biote Corp. Q4 FY2025 earnings call

• 2025 was a pivotal year with progress against strategic objectives: prioritizing and accelerating new clinic growth, maximizing value from existing top-tier clinics, and strengthening accountability and discipline. Rebuilt commercial team, increased salespeople, stabilized clinic attrition, and saw acceleration in practitioner trainings.
• 2026 plans: Invest in sales and technology capabilities, expand sales personnel from over 90 to approximately 120, invest in technology platform to enhance practitioner journey and retention, and expand sales of dietary supplements.

Fourth quarter revenue was $46.4 million. Procedure revenue declined 13% to $31.8 million. Dietary supplement revenue grew 16% to $11.7 million. Procedure revenue was primarily impacted by lower number of net new clinic additions and lower procedure volume. Dietary supplement revenue was primarily driven by the continued growth of the e-commerce channel.

• Anticipate investing in sales and technology capabilities, which will impact adjusted EBITDA in 2026 but position for long-term objectives.
• 2026 revenue guidance: Procedure revenue expected to decrease mid to high single-digit in first half, return to growth in second half; dietary supplement revenue expected to grow mid to high single-digit; forecast 2026 revenues above $190 million and adjusted EBITDA of greater than $38 million.

• Voluntary recall of specific lots of hormone pellets shipped by Asteria Health led to a $1.3 million charge to inventory in fourth quarter 2025, which could impact near-term gross margin if product mix includes more third-party manufacturing.

Q: What's your take on the FDA's removal of black box warnings for certain HRTs and maybe how this could potentially impact demand? And then also for the voluntary recall, can you elaborate on any FDA feedback and whether you see this event changing the regulatory bar or competitive dynamics in the space?

A: Hi, this is Brett. First on the black box warning that was removed now really almost, you know, just a little less than a year ago. That along with, you know, the entire talk track of the FDA seems to be a positive tailwind for us and others. It's a good sign that finally hormone optimization is getting recognized as a great option. It's always been a good option for men and women are getting the the attention that they deserve is there are still no FDA-approved options for women for testosterone therapy. So all in all, it's a great thing for us. It reinforces what we've known is that there's no harm that comes from testosterone and a tremendous amount of benefit that patients can get through different modalities of HRT. So it's a good thing, and we look for continued support from clinicians and patients alike for awareness. As far as the recall goes, as you know, at the end of January, we announced a partial recall, voluntary recall that we're doing just out of an abundance of caution, working hand in hand with the FDA. So the feedback has been good. You know, we are working hand in hand with the FDA on almost everything that we do. So communication to our customers, taking the product back, refilling those orders. All of that has been done in a planning with the FDA, so we are lockstep with their guidance in this entire recall. Our customers have been responsive, and we're happy with where we're at so far.

Q: I just wanted to drill into the procedure revenue growth in the first half, and is it purely the number of procedures that will be done while the number of practitioners are ticking higher? Or is there also some element of promos or discounting that we should be considering? Any color there, and also if anything's changed in the competitive environment would be helpful.

A: Yeah. Hi, Caitlin. This is Brett. I'll start with that, and Bob can add some specifics. You know, throughout last year, we highlighted an increase in attrition. And for us, when we talk about attrition, we are talking about practitioner and clinic attrition. And so while that's been stable for us for years at around 5%, last year we highlighted that that accelerated to high single digits. And so that's where we've exited the year in 2024. The lower volume that we're highlighting in 2026 in the first half until we return to growth in the second half really is just that same attrition that we've experienced at a higher rate in the past. Remember, with an annuity model, we live with that attrition for 12 months. So attrition was higher last year, and mostly that was clinic attrition. which does mean lower volumes. So that's where we exited the year. We anticipate that that will change this year, and we will return to growth in the second half through volume growth. But the majority of that lower procedure revenue was volume. That's right. And I think the only other thing to add there is, as Brett mentioned, we are in the process now of watching some of those new customers that are coming in the door. And wanting to see, he highlighted in the remarks that trainings were full. We'll need to continue to watch those individuals to make sure that they are productive and start quickly. And I can't stress enough, we're in the, you know, we're about a month, month and a half into the recall. And we just want to continue to monitor the impacts there also. So I think that gives a little bit of additional color