8-K: Biote Q3 2025 Revenue Dips Amid Restructuring, Reiterates Guidance

Biote Corp. reported a 6.7% revenue decline to $48.0 million in Q3 2025, with net income falling to $9.2 million, while reiterating its full-year financial guidance.

Summary

• Total revenue for Q3 2025 was $48.0 million, a 6.7% decrease from $51.4 million in the prior-year period.
• Net income for Q3 2025 was $9.2 million, down from $12.7 million in Q3 2024, resulting in diluted EPS of $0.22 compared to $0.33.
• Adjusted EBITDA decreased by 20.5% to $12.9 million, with the Adjusted EBITDA margin declining to 26.9% from 31.5%.
• Procedure revenue declined by 10.4%, partially offset by an 8.4% growth in dietary supplements revenue.
• The company repurchased approximately one million shares of Class A common stock during the third quarter.
• Biote reiterated its 2025 financial outlook, forecasting revenue above $190 million and Adjusted EBITDA above $50 million.
• Settlement agreements with former owners Marci and Dr. Gary Donovitz were amended, leading to share repurchases totaling $12.5 million paid in October 2025 and $18.5 million to be paid in January 2026.

Sentiment

Score: 5

Explanation: While revenue and profit metrics declined year-over-year, management reiterated full-year guidance and attributed the procedure revenue dip to an "ongoing transformation" which they stated was "consistent with our expectations." The improved gross margin and growth in dietary supplements are positive, as are the share repurchases and favorable settlement amendments. The reiteration of guidance suggests confidence in recovery, but the current quarter's performance is weak.

Positives

• Gross profit margin improved to 71.8% in Q3 2025 from 70.3% in Q3 2024, primarily due to efficiencies from vertical integration of the 503B manufacturing facility and effective cost management.
• Dietary supplements revenue grew by 8.4% in Q3 2025.
• The company repurchased approximately one million shares of Class A common stock in Q3 2025, demonstrating a commitment to shareholder value.
• Amended settlement agreements with former owners resulted in savings compared to the original agreements.
• Strong liquidity supports strategic goals and shareholder value initiatives.

Negatives

• Total revenue decreased by 6.7% to $48.0 million in Q3 2025 compared to the prior year.
• Procedure revenue declined by 10.4% in Q3 2025, attributed to the ongoing transformation of the commercial team.
• Net income decreased to $9.2 million in Q3 2025 from $12.7 million in Q3 2024.
• Diluted earnings per share attributable to biote Corp. stockholders fell to $0.22 from $0.33.
• Operating income decreased significantly by 32.1% to $8.3 million due to reduced gross profit and higher operating expenses.
• Adjusted EBITDA decreased by 20.5% to $12.9 million, and Adjusted EBITDA margin declined to 26.9% from 31.5%.
• Cash and cash equivalents decreased from $39,342 thousand at December 31, 2024, to $28,048 thousand at September 30, 2025.

Risks

• Uncertainty regarding the anticipated benefits and successful execution of the organizational restructuring.
• Risk that dietary supplements may not attain significant market acceptance among clinics, practitioners, and their patients.
• Reliance of customers on certain third parties to support the manufacturing of bio-identical hormones for prescribers.
• Sensitivity to regulatory, economic, environmental, and competitive conditions in certain geographic regions.
• Challenges in increasing the use by practitioners and clinics of the Biote Method at the anticipated rate or at all.
• Significant competition within the industry.
• Potential adverse impacts from strategic acquisitions and the implementation of growth strategies.
• Risks associated with a limited operating history.
• Challenges in protecting intellectual property.
• Heavy regulatory oversight in the industry and potential changes in applicable laws or regulations.
• Impact of changes to international tariffs, U.S. trade policy, or similar government actions.
• Potential for geopolitical tensions to affect operations.
• Inability to profitably expand in existing markets and into new markets.
• Adverse impact from other economic, business, and/or competitive factors, including natural disasters.
• Fluctuations in future exchange and interest rates.

Future Outlook

Biote reiterated its full-year 2025 financial guidance, expecting total revenue to be above $190 million and Adjusted EBITDA to be above $50 million. Procedure revenue is projected to decrease at a high single-digit percentage rate from 2024, while dietary supplements revenue is expected to grow at a mid-teens percentage rate from 2024, both unchanged from prior guidance.

Management Comments

• "When we undertook our organizational restructuring in May, we identified three strategic priorities: accelerate growth from new providers, maximize value from our top-tier clinics, and improve our financial performance through greater accountability and discipline."
• "In the third quarter, we continued to make progress in pursuit of these goals. We continued to build a more agile, effective and practitioner-focused commercial team that is directly aligned with our growth objectives."
• "Overall consistent with our expectations, third quarter procedure revenue was impacted by the ongoing transformation of our commercial team as we continue to recruit new talent and strengthen our capabilities to drive sustainable long-term growth."
• "I am confident Biote remains well positioned to realize our full potential in the underserved market for hormone optimization and therapeutic wellness."
• "Supported by our strong liquidity and consistent with our goal to build long-term shareholder value, Biote repurchased approximately one million shares of Class A common stock in the third quarter under our authorized share repurchase program."

Industry Context

The filing positions Biote as a leader in hormone optimization and healthy aging solutions, operating in an 'underserved market'. The company's strategic focus on accelerating growth from new providers and maximizing value from top-tier clinics suggests an effort to capture market share and deepen engagement within its niche. The impact on procedure revenue due to commercial team transformation highlights the challenges of internal restructuring in a competitive healthcare solutions market, where consistent practitioner engagement is crucial.

Management Changes

Legal Proceedings

• The company incurred litigation expenses related to claims asserted by a former owner, and other litigation expenses not related to ongoing business.
• Settlement agreements with former owners Marci Donovitz and Dr. Gary Donovitz were amended to repurchase their remaining shares, effectively settling multi-year payment obligations.

Related Party Transactions

• Amendment of settlement agreement with Marci Donovitz on September 26, 2025, to repurchase her remaining shares for $12.5 million, paid in October 2025.
• Amendment of settlement agreement with Dr. Gary Donovitz in November 2025, to repurchase his remaining shares for $18.5 million, to be paid in January 2026.

Stakeholder Impact

• Shareholders are impacted by decreased net income and diluted EPS, but also by share repurchases aimed at building long-term shareholder value. The reiteration of guidance may provide some stability.
• Employees are impacted by organizational restructuring in May and a workforce reduction primarily within the commercial organization, as mentioned in non-GAAP adjustments.
• Practitioners/Customers are a focus for the company, with efforts to strengthen relationships and advance patient healthspan through its network of Biote certified providers, reinforced by the annual practitioner conference.
• Creditors face ongoing term loan obligations and share repurchase liabilities, with significant payments made or scheduled.

Next Steps

• Continue to build a more agile, effective, and practitioner-focused commercial team.
• Recruit new talent and strengthen capabilities to drive sustainable long-term growth.
• Focus on driving sustainable growth and building shareholder value over the long term.
• Pay $18.5 million to Dr. Gary Donovitz in January 2026 to fully settle the multi-year payment obligation for share repurchase.
• Host a conference call on November 5, 2025, at 5:00 p.m. ET to review results and provide a business update.

Key Dates

Recommendation

While Biote reported a decline in Q3 2025 revenue and net income, the company reiterated its full-year guidance, suggesting that the results were largely anticipated internally. The strategic restructuring and associated impact on procedure revenue are acknowledged, with management expressing confidence in long-term growth. Positive aspects include improved gross margins, growth in dietary supplements, and share repurchases. However, the significant year-over-year declines in key financial metrics and ongoing operational transformation warrant a cautious approach. Investors should hold to observe the effectiveness of the restructuring and the company's ability to meet its reiterated full-year targets.

Keywords

hormone optimization, healthy aging, biote, BTMD, financial results, Q3 2025, earnings, revenue, EBITDA, share repurchase, dietary supplements, practitioner network, corporate restructuring