8-K: Biote Corp. Reports Q2 2026 Results Amidst Recall Impact

Biote Corp. announced second quarter 2026 financial results showing a 9.5% revenue decrease to $44.2 million and a net loss of $7.4 million, largely due to a voluntary product recall.

Summary

• Biote Corp. reported second quarter 2026 revenue of $44.2 million, a 9.5% decrease from $48.9 million in the prior year period.
• The company experienced a net loss of $7.4 million, or $(0.23) per diluted share, compared to a net income of $3.9 million, or $0.10 per diluted share, in the second quarter of 2025.
• Gross profit margin decreased to 65.4% from 71.6%, attributed to higher costs for replacement products and reduced manufacturing efficiencies following a voluntary product recall.
• Adjusted EBITDA was $5.6 million, a significant decrease from $15.2 million in the prior year period, with a corresponding margin decrease to 12.6% from 31.1%.
• Procedure revenue declined 13.9% to $30.3 million, impacted by the voluntary recall of certain hormone pellets.
• Dietary supplements revenue grew 5.7% to $11.4 million.
• The company revised its full-year 2026 outlook, now expecting total revenue above $175 million and Adjusted EBITDA above $25 million, with procedure revenue expected to show sequential improvement but remain negative year-over-year for Q3 and Q4.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to a significant revenue decline and net loss, primarily attributed to a product recall and increased costs, despite management's focus on strategic initiatives.

Positives

• Dietary supplements revenue grew by 5.7% to $11.4 million.
• Management is focused on advancing strategic initiatives and believes foundational improvements have strengthened the business.
• Procedure revenue is expected to show sequential improvement in the third and fourth quarters of 2026.
• The company maintains a leadership position and continues to focus on innovation.

Negatives

• Total revenue decreased by 9.5% to $44.2 million in the second quarter of 2026.
• Net loss for the quarter was $7.4 million, a significant downturn from a net income of $3.9 million in the prior year.
• Gross profit margin declined to 65.4% from 71.6% due to increased costs associated with a product recall.
• Adjusted EBITDA fell to $5.6 million from $15.2 million, and the Adjusted EBITDA margin decreased to 12.6% from 31.1%.
• Procedure revenue saw a substantial decline of 13.9% to $30.3 million.
• The voluntary product recall initiated in January 2026 significantly impacted revenue and margins.
• Operating income turned into a loss of $(3.5) million from an income of $10.8 million.

Risks

• The voluntary product recall of certain hormone pellets has impacted revenue and margins.
• Continued reliance on third-party pellet suppliers and potential impacts on manufacturing efficiencies.
• Sensitivity to regulatory, economic, environmental, and competitive conditions.
• The company's ability to increase the use of the Biote Method by practitioners and clinics at the anticipated rate.
• Significant competition in the industry.
• Potential adverse impacts from other economic, business, and/or competitive factors, including natural disasters.
• The possibility of needing to further revise financial guidance.

Future Outlook

For the full year 2026, Biote expects total revenue to be above $175 million and Adjusted EBITDA to be above $25 million. Procedure revenue is anticipated to improve sequentially in the third and fourth quarters, though year-over-year growth in these periods is still expected to be negative due to the first-half recall impact. Dietary supplements revenue is projected to grow at a mid to high single-digit rate from 2025.

Management Comments

• "Over the past year Biote has achieved meaningful progress in advancing our strategic initiatives, driving fundamental improvements that we believe position the Company to achieve sustainable procedure revenue growth."
• "While not yet evident in our financial results, these foundational improvements have strengthened the core of our business and enhanced our resiliency, which we expect will drive improved financial performance in the second half."
• "Our second quarter results primarily reflect continued impacts from the voluntary product recall, which affected revenue and margin. Underpinned by our leadership position and continued innovation, we remain focused on driving growth."
• "As we enter the second half of 2026, we are moving into the next phase of our strategic roadmap, which is designed to drive deeper operational improvements that restore growth and improve the consistency of our financial performance."
• "We remain focused on executing our strategy with discipline and continuing to advance the longterm fundamentals of the business."

Industry Context

StockSavvy.ai notes that the hormone optimization and healthy aging sector is competitive, and Biote's performance is currently being significantly hampered by a product recall, a situation that can erode customer trust and market share if not managed effectively. The company's focus on strategic initiatives and sequential improvement suggests a recovery plan is in place, but the negative year-over-year procedure revenue outlook indicates ongoing challenges.

Stakeholder Impact

• Shareholders: The significant net loss and revised outlook may negatively impact shareholder value and confidence.
• Practitioners/Patients: The product recall could affect the availability and trust in Biote's hormone optimization solutions.
• Suppliers: Increased costs for replacement products may impact supplier relationships or terms.

Next Steps

• Enhance the practitioner experience.
• Accelerate sales productivity.
• Drive growth across the network.
• Execute strategy with discipline.
• Advance the long-term fundamentals of the business.

Key Dates

Recommendation

The company is experiencing significant headwinds due to a product recall, leading to decreased revenue and profitability. While management is implementing strategic initiatives and expects sequential improvement, the negative year-over-year procedure revenue outlook and the substantial decline in Adjusted EBITDA suggest continued caution is warranted. A 'hold' recommendation reflects the uncertainty and the need to see sustained recovery and improved financial performance before considering a more positive stance.

Keywords

hormone optimization, healthy aging, financial results, product recall, Adjusted EBITDA, revenue, net loss, dietary supplements