Vivos Therapeutics (NASDAQ: VVOS) is one of those microcaps that drifts across your screen while you’re looking for the next healthcare breakout. It’s a company with an interesting niche—oral appliance therapy for obstructive sleep apnea (OSA)—and it’s cheap enough to tempt small-cap speculators.
But cheap doesn’t always mean good. And “innovative device company” doesn’t always translate into scalable revenue, especially when cash burn and dilution risks are looming.
Here’s what’s actually going on with VVOS, without the hype.
Where Things Stand Financially
Vivos reported $3.0 million in Q1 2025 revenue, down 12% from the same quarter last year. Appliance sales actually ticked up 8% to about $1.8 million, but that wasn’t enough to offset declines in other areas. The company posted a net loss of $4.7 million, or –$0.45 per share, missing even modest expectations.
What does that mean? The company is selling devices, but it’s not enough to cover operational costs. And with only around $1.5 million in cash on the books while burning over $4 million a quarter, a raise—or multiple raises—seems inevitable unless something changes quickly.
The Business Model (And Why It’s Interesting)
Vivos sells oral appliances that aim to treat mild-to-moderate OSA, offering an alternative to CPAP machines. The market opportunity isn’t small: OSA is underdiagnosed, and many people can’t tolerate CPAP. If Vivos can capture even a sliver of the market, revenue could climb meaningfully.
The company’s approach is to work directly with dental practices rather than through hospitals or durable medical equipment channels, creating a decentralized sales model that can scale without the same capital requirements as a CPAP distribution network. They’ve also recently expanded with pediatric and severe OSA solutions in hopes of broadening the customer base.
What Management Is Saying
In the latest shareholder letter, management highlighted:
- A push to expand to over 2,600 clinics.
- Efforts to secure FDA clearance for additional indications.
- Exploration of reimbursement pathways to reduce patient out-of-pocket costs and encourage adoption.
They’re also looking to improve operating efficiency and cut overhead. That’s necessary, because every quarter they keep burning cash while trying to grow, and the margin for error is narrowing.
Revenue Projections: What’s Realistic?
Let’s look past the optimism for a minute. Here’s what analysts and realistic models suggest:
- 2025 Revenue Forecast: ~$17.5–18 million (~17% growth).
- 2026 Revenue Forecast: ~$19.5–20 million (~11% growth).
- EPS Outlook: Staying negative through 2026, but losses may narrow from ~–$1.50 per share toward ~–$1.00 per share if revenue scales and costs are contained.
The bull thesis is that VVOS manages to sign up clinics, win additional FDA clearances, and gradually push toward break-even.
The bear thesis is that growth remains too slow, forcing dilution that keeps the share price under pressure, or worse, pushes the company toward delisting if cash needs aren’t met.
Catalysts That Matter
If you’re going to take a speculative position in VVOS, these are the updates worth tracking:
✅ Clinic Network Expansion: If they can actually get hundreds of clinics actively prescribing devices, that would materially impact sales volume.
✅ FDA Updates: Clearance for pediatric and severe OSA treatments could open new addressable markets.
✅ Reimbursement Progress: Consistent insurance coverage could remove a key adoption barrier.
✅ Acquisitions/Partnerships: Vivos has hinted at potential strategic collaborations to grow its market presence.
Risks You Can’t Ignore
- Cash Burn: The single biggest issue. Without new capital, they’ll need to dramatically increase revenue or slash costs—neither is easy.
- Execution: Signing up clinics doesn’t mean patients will follow, and building demand is a long, sometimes expensive process.
- Competition: CPAP remains entrenched, and other appliance players exist.
- Potential Dilution: If they need to raise capital, expect your slice of the pie to shrink.
Valuation and Price Targets
At a $17 million market cap, VVOS is extremely small, trading under 1x forward sales—cheap, but for good reason. Analyst targets vary, but a $4–6 price range is seen as achievable if growth materializes. The high-end bull case would be ~$7–8, but that would require near-flawless execution, significant clinic ramp, and a capital raise that doesn’t crater the share price.
Should You Buy VVOS?
VVOS is not a safe, steady healthcare investment. It’s a speculative microcap play in a growing market, with the potential for upside if management executes and if adoption accelerates in a meaningful way.
If you’re interested, it should be a small, high-risk slice of your portfolio. This isn’t a ticker you forget about for a year; it’s one you monitor closely each quarter for revenue growth, clinic partnership updates, and cash burn changes.
For most investors, it’s worth watching rather than owning until management proves that scaling revenue while controlling costs is possible.