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DATE

Wednesday, May 6, 2026 at 5 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Bret Christensen
  • Chief Financial Officer — Bob Peterson
  • Investor Relations — Szymon Serowiecki

TAKEAWAYS

  • biote (BTMD 0.45%) reported $44.9 million in revenue, an 8.3% decrease, primarily due to a voluntary recall of hormone pellets creating an estimated $1.7 million negative impact.
  • Procedure Revenue -- $31.3 million, down 13.2%, reflecting lower volume in existing clinics and lower productivity from new clinics because of sales force distraction from recall management.
  • Dietary Supplement Revenue -- $11 million, up 19.1%, driven by continued growth in the e-commerce channel.
  • Gross Profit Margin -- 68.9%, down from 74.3%, with the decline attributable to $1.1 million in incremental recall-related costs and a higher mix of third-party pellet supply.
  • Net Income -- $2.7 million, compared to $15.8 million, with the reduction also reflecting a decline in fair value gains on earn-out liabilities ($2.1 million gain versus $10.7 million gain).
  • Diluted Earnings Per Share -- $0.06, compared to $0.37.
  • Adjusted EBITDA -- $8.7 million, with a margin of 19.4%, reflecting lower revenue, reduced gross profit, and higher operating costs.
  • SG&A Expense -- $27.8 million, up 4.1%, with $0.4 million directly related to recall activities and increased legal costs.
  • Cash Position -- $5.3 million in cash and cash equivalents, following full repayment of share repurchase liabilities in January.
  • Practitioner Training -- More than 200 new practitioners trained, a 16.5% increase, with near full capacity in training sessions, indicating continued practitioner interest.
  • Sales Force Expansion -- Over 25 new sales personnel added, growing the team to approximately 120, now nearly complete with planned expansion for the year.
  • Guidance Affirmed -- Management reiterated 2026 revenue guidance above $190 million and adjusted EBITDA over $38 million, anticipating a return to growth in the second half of the year.
  • Product Mix Shift -- In the quarter, Asteria Health produced about 30% of shipped pellets versus over 50% previously, highlighting a temporary increase in reliance on third-party suppliers because of the recall.
  • Procedure Revenue Trend -- Management now expects first-half procedure revenue growth to be "moderately lower than previously forecast" due to lingering supply constraints.
  • Inventory Normalization -- The effort to increase inventory levels is underway, with normalization expected within several weeks, including establishment of a second shift at Asteria Health.

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RISKS

  • Christensen said the voluntary recall "was a significant distraction to our sales force and their growth objectives, as they were forced to service accounts versus focusing on growth," and the disruption "expected to continue into the second quarter."
  • Peterson stated gross margin will remain pressured in the next quarter due to "an elevated level of third-party supply," contributing to lower profitability.
  • Management acknowledged continued allocation of inventory to customers, leading to "uncertainty in the field" and affecting clinics' confidence in scheduling cases.

SUMMARY

Management attributed the revenue decline and compressed margin to a voluntary recall and related supply constraints, which required increased reliance on third-party suppliers and incremental recall costs. The expansion of the sales force and practitioner network was nearly completed, with strong practitioner training engagement seen as a foundation for future revenue. Management affirmed full-year guidance, citing pent-up demand, planned inventory normalization, and recent investments as supporting a return to growth in the year's second half.

  • Peterson maintained dietary supplement revenue is expected to see "mid- to high-single-digit" annual growth.
  • Christensen indicated the strategic focus has shifted toward higher-value OBGYN and general practitioners within the sales pipeline, targeting improved predictability and lifetime revenue per account.
  • Sales representatives' ability to drive new business was limited by recall duties, but management anticipates improved results post-normalization.
  • Peterson cited a gain of $2.1 million from earn-out liability fair value remeasurement, which contributed to reported net income but was significantly lower than the prior year's effect.
  • Christensen described clinic attrition as stable and not materially impacted by the recall, with signs of pent-up procedural demand expected to be captured as inventory recovers.

INDUSTRY GLOSSARY

  • Asteria Health: Vertically integrated compounding pharmacy subsidiary responsible for hormone pellet production and supply for biote.

Full Conference Call Transcript

Operator: Good day, and welcome to the biote Corp. first quarter 2026 earnings conference call. All participants will be in listen-only mode. Please note this event is being recorded. I would now like to turn the conference over to Szymon Serowiecki, Investor Relations. Please go ahead.

Szymon Serowiecki: Thank you for joining us today. This afternoon, biote Corp. published financial results for the first quarter ended 03/31/2026. This news release is available in the Investor Relations section of the company's website. Hosting today's call, Bret Christensen, Chief Executive Officer, and Bob Peterson, Chief Financial Officer.

Before we get started, I would like to remind everyone that management may make statements during this call, including forward-looking statements regarding, among other things, the company's financial results, future performance, opportunities, business outlook, strategic plans, anticipated benefits, goals, future development, manufacturing and commercialization activities, its competitive position, and rigor across operations, benefits of its solutions, anticipated impacts of macroeconomic concerns on business results of operations, financial condition, and other matters that do not relate to historical facts. These statements are not guarantees of future performance and 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 based on management's current expectations as of today. biote Corp. 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 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 to investors.

A reconciliation of the non-GAAP to GAAP measures is provided in the earnings release, the primary differences being stock-based compensation, fair value adjustments to certain liabilities, and other non-operating expenses. Please refer to our first quarter 2026 earnings release for reconciliations of non-GAAP measures to the closest comparable GAAP measures. Now I will turn the call over to Bret Christensen.

Bret Christensen: Thank you, and thank you all for joining us. Over the past 12 months, we have made important progress to advance our strategic priorities. We have strengthened our commercial organization, expanded our sales team, and enhanced our capabilities to better support practitioners and their patients. We have also sharpened our focus on maximizing value from our existing top-tier clinics, which remain important contributors to our long-term financial performance. Through these strategic and operational initiatives, we have built a solid foundation that we believe supports sustainable, long-term profitable growth. As previously communicated, in January, biote Corp. voluntarily withdrew certain bioidentical hormone pellet inventory from the market. We initiated this recall out of an abundance of caution.

This temporary supply disruption created a headwind to our first quarter performance, resulting in an estimated $1.7 million revenue impact and approximately $1.5 million of incremental costs incurred due to the voluntary recall. We are addressing the supply challenge as efficiently as possible. To mitigate the impact on our practitioners and their patients, we are increasing inventory levels to ensure continuity of care throughout our network. The recall affected our first quarter results and was a significant distraction to our sales force and their growth objectives, as they were forced to service accounts versus focusing on growth. The impacts are expected to continue into the second quarter.

We believe this is a temporary issue and it does not affect our long-term strategy or alter the overall demand environment. We continue to see a sizable market opportunity across hormone therapy and therapeutic wellness, and we remain focused on building sustainable revenue growth. In our last call, I noted that one of our top priorities in 2026 was to expand our sales personnel from over 90 at the end of 2025 to approximately 120 this year. I am pleased to report that we are substantially complete with this effort. With over 25 new sales personnel hired in the first quarter, we have expanded and strengthened our commercial capabilities and are ready for the future.

Despite the distraction caused by the voluntary recall, our commercial team is already beginning to deliver a higher level of service to existing accounts while utilizing our increased sales capacity to grow and scale our practitioner network. In the first quarter, we trained more than 200 new practitioners, representing a 16.5% increase from 2025. For our top clinics, we have introduced a series of measures aimed at improving retention and supporting stronger lifetime revenue outcomes. We are enhancing our commercial framework to reinforce the value proposition biote Corp. can offer to our leading practitioners. New practitioner training sessions remain at near full capacity, underscoring continued practitioner interest in our bioidentical hormone optimization and healthy aging solution offerings.

Because the number of newly trained practitioners is a leading indicator of future procedures and dietary supplement sales, this high level of engagement further strengthens our belief that we are on the right path to restore revenue growth. As a reminder, once a practitioner is fully trained, it typically takes about six months for that new practitioner to begin to contribute meaningfully to our financial performance. As we continue to invest in our commercial team, one of our key objectives is to elevate the quality of our sales pipeline. Over the past several months, we have seen clear evidence of progress, with higher value OBGYN and general practitioners representing a growing share of our pipeline.

This reflects a more disciplined qualification process as well as our focus on recruiting practitioners with greater long-term revenue contribution potential. We believe our efforts to enhance our sales pipeline should translate into more predictable performance as we increasingly support practitioners whose clinical specialty is more closely aligned with our suite of product offerings. In summary, while our first quarter performance fell short of our expectations due to the voluntary product recall, we continued to move forward on key initiatives that support our long-term strategy.

I am confident that our strategic investments and actions are expected to strengthen our capabilities and lay the groundwork for what we anticipate to be a return to growth in the second half of the year. I will now turn the call over to Bob Peterson to review the first quarter results.

Bob Peterson: Thank you, Bret, and good afternoon, everyone. Unless otherwise noted, all quarterly financial comparisons in my prepared remarks are made against 2025. Revenue decreased 8.3% to $44.9 million, with procedure revenue declining 13.2% to $31.3 million, which included a $1.7 million impact related to the voluntary recall of certain hormone pellets shipped by Asteria Health. Procedure revenue was primarily impacted by the following factors: one, lower procedure volume in existing clinics, which includes the impact of hormone pellet supply constraints related to the recall; and two, slower productivity from new clinics as our sales reps focused on supporting recall-impacted clinics. Dietary supplement revenue grew 19.1% to $11 million.

The increase was primarily driven by the continued growth of our e-commerce channel. Overall, we continue to forecast our dietary supplement revenue will grow at a mid- to high-single-digit rate for 2026. Gross profit margin was 68.9% compared to 74.3%. The decrease was primarily due to $1.1 million of incremental cost related to the recall. In the first quarter, Asteria Health produced approximately 30% of our shipped pellets, as compared to over 50% in 2025. As Bret noted, we anticipate fully restoring Asteria Health supply continuity by the end of the second quarter. As a result, we expect our second-quarter product mix will continue to include an elevated level of third-party supply, which will impact second-quarter gross margin.

Our goal remains to meet customer needs through the vertical integration of Asteria Health. Selling, general, and administrative expenses increased 4.1% to $27.8 million. The increase reflected higher legal expense and $0.4 million of SG&A costs associated with the product recall. Net income was $2.7 million and diluted earnings per share attributed to biote Corp. shareholders was $0.06. This compares to net income of $15.8 million and diluted earnings per share attributed to biote Corp. stockholders of $0.37. Net income for 2026 included a gain of $2.1 million due to changes in the fair value of the earn-out liabilities.

By comparison, net income for 2025 included a gain of $10.7 million due to changes in the fair value of the earn-out liabilities. Adjusted EBITDA decreased to $8.7 million, with an adjusted EBITDA margin of 19.4% due to lower sales, reduced gross profit, and higher operating expenses. Cash flow from operations in the first quarter was $3.9 million. As of 03/31/2026, cash and cash equivalents were $5.3 million, as biote Corp. fully repaid the remaining amount due under its share repurchase liabilities in January 2026. Now turning to our financial outlook for 2026. We maintain our guidance, forecasting 2026 revenue above $190 million and 2026 adjusted EBITDA of greater than $38 million.

With respect to our 2026 revenue outlook, procedure revenue is expected to return to growth in 2026, unchanged from our prior guidance. Based on current trends, we now expect first-half procedure revenue growth to be moderately lower than previously forecast due to the temporary impact of the voluntary product recall and related supply constraints. Dietary supplement revenue is expected to grow at a mid- to high-single-digit rate from 2025. I will now turn the call back to Bret for his closing comments.

Bret Christensen: Thanks, Bob. As we continue to address temporary impacts from the recall, we remain focused on the priorities that will strengthen our business for the long term. Our continued investments in commercial talent, technology, and practitioner support are creating a stronger platform for future execution. With this foundation in place, I believe biote Corp. is well positioned to better serve our practitioners, improve our financial performance, and create value for our shareholders. Operator, let us now open the call for questions.

Operator: We will now open the call for questions. If you are using a speakerphone, please pick up your handset before pressing the keys. The first question today comes from an analyst with Truist Securities. Please go ahead.

Jeevan: Hey, this is Jeevan on for Les. Thanks for taking our questions. How did the clinic attrition trend in the first quarter as the recent hires ramp up, and are you seeing some stabilization here if you normalize for the voluntary recall?

Bret Christensen: Yes, hey, Jeevan, thanks for the question. Attrition for us has stabilized and been stable now for several quarters. It is still a little bit higher than we would like to see, and with the disruption that we had in Q1 due to supply constraints from the recall, it is hard to draw any conclusions of really any improvement there yet. We did see, however, some positive signs in daily volumes prior to the recall, which is where we get the $1.7 million impact of the recall that we quoted in the earlier comments. So there were some things to be encouraged by, and then supply constraints really put a damper on that.

As far as the sales force and sales force expansion, that expansion is new in Q1, going to 120 reps. They were fairly distracted in Q1 with supply constraints, but we have every belief that they are going to get back to growing the business now, as we are just weeks away from completely normalizing inventory levels and getting that team back to growth. We should see the impact of that team starting in Q2.

Operator: The next question comes from Jeff Van Sinderen with B. Riley Securities. Please go ahead.

Jeff Van Sinderen: Hi, everyone. Just wanted to understand a little bit more about the supply constraints. I guess I am confused by the recall still having an impact in Q2 and why we would still have supply constraints at this point. I would think that Asteria would recover a little more quickly. Maybe you can just talk a little bit about that. Also, you had a shortfall in Q1 and you sort of guided down for Q2 in your language, as I took it, but you kept the year guidance unchanged. What gives you confidence that the second half will be even better than what was previously implied in guidance?

And then just thinking about some of the doctors who could not get the supply that they needed and were on allocation in Q1 and maybe a little bit in Q2, was there anything preventing them from sourcing the pellets elsewhere?

Bret Christensen: Yes, Jeff, I will start with that and then Bob can add some color. If you remember, we announced the recall in January and then began notifying our customers. That was done out of an abundance of caution for product that was compounded and manufactured prior to October 2025. There was a lot of product that needed to come back and be replaced by Asteria and by some of our third-party partners who were helping with fulfillment. It put a lot of strain on Asteria.

We have done a tremendous amount to scale production at Asteria, including adding a second shift and asking that team to work very hard to catch up on supply, but it has been an ongoing struggle. The disruption really comes from two things: having to allocate inventory to our customers, meaning giving them less than what they ordered in some cases, which meant rescheduling patients and creating uncertainty in the field; and the distraction to the field as we asked them to manage that message and, in some cases, those orders to help us prioritize who should get inventory and when.

All of that ate into our safety stock at Asteria, and we are in the process of building that back up now, but it has taken longer than we would like. We have asked for help from our third-party pharmacy partners to fulfill orders. We are probably just weeks away from a more normalized situation. It is better today than it was in February and March. On guidance, we believe this is a temporary headwind to demand because of the inventory constraints. We saw positive signs in daily volumes going into the recall, which is how we extrapolated the $1.7 million top-line impact.

There is also some pent-up demand from these supply shortages that we expect to recapture in the coming weeks and months. Our team of 120 territory reps is new and really did not have a chance to contribute to those positive signs pre-recall, so we are optimistic they will drive growth once they are not distracted by inventory issues. We have had full training classes for about six months, which is the earliest indication of production in the field returning to growth. We trained more than 200 practitioners in Q1, and they typically begin contributing meaningfully after about six months. That supports our confidence in a second-half return to growth. As for sourcing elsewhere, not really.

The entire industry has been stretched for pellet production, and the best partners out there are partners of ours. We quickly reached out to them and asked for help supplying product to our customers, which is why the Asteria mix went down in Q1. That is a temporary drag on gross margin, but those were the most readily available pellets. We have strained some of our third-party suppliers because of the demand we sent their way. There are not many other places physicians can go. It is difficult, particularly because more than 80% of our patients are women and the hardest pellets to produce are estrogen and estradiol pellets.

They are very manual and cannot be produced at scale in the way testosterone pellets can. That was the main drag on supply, and that challenge is shared by many pharmacies. We are in a good spot today, thanks to our third-party pharmacies and Asteria’s quick work to scale a second shift, and we think we are in good shape going forward.

Bob Peterson: The biggest thing I would add is that we are maximizing production to build safety stock. We intentionally slowed some of the pellets going out from Asteria so that Asteria could build inventory. One of the biggest steps we took to build inventory even quicker is the establishment of a second production shift. This will enable us to maximize our production, prepare for future growth, and increase our stock levels. We intend to return to expanding our vertical penetration in the remainder of the year once we have line of sight, in the next several weeks, to safety stock at a solid level.

Operator: The next question comes from George Kelly with ROTH Capital Partners. Please go ahead.

George Kelly: Hey, everyone. Thanks for taking my questions. First, back to the recall, I was curious if you saw much clinic attrition as a result. And with your current status and your inventory build—your catch-up—where are you in that process? You mentioned you feel like you are in a good spot now; is there still a lot of catch-up that needs to happen? Also, what have you seen in April? The press release commented that there is continued pressure, so any detail you can give about procedure volume in April would be helpful.

Bret Christensen: Thanks, George. On attrition, not really. At this point it would be anecdotal anyway, but we have not seen much clinic attrition. We clearly saw a reduction in procedure volumes in the field. It remains to be seen if there was any patient attrition—patients switching modalities, etc. We think there is pent-up demand that we will capture in the coming weeks and months. Regarding inventory, we said the impact would persist into Q2, but we are weeks away from a fully normal situation, which is tremendous progress. We are intentionally taking it easy on Asteria to allow them to build safety stock because we want to get to another two months or so of safety stock.

We will continue to use our third-party partners to allow that to happen, and we will use them going forward as well. They have been fantastic. Anecdotally, if it is not going well, we hear it, and the consensus is things are much better today than weeks and months ago. Our customers are feeling it too. We are not completely out of the woods because we are still allocating—holding some customers to two or three weeks of inventory when they are used to having two-plus months. That affects their confidence in scheduling cases, but we will get there shortly.

Bob Peterson: On Asteria, it takes time in a regulated environment to get a second shift up and running. Those steps started about a month to a month and a half ago. We have just recently started that second shift. Even before that, the shop at Asteria was working around the clock to maximize production, but the second shift now removes constraints around filling and packaging some of the smaller items. In the next couple of weeks, we should be in a solid position primarily because of the second shift.

In about a month—maybe a little longer—we should be ahead of our safety stock levels so we can regain traction from a vertical integration perspective at Asteria and start ramping back up to where we once were.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Bret Christensen for any closing remarks.

Bret Christensen: I want to thank everyone for joining us today. We appreciate your interest in biote Corp. and look forward to speaking with you on our next conference call. Thanks, everyone.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.