BTMD — biote Corp.

Summary of BTMD Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: Decreased 8.3% to $44.9 million; procedure revenue down 13.2% to $31.3 million, impacted by a $1.7 million revenue loss due to a voluntary product recall.
• Dietary Supplement Revenue: Grew 19.1% to $11.0 million, driven by e-commerce growth.
• Gross Profit Margin: Decreased to 68.9% from 74.3%, primarily due to $1.1 million in recall-related costs.
• Net Income: $2.7 million, down from $15.8 million year-over-year; diluted EPS of $0.06 compared to $0.37.
• Adjusted EBITDA: Decreased to $8.7 million with a margin of 19.4%.
• Cash Flow: Generated $3.9 million from operations; cash and cash equivalents at $5.3 million.

2. Strategic Updates and Business Highlights

• Expanded sales personnel from over 90 to approximately 120, with 25 new hires in Q1.
• Trained over 200 new practitioners, a 16.5% increase from Q1 2025, indicating strong interest in offerings.
• Focus on maximizing value from existing clinics and improving retention strategies for top clinics.
• Enhanced commercial framework to better support practitioners and increase revenue potential.

3. Forward Guidance and Outlook

• Maintained 2026 revenue guidance of over $190 million and adjusted EBITDA of greater than $38 million.
• Anticipated return to growth in procedure revenue in the second half of 2026, despite a forecast for lower first-half growth due to recall impacts.
• Dietary supplement revenue expected to grow at a mid- to high single-digit rate.

4. Bad News, Challenges, or Points of Concern

• The voluntary product recall created a significant headwind, resulting in lost revenue and increased costs.
• Lower procedure volume in existing clinics and slower productivity from new clinics due to the recall.
• Gross margin pressure due to reliance on third-party suppliers and ongoing supply constraints.
• Clinic attrition remains slightly higher than desired, although no significant increases were reported due to the recall.

5. Notable Q&A Insights

• Management acknowledged that clinic attrition has stabilized but remains higher than preferred.
• Supply constraints from the recall are expected to persist into Q2, but inventory levels are improving.
• Confidence in a return to growth is based on positive signs seen before the recall, pent-up demand, and the ramp-up of the new sales team.
• The industry-wide shortage of pellet production limits options for physicians, complicating supply issues.
• Management is optimistic about regaining traction in the second half of the year as inventory levels normalize and the new sales team begins to contribute.

Overall, while the first quarter faced challenges primarily due to the recall, management remains focused on strategic growth initiatives and is optimistic about future performance as supply issues are resolved.