On Wednesday, Biote (NASDAQ:BTMD) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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Access the full call at https://event.choruscall.com/mediaframe/webcast.html?webcastid=snJG6x3j
Summary
Biote experienced an 8.3% revenue decline to $44.9 million, primarily due to a 13.2% drop in procedure revenue caused by a voluntary product recall affecting hormone pellet supply.
Despite the recall, dietary supplement revenue grew by 19.1%, driven by e-commerce channel expansion.
The company maintains its 2026 revenue forecast above $190 million and expects procedure revenue growth in the second half of 2026, attributing the confidence to restored supply levels and new practitioner training sessions.
Full Transcript
Brett
For our top clinics, we have introduced a series of measures aimed at improving retention and supporting stronger lifetime revenue outcomes. We are enhancing our commercial framework to reinforce the value proposition Biote can offer to our leading practitioners. New practitioner training sessions remain at near full capacity, underscoring continued practitioner interest in our bioidentical hormone optimization and healthy aging solution offerings. Because the number of newly trained practitioners is a leading indicator of future procedures in dietary supplement sales, this high level of engagement further strengthens our belief that we are on the right path to restore revenue growth. As a reminder, once a practitioner is fully trained, it typically takes about six months for that new practitioner to begin to contribute meaningfully to our financial performance. As we continue to invest in our commercial team, one of our key objectives is to elevate the quality of our sales pipeline. Over the past several months we have seen clear evidence of progress with higher value OB-GYN and general practitioners representing a growing share of our pipeline. This reflects a more disciplined qualification process as well as our focus on recruiting practitioners with greater long term revenue contribution potential. We believe our efforts to enhance our sales pipeline should translate into more predictable performance as we increasingly support practitioners whose clinical specialties more closely align with our suite of product offerings. In summary, while our first quarter performance fell short of our expectations due to the voluntary product recall, we continued to move forward on key initiatives that support our long term strategy. I am confident that our strategic investments and actions are expected to strengthen our capabilities and lay the groundwork for what we anticipate will be a return to growth in the second half of the year. I’ll now turn the call over to Bob to review the first quarter results.
Bob
Thank you Brett and good afternoon everyone. Unless otherwise noted, all quarterly financial comparisons in my prepared remarks are made against the first quarter of 2025. Revenue decreased 8.3% to $44.9 million with procedure revenue declining 13.2% to $31.3 million, which included a $1.7 million impact related to the voluntary recall of certain hormone pellets shipped by Asteria Health. Procedure revenue was primarily impacted by the following 1 lower procedure volume in existing clinics which includes the impact of hormone pellet supply constraints related to the recall and 2 slower productivity from new clinics. As our sales reps focused on supporting recall impacted clinics, dietary supplement revenue grew 19.1% to $11.0 million. The increase was primarily driven by the continued growth of our E commerce channel. Overall, we continue to forecast our dietary supplement revenue will grow at mid to high single digit rate for the 2026 year gross profit margin was 68.9% compared to 74.3%. The decrease was primarily due to $1.1 million of incremental cost related to the recall. In the first quarter, Asteria Health produced approximately 30% of our shipped pellets as compared to over 50% in the fourth quarter of 2025. As Brett noted, we anticipate fully restoring Asteria Health’s supply continuity by the end of the second quarter. As a result, we expect our second quarter product mix will will continue to include an elevated level of third party supply which will impact second quarter gross margin. Our goal remains to meet customer needs through the vertical integration of Asteria Health. Selling general and Administrative expenses increased 4.1% to $27.8 million. The increase reflected higher legal expense and $0.4 million of SG&A costs associated with the product recall. Net income was $2.7 million and diluted earnings per share attributed to Biot Corp. Shareholders was $0.06. This compares to net income of $15.8 million in diluted earnings per share attributed to Biot Corp. Stockholders of 37 cents. Net income for the first quarter of 2026 included a gain of $2.1 million due to changes in the fair value of the earnout liabilities. By comparison, net income for the first quarter of 2025 included a gain of $10.7 million due to changes in the fair value of the earn out liabilities. Adjusted EBITDA decreased to $8.7 million with an adjusted EBITDA margin of 19.4% due to lower sales, reduced gross profit and higher operating expenses. Cash flow from operations in the first quarter was $3.9 million as of March 31, 2026. Cash and cash equivalents were $5.3 million as Biote fully repaid the remaining amount due under its share repurchase liabilities in January 2026. Now turning to our financial outlook for 2026, we maintain our guidance forecasting 2026 revenue above $190 million and 2026 adjusted EBITDA of greater than $38 million with respect to our 2026 revenue outlook procedure revenue is expected to return to growth in the second half of 2026 unchanged from our prior guidance. Based on current trends, we now expect first half procedure revenue growth to be moderately lower than previously forecast due to the temporary impact of the voluntary product recall and related supply constraints. Dietary supplement revenue is expected to grow at a mid to high single digit rate from 2025. I’ll now turn the call back to Brett for his closing comments.
Brett
Thanks, Bob. While we continue to address temporary impacts from the recall, we remain focused on the priorities that will strengthen our business for the long term. Our continued investments in commercial talent, technology and practitioner support are creating a stronger platform for future execution. With this foundation in place, I believe Biote is well positioned to better serve our practitioners, improve our financial performance, and create value …
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