Vivos Therapeutics is becoming increasingly weighted toward healthcare services, with Q2 2026 service revenue nearly doubling to $3.8 million from $1.94 million, while product revenue declined approximately 28% to $1.36 million from $1.89 million. The expansion in services drove total quarterly revenue up 35% to $5.15 million.
The shift was even more pronounced across the first half. Service revenue increased to $7.50 million from $3.14 million, an increase of roughly 139%, while product revenue fell to $2.80 million from $3.70 million. Total first-half revenue increased 51% to $10.29 million from $6.84 million.
Vivos attributed the Q2 growth primarily to service revenue from sleep testing and resulting treatment services at its Nevada operations. That model broadens the company’s economics beyond selling its Vivos CARE oral appliances by adding diagnostic, treatment and other clinical services around obstructive sleep apnea.
The richer service mix was accompanied by improving gross economics. Gross profit increased to approximately $3 million from $2.1 million and gross margin expanded to 57% from 55%. For the first half, gross margin increased to 58% from 53%.
Operating expenses nevertheless increased 12% to approximately $7.8 million, reflecting higher salaries and wages associated with the SCN acquisition and the opening of Vivos treatment centers. The quarterly operating loss remained roughly flat at $4.83 million compared with $4.87 million a year earlier despite the higher expense base.
Vivos is investing further in the services infrastructure behind that growth. During Q2, the company expanded physical facilities and production capacity, increased its provider base and began an AI-enabled software conversion at SCN. Management said physician referral volumes into its Nevada SAMC treatment centers have increased significantly compared with the first quarter.
The company is also seeing additional activity from insomnia and EEG services and its pediatric program while pursuing affiliations with large multi-center cardiology groups in Florida and Arizona. Those initiatives could further expand the clinical-services component of the business if they translate into additional patient referrals and treatment volumes.
Vivos ended June with $1.8 million of cash and equivalents and a stockholders’ deficit of $3.8 million, compared with $2 million of cash and a $1.5 million deficit at the end of 2025. The company’s ability to convert higher service revenue into improved cash generation therefore remains an important part of the next stage of the operating model.
KEY QUOTES:
“The second quarter of 2026 represented a watershed moment in the history of Vivos as we continued to lay the foundation for potential significant revenue enhancement and growth for the remainder of 2026 and beyond. In that regard, we expanded our physical facilities and production capacity, increased our total provider count, initiated our AI-enabled software conversion at SCN, and established new lines of referrals and service initiatives.”
“Here in the third quarter, the concrete actions taken during Q2 are already yielding significant gains in terms of both patient volume and revenue growth. For example, since the beginning of the second quarter we have seen weekly physician referral volumes into our Nevada SAMC treatment centers rise significantly compared to the first quarter, while patient referrals generated by our insomnia / EEG program, EEG testing, and overall program revenue generated all increased significantly compared to the first quarter. Significant patient and revenue gains have also begun to emerge from our pediatric program across multiple markets as well. Finally, we have continued to make significant strides towards finalization of our pending partnerships and affiliations with large multi-center cardiology groups in key Florida and Arizona markets.”
Kirk Huntsman, Chairman and Chief Executive Officer of Vivos Therapeutics
