BTMD — biote Corp.

BTMD Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: Decreased by 9.5% to $44.2 million.
  • Procedure Revenue: Declined 13.9% to $30.3 million, impacted by a $3.3 million loss due to a voluntary product recall.
  • Dietary Supplements Revenue: Grew 5.7% to $11.4 million, driven by e-commerce growth.
• Gross Margin: Fell to 65.4% from 71.6%, primarily due to recall-related costs and increased reliance on high-cost third-party pellets.
• SG&A Expenses: Increased to $32.4 million from $24.2 million, largely due to higher legal expenses.
• Net Loss: Reported at $7.4 million, compared to a net income of $3.9 million in Q2 2025.
• Adjusted EBITDA: Decreased to $5.6 million with a margin of 12.6%.
• Cash Position: Cash and cash equivalents improved to $11.2 million from $5.3 million at the end of Q1 2026.

2. Strategic Updates and Business Highlights

• The company has made significant internal improvements, focusing on corporate culture, operational alignment, and commercial team enhancement.
• Asteria Health has restored inventory levels and is operating at normalized production, which is expected to improve profitability in the second half of the year.
• The strategic roadmap emphasizes operational improvements, clinic retention, and enhancing practitioner experience.
• BioT is exploring inorganic growth opportunities while prioritizing organic growth.

3. Forward Guidance and Outlook

• Procedure revenue is expected to improve sequentially in Q3 and Q4 2026, although year-over-year growth will remain negative due to earlier disruptions.
• Dietary supplements revenue is projected to grow at a mid-to-high single-digit rate for the year.
• Revised full-year revenue guidance is now above $175 million (down from $190 million) and adjusted EBITDA above $25 million (down from $38 million).

4. Bad News, Challenges, or Points of Concern

• The company faced headwinds from a voluntary product recall, which affected procedure volume and clinic attrition.
• Clinic attrition remains elevated at around 8%, with no significant changes in competitive pressures noted.
• New clinics have been slower to ramp up productivity due to the sales team's focus on recall-impacted clinics.

5. Notable Q&A Insights

• Management expressed confidence in improving procedure revenue in the second half, citing restored supply and accountability in sales efforts.
• Discussions around inorganic growth opportunities highlighted a desire to expand reach and enhance practitioner engagement.
• Legal expenses are expected to decrease in the latter part of the year following the resolution of several outstanding legal matters, which should normalize SG&A expenses moving forward.

Overall, while BTMD is navigating challenges from a product recall and declining procedure revenue, the company is optimistic about operational improvements and future growth potential.