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    BTMD
    Earnings call· Jun 2026(Q2 FY26)

    biote Q2 FY26 earnings call BTMD

    Aug 5, 2026 Source

    Executive summary

    Biote Q2 FY26 — Recall Headwinds Persist, Strategic Initiatives Underway for H2 Growth

    Biote Corp. faced significant headwinds in Q2 FY26, primarily due to the lingering effects of a voluntary product recall which impacted procedure revenue and gross margin, leading to a downward revision of full-year guidance. Despite these financial challenges, the company has normalized supply at Asteria Health and is focusing on strategic initiatives in the second half, including strengthening clinic retention and sales productivity, alongside evaluating inorganic growth opportunities to expand its platform.

    Highlights

    4

    • Dietary supplements revenue grew 5.7% to $11.4 million.

    • Cash and cash equivalents increased to $11.2 million as of June 30, 2026, from $5.3 million as of March 31, 2026.

    • Asteria Health's supply continuity and inventory levels are now normalized, with increased production.

    • Legal matters largely resolved, expected to reduce quarterly legal expenses going forward.

    Concerns

    7

    • Total revenue decreased 9.5% to $44.2 million.

    • Procedure revenue declined 13.9% to $30.3 million, including an estimated $3.3 million impact from the voluntary product recall.

    • Adjusted EBITDA decreased to $5.6 million with a margin of 12.6%.

    • Full-year 2026 revenue guidance revised down to above $175 million (from $190 million) and adjusted EBITDA to above $25 million (from $38 million).

    • Gross margin decreased to 65.4% from 71.6% due to recall-related costs and increased sourcing of high-cost third-party pellets.

    • Net loss was $7.4 million, compared to net income of $3.9 million in Q2 FY25.

    • Elevated clinic attrition (around 8%) and slower productivity from new clinics.

    Guidance & targets

    5
    CategoryTargetConfidence
    Dietary supplements revenue growth rate
    mid- to high single-digit rate
    medium materiality
    High
    Procedure revenue trend
    sequential improvement in both the third and fourth quarters
    high materiality
    Medium
    Procedure revenue year-over-year growth
    negative
    high materiality
    High
    Full-year 2026 revenue
    above $175 million
    high materiality
    Medium
    Full-year 2026 adjusted EBITDA
    above $25 million
    high materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Procedure Revenue
    Primarily impacted by lower procedure volume in existing clinics (including deferrals and hormone pellet supply constraints related to the recall), elevated clinic attrition, and slower productivity from new clinics as sales team focused on supporting recall-impacted clinics.
    Estimated recall impact: $3.3 million
    		$30.3 million-13.9%——
    Dietary Supplements Revenue
    Increase primarily driven by the continued growth of the e-commerce channel. Expected to grow at a mid- to high single-digit rate for FY26.
    		$11.4 million5.7%——

    Operational metrics

    13
    Total Revenue
    $44.2 million-9.5% YoY
    Q2 FY26

    Total revenue for the quarter.

    Gross margin
    65.4%vs 71.6% in Q2 FY25
    Q2 FY26

    Decrease primarily due to recall-related costs and product mix.

    Asteria Health pellet supply percentage
    around 30%similar to Q1 FY26, over 50% in Q4 FY25
    Q2 FY26

    Percentage of shipped pellets supplied by Asteria Health.

    Selling, general and administrative expenses
    $32.4 millionvs $24.2 million in Q2 FY25
    Q2 FY26

    Increase reflected higher legal expenses.

    Net loss
    $7.4 millionvs net income of $3.9 million in Q2 FY25
    Q2 FY26

    GAAP net loss for the quarter.

    Diluted loss per share
    $0.23vs $0.10 diluted EPS in Q2 FY25
    Q2 FY26

    Diluted loss per share attributed to Biote corporate stockholders.

    Loss due to changes in fair value of earnout liabilities
    $0.8 millionvs $1.8 million in Q2 FY25
    Q2 FY26

    Included in net loss for the quarter.

    Adjusted EBITDA
    $5.6 milliondecreased
    Q2 FY26

    Non-GAAP financial measure.

    Adjusted EBITDA margin
    12.6%
    Q2 FY26

    Non-GAAP financial measure.

    Cash flow used by operations
    negative $1.2 million
    Q2 FY26

    Cash flow from operating activities.

    Cash and cash equivalents
    $11.2 millionvs $5.3 million as of March 31, 2026
    as of June 30, 2026

    Balance at quarter end.

    Clinic attrition rate
    high single digitsaround 8%
    Q2 FY26

    Attrition rate remained relatively flat.

    Legal expenses (total adjusted impact)
    $6 million
    H1 FY26

    Total adjusted impact of legal matters in the first half of the year.

    Industry KPIs

    2
    MetricValueDetails
    EPS revenue guidanceRevenue above $175 million; Adjusted EBITDA above $25 millionUSD
    Business development capacity deal appetiteActively evaluating several opportunities

    Risks & headwinds

    3
    Voluntary product recall impactH1 FY26, lingering into H2 FY26

    Estimated $3.3 million impact on Q2 FY26 procedure revenue; delayed return to year-over-year procedure revenue growth; $0.6 million incremental costs impacting gross margin.

    Mitigation: Supply continuity normalized at Asteria Health, increased production, focus on H2 sales productivity to drive recovery.

    Elevated clinic attrition and slower new clinic productivityQ2 FY26, ongoing

    Attrition at high single digits (~8%); slower ramp-up for new clinics.

    Mitigation: Strengthening clinic retention, enhancing practitioner experience, accelerating sales productivity, ensuring consistent sales rep presence (monthly visits) to improve retention and new customer growth.

    Increased legal expensesQ2 FY26, H1 FY26

    Contributed to SG&A increase to $32.4 million in Q2 FY26; total adjusted impact of legal matters around $6 million in H1 FY26.

    Mitigation: Legal matters largely resolved, expected to reduce quarterly legal expenses going forward.

    What to watch in Q3 FY26

    5

    Procedure revenue sequential improvement

    Q3 FY26
    CurrentDeclined 13.9% YoY in Q2 FY26
    TargetSequential improvement in Q3 FY26

    Why it matters

    Indicates recovery from recall impact and effectiveness of new sales strategies to restore procedure volume growth.

    We expect procedure revenue to show sequential improvement in both the third and fourth quarters benefiting from more consistent supply continuity and growth in new clinics.

    Q&A highlights

    7

    What is the ideal type of inorganic opportunity for Biote, and how adjacent would it be to the core business?

    The company is evaluating opportunities that can support and strengthen its current platform, expand its reach, and accelerate strategic objectives. These include capabilities to complement core offerings, adjacent products, and ways to enhance practitioner engagement.

    “We are evaluating opportunities that can really support and strengthen the position that we're in now, the platform that we're participating in. And I would just say to really dive into your question a little bit is really we want to get into things that can expand our reach and accelerate our strategic objectives. These opportunities would include the capabilities to complement our core offering, adjacent products, too, and to basically enhance the practitioner engagement and other opportunities to broaden our footprint within the space.”

    asked by Kaumil Gajrawala · answered by Robert Peterson

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Roadmap & Operational Focus

    Biote is moving into Phase 2 of its strategic roadmap, focusing on restoring procedure volume growth. Key areas include strengthening clinic retention, enhancing practitioner experience, accelerating sales productivity, and improving quick start success for new clinics. The company believes that increased field activity, specifically sales representatives being in accounts every month, will improve retention and overall performance. This is a multi-quarter effort aimed at building a more resilient platform for sustainable, profitable growth.

    02

    Impact of Product Recall

    The voluntary product recall earlier in the year created temporary headwind📎s, impacting commercial activity, procedure volume, and gross margin. The company estimates a $3.3 million impact on procedure revenue in Q2 FY26. Supply continuity at Asteria Health is now normalized, with increased production levels and the addition of a second production shift. The company expects to steadily increase its supply of internally manufactured pellets in the second half of the year.

    03

    Gross Margin & Supply Chain Dynamics

    Gross margin decreased to 65.4% in Q2 FY26 compared to 71.6% in Q2 FY25. This decrease was primarily due to $0.6 million in incremental costs related to the recall, including reduced operating efficiency at Asteria Health, coupled with increased sourcing of high-cost third-party pellets. In Q2 FY26, Asteria Health supplied only about 30% of shipped pellets, similar to Q1 FY26, down from over 50% in Q4 FY25. The company anticipates gross margin improvement in Q3 FY26 as it sources a lower percentage of pellets from third-party suppliers.

    04

    Legal Matters and SG&A Expenses

    Selling, general and administrative (SG&A) expenses increased to $32.4 million in Q2 FY26 from $24.2 million in Q2 FY25. This increase primarily reflected higher legal expenses due to the acceleration of several legal matters, including depositions and pre-litigation support. These legal matters have been largely resolved in a positive way, with a total adjusted impact of approximately $6 million in the first half of the year. The company expects these resolutions to significantly reduce quarterly legal expenses going forward⏳.

    05

    Inorganic Growth Strategy

    Biote is actively evaluating inorganic opportunities to complement its organic growth strategy. The focus is on expanding its footprint in the hormone optimization and healthy aging market, enhancing capabilities, and accelerating strategic progress. These opportunities could include capabilities that complement the core offering, adjacent products, and initiatives to broaden practitioner engagement. The company emphasizes a thoughtful and disciplined approach to inorganic growth.

    06

    Clinic Performance and Attrition

    The company experienced elevated clinic attrition, which remained at high single digits, around 8%. Slower productivity from new clinics was also noted, as the sales team's focus was diverted to supporting recall-impacted clinics. Management believes that consistent engagement by sales representatives with practitioners (monthly visits) is key to improving retention and driving same-store sales and new customer growth. The company is implementing a data-driven approach to enhance sales force productivity in the second half of the year.

    AI-generated summary of the company’s earnings call. Not investment advice.