Biote Q3 2026 Earnings Call Transcript

Biote (NASDAQ:BTMD) reported third-quarter financial results on Wednesday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Biote reported a 9.6% decrease in revenue to $43.3 million for Q3 2026, with procedure revenue falling 15.1% due to a voluntary recall earlier in the year.

The company is focusing on improving sales productivity and practitioner engagement to restore growth, using data analytics to enhance decision-making and resource allocation.

Dietary supplements revenue increased by 7.3% to $12.0 million, driven by e-commerce channel growth.

Gross margin decreased to 67.7% from 71.8% due to the recall but showed sequential improvement as the company returned to internally manufactured pellets.

SG&A expenses increased by 2.6% to $26.8 million, but decreased 20.8% sequentially due to reduced legal expenses.

Net income was $0.6 million, a decrease from $9.2 million in Q3 2025, with adjusted EBITDA down to $5.1 million.

The company maintains its full-year 2026 guidance of revenue above $175 million and adjusted EBITDA above $25 million.

Operational focus is on clinic retention, practitioner engagement, and consistent procedure volume to drive long-term performance.

Biote is actively working to upgrade its sales force and improve practitioner support to enhance growth and retention.

Full Transcript

OPERATOR

Welcome to the Biote third quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded.

I would now like to turn the conference over to Simon Sirovetsky, Investor Relations. Please go ahead.

Simon Sirovetsky (Investor Relations)

Thank you for joining us today. This afternoon, Biote published financial results for the third quarter ended September 30, 2026. This news release is available in the Investor Relations section of the company’s website. Hosting today’s call are Bob Peterson, Interim Chief Executive Officer and Chief Financial Officer, Dr. Komal Bajaj, Chief Medical Officer, and Marc Beer, Executive Chairman. Before we get started, I would like to remind everyone that management may make statements during this call that include forward-looking statements regarding, among other things, the company’s financial results and financial condition, future performance opportunities, business outlook, strategic plans and anticipated benefits, goals, research and development, manufacturing, commercialization activities, its competitive position, regulatory process, operations, benefits of its solutions, anticipated impact of macroeconomic conditions on business, and other matters that do not relate to historical facts.

These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties, some of which are beyond the company’s control. Actual results could differ materially from expectations reflected in any forward-looking statements. These statements are subject to risks, uncertainties, and assumptions that are based on management’s current expectations. As of today, Biote undertakes no obligation to update them in the future.

Therefore, these statements should not be relied upon as representing the company’s views as of any subsequent date. For a discussion of risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC’s website and in the Investor Relations section of our website, as well as risks and other important factors discussed in the earnings release. Management also refers to adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures, to provide additional information for investors. A reconciliation of the non-GAAP to GAAP measures is provided in the earnings release, with the primary differences being stock-based compensation, fair value adjustment of certain liabilities, and other non-operating expenses. Please refer to our third quarter 2026 earnings release for reconciliation of these non-GAAP measures to the comparable GAAP measures.

Now I’ll turn the call over to Bob Peterson.

Bob Peterson (Interim Chief Executive Officer)

Thanks, Simon, and good afternoon everyone, and thank you for joining us. While a recent improvement in procedure volume provides early evidence of stabilization in underlying demand, our return to growth is progressing more slowly than anticipated. Last quarter we discussed our shift from foundational corporate work towards making deeper data-driven operational improvements across our business. That work remains ongoing and is essential to restoring long-term procedure revenue growth.

To achieve this, our two immediate priorities remain increasing sales productivity and strengthening practitioner engagement. With respect to productivity, consistent execution at the practice level is key. Retaining clinic relationships, helping new clinics become productive quickly, and supporting practitioners as they build their practices will all shape our financial trajectory. To accelerate our progress and optimize our decision making, we are leveraging our investments in data and analytics to identify clinics that need additional support so that we can direct our resources where we believe they will have the greatest and most immediate impact. These data-driven insights also guide sales coaching and accountability, helping our team drive improved clinic productivity more consistently. We are measuring the effectiveness of these efforts daily through clinic retention, procedure volume, and sales productivity.

Meanwhile, we continue to work on expanding our robust network of clinics. We continue to improve our onboarding efficiency, working more closely with clinics to provide targeted support as they initiate patient treatment. That leads me to our second and equally important priority, deepening practitioner engagement. At a high level, we know our best practitioners see Biote as a key long-term partner that provides an ongoing source of clinical education and practice-building support.

Achieving that objective requires consistent engagement driven by in-person visits, responsive support, and coordination among our teams to address each practice’s needs. Successful engagement with our practitioners is about making each interaction highly valuable, whether through education, clinical resources, or new clinic support. We believe that strengthening engagement earlier in the process not only reinforces the value of Biote’s relationship to its practitioner but also helps support long-term clinic growth and retention.

Our commercial outreach efforts further include driving competitive wins through new customer growth, expanding our clinician base, and improving retention through more active and consistent face-to-face salesforce interaction. Clinical leadership also plays an important role in strengthening our practitioner relationships. The value that Biote provides to our partners extends well beyond initial training and includes the ongoing education and clinical support that help practitioners make informed decisions to deliver consistent, high-quality care.

Our Chief Medical Officer, Dr. Komal Bajaj, is leading our efforts to strengthen these resources and ensure we remain responsive to practitioners’ needs. I am pleased to have Dr. Bajaj join us today to discuss her priorities and how her work supports our commitment to clinical excellence and science- and evidence-based education. I’ll now turn the call to Dr. Bajaj.

Komal Bajaj (Chief Medical Officer)

Thank you, Bob, and good afternoon everyone. I appreciate the opportunity to discuss my priorities at Biote. Throughout my career, I have focused on helping clinicians apply medical knowledge in everyday practice. I joined Biote to help practitioners address unmet needs in hormone care and healthy aging, with the goal of improving the quality of life of our aging population. Working across Biote’s broad network allows me to pursue that mission through practical clinical education and ongoing practitioner support.

My priorities as Chief Medical Officer are centered on clinical excellence and the quality and consistency of care. That begins with understanding the questions practitioners encounter, the challenges they face in applying their training, and the resources that they will find most useful. I’m working closely with our team to use that feedback to shape our educational priorities and make our resources accessible, practical, and relevant. From initial training through continued development, recurring questions help us identify where additional guidance would be most valuable and how we can make our clinical resources clearer and easier to use.

Biote’s commitment to science- and evidence-based content is central to this work. We strive to have our education reflect available evidence, communicate limitations clearly, and evolve as the science develops. Maintaining that discipline is essential to sustaining practitioner trust. Ultimately, I want practitioners to view Biote as a continuing source of clinical expertise and support throughout their relationship with us. By helping them make informed clinical decisions, we can reinforce the value of belonging to the Biote network and help build lasting practitioner relationships. I recently joined more than 100 clinicians and world-class faculty at our advanced training event in Nashville, Tennessee.

We believe that the discussions, interactions, and the education we provided on the future of health care set Biote apart as a leader in the industry, demonstrating our ongoing investment in clinical education and the support we provide to practitioners. I’m excited to be at Biote as we continue to expand our reach and help people with hormone optimization needs. With that, I’ll turn the call back to Bob.

Bob Peterson (Interim Chief Executive Officer)

Thank you, Dr. Bajaj. Now I’ll review our third quarter financial results. Unless otherwise noted, all quarterly financial comparisons in my prepared remarks are made against the third quarter of 2025. Revenue decreased 9.6% to $43.3 million. Procedure revenue declined 15.1% to $28.9 million due to the voluntary recall in January 2026, which delayed improvements in attrition and new clinic starts. We remain committed to restoring growth, with our immediate efforts centered on sales productivity and practitioner engagement.

Dietary supplements revenue grew 7.3% to $12.0 million. The increase was primarily driven by continued growth in our e-commerce channel. Gross margin was 67.7% compared to 71.8%. The decrease was primarily the result of residual impacts from the voluntary recall, which led to increased use of lower-margin third-party pellets. On a sequential basis, gross margin improved 231 basis points from the second quarter of 2026 as our mix of pellets sourced from third-party suppliers began to shift back to our internally manufactured pellets in the latter half of the third quarter.

We anticipate further sequential improvement in gross margin due to efficiencies gained through our vertically integrated structure and as a greater percentage of our pellets are manufactured and shipped by Asteria Health. For perspective, as of today Asteria Health has returned to pre-recall levels and will supply over 50% of our shipped pellets, as compared to 30% in the second quarter of 2026 and over 50% in the fourth quarter of 2025. Selling, general and administrative expenses increased 2.6% to $26.8 million. Relative to the second quarter of 2026, SG&A decreased by 20.8%, primarily reflecting reduced legal settlements and other legal-related expenses. Net income was $0.6 million, and diluted earnings per share attributable to Biote Corp. stockholders was $0.01, as compared to net income of $9.2 million and diluted earnings per share attributable to Biote Corp. stockholders of $0.22.

Net income for the third quarter of 2026 included a gain of $1.0 million due to the change in the fair value of the earnout liabilities, compared to a gain of $2.9 million in the third quarter of 2025. Adjusted EBITDA decreased to $5.1 million, with an adjusted EBITDA margin of 11.7%. Cash flow provided by operations in the third quarter was $3.7 million. We continue to invest capital to broaden and improve our product and technology offerings. As of September 30, 2026, cash and cash equivalents were $8.9 million as compared to $11.2 million as of June 30, 2026.

We maintain our full year 2026 financial guidance of revenue above $175 million, adjusted EBITDA above $25 million. While recent procedure trends are encouraging and help support our 2026 outlook, we have further work to do to achieve the results we believe are possible. We remain highly focused on what we believe matters most for long-term performance: clinic retention, practitioner engagement, and the consistency of procedure volume across our network.

By concentrating on these metrics, we aim to enhance our execution and generate stronger financial performance over time. Operator, let’s now open the call for questions.

OPERATOR

We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question is from Jailendra Singh with Truist Securities. Please go ahead.

Peyton Engdahl (Analyst)

Hi, this is Peyton. Sorry, this is Peyton Engdahl. I’m for Jailendra. I guess maybe just starting with procedure trends, could you talk a little bit more about what you saw as the quarter progressed and into October, and are things actually starting to improve or is it more that the declines have stabilized? And is the remaining pressure mostly existing practitioners doing fewer procedures or fewer practitioners actively using the program?

Bob Peterson (Interim Chief Executive Officer)

Okay. Hi. So looking at what we saw throughout the quarter, we saw modest average daily procedure volume increases. That said, we still have work to do to ensure that we demonstrate sustained improvement across our network. That said, when we look at the—as we continue to drive procedures, we’re looking really focused on new customer growth, the same-store sales, minimizing attrition, and gaining those competitive wins. For each one of those, as we talked about, increasing the sales productivity and strengthening practitioner engagement is key. So I would say activity by our reps in the field being face to face is probably the most important thing that we can see in that area.

Peyton Engdahl (Analyst)

Great, thank you. And then you’ve talked about improving sales productivity and practitioner engagement. What are the main things that you’re watching internally to tell us if those efforts are actually working?

Bob Peterson (Interim Chief Executive Officer)

Yeah, so good question. I’d say that we’ve really developed the focus on data, focus on accountability, and it starts with the foundation that we’ve put in place for constant improvement. And I can tell you right now, we’ve got more data than we’ve seen in the past, which allows us to really hold our commercial teams accountable for the activity and performance. I would say that the real focus here is on driving face-to-face interactions, ensuring that we’re in front of the customers and that we can drive that new customer base, while also being in front of customers that are within the portfolio to expand from within. So I would just say, how can we get in front of those customers early and often and make sure that we are supporting them along the way to expand their businesses.

Peyton Engdahl (Analyst)

Great. Thank you.

OPERATOR

The next question is from Kamil Gajwala with Jefferies. Please go ahead, Kamil. Your line is open on our end. Perhaps you have it muted on yours.

Kamil Gajwala (Analyst)

I’m sorry about that. Just—you were talking about the targeting of practitioners and how you’re sort of working it out. Plus you have a lot of data. So a lot of your conversations, a lot of the prepared remarks were around sort of retainment. But the story for over the years has been about growth. And so when you’re thinking about this targeting, what are you focusing on—one versus the other? How are you recruiting new ones versus what do you have to do to make sure that you keep the existing practitioners on board?

Bob Peterson (Interim Chief Executive Officer)

Good question. So I would just say across the board, our focus— in an annuity model, you’ve got to do three things, and three things well. One, drive new customer growth. New customer growth is the lifeblood for the future of the operation, and as you get those new customers, we want to make sure that we can get them into the portfolio, quick start, and make sure that they are productive early and often. Once you get that new customer into the portfolio, obviously the next step is to make sure that they become growers within the portfolio. From a same-store sales perspective, I can tell you that we have seen several examples of success in same-store sales from revamping several of our highly competitive regions, and I would just say that this is something that we need to continue to do in the future.

Attrition is one of the last things—maintaining. We work so hard to get new customers into the portfolio. We work hard to drive them to productivity, and attrition is the way we need to make sure that we’re in front of customers. And making sure that if we are in front of those customers, we believe that we won’t lose those customers longer term. So activity and increased sales productivity are absolute keys, but I would tell you you can’t have one without the other.

So I would say managing attrition is key—making sure that we’re in front of the customer—but also at the same time, it’s absolutely essential to continue to drive new customers too.

Kamil Gajwala (Analyst)

Okay, got it. Well, I guess two things on attrition. One would be just making sure that for the patients themselves, you know, you’re bringing in new ones and they’re becoming aware and that sort of thing. But the second piece would be the economics for the practitioner themselves. So has it changed in any way?

Bob Peterson (Interim Chief Executive Officer)

Can you repeat the last part of the question? You broke up a little bit.

Kamil Gajwala (Analyst)

I’m sorry about that. Just about the economics for the practitioner or the clinic, has that evolved or changed in any way where they’re either maybe focusing more or focusing less on the Biote products.

Bob Peterson (Interim Chief Executive Officer)

No, I would say one of the things that we’re seeing across the board is there is definitely a desire for many of these practitioners to continue to expand into the space and develop patients from within their portfolio. That’s one of the biggest value-adds that our sales force brings to the table in our quarterly business reviews that we do with these practitioners. And I would just say—yeah, no, I would say that our ability to get in front and drive patients to the procedure and assist the doc is absolutely critical for growth, and we haven’t seen a big shift there.

Kamil Gajwala (Analyst)

Okay, got it. Thank you.

OPERATOR

The next question is from Jonah Kim with TD Cowen. Please go ahead.

Iris Dankich (Analyst)

Hi, this is Iris Dankich on for Jonah Kim. And I was just wondering, what would a reasonable normalized revenue growth algorithm look like going forward? And how should we think about the relative contributions from procedures and supplements?

Bob Peterson (Interim Chief Executive Officer)

No, good question. Look, I think the primary goal for us is to drive new customer growth into the portfolio, establish those same-store sales, and mitigate attrition. Those all kind of go hand in hand. And I would just say for right now, as we see attrition become a little bit more flat, we are in a position now where managing attrition is key for the future of the company and growth, but also adding new customers is key. So I would just say across the board, as we look forward, normalized growth—we’re just in a position now where we’re trying to manage through where we are in the business. And really our goal right now is to increase sales productivity and strengthen practitioner engagement. And just remember, I think one thing that’s important to put on the table here is that we’re upgrading the organization and changing the culture, and I would just say that that does take some time to get to more of a normalized level.

And I would just say we’ve experienced a lot of change, and we’re trying to drive the future growth.

Iris Dankich (Analyst)

Got it. That all makes sense. And then, in general, I was also wondering, what has end consumer health been like? And have you seen any notable shifts in behavior?

Bob Peterson (Interim Chief Executive Officer)

I would say we have not seen any notable shifts in behavior. Given consumer spending at this point, our area remains fairly—remains strong, and we have not seen any shifts.

Iris Dankich (Analyst)

Got it. Thank you so much.

OPERATOR

The next question is from George Kelly with Roth Capital Partners. Please go ahead.

George Kelly (Analyst)

Hey, everybody. Thanks for taking my questions. A first one for you. Not to just sort of put you through this again, Bob, but I’m still a little unclear on your commentary in the press release just about how getting procedure revenue growth back sort of going is a slower process than you hoped. And you laid out to a few of the prior questions just the three elements that are most important to your procedure business. And so I guess the question I had is, which of those three have not materialized like you hoped, or where has there been disappointment?

I guess what I’m trying to get to: is this really all about onboarding new practitioners, or has there been a pricing element because of continued kind of retention issues? Or just anything to help me understand sort of why it’s materialized more slowly than you hoped?

Bob Peterson (Interim Chief Executive Officer)

Yeah, good—good question, George. So thinking about why we’ve seen a little bit slower materialization, I mean, we’ve got to remember the first half of the year where we were really focused and driving attention to clinics because of the recall. So first and foremost, we can’t forget that. The second piece is that we have a lot of new sales reps within the business, and we’ve really upgraded our territory managers—or our sales reps. We’ve upgraded almost 50 additional sales reps. So as we continue to develop these analytical—many analytical capabilities to assist in targeting and holding these individuals accountable, I would just say changing the culture in everything that we put forth does take a little bit of time.

And I would say we are now starting to see some of the benefits of our sales reps being in the clinics more. And I would also say that it does take a little bit more time to develop the pipelines. When you’ve been in those clinics and servicing those clinics over time, it does take some time to build those pipelines back up to drive new customers. I would just tell you one other thing here: when it comes to face-to-face interactions and the power of the analytics that we’re seeing within the business, I can tell you we’ve recognized—even just in the short term in one of our regions—we noticed that we were not getting the desired activity, and we observed several legacy reps not driving new customer activity and not meeting with the practitioners face to face in a highly competitive region.

When we went in and we made those upgrades to the reps in that region, we upgraded to what I would call more hungry sales reps who are now driving significant prospecting calls and consistent meetings with practitioners. And what we’re seeing now is the growth of same-store sales in that one region and retaining the business. I mean, this region is now also winning larger customers back from a competitive accounts perspective. This is what we’re trying to do across all of our regions in the second half of the year and moving forward, because these successes are easily duplicatable throughout the country. But with those analytics and that face-to-face interaction, that’s really what’s going to drive it. But it is a little bit slower when you’re making this kind of culture change. Hopefully that gives a little bit of color.

George Kelly (Analyst)

It does, yeah. That was helpful. And then second question for me is just about your cost and margin structure. You mentioned in your prepared remarks that you expect gross margin to continue improving as hysteria ramps back up. Can you help—two-part question—can you help sort of just directionally, like how close, you know, is your number in 3Q beat us? How much room is there still? And I know mix makes a difference here, but just within your procedure business, I guess particularly.

And then secondly, and maybe more important, is just on SG&A as we look into next year, are there areas of SG&A that can be sort of made more efficient, or do you see any opportunity for kind of cost savings measures, or is it just kind of too early to look into that at this point?

OPERATOR

This concludes our question and answer session. I would like to turn the conference back over to Bob Peterson for any closing remarks.

Bob Peterson (Interim Chief Executive Officer)

Thank you everybody for joining today and appreciate you being on the.

OPERATOR

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.

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