biote Corp. (BTMD) Q3 2026 Earnings Report, Transcript and Summary

Welcome to the Biote Third Quarter 26 Earnings Conference Call. All participants will be in a listen-only mode. To ask a question, Please note this event is being recorded. I would now like to turn the conference over to Szymon Serowiecki, Investor Relations. Please go ahead.

Thank you for joining us today. This afternoon, 5G published financial results for the third quarter ended 09/30/2026. This news release is available in the Investor Relations section of the company's website. Hosting today's call are Bob Peterson, chief executive officer and chief financial officer, Dr. Komal Bajaj, chief medical officer and Marc D. Beer, executive chairman. Before we get started, I would like to remind everyone that management will make statements during this call that include forward-looking statements regarding, among other things, the company's financial results and financial condition, future performance growth opportunities, business outlook, strategic plans and anticipated benefits, goals, research and development, manufacturing commercialization activities, its competitive position, regulatory process operations benefits of its solutions anticipated impact of macroeconomic conditions its business, and other matters that do not relate to historical facts. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties, some of which are beyond the company's control. Actual results could differ materially from expectations reflected in any forward-looking statements. These statements are subject to risks, uncertainties and assumptions that are based on management's current expectations as of today. Altimeter takes no obligation to update them in the future. Therefore, these statements should not be relied upon representing the company's views as of any subsequent date. The discussion of risks and other important factors that could affect our actual results please refer to our SEC filings, available on the SEC's website and in the Investor Relations section of our website as well as risks and other important factors discussed in the earnings release. Management will also refer to adjusted EBITDA and adjusted EBITDA margin. Which are non GAAP financial measures to provide additional information for investors. A reconciliation of the non GAAP to GAAP measures is provided in the earnings release, the primary differences being stock based compensation, fair value adjustment of certain liabilities, and other nonoperating expenses. Please refer to our third quarter 26 earnings release for a reconciliation of these non GAAP measures to the most comparable GAAP measures. And I will turn the call over to Bob Peterson.

Thanks, Simon, and good afternoon, everyone. And thank you for joining us. While recent improvement in procedure volume provides early evidence of stabilization in underlying demand, our return to growth is progressing more slowly than anticipated. Last quarter, we discussed our shift from foundational corporate work towards making deeper data-driven operational improvements across our business. That work remains ongoing and is essential to restoring long term procedure revenue growth. To achieve this, our 2 immediate priorities remain increasing sales productivity strengthening practitioner engagement. With respect to productivity, consistent execution at the practice level is key. Retaining clinic relationships, helping new clinics become productive quickly, and supporting practitioners as they build their practices all shape our financial trajectory. To accelerate our progress and optimize our decision making, we are leveraging our investments in data and analytics to identify clinics that need additional support so that we can direct our resources where we believe they will have the greatest and most immediate impact. These data-driven insights also guide sales coaching and accountability. Helping our team drive improved clinic productivity more consistently. We are measuring the effectiveness of these efforts daily, through clinic retention, procedure volume, and sales productivity. Meanwhile, we continue to work on expanding our robust network of clinics. We continue to improve our onboarding efficiency working more closely with clinics to provide targeted support as they initiate patient treatment. That leads me to our second and equally important priority. Deepening practitioner engagement. At a high level, we know our best practitioners see Biote as a key long term partner that provides an ongoing source of clinical education and practice building support Achieving that objective requires consistent engagement driven by in person visits responsive support, and coordination among our teams to address each practice's needs. Successful engagement with our practitioners is about making each interaction highly valuable. Whether through education, clinical resources, or new clinic support. We believe that strengthening engagement earlier in the process not only reinforces the values of BIOT's relationship to its practitioner, but also helps support long term clinic growth and retention. Our commercial outreach efforts further include driving competitive wins through new customer growth, expanding our clinician base, and improving retention through more active and consistent face-to-face Salesforce interaction. Clinical leadership also plays an important role in strengthening our practitioner relationships. The value that Biote provides to our partners, extends well beyond initial training and includes the ongoing education and clinical support that help practitioners make informed decisions to deliver consistent, high-quality care. Our Chief Medical Officer, Dr. Komal Bajaj, is leading our efforts to strengthen these resources and ensure we remain responsive to practitioners' needs. I am pleased to have Dr. Bajaj join us today to discuss her priorities and how her work supports our commitment to clinical excellence and science- and evidence-based education. I will now turn the call to Dr. Bajaj.

Thank you, Bob, and good afternoon, everyone. I appreciate the opportunity to discuss my priorities at Biote. Throughout my career, I have focused on helping clinicians apply medical knowledge in everyday practice. I joined Biote to help practitioners address unmet needs in hormone care and healthy aging. With the goal of improving the quality of life of our aging population. Working across BIOT's broad network allows me to pursue that mission through practical clinical education and ongoing practitioner support. My priorities as chief medical officer are centered on clinical excellence and the quality and consistency of care. That begins with understanding the questions practitioners encounter, the challenges they face in applying their training, and the resources that they will find most useful. I am working closely with our team to use that feedback to shape our educational priorities and make our resources accessible. Practical, and relevant. From initial training continued development. Recurring questions help us identify where additional guidance would be most valuable and how we can make our clinical resources clearer and easier to use. BIOT's commitment to science and evidence-based content is central to this work. We strive to have our education reflect available evidence, communicate limitations clearly, and evolve as the science develops. Maintaining that discipline is essential to sustaining practitioner trust. Ultimately, I want practitioners to view Biote as a continuing source of clinical expertise and support throughout their relationship with us. By helping them make informed clinical decisions, we can reinforce the value of belonging to the Biote network and help build lasting practitioner relationships. I recently joined more than 100 clinicians and world class faculty at our advanced training event in Nashville, Tennessee. We believe that the discussions, interactions, and the education we provided on the future of health care set Biote apart as a leader in the industry. Demonstrating our ongoing investment in clinical education, and the support we provide to practitioners. I am excited to be at Biote as we continue to expand our reach and help people with hormone optimization needs. With that, I will turn the call back to Bob.

Thank you, Dr. Bajaj. Now I will review our third quarter financial results. Unless otherwise noted, all quarterly financial comparisons in my prepared remarks are made against the third quarter of 25. Revenue decreased 9.6% to $43.3 million Procedure revenue declined 15.1% to $28.9 million due to the voluntary recall in January 2026 which delayed improvements in attrition and new clinic starts. We remain committed to restoring growth. With our immediate efforts centered on sales productivity and practitioner engagement. Dietary supplements revenue grew 7.3% to $12 million The increase was primarily driven by continued growth in our e commerce channel. Gross margin was 67.7% compared to 71.8%. The decrease was primarily the result of residual impacts from the voluntary recall, which led to increased use of lower margin third party pellets. On a sequential basis, gross margin improved 31 basis points from the second quarter of 26. As our mix of pellets sourced from third party suppliers began to shift back to our internally manufactured pellets in the latter half of the third quarter. We anticipate further sequential improvement in gross margin due to efficiencies gained through our vertically integrated structure. And as a greater percentage of our pellets are manufactured and shipped by Xteria Health. For perspective, as of today, Xteria Health has returned to pre recall levels and will supply over 50% of our shipped pellets as compared to 30% in the second quarter of 26. And over 50% in the fourth quarter of 25. Selling, general and administrative expenses increased 2.6% to $26.8 million Relative to the second quarter of 26, SG&A decreased by 20.8% primarily reflecting reduced legal settlements and other legal related expenses. Net income was $600 thousand and diluted earnings per share attributed to Biote Corp. stockholders was $0.01 as compared to net income of $9.2 million and diluted earnings per share attributable to Biote Corp. stockholders of $0.22 Net income for the third quarter of 26 included a gain of $1 million due to the change in the fair value of the earn out liabilities. And compared to a gain of $2.9 million in the third quarter of 25. Adjusted EBITDA decreased to $5.1 million with an adjusted EBITDA margin of 11.7%. Cash flow provided by operations in the third quarter was $3.7 million We continue to invest capital to broaden and improve our product and technology offerings. As of 09/30/2026, cash and cash equivalents was $8.9 million as compared to $11.2 million as of 06/30/2026. We maintain our full year 2026 financial guidance of revenue above $175 million and adjusted EBITDA above $25 million While recent procedure trends are encouraging, and help support our 2026 outlook, We have further work to do to achieve the results we believe are possible. We remain highly focused on what we believe matters most for long term performance. Clinic retention, practitioner engagement and the consistency of procedure volume across our network. By concentrating on these metrics, we aim to enhance our execution and generate stronger financial performance over time.

Operator, let's now open the call for questions. We will now begin the question and answer session. If you are using a speakerphone, please pick up your handset before pressing the keys. The first question is Jelindra Singh with Truist Securities. Please go ahead.

This is Tate. Sorry. This is Tate on for Jelindra Singh. I guess, maybe just starting with procedure trends. Could you talk a little bit more about what you saw as the quarter progressed and into October? Are things actually starting to improve? Or is it more that the declines have stabilized? And is the remaining pressure mostly existing practitioners doing fewer procedures or fewer practitioners actively, using the program?

Okay. Hi. So looking at what we saw throughout the quarter, we saw modest average daily procedure volume increases. That said, we still have work to do to ensure that we demonstrate sustained improvement across our network. That said, when we look at the as we continue to drive procedures, we are looking and are really focused on new customer growth, same-store sales, minimizing attrition and gaining those competitive wins. For each 1 of those, as we talked about, sales increasing the sales productivity and strengthening practitioner engagement is key. So I would say activity by our reps in the field being face to face is probably the most important thing that we can see in that area.

Great, thank you. And then you have talked about improving sales productivity and practitioner engagement. Like, what are the main things that you are watching internally to tell us if those efforts are actually working?

Yes. So good question. So I would say that we have really developed a focus on data focus on accountability. And it starts with the foundation that we have put in place for constant improvement. And I can tell you right now, we have got more data than we have seen in the past, which allows us to really hold our commercial teams accountable. For the activity and performance. I would say that the real focus here is on driving face to face interactions ensuring that we are in front of the customers and that we can drive that new customer base while also being in front of customers that are within the portfolio to expand from within. So I would just say, how can we get in front of those customers early and often and make sure that we are supporting them along the way to expand their businesses.

Great. Thank you.

The next question is from Kaumil Gajrawala with Jefferies. Please go ahead. Kaumil, your line is open on our end, perhaps you have it muted on I am sorry about that.

May I ask about just you were talking about the targeting of practitioners and how you are sort of working it out plus you have a lot of data. A lot of your conversations, lot of the prepared remarks were around sort of retainment but the story for over the years has been about growth. And so when you are thinking about this targeting what are you focusing on 1 versus the other? Is it-- I mean, how are you recruiting new ones versus what do you have to do to make sure that you keep the existing practitioners on board?

Good question. So I would just say across the board, our focus on in an annuity model, you have got to do 3 things and 3 things well. 1, drive new customer growth. New customer growth is the lifeblood for the future of the operation. And as you get those new customers, we want to make sure that we can get them into the portfolio quick start and make sure that they are productive early and often. Once you get that new customer into the portfolio, obviously the next step is to make sure that they become growers within the portfolio from a same store sales perspective. I can only tell you that we have seen several examples of success in same store sales from revamping our several of our highly competitive regions. And I would say that this is something that we need to continue to do in the future. Attrition is 1 of the last things is that maintaining the. We work so hard to get new customers into the portfolio. We work hard to drive them to productivity. And attrition is the way we need to make sure that we are in front of customers and making sure that if we are in front of those customers, we believe that we will not lose those customers longer term. So activity and increased sales productivity are absolute keys But I would tell you, you cannot have 1 without the other. So I would say managing attrition is key, making sure that we are in front of the customer, but also at the same time, it is absolutely essential to continue to drive new customers too. Okay. Got it.

Well, I guess 2 things on attrition. 1 would be just making sure that for the patients themselves you are bringing in new ones and they are becoming aware and that sort of thing. But the second piece would be the economics for the practitioner themselves. So how has that changed in any way Can you repeat the last part of the question? You broke up a little bit. I am sorry about that. Just about the economics for the practitioner or the clinic. Has that evolved or changed in any way where they are either maybe focusing more focusing less on the BIOT products?

No, I would say 1 of the things that we are across the board is there is definitely a desire for many of these practitioners to continue to expand into the space and develop patients from within their portfolio. that is 1 of the biggest value adds that our sales force brings to the table. In our quarterly business reviews that we do with these practitioners. And I would just say, yeah, no, I would say that our ability to get in front and drive patients to the procedure and assist the doc is absolutely critical for growth, and we have not seen a big shift there. Okay, got it.

Thank you.

The next question is from Jungwon Kim with TD Please go ahead.

Hi, this is Iris on for Jungwon Kim. And I was just wondering what would a reasonable normalized revenue growth algorithm look like going forward And how should we think about the relative contributions from procedures and supplements?

No. Good question. Look, I think the primary goal for us is to drive new customer growth into the portfolio, establish those same store sales and mitigate attrition. Those all kind of go hand in hand And I would just say, for right now, as we see, attrition becomes a little bit more flat, We are in a position now where managing attrition is key for the future of the company and growth. But, also adding, new customers is key. So I would just say across the board as we look forward, normalized growth we are just in a position now where we are trying to manage through where we are in the business. And really, our goal right now is to increase sales productivity and strengthen practitioner engagement And just remember, I think 1 thing that is important to put on the table here is that we are upgrading the organization and changing the culture I would just say that does take some time to get to more of a normalized level. And I would just say, we are. We have experienced a lot of change, and we are trying to drive the future growth. Got it. That all makes sense.

And then, I guess, just to in general, I was also wondering what has end consumer health been like? And have you seen any notable shifts in behavior?

I would say we have not seen any notable shifts in behavior given consumer spending at this point. Our area remains fairly remains strong and we have not seen any shifts.

Got it. Thank you so much.

The next question is from George Kelly with ROTH Capital Partners. Please go ahead.

Hey everybody, thanks for taking my questions. First 1 for you not to just sort of put you through this again, Bob, but I am still a little unclear on your commentary in the press release just about how getting procedure revenue growth back sort of going is a slower process than you hoped. And you laid out to a few of the prior questions, just the 3 elements that are most important to your procedure business. And so I guess the question I had is, which of those 3 have not materialized like you hoped or where has there been disappointment? I guess what I am trying to get at is this really all about, like, onboarding new practitioners or has there been a pricing element because of continued kind of retention issues or just any. Anything to help me understand sort of why it is materialized more slowly than you hoped?

Yes. Good question, George. So thinking about why we have seen a little bit slower material materialization. I mean, we have got to remember that we are coming out of the first half of the year where we are really focused and driving attention to clinics because of the recall. So first and foremost, that is we cannot forget that. The second piece is that we have a lot of new sales reps within the business. And we have really upgraded our territory managers and our sales reps. managers or our sales reps We have upgraded almost 50 additional sales reps. So as we continue to develop these analytical many analytical capabilities to assist in targeting. And holding these individuals accountable. I would just say changing the culture in everything that we have put forth does take a little bit of time. I would say we are now starting to see some of the benefits of our sales reps being in the clinics more. And I would also say that it does take a little bit more time to develop the pipelines When you have been in those clinics and servicing those clinics over time, it does take some time to build those pipelines back up to drive new customers. I would just tell you 1 other thing here. And when it comes to, face to face interactions and the power of the analytics that we are seeing within the business. I can only tell you, we. We have recognized even just in the short-term in 1 of our regions, we have noticed that we were not getting the desired activity and the observed. And we kind of observed several legacy reps not driving new customer activity. And not meeting with the practitioners face to face in a highly competitive region When we went in and we made those upgrades to the reps in that region, We upgraded to what I would call more hungry sales reps. And are now driving significant prospecting calls. And consistent meetings with, practitioners And what we are seeing now is the growth of same store sales in that 1 region and retaining of the business I mean, region is now also driving winning larger customers back from a competitive accounts perspective. This is what we are trying to do across all of our regions in the in second half the year and moving forward because these successes are easily duplicatable, throughout the country. But with those analytics, and that face to face interaction, that is really what is going to drive it. But it is a little bit slower when you are making this kind of culture change. Hopefully, that gives a little bit of color. It does. Yeah. That was helpful.

And then second question for me is just about your cost and margin structure. You mentioned in your prepared remarks that you expect gross margin to continue improving as Asteria ramps back up? Can you help I guess 2 part question. Can you help sort of just directionally like how close is that to your number in Q3 that beat expectations? How much room is there still? And I know mix, you know, makes a difference here, but just within your procedure business, I guess, particularly. And then secondly, and maybe more important is just on SG&A. As we look into next year, are there areas of SG&A that can be sort of made more efficient? Or do you see any opportunity for kind of cost savings measures, or is it just kind of too early to look into that at this point?

Sure. I will take your Asteria questions first. So I would say you saw the growth from Q2 to Q3. You are aware that we have built solid inventory to meet demand for the future. So as we think about the projections moving forward, if you look at where we exited the year last year, we. And the amount of mix that is going to be shifted over to, that has shifted over to Asteria currently. I would expect us to see similar gross margin profiles for those different periods. As far as the SG&A and the view for 2027, look, it is something we always look to do to be as efficient as possible within the portfolio. it is probably a little too early to talk about 2027 now. But it is something that we consistently look at we want to deploy our assets in the best way possible with the highest level of return. And so it is something that we look at ongoing. To evaluate whether or not to shift or to reduce SG&A. Okay. Understood.

Thank you.

This concludes our question and answer session. I would like to turn the conference back over to Bob Peterson for any closing remarks.

Thank you, everybody, for joining today, and appreciate you being on. The conference is now concluded.

Thank you for attending today's presentation. You may now disconnect.