Vivos Therapeutics Posts 103% Gross Profit Surge to $3.1M, 60% Margin
VVOS•In Q1 2026 Vivos Therapeutics’ gross profit rose 103% to $3.1 million, with gross margins improving from 50% to 60% following its Sleep Center of Nevada acquisition. The company cites dentist shortages and payer network gaps as headwinds while pursuing cardiologist affiliations to expand diagnostic and treatment services.
1. Q1 2026 Financial Performance
In Q1 2026 Vivos achieved a 34% year-over-year revenue increase, driving gross profit up 103% to $3.1 million and lifting gross margins from 50% to 60%. Salaries and wages remained flat despite higher volumes, underscoring operational leverage as production per provider continues to rise.
2. Strategic Acquisition and Affiliations
The Sleep Center of Nevada acquisition has expanded diagnostic services and treatment solutions for OSA patients, contributing significantly to revenue growth. The company is now pursuing affiliations with large medical specialty groups, including cardiologists, to broaden market reach and enhance referral networks.
3. Operational Challenges and Initiatives
Vivos continues to address market access barriers such as dentist shortages and limited in-network payer status that constrain patient throughput. Concurrently, the company plans to extend clinical diagnostics to insomnia and other sleep disorders and launch its pediatric program to diversify its service offerings.
4. Profitability Outlook and Capital Structure
Management projects gradual margin improvements, expecting to reach steady-state higher margins by year-end as new teams scale. Deferred VIP revenue of approximately $100,000 is scheduled for full recognition by year-end, while debt restructuring evaluations aim to reduce service obligations and reclassify debt as equity.
