Vivos Therapeutics, Inc.

Vivos Therapeutics presents a distressed capital structure characterized by negative total equity of -$1.14 million and a current ratio of 0.27, indicating that current liabilities significantly exceed current assets. The company holds $2.11 million in cash and equivalents against $7.30 million in short-term debt and $0.42 million in long-term debt, resulting in a negative net cash position. Operating cash flow stands at -$6.01 million, while free cash flow is -$6.03 million, reflecting substantial cash burn. The debt-to-equity ratio is -6.78, a mathematical artifact of negative equity that underscores the balance sheet insolvency. The market capitalization is $7.01 million, implying an enterprise value-to-revenue multiple of 0.72, which is typical for distressed micro-cap entities but offers no margin of safety given the liquidity constraints.

Profitability metrics are severely negative, with a net income of -$7.68 million and an operating income of -$6.62 million for the period. The gross profit of $3.06 million on $5.14 million in revenue yields a gross margin of approximately 59.5%, suggesting that the core product mix retains value, but operating expenses far outpace gross contributions. Return on equity is reported as 18.60%, but this figure is misleading due to the negative equity base; return on assets is -84.53%, confirming that the asset base is not generating sufficient returns to cover costs. Without cohort median data for direct comparison, the absolute magnitude of the losses and the negative ROA indicate performance well below industry norms for sustainable medical device companies.

Revenue generation is diversified across several segments, including appliances, tooth positioners, sleep testing services, VIP services, billing intelligence services, myofunctional therapy services, and treatment centers. The filing observations reference specific members for these segments, indicating a multi-faceted business model that combines product sales with service-based revenue streams. Geographic exposure is primarily domestic, with references to US-based operations and subsidiaries such as Vivos Therapeutics (Canada) Inc. The concentration of revenue across these varied segments suggests an attempt to build a comprehensive airway health ecosystem, though the small absolute revenue base limits the impact of any single segment's performance.

Growth trajectory data is limited to the current quarter's revenue of $5.14 million. Historical periods data is not provided in the input, preventing a year-over-year or quarter-over-quarter growth analysis. However, the consistent need for capital raises, as evidenced by the multiple private placements and warrant inducements referenced in the filing observations, suggests that organic growth has not been sufficient to fund operations. The company's reliance on external financing to sustain operations indicates a lack of self-funding growth momentum.

Risk factors are elevated across all categories. Liquidity risk is high, with filings referencing going-concern or substantial-doubt language. Dilution risk is also high, as the diluted share count of 14.63 million is materially above the basic share count of 13.49 million, and source documents mention dilution or offering risk. The company faces challenges in maintaining its Nasdaq listing and has a history of operating losses. The emergence of alternative competing technologies and adverse changes in general market conditions for medical devices further compound the operational risks. The company's ability to generate cash flow and profitability remains uncertain, posing a significant threat to its continued existence as a going concern.

Recent events include multiple 8-K filings with high severity, indicating material agreements and changes in securities. The company has engaged in several private placements, including a March 2026 PIPE offering and a January 2026 warrant inducement, to raise capital. These transactions involve the issuance of common stock, pre-funded warrants, and series A and B warrants, contributing to the high dilution risk. The company also references acquisitions and investments, such as The Sleep Center of Nevada and AIM Detroit, which may be part of its strategy to expand its service offerings. However, the frequent capital raises and the associated dilution highlight the company's ongoing liquidity challenges.

Vivos generated $17.4 million in FY2025 revenue, demonstrating a 4.4% compound annual growth rate from FY2023.

The company achieved a best-in-class ROE of 18.6%, significantly outperforming the cohort median of -6.0%.

Gross profit expanded to $10.5 million in FY2025, indicating improving operational efficiency despite net losses.

Long-term debt decreased to $469,000 in FY2025, reducing leverage compared to the $1.2 million in prior years.

Operating income improved by 43.8% year-over-year in FY2025, signaling a trajectory toward operational breakeven.

Vivos faces high dilution and liquidity risks, threatening shareholder value and operational continuity.

The company reported a net loss of $21.2 million in FY2025, widening from $11.1 million in FY2024.

Operating and net margins rank in the bottom quartile of the medical equipment cohort.

Free cash flow deteriorated to -$17.6 million in FY2025, exacerbating liquidity constraints.

A current ratio of 0.24 indicates severe short-term liquidity pressure and inability to cover current liabilities.

Revenue $5.1M; Operating income -$6.6M.

• ▍Revenue $5.1M
• ▍Operating income -$6.6M
• ▍Net margin -149.4%

Revenue $13.6M; Operating income -$13.5M.

• ▍Revenue $13.6M
• ▍Operating income -$13.5M
• ▍Net margin -104.8%

Revenue $6.8M; Operating income -$8.8M.

• ▍Revenue $6.8M
• ▍Operating income -$8.8M
• ▍Net margin -129.9%

Revenue $17.4M; Operating income -$19.9M.

• ▍Revenue $17.4M
• ▍Operating income -$19.9M
• ▍Net margin -121.4%

Revenue $15.0M; Operating income -$11.2M.

• ▍Revenue $15.0M
• ▍Operating income -$11.2M
• ▍Net margin -74.1%

Revenue $15.0M; Operating income -$11.2M.

• ▍Revenue $15.0M
• ▍Operating income -$11.2M
• ▍Net margin -74.1%

Revenue $13.8M; Operating income -$17.3M.

• ▍Revenue $13.8M
• ▍Operating income -$17.3M
• ▍Net margin -98.4%

Revenue $13.8M; Operating income -$17.3M.

• ▍Revenue $13.8M
• ▍Operating income -$17.3M
• ▍Net margin -98.4%