Biote Corp. Earnings Call Maps Pain Now, Promise Later

Biote Corp. ((BTMD)) has held its Q4 earnings call. Read on for the main highlights of the call.

Biote Corp.’s latest earnings call painted a mixed picture, balancing solid operational gains with notable pressure in its core procedure business. Management struck a cautiously optimistic tone, highlighting cash generation, cost controls, and a rebuilt commercial engine, even as procedure revenue, margins, and earnings all moved lower year over year.

Dietary Supplements Fuel Top-Line Resilience

Dietary supplement revenue grew 16% year over year to $11.7 million in Q4 2025, powered mainly by Biote’s e-commerce channel. Management sees this as a durable growth pillar and expects supplement sales to advance at a mid- to high-single-digit pace in 2026, helping offset softness in procedures.

Rebuilt Commercial Team Signals Future Procedure Upside

The commercial organization has expanded rapidly, growing from roughly 60 salespeople after the May reorganization to more than 90, with a goal of about 120 in 2026. Training sessions are now at full capacity and practitioner attendance has accelerated since mid-November, providing an encouraging leading indicator for eventual procedure volume recovery.

Cost Controls Drive SG&A Down Sharply

Biote delivered meaningful cost discipline, with selling, general, and administrative expenses dropping 25.1% to $24.7 million in Q4 2025. The decline, driven by lower legal costs and temporary headcount reductions, helped cushion the impact of weaker revenue and demonstrates the company’s willingness to manage the P&L tightly during a transition phase.

Strong Cash Generation Supports Investment Cycle

Despite earnings pressure, Biote posted 2025 adjusted EBITDA of $11.7 million, equating to a 25.2% margin. Operating cash flow reached $35.2 million for the year, and cash and equivalents stood at $24.1 million at year-end, giving the company financial flexibility to fund expanded sales coverage and technology initiatives in 2026.

Operational Upgrades and Vertical Integration Aid Margins

Management emphasized ongoing operational improvements, including stronger internal processes and better use of data analytics. Efficiencies from the vertically integrated 503B manufacturing facility also supported gross margins, excluding recall-related charges, reinforcing the strategic value of controlling more of the supply chain.

Total Revenue Contracts on Procedure Weakness

Fourth-quarter revenue fell 6.9% year over year to $46.4 million, underscoring the drag from the core procedure segment. While supplements and operations improved, the company’s overall growth story remains heavily tied to restoring momentum in procedures, which still account for the majority of sales.

Procedure Revenue Hit by Clinic Attrition

Procedure revenue slid 13% year over year to $31.8 million in Q4 2025, reflecting fewer net new clinic additions and lower procedure volumes. Elevated clinic and practitioner attrition weighed on the annuity-style business model, with management noting that these churn effects can linger in results for roughly 12 months.

Adjusted EBITDA and Margins Move Lower

Adjusted EBITDA declined from $15.1 million to $11.7 million year over year, while the adjusted EBITDA margin narrowed from 30.3% to 25.2%. The compression stems from lower sales and reduced gross profit, only partly offset by savings in operating expenses, and highlights the earnings sensitivity to procedure volumes.

Recall Weighs on Gross Margin Profile

Gross profit margin contracted to 68.0% from 71.8%, including a $1.3 million inventory charge tied to a voluntary recall of certain hormone pellet lots from Asteria Health. Management cautioned that relying more on third-party manufacturing while resolving recall-related issues could pressure gross margins further in the near term.

Higher Attrition Undermines Growth and Visibility

Clinic and practitioner attrition accelerated to the high single digits, up from a historical level near 5%. This heightened churn is dampening procedure volumes and delaying revenue recognition, complicating near-term forecasting even as management works to stabilize and re-energize the provider base.

Earnings and EPS Decline Ahead of Investment Step-Up

Net income for 2025 declined to $2.6 million from $3.5 million in 2024, and diluted EPS fell to $0.06 from $0.10. Management also warned that operating expenses will rise in 2026 as Biote ramps sales and technology spending, which will pressure adjusted EBITDA in the short term despite the longer-term growth ambitions.

Guidance Points to 2026 Reacceleration

Biote guided 2026 revenue to more than $190 million and adjusted EBITDA above $38 million, projecting a return to growth and stronger profitability as investments scale. The outlook assumes mid- to high-single-digit declines in procedure revenue early in the year, improving to year-over-year procedure growth later in 2026, while supplements continue to grow mid- to high-single digits, supported by a larger sales force and tech upgrades.

Biote’s earnings call showcased a company in transition, using cost discipline, cash strength, and operational upgrades to bridge a period of procedure softness and higher attrition. Investors will be watching closely to see whether the expanded commercial team and technology investments can translate into sustained procedure growth and margin recovery by late 2026.