Biote Corp. ((BTMD)) has held its Q1 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Biote Corp. painted a mixed picture for investors and analysts alike. While the company celebrated significant achievements such as revenue growth and improved profit margins, these positive aspects were counterbalanced by challenges including a decline in procedure revenue, reduced adjusted EBITDA, and increased SG&A expenses. The company is currently undergoing a strategic realignment aimed at driving growth, though the benefits of these changes may take time to manifest.
Increase in Total Revenue
Biote Corp. reported a 4.7% increase in total revenue, reaching $49 million compared to the same period in 2024. This growth reflects the company’s efforts to expand its market presence and capitalize on emerging opportunities.
Improvement in Gross Profit Margin
The company achieved a 300 basis point improvement in its gross profit margin, now at 74.3%. This enhancement is largely attributed to the vertical integration of the 503B manufacturing facility, which has streamlined operations and reduced costs.
Strong Performance in Dietary Supplements
The dietary supplements segment was a standout performer, with revenue surging by 25.5% to $9.3 million. This growth was primarily driven by the success of the e-commerce channel, highlighting the company’s effective digital strategy.
Increased Cash and Cash Equivalents
Biote Corp. saw an increase in cash and cash equivalents, rising to $41.7 million as of March 31, 2025, up from $39.3 million at the end of 2024. This increase provides the company with greater financial flexibility to pursue strategic initiatives.
Decrease in Procedure Revenue
Procedure revenue experienced a decline of 3.6%, falling to $36 million. This decrease is attributed to reduced commercial effectiveness and a slowdown in the addition of new clinics, posing a challenge for the company’s growth in this segment.
Decrease in Adjusted EBITDA
Adjusted EBITDA decreased by 3.4% to $13.8 million, with a margin of 28.1%. The decline is primarily due to increased sales and marketing expenses, reflecting the company’s investment in expanding its market reach.
Increase in SG&A Expenses
Selling, general, and administrative expenses rose by 16.4% to $26.7 million. This increase is due to higher investments in sales, marketing, and professional services, as the company focuses on strengthening its market position.
Forward-Looking Guidance
Looking ahead, Biote Corp. has maintained its guidance for the fiscal year 2025, expecting total revenue to range between $202 million and $208 million, and adjusted EBITDA to be between $59 million and $64 million. The company also anticipates a one-time restructuring charge of $600,000 to $800,000 in the second quarter of 2025, as part of its strategic realignment efforts.
In summary, Biote Corp.’s earnings call highlighted a balanced mix of achievements and challenges. While the company has shown strong performance in certain segments and improved profit margins, it faces hurdles such as declining procedure revenue and increased expenses. The forward-looking guidance suggests a cautious optimism as the company navigates its strategic realignment to foster future growth.