Biote Corp. ((BTMD)) has held its Q2 earnings call. Read on for the main highlights of the call.
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During Biote Corp.’s recent earnings call, the sentiment was a mix of optimism and caution. The company reported solid growth in its dietary supplements segment and improvements in gross profit margins and adjusted EBITDA. However, these positive developments were tempered by flat overall revenue, a decline in procedure revenue, and significant disruptions due to organizational changes. Additionally, there was a notable decrease in cash reserves. Biote is currently navigating a transition phase with strategic initiatives aimed at fostering long-term growth, though current challenges have impacted its performance.
Dietary Supplement Sales Growth
Biote Corp. reported a remarkable 30.4% increase in dietary supplement revenue, reaching $10.7 million. This growth was primarily driven by the expansion of the e-commerce channel, showcasing the segment’s robust performance.
Improved Gross Profit Margin
The company achieved a 280 basis point improvement in its gross profit margin, reaching 71.6%. This enhancement is attributed to cost savings from the continued vertical integration of its 503(B) manufacturing facility.
Reduced SG&A Expenses
Biote successfully reduced its selling, general, and administrative expenses by 12.2%, bringing them down to $24.2 million. This reduction was partly due to the timing of the annual marketing event and adjustments in headcount.
Increased Adjusted EBITDA
The company saw a 19.1% increase in adjusted EBITDA, totaling $15.2 million, with an adjusted EBITDA margin of 31.1%. This growth was driven by improved gross profit and lower operating expenses.
Flat Overall Revenue
Despite the growth in dietary supplements, Biote’s second-quarter revenue remained approximately flat at $48.9 million. This was due to an 8.4% decrease in procedure revenue, which offset the gains in dietary supplements.
Procedure Revenue Decline
Procedure revenue experienced an 8.4% decline, attributed to a slower growth rate of new clinic additions, higher attrition of established clinics, and lower procedure volumes.
Impact of Organizational Changes
The reorganization and strategic initiatives, while necessary, led to disruptions that negatively impacted procedure-related sales.
Cash and Cash Equivalents Reduction
Biote’s cash and cash equivalents significantly decreased from $41.7 million to $19.6 million as of June 30, 2025. This reduction was primarily due to share repurchases related to the founder and affiliated parties.
Adjusted Fiscal 2025 Revenue Guidance
Biote Corp. has adjusted its fiscal 2025 revenue guidance to exceed $190 million, reflecting the challenges in procedure revenue and the strong growth in dietary supplements. The company anticipates adjusted EBITDA to surpass $50 million, emphasizing a focus on revitalizing growth through strategic initiatives, including new leadership and revamped sales strategies.
In summary, Biote Corp.’s earnings call painted a picture of a company in transition. While there are promising signs of growth in certain areas, such as dietary supplements and improved profit margins, the company faces challenges with flat overall revenue and declining procedure sales. The strategic initiatives underway aim to address these issues and position Biote for long-term success.