biote Corp.

Second-quarter revenue was $44.2 million, down 9.5% year over year. Procedure revenue declined 13.9% to $30.3 million, including an estimated $3.3 million impact from the voluntary recall; dietary supplements revenue rose 5.7% to $11.4 million. Gross margin was 65.4% versus 71.6% a year ago. Net loss was $7.4 million, or $0.23 per share, versus net income of $3.9 million, or $0.10 per share, last year. Adjusted EBITDA was $5.6 million with a 12.6% margin, and cash flow used in operations was negative $1.2 million. Cash and cash equivalents were $11.2 million at June 30, 2026, versus $5.3 million at March 31, 2026. For 2026, management now expects revenue above $175 million and adjusted EBITDA above $25 million, versus prior guidance of revenue above $190 million and adjusted EBITDA above $38 million. Procedure revenue is expected to improve sequentially in both Q3 and Q4, but year-over-year procedure growth is still expected to be negative in those periods; dietary supplements revenue is still expected to grow at a mid- to high-single-digit rate.

Bob Peterson framed the quarter as one of operational rebuilding rather than financial recovery, saying the company has made meaningful progress on culture, accountability, commercial organization, and operating discipline. His tone was cautiously optimistic: he said the recall-related headwinds are largely resolved, Asteria is back to normalized inventory and higher production, and the company expects profitability to improve as internally manufactured pellet supply increases in the second half. He also emphasized a second phase of the strategy focused on clinic retention, practitioner experience, sales productivity, and quick-start success for new clinics, while noting inorganic opportunities may complement organic growth.

As CFO, Peterson highlighted the key financial pressure points: revenue of $44.2 million, gross margin of 65.4%, SG&A of $32.4 million, and adjusted EBITDA of $5.6 million. He attributed the margin decline to $0.6 million of incremental recall-related costs and higher sourcing of third-party pellets, and said Asteria supplied around 30% of shipped pellets in Q2, down from over 50% in Q4 2025. He also said legal expenses lifted SG&A in the quarter, but many legal matters have now been resolved, which should reduce quarterly legal costs going forward. Cash and equivalents increased to $11.2 million from $5.3 million at the end of March, and he signaled that a lower third-party pellet mix should support gross margin improvement over time.

Analysts pressed management on inorganic growth, clinic attrition, new clinic productivity, supplement resilience, and whether the current salesforce is the right size. Management said it is evaluating deals that would expand reach and complement the core offering, but is being thoughtful and disciplined. On attrition, Peterson said it is still around 8%, with no material change outside the recall, and argued that monthly face time with practitioners reduces account loss. He also said new clinics have not ramped as quickly as desired because the sales team was focused on recall/supply issues, but expects sequential improvement in procedure revenue in the second half as supply normalizes and sales activity shifts back to growth.