, representing what we believe to be a significant addressable patient population.

Both OSA testing and treatment.

Central to our efforts to build revenue momentum across all markets has been our creation of what we call sleep optimization or so teams. Each team consists of approximately 16 medical dental and support staff, who are all specially trained and equipped by vivo.

The primary focus of each team is to ensure that each and every patient is fully informed and educated about all treatment options and what might be best for their condition and situation.

And to assist them in getting into their treatment of choice, which most of the time involves treatment.

From Devos products and services.

Our operational growth plan is driven by the deployment of our teams each consisting of windows practitioner or physician's assistant.

<unk> specially trained dentists employed by an independent medical or dental professional corporation.

Six dental assistance six administrative support personnel and one treatment navigator.

So teams can be dedicated to high demand locations or spread across multiple locations as circumstances dictate.

We currently have approximately one and a half so teams deployed across two SCN locations and expect to have additional partial or whole teams deployed during 2026.

We anticipate an initial ramp of up to 60 days for <unk> Sant teams to become fully functional and up to six months or longer before net revenue collections matched revenue generating activities, such as OSA diagnostic services or OSA treatments case starts.

Based on the volume of OSA patient demand, we believe the current addressable market served by SDN could support several additional teams, especially if certain planned growth initiatives and patient referrals meet expectations.

Such initiatives include but are not limited to <unk>.

The expansion of diagnostic and treatment services <unk>.

The establishment and rollout of our pediatric OSA program.

And the collaboration with certain specialty medical groups, who treat patients with co morbid OSA.

We lack the ability to test evaluate and treat such patients within their existing practice environments.

Keep in mind that there are well over 240000, OSA patients that have been tested and seen by SDN providers since 2019.

Based on our experience to date, we believe our limiting constraints for near term revenue growth that <unk> seen have been one <unk>.

Insufficient physical space to see an optimal number of patients.

To inadequate number of providers and staff recruiting training and Onboarding.

Three customary issues with third party payer credentialing.

At the end of 2025, our operations at the two SCN locations, we have on boarded with fully booked for appointments through April of 2026.

And we were processing, what we believe will less than 40% of patients attempting to get appointments for treatment.

Our two greatest barriers to servicing more oil OSA patients at that time, where a lack of diebold trained providers and delays in obtaining full access to most major insurance carriers.

As I mentioned, we have made good progress in both areas since then.

No. Further work remains we are working to fully meet current demand by adding and so T teams further insurance participation access being granted an additional facility space is made ready.

We view this as significant upside potential for vehicles.

Our initial average case revenue an acceptance rate for <unk> treatment of CN to date based on a limited number of limited period of operations at two events in seven locations suggests that <unk> could potentially generate collections well in excess of 500000 per month.

Net of adjustments with contribution margins well above 50%.

In addition to the Diebold.

<unk> died.

Diagnostic and treatment options, we expect to be able to offer SCN patients additional diagnostic and treatment services that could generate and will generate we expect additional revenue.

Our operational experience in Las Vegas at CN.

It's proving to be invaluable in terms of providing numerous additional revenue and profit growth opportunities and also position us as the clear market leader with several competitive advantages.

No other sleep testing or treatment center in Nevada or elsewhere in the United States offers patients the full range.

Treatment options, including the ability to rehabilitate and restore their airway health like we do.

Nor does any other testing or treatment center.

Offer patients the kinds of adjunct of treatments.

And services that we offer such as C O two laser treatments smartphone and chemotherapy.

In home EEG testing, where alternative treatments for insomnia and <unk>.

Yes, a daytime drowsiness.

Chronic sinusitis or other sleep disorder related conditions.

We believe our particular combination of such services represents a much needed evolution over the traditional CPAP only type treatments that are currently the norm across the United States today.

Each of those services enhanced patient care and clinical outcomes, while adding significantly to our overall revenue and profit potential.

Perhaps most importantly, as news of our relationship with SDN has spread throughout the medical community.

We have begun fielding inquiries from across the United States from rather large medical specialty groups, such as cardiologists neurologists functional medicine doctors primary care groups hospitals, and others and while each may have their own individual reasons for reaching out they all tend to share one.

Thing in common.

A large majority of their patients have obstructive sleep apnea and their OSA is rendering whatever other health conditions. They may have such as diabetes cardiovascular disease hypertension, Alzheimers depression et cetera, much much worse.

One prominent cardiologist recently said to me quote.

For obstructive sleep apnea is cardiovascular disease.

We now know that and.

And it is wrecking, our cardio interventions and killing our patients prematurely if they don't get the help they need to identify and treat it close quote.

These groups all say basically the same thing.

But they are not sleep specialists, and thus are well prepared to treat their patients sleep and breathing disorders, they need someone else to handle for them and <unk> is very well positioned to do just that.

We are currently exploring partnering and affiliation opportunities with several medical specialty groups in various parts of the United States.

Each of these groups report treating between 20040 thousand patients per month within their specialty and.

And tell us that they believe 85% to 90% of those patients also have obstructive sleep apnea with most of them diagnosed and treated.

Creating these affiliations and optimizing them will come with financing with financing and other challenges such as we've dealt with it at CN.

Prospect of replicating our new model around the country has us excited.

One significant benefit of our affiliation model as opposed to our acquisition model is that it is much more capital efficient.

On a pure acquisition model.

Typical capital outlays for an affiliation are under $1 million a piece.

While similar sized acquisitions may require 10 to 15 times as much capital.

Moreover, affiliations typically preserve about 75% to 80% of the economics for the company.

Typically in each affiliation we will seek to collaborate with them.

With local medical groups to enhance the diagnosis and treatment of their patients with OSA through our regular quarterly compliant services and support model suited to each circumstance, but largely patterned after our sleeping airway Medicine Center, what we call Sam C model in Nevada with SDN.

We believe this AMC model not only meets the clinical and medical requirements of both patients and providers, but also presents significant revenue generating opportunities for <unk>.

Or reference our revenue per case in Nevada.

Averages just under $5000 with contribution margins above 50%.

We expect those figures to improve further as we continue to rollout additional diagnostic and treatment modalities.

Some of which are already underway.

I would also like to take the opportunity to point out some significant progress being made by our research and development team.

Led by Dr. <unk> at our homes Ranch clinic in Colorado.

Her team's efforts there are showing what we believe are unprecedented and consistently positive clinical outcomes for patients with sleep and breathing disorders, many of whom are seriously ill and desperate for help.

And who would typically flown in from all around the world to receive treatment there in Colorado.

We firmly believe that through the efforts of doctors doctors small these team in Colorado significant diagnostic and clinical breakthroughs are being made such that later this year and throughout 2027, we expect to begin publishing key case studies and clinical results.

In December we announced the Grand opening of our latest Samsung Center near Detroit in Auburn Hills, Michigan.

Our opening in Auburn Hills signals, the continuation of <unk> national expansion strategy to leverage commercial affiliations with high volume sleep clinics and positioning sleep and other medical practices to bring devos. This proprietary line of FDA cleared diagnostic and therapeutic products and services to tens of millions.

<unk> from OSA and related health conditions as I just referenced.

We believe our new affiliation models will be very attractive to both medical specialty groups and more than 2600 accredited sleep center operators and owners around the country.

Who may not want to be acquired.

But may also may instead be looking to grow their business and referral networks by offering a highly differentiated treatment package to OSA patients.

We have several.

Growth initiatives planned for 2026, and beyond which have the potential to further increase our growth and current.

In our print and new markets.

Such initiatives include the expansion of diagnostic and treatment services, the establishment and rollout of our pediatric OSA program.

And the collaboration with certain specialty medical groups, who treat patients with comorbid OSA.

<unk> the ability to test evaluate and treat such patients within their existing practice environments.

Importantly, we have designed our model to be readily expanded and adapted to other locations throughout the United States.

Our M&A team continues to field calls and inquiries from both acquisition and affiliation prospects around the country as.

As previously mentioned we are currently in negotiations with several potential affiliation candidates in various key markets.

Given our experience with SDN, we believe these opportunities should be similarly accretive.

In summary.

We believe our initial results with SDN are a strong indication.

Of the potential upside for <unk> as.

As we roll forward, we expect to continue to modify and refine our model to make it even more efficient with the potential for even higher revenue and better gross margins.

Furthermore, we fully expect that this model, including the potential for both acquisitions and affiliations.

His highly replicable and scalable across multiple markets as it expands we expect it will continue to be highly accretive to top line revenue growth as well as create the potential for cash flow positive operations and bottom line profitability.

We believe that this methodical effort patiently executed over time has put <unk> in a much better position to realize the full potential of our technological advantage and industry, leading products and services.

Most importantly, perhaps we believe this new model, we will now begin to help improve the lives and health of many more patients who have up until now not have access to the kind of life changing treatment that we provide.

For all of US here at vivo that mission of improving lives and providing fresh hope to the tens of millions of Americans, who suffer from breeding to sleep disorders is what drives us each and every day.

Now that we found a business model to match the superiority of our technology those aspirations are becoming a reality and it feels great.

That concludes our prepared remarks, now we'll be happy to take questions operator.

Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the London, a touchtone phone.

Should you wish to cancel your request. Please press star followed by the tail.

If you are using a speaker Cowen please lift the handset before pressing any case.

Once again that is star one should you wish to ask a question.

Your first question is from Scott Henry from AGP. Your line is now open.

Thank you and good afternoon.

A lot of moving parts with the new business model.

Just an observation followed by questions.

Obviously, you did about $6 8 million in Q3, which dropped to $3 8 million in Q4, if I back out the three quarters, assuming that's accurate.

Hi.

Two questions one what happened in Q4.

To make it lower than Q3 and two.

We're already in April what are your thoughts on on Q1 do you expect it to look more like the third quarter or the fourth quarter.

Thank you.

Okay, Great question Scott.

So listen our our new model is highly dependent upon total doctor days, we have to have providers, who show up and they are available to treat patients and when providers are absent or provider, where we have insufficient numbers of providers then that our production.

In Q4, if I back out the three quarters, assuming that's accurate.

<unk> necessarily declines and Thats exactly what we experienced in Q4.

Hi.

Two questions one what happened in Q4.

We had some challenges with some of our our existing.

To make it lower than Q3 and two.

Existing at the time, our existing provider groups more specific most business specifically our dentist. So we had some dentists have.

We're already in April what are your thoughts on.

On Q1 do you expect it to look more like the third quarter or the fourth quarter.

That family problems some of them had health issues some of them had travel constraints.

Yeah.

Okay, Great question Scott.

We just had.

And unexpected and unforeseeable.

Set of.

Circumstances that whereby we lost a lot of provide we lost a few providers that we didnt expect to lose in.

We set about immediately trying to recruit and train, but that that doesn't happen overnight and so throughout the fourth quarter, we struggled with that issue we remedied it we recruited.

<unk> necessarily declines and that's exactly what we experienced in Q4.

We had some challenges with some of our our existing.

Existing at the time, our existing provider groups are more specific most business specifically our dentist. So we had some dennis have.

In excess of number of what we believe in excess of number of providers. So we have some redundancy now and as we move into Q1 and especially as we go further into Q2 here.

Bad family problems some of them had health issues some of them had travel constraints and and we just had.

We feel very very good some of those providers to replace the ones that we lost were.

An unexpected and unforeseeable.

They came on throughout the quarter in Q1, so the full impact of having replaced these doctors and replace the Doctor base will start to be seen towards the end of Q1, and then into Q2, but that's a great question and I think it highlights.

Set of.

Circumstances that whereby we lost a lot of provide we lost a few providers that we didnt expect to lose in.

We set about immediately trying to recruit and train, but that that doesn't happen overnight and so throughout the first fourth quarter, we struggled with that issue we remedied it we recruited.

Some new dynamics of our model, which we have to have sufficient Dennis in network with payers and having them producing every single day when a dentist doesn't show up for a day. It can be it can be 15, 20, $30000 or more of lost production lost productivity. So if you have just a few.

In excess of number of what we believe in excess of number of providers. So we have some redundancy now and as we move into Q1 and and especially as we go further into Q2 here. We we feel very very good some of those providers to replace.

Two days a week.

Doctors, who you've lost Dr days with it can make a significant.

Impact on your your monthly revenue is pretty quick and that's what happened in Q4.

Okay. So it sounds like we should see some improvement in Q1, but the bulk of it probably in Q2.

Yes, and Theres a couple of reasons for that it's Doctor days as I mentioned and it's also as we got towards the end.

Q1, Scott Youll see that in February or I'm, sorry in March we announced that we had in network access we've been granted in network access with a number of of Payors will that in network access just started to fold into the revenue productivity.

Screen in the latter part of Q1 so.

Yes for all of those reasons, you'll see it start to fold into Q Q1, but most of the impact is going to be in Q Q2 forward, but it's a significant change both of those things combined are significant.

And that's what happened in Q4.

Okay. So it sounds like we should see some improvement in Q1, but the bulk of it probably in Q2.

And Theres a couple of reasons for that.

Okay and then.

It's Doctor days as I mentioned and it's also as we got towards the end.

You mentioned.

Possibly being cash flow positive exiting 2026.

Q1, Scott Youll see that in February or I'm, sorry in March we announced that we had in network access we've been granted in network access with a number of.

What kind of quarterly revenue run rate would you need to to achieve that goal.

Our products add units, Brad you want to take that.

Payers will that in network access just started to fold into the revenue productivity stream in the latter part of Q1 so.

Yeah.

This.

Analysis.

<unk>.

Canoe increase as well as.

Reducing as you heard in our last.

Sure.

Our press release.

Trimmed some legacy VIP.

Cost so it's not just revenue, but theres costs associated as well.

Okay.

Dan.

You mentioned.

We were.

Possibly being cash flow positive exiting 2026.

Yes, 17 million for 2025.

Roughly by on a run rate basis, we need to be.

What kind of quarterly revenue run rate would you need to achieve that goal.

Close to double that.

Our products add unit.

By 2027.

Brad do you want to take that.

To hit that.

That number going forward on a on a net income positive basis.

Yeah, I mean, you know this.

Our analysis.

Okay, Alright, great. Thank you Brad.

Our.

Our revenue increase as well as.

Final question on the balance sheet.

Reducing as you heard in our last.

$8.3 million in current portion of long term debt.

Our press release.

Do you have to deal with that in the next 12 months or what the status of that situation now that is classified as.

Trimmed some legacy VIP.

Cost so it's not just revenue, but there's costs associated as well.

Short term.

Current.

Yeah.

We were.

Yes.

Yes, 17 million for 2025 rough.

When throughout the year, when we were reporting that in our quarterly filings that was long term.

Roughly by on a run rate basis, we need to be.

Close to double that.

The maturity date on that is in 2026, we reclassified all of that.

By 2027.

To hit that.

That number going forward on a on a net income positive basis.

As short term debt on our balance sheet.

Okay, and I guess, you would you would anticipate rolling that over at some point.

Okay, Alright, great. Thank you Brad.

Just final question on the balance sheet.

Okay.

Rolling it over or paying it off.

$8.3 million in current portion of long term debt.

So far we have.

Ben.

Compliant with the debt covenants on those on that.

You do have to deal with that in the next 12 months or what's the status of that situation now that is classified as.

Those pieces of debt, so we would either raise raise capital pay it off or.

Short term our current.

Your roll it over into additional adapt at an external.

Yes.

When throughout the year, when we were reporting that in our quarterly filings that was long term.

Extend those terms.

Great. Thank you for taking the questions.

Yeah.

You bet Scott Thank you.

The maturity date on that is in 2026, we reclassified all of that in <unk>.

Thank you once again that is star one should you wish to ask a question.

As short term debt on our balance sheet.

Your next question is from Robert Sassoon from water Cowen Research. Your line is now open.

Okay, and I guess, you would you would anticipate rolling that over at some point.

Okay.

Rolling it over or paying it off.

Thank you.

I've got a few questions actually.

So far we have.

If we look at the revenue for wounds could you speak to the year on year growth you saw in diagnosis <unk> treatment revenue generated under the new model.

Ben.

Compliant with the debt covenants on those on that.

Those pieces of debt, so we would either raise raise capital pay it off or.

So.

Your roll it over into additional debt at an extended.

I'm not sure exactly what the question is can you just clarify that.

On the growth in sleep testing services and treatment centers is that as Robert is that.

Extend those terms.

Great. Thank you for taking the questions.

Yeah.

Correct Yeah.

You bet Scott Thank you.

That's correct.

Yeah, I mean, we had about $4 8 million in sleep testing service revenue.

Thank you once again that is star one should you wish to ask a question.

Over 2024.

Your next question is from Robert Sassoon from water Cowen Research. Your line is now open.

And so we had about $6 million sleep testing service revenue in 2025 that that increase of $4 8 million.

Thank you.

Oh I've got a few questions actually.

Is entirely due to <unk>.

If we look at the revenue could you speak to the year on year growth you saw in diagnosis <unk> treatment revenue generated under the new model.

On the diagnostic side on the treatment center side in 2025.

Those diagnostics if people testing positive for OSA.

So.

Im not sure exactly what the question is can you just clarify that.

Or what it allowed us to recognize $2 2 million in treatment revenue. So in total between those two buckets the diagnostic of $6 million in the $2 $2 million a treatment revenue.

Growth in sleep testing services and treatment centers is that as Robert is that.

Correct Yeah.

That's correct.

Yeah, I mean, we had about $4 8 million in sleep testing service revenue.

Is.

Is an increase of over $8 million.

Over 2024.

Revenue and that that revenue is really where we think the growth is going to be if you look at the full year. The total revenue was $2 $4 million increase.

And so we had about $6 million sleep testing service revenue in 2025 that that increase of $4 8 million.

Is entirely due to <unk>.

That $2 $4 million increase.

On the diagnostic side on the treatment center side in 2025.

Whereas offset had some VIP rev.

Those diagnostics if people testing positive for OSA.

Revenue decreased by $2 million and some of the other legacy items decreased accordingly, so the fact that we had.

Or what it allowed us to recognize $2 2 million in treatment revenue. So in total between those two buckets the diagnostic of $6 million in the $2 2 million of treatment revenue.

An increase of $7 million to $8 million and new model revenue.

That was offset by VIP revenue, which we totally expected.

Is.

Is an increase of over $8 million.

But going forward.

<unk>.

That VIP revenue.

Revenue and that that revenue is really where we think the growth is going to be if you look at the full year.

Starts to roll off so we won't see those big decreases in legacy revenue as we move into 2020.

Total revenue was $2 $4 million increase.

Throughout 2026 and beyond.

That $2 $4 million increase.

Okay.

Was offset had some VIP.

So you had mentioned.

Strategies.

Strategy is to expand your line's modal so what lessons have you learned from the integration of SDN and.

Revenue decreased by $2 million and some of the other legacy items decreased.

Accordingly, so the fact that we had.

How about let's shake.

An increase of $7 million to $8 million.

Got that.

The expenditure level.

On the loans.

New model revenue.

That's a great question.

That was offset by VIP revenue, which we totally expected.

I would say.

We've learned how to work with medical doctors in a in a collaborative manner.

But going forward.

That VIP revenue.

We've learned how to.

Starts to roll off so we won't see those big decreases in legacy revenue as we move into 2020.

Coordinate treatment and care of patients.

Patients across the various specialties.

We've learned how to navigate the insurance.

Throughout 2026 and beyond.

Okay got it.

Payer community and how to.

So you mentioned the.

Sure.

Also.

Our strategy is to expand your line's model. So what key lessons have you learned from the integration of SDN and.

Set up the entities that we need to be regulatory compliant.

So we have to navigate a number of different fronts to make these things come about but once we once we get to provide the structure in place for each situation and once we.

How about let's shape.

That particular.

Experiential.

The lines.

That's a great question.

I would say.

Staffing with sufficient providers and then put those providers under contract in network with these payers we have a.

We've learned how to work with medical doctors in a in a collaborative manner.

We've learned how to.

We have a significant.

Coordinate treatment and care of patients.

I think a significant advantage over over anybody else coming into the market. Because this is a as I think somebody else said there are a lot of moving parts and there is a lot of there's a lot of infrastructure that has to go into place and it's not it's not for somebody that doesn't understand it so.

Patients across the various specialties.

We've learned how to navigate the insurance.

Payer community and how to.

Paul setup, the entities that we need to be regulatory compliant.

Yes. So we we have it down we haven't figured out we have and also we're in the process of contracting with a national firm that has insurance contracts across the country in each state and all of those things accelerate by contracting with them, we will accelerate our in network.

So we have to navigate a number of different fronts to make these things come about but once we once we get to provide the structure in place for each situation once we.

Stefan will sufficient providers and then put those providers under contract in network with these payers we have a we are.

Participation in the time to revenue generation is cut dramatically down. So those are lessons that I would say we've learned.

Have a significant.

I think a significant advantage over over anybody else coming into the market because this is a.

And we're applying them as we go.

Yeah.

I think somebody else said there are a lot of moving parts and there is a lot of there's a lot of restructuring that has to go into place and its not.

What.

I have a couple of a couple of other questions. What is you recently announced a.

Not for somebody that doesn't understand it so.

Partnership with Shanghai <unk>.

See any traction from that yet or is it still early days.

Yes, so we we have it down we haven't figured out.

Yes, it's still fairly early but in in Las Vegas, we're having trouble keeping those their units in stock I think patient demand for that is good.

But also we're in the process of contracting with a national firm that has insurance contracts across the country in each state and all of those things accelerate by contracting with them, we will accelerate our in network participation in the time to revenue generation.

I think that that even if that continues on that that will be a.

Material aspect of our.

Our earnings or profits or whatnot, but the patient demand. There has been has exceeded expectations and patients are loving the treatment and we're seeking to expand that relationship.

Has cut dramatically down so those are lessons that I would say we've learned.

And and we're applying them as we go.

Yeah.

Okay.

What.

So final question for me can you discuss that.

I have a couple of a couple of other questions. What is you recently announced a.

Long term growth prospects and explain why youre, particularly excited about the opportunities ahead.

Partnership with Shanghai <unk> are.

Okay.

Are you seeing any traction from that yet or is it just.

Well look we spent it seems like a long time wandering in the desert of trying to figure out what kind of business model, we could deploy that would that would do justice to our our breakthrough technology.

Still early days.

Yes, it's still fairly early but in Las Vegas, we're having trouble keeping those their units in stock I think patient demand for that is good I don't think that that even if that continues on that that will be a <unk>.

And and we we really came to the conclusion back a couple of couple of years ago that.

<unk> aspect of our.

Furthering our efforts down the path of the dental community was just not going to ever get it done.

Our earnings or profits or whatnot, but the patient demand. There has been has exceeded expectations and patients are loving the treatment and we're seeking to expand that relationship.

So as we pivoted, we basically told the world while we've got a different way to do this and we think this is going to work.

So final question for me could you discuss your long term growth prospects and explain why youre, particularly excited about the opportunities ahead.

And so we pulled forward that that prospect.

Went out on a limb, we we sort of bet. The farm here on what our experience was going to be out there SCN.

Okay.

I mean to our to.

Our.

Great.

Pleasure.

What's happened out there that <unk>. So far has been really really good and and again I know that it doesn't show up fully in the numbers.

And we we really came to the conclusion that a couple a couple of years ago that.

Further in our efforts down the path of the.

But the core underlying thesis that we had going into that acquisition in June of last year, our core underlying thesis that we could in fact generate.

The dental community was just one can ever get it done.

So as we pivoted, we basically told the world, while we've got a different way to do this and we.

Great patient demand by intercepting the patients at the time that they are being diagnosed and deciding upon their treatment modality that is.

This is going to work.

And so we pulled forward that that prospect.

Went out on a limb.

Sort of bet the farm here on what.

At that juncture in the patient journey that was the ideal juncture in which to introduce <unk> as an alternative to CPAP.

What our experience is going to be out there SCN.

I mean to our to.

Our.

And we bet that patients would rather.

Great.

Pleasure.

Fix their OSA in nine to 12 months.

What's happened out there that CN. So far has been really really good and and again I know that it doesn't show up fully in the numbers.

And prefer that option over going into a CPAP, where they have to wear that thing for the rest of their lives every night. So we bet, we made that bet that that is paying off.

But the core underlying thesis that we had going into that acquisition in June of last year, our core underlying thesis that we could in fact generate.

We see further as I mentioned in my remarks.

The amount and number of clinical contacts that we've had with specialty groups around the country hospitals cardiology groups neurologists. All these groups coming to us, saying, we need what you guys are doing we hear that you have something different than than CPAP or patients don't like C. Pap they don't.

Great patient demand by intercepting the patients at the time that they are being diagnosed and deciding upon with treatment modality.

At that juncture in the patient journey that was the ideal juncture in which to introduce <unk> as an alternative to CPAP.

CPAP.

When can you come see us and that kind of that kind of demand is something we're excited about.

And we bet that patients would rather.

Fix their OSA in nine to 12 months.

The cost to affiliate and setup. So teams in various markets is a fraction of what it cost for us to acquire these companies like we did with SDN.

And prefer that option over going into a CPAP, where they have to wear that thing for the rest of their lives every night. So we bet, we made that bet that that is paying off.

So because of all those things we are really really excited about what the future holds and we used to talk about weather or patient whether patients were getting better weather, we were having clinical success.

We see further as I mentioned in my remarks.

The amount and number of clinical contacts that we've had with specialty groups around the country hospitals cardiology groups neurologist. All these groups coming to us, saying, we need what you guys are doing we hear that you have something different than than CPAP or patients don't like C. Pap They don't want see.

We're so far beyond that right now we know beyond any shadow of doubt we have the best technology.

There is on the market today to treat and and and resolve obstructive sleep apnea Theres No question about it now the issue is how can we get that in front of as many people as possible.

Pat.

When can you come see us and that kind of that kind of demand is something we're excited about.

How do you think youre going to get over those sort of barriers that you mentioned earlier in terms of.

The cost to affiliate and setup. So teams in various markets is a fraction of what it cost for us to acquire these companies like we did with SDN and so because of all those things. We are really really excited about what the future holds and we used to talk about weather or patient where they are.

The right people the right.

Expanding cities.

<unk>.

To be able to implement that.

Yes, I do in fact, we've demonstrated that here in the first quarter, we reconstituted the full measure of team and a half out there.

Patients were getting better weather, we were having clinical success.

In Las Vegas, we we have additional doctors and providers nurse practitioners and others ready to go for other opportunities that we're exploring right. Now. So we are I don't think that's going to be a limiting constraint in the future.

We're so far beyond that right now we know beyond any shadow of doubt, but we have the best technology.

There is on the market today to treat and and and resolve obstructive sleep apnea Theres No question about it now the issue is how can we get that in front of as many people as possible.

Readily admit that it took us a little bit by surprise in Q4, we just didn't expect some of the some of the attrition that we had in our provider pool, but now we know to have redundancy to have the kind of the kind of team that is perhaps a little a little more robust than what we had planned for but at the same time.

Right and do you think youre going to get over those sort of barriers that you mentioned earlier.

The right people the right.

Expanding cities.

<unk>.

To be able to implement that.

Yes, I do in fact, we've demonstrated that here in the first quarter, we reconstituted the full measure of team and a half out there.

The redundancy will pay dividends when we have provided.

<unk>, who leave unexpectedly or have personal issues or whatever so we're we're learning as we go but I think we're in great shape to do that there is no difficult we have no challenges recruiting doctors or recruiting nurse practitioners or recruiting staff members.

Yeah, that's always what we're going to be doing and it's going to be an ongoing effort as we as we roll forward, but there is no shortage of dentists or nurse practitioners or staff members available to work on our model. We just had to be out in front of that.

And we got caught a little by surprise in Q4.

Yeah.

Oh by the way that it sounds like Youre pretty encourage you picture looking forward looking ahead, alright, thanks for taking my questions and best of luck this year.

The redundancy.

Alright, thank you so much.

Operator.

[Company Representative] (Vivos Therapeutics): We're in great shape for that. We have no challenges recruiting doctors or recruiting nurse practitioners or recruiting staff members. Yeah. That's always what we're going to be doing, and it's going to be an ongoing effort as we roll forward. There is no shortage of dentists or nurse practitioners or staff members available to work in our model. We just had to be out in front of that and we got caught a little by surprise in Q4.

Thank you. Our next question is Jimmy Chen Tom H C. Wainwright. Your line is now open.

Our recruiting nurse practitioners or recruiting staff members.

Yeah, that's always what we're going to be doing and it's going to be an ongoing effort as we as we roll forward, but there is no shortage of Dennis or nurse practitioners or staff members available to work on our model. We just had to be out in front of that and we got caught a little by surprise in Q4.

Yeah.

Yes.

Your line is now open.

Yeah.

Okay.

Yeah.

Alright, operator, let's go ahead and close it off I don't think he's there so.

Yeah.

[Analyst]: Oh, anyway, it sounds like it's a pretty encouraging picture looking ahead. Anyway, thanks for taking my questions, and the best of luck for this year.

Oh by the way that it sounds like Youre pretty encouraging picture looking for looking ahead, alright. Thanks for taking my questions and best of luck this year.

Operator. Thank you there are no further questions at this time. Please proceed with the closing remarks.

[Company Representative] (Vivos Therapeutics): All right. Thank you so much. Operator?

Alright, thank you so much.

Well on behalf of vivo, so I would just like to.

Operator.

Thank you. Our next question is Jimmy Chen Tom H C. Wainwright. Your line is now open.

Express our gratitude and thanks for all of the investors and analysts and investment bankers and whatnot that have supported us over the course of time I think it's been a little bit of a longer journey than any of US had hoped for but we as I think it's pretty clear from this report we are more optimistic about the <unk>.

Operator: Thank you. Our next question is from Yi Chen from H.C. Wainwright. Your line is now open.

Okay.

Yes sure.

[Company Representative] (Vivos Therapeutics): Is he here? Is he there?

Operator: Hello, Yi Chen, your line is open.

Your line is now open.

Yeah.

Specs for this company today than we probably have ever been and the cooperation of providers of the medical sleep community of specialists of.

Yeah.

Alright, operator, let's go ahead and close it off I don't think he's there so.

[Company Representative] (Vivos Therapeutics): All right. Operator, let's go ahead and close it off. I don't think he's there. Operator?

Payers of all the different constituencies, which make this all possible.

Operator: All right. Thank you. There are no further questions at this time. Please proceed with the closing remarks.

Great. Thank you there are no further questions at this time. Please proceed with the closing remarks.

Is just so gratifying and we're very pleased about all that.

On behalf of vivo, so I would just like to.

[Company Representative] (Vivos Therapeutics): On behalf of Vivos, I would just like to express our gratitude and thanks for all of the investors, analysts, investment bankers, and whatnot that have supported us over the course of time. I think it's been a little bit of a longer journey than any of us had hoped for, but we, as I think is pretty clear from this report, we are more optimistic about the prospects for this company today than we probably have ever been. The cooperation of providers of the medical sleep community, of specialists, of payers, of all the different constituencies which make this all possible, is just so gratifying, and we're very pleased about all that. I just want to express on behalf of all of us here at Vivos, our profound gratitude for everyone who's hung in there with us all these years.

I want to express on behalf of all of US here at Veeva is a profound gratitude for everyone who has hung in there with US all these years and.

I just know that the brighter days are ahead and we're excited about this and we think the future here at VITAS is very bright. So thank you very much everyone and have a great night and I. Appreciate your participation today. Thank you.

More optimistic about the prospects for this company today than we probably have ever been and the cooperation of providers of the medical sleep community of specialists of.

Thank you ladies and gentlemen, the conference has now ended and thank you all for joining you may now disconnect your lines.

Payers of all the different constituencies, which make this all possible.

<unk> is just so gratifying and we were very pleased about all of that I just want to express on behalf of all of us here at Veeva.

Found gratitude for everyone, who has hung in there with US all these years and I just know that a brighter days are ahead and we're excited about this and we think the future here at VITAS is very bright. So thank you very much everyone and have a great night and I. Appreciate your participation today. Thank you.

[Company Representative] (Vivos Therapeutics): Just know that brighter days are ahead, and we're excited about this. We think the future here at Vivos is very bright. Thank you very much, everyone, and have a great night and appreciate your participation today. Thank you.

Thank you ladies and gentlemen, the conference has now ended and thank you all for joining you may now disconnect your lines.

Operator: Thank you, ladies and gentlemen, the conference has now ended. Thank you all for joining. You may now disconnect your lines.

Full Year 2025 Vivos Therapeutics Inc Earnings Call

Request DemoDemo

Vivos Therapeutics

Earnings