8-K: Biote Corp. Reports Q1 2026 Financial Results

Biote Corp. announced first quarter 2026 financial results, reporting $44.9 million in revenue and a net income of $2.7 million, impacted by a voluntary product recall.

Summary

• Biote Corp. reported first quarter 2026 revenue of $44.9 million, an 8.3% decrease from $49.0 million in the prior year period.
• Net income for the quarter was $2.7 million, or $0.06 per diluted share, a significant decrease from $15.8 million, or $0.37 per diluted share, in Q1 2025.
• The company experienced a voluntary recall of certain hormone pellet products, which impacted revenue and gross profit margin.
• Procedure revenue declined 13.2% to $31.3 million, while dietary supplements revenue grew 19.1% to $11.0 million.
• Gross profit margin decreased to 68.9% from 74.3% due to higher costs for replacement products and reduced manufacturing efficiencies.
• Adjusted EBITDA was $8.7 million, a decrease of 36.6% from $13.8 million in Q1 2025.
• The company anticipates a return to procedure revenue growth in the second half of 2026.
• Biote is nearing its target of approximately 120 sales representatives.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to significant year-over-year declines in revenue, net income, and key profitability metrics, primarily attributed to a product recall.

Positives

• Dietary supplements revenue grew 19.1% to $11.0 million.
• The sales team expansion is on track and nearing the targeted level of approximately 120 representatives.
• Leading indicators such as newly trained practitioners and new clinic growth are moving in the right direction.
• The company is committed to investing in its commercial organization.
• Return to procedure growth is expected in the second half of 2026.

Negatives

• Total revenue decreased by 8.3% to $44.9 million compared to $49.0 million in Q1 2025.
• Procedure revenue declined by 13.2% to $31.3 million.
• Net income decreased significantly to $2.7 million from $15.8 million in the prior year period.
• Diluted earnings per share decreased to $0.06 from $0.37.
• Gross profit margin decreased to 68.9% from 74.3%.
• Adjusted EBITDA decreased by 36.6% to $8.7 million from $13.8 million.
• Adjusted EBITDA margin declined to 19.4% from 28.1%.
• First half procedure revenue growth is expected to be moderately lower than previously forecast due to the voluntary product recall.

Risks

• Supply constraints related to the voluntary recall of certain hormone pellet products.
• Increased inventory levels are needed to ensure continuity of care.
• Potential for continued headwinds in the second quarter due to the voluntary product recall.
• Sensitivity to regulatory, economic, environmental, and competitive conditions.
• Ability to increase the use of the Biote Method by practitioners and clinics at the anticipated rate.
• Significant competition in the industry.
• Ability to protect intellectual property.
• Heavy regulatory oversight in the industry.

Future Outlook

Biote anticipates a return to procedure revenue growth in the second half of 2026, consistent with prior guidance. However, first half procedure revenue growth is expected to be moderately lower than forecast due to the voluntary product recall. Full-year 2026 revenue is projected to be above $190 million, and Adjusted EBITDA is projected to be above $38 million. Dietary supplements revenue is expected to grow at a mid to high single-digit rate from 2025.

Management Comments

• "First quarter financial results were impacted by supply constraints related to the voluntary recall of certain hormone pellet products. We are increasing inventory levels to ensure continuity of care throughout our clinic network."
• "Leading indicators of future performance, including the number of newly trained practitioners and new clinic growth, are moving in the right direction, reinforcing our conviction in our strategic initiatives."
• "We remain committed to investing in our commercial organization, and I am pleased to report we are nearing our stated goal of approximately 120 sales representatives."
• "Although we expect to continue to experience headwinds in the second quarter from our voluntary product recall, I believe our strategic actions and investments are laying the groundwork for improved financial performance as the year progresses."

Industry Context

StockSavvy.ai notes that Biote's Q1 2026 results reflect challenges common in the specialized health and wellness sector, particularly concerning supply chain disruptions and product recalls impacting revenue streams. The company's focus on expanding its commercial team and anticipating a return to growth in the latter half of the year aligns with strategies often employed to recover from such setbacks.

Comparison to Industry Standards

• No direct comparisons to specific industry benchmarks or competitors were provided in the filing.
• The filing does not offer specific data points for comparison against global benchmarks for hormone optimization or healthy aging solutions.

Legal Proceedings

• The filing mentions litigation expenses related to claims asserted by the Company's former owner and other litigation expenses not related to ongoing business.
• Legal settlement and related expenses were also incurred.

Stakeholder Impact

• Shareholders: Potential negative impact due to decreased profitability and earnings per share, and a decline in stock price is possible.
• Customers (Practitioners/Patients): Potential disruption due to supply constraints from the voluntary product recall, though efforts are being made to ensure continuity of care.
• Suppliers: May face increased demand for replacement products due to the recall.

Next Steps

• Increase inventory levels to ensure continuity of care.
• Continue investing in the commercial organization.
• Achieve targeted level of approximately 120 sales representatives.
• Achieve a return to procedure revenue growth in the second half of 2026.
• Host a conference call on May 6, 2026, to review results and provide a business update.

Key Dates

Recommendation

While the Q1 2026 results show a significant decline driven by a product recall, the company anticipates a return to growth in the second half of the year and is making strategic investments. The current situation presents risks but also potential for recovery, warranting a hold recommendation pending further performance improvements and resolution of supply chain issues.

Keywords

Biote Corp, 8-K, Financial Results, Q1 2026, Hormone Optimization, Healthy Aging, Revenue, Adjusted EBITDA