Biote reiterates 2025 revenue guidance above $190M as commercial team rebuild progresses

Earnings Call Insights: biote Corp. (BTMD) Q3 2025

MANAGEMENT VIEW

* CEO Bret Christensen stated that Biote is advancing its three main strategic priorities: accelerating growth from new providers, maximizing value from top-tier clinics, and improving financial performance through accountability and discipline. Approximately half of the commercial team joined in the past year, and the company is "currently at about 75% to 80% of where we would like to be" for team size and coverage. Christensen indicated that "we expect to achieve our planned sales rep headcount for 2025."
* Christensen noted the launch of enhanced training and onboarding methods for practitioners, aiming for faster certification and productivity. He acknowledged that "the process of rebuilding our sales team and enhancing our core sales and marketing functions has impacted procedure revenue in the near term," but expressed high confidence that Biote remains on the right path to growth.
* Highlighting the September marketing event in Cancun attended by over 800 providers, Christensen explained that "attracting these high-profile speakers to our event reinforces Biote as the leader in evidence-based hormone optimization and therapeutic wellness."
* Christensen summarized, "I am pleased with the solid progress the Biote team has achieved over the past 6 months... we have laid much of the groundwork to achieve outstanding commercial execution that I am confident will translate into improved financial performance."
* CFO Robert Peterson reported, "Third quarter revenue was $48.0 million, a decrease of 6.7%. Procedure revenue declined 10.4% and dietary supplements revenue grew 8.4%."
* Peterson noted, "Gross profit margin was 71.8%, a 150 basis point increase... primarily reflected cost savings from the vertical integration of our 503(B) manufacturing facility and effective cost management."
* He highlighted that cash flow from operations increased to $27.6 million, with cash and cash equivalents of $28.0 million as of September 30, 2025.
* Peterson detailed repurchase activities, including "approximately 1 million shares of our Class A common stock at an average price of $3.28 per share" and settlements with founders for significant cash flow savings.

OUTLOOK

* Peterson stated, "we reiterate our fiscal 2025 revenue guidance of above $190 million and our fiscal 2025 adjusted EBITDA guidance of above $50 million."
* Management continues to expect mid-teens revenue growth from the dietary supplements business for the 2025 fiscal year.

FINANCIAL RESULTS

* Third quarter revenue was $48.0 million. Procedure revenue declined 10.4%, while dietary supplements revenue increased 8.4% to $11.2 million.
* Gross profit margin improved to 71.8%.
* Selling, general and administrative expenses increased to $26.2 million, partially due to the annual marketing event.
* Net income was $9.2 million, with diluted earnings per share of $0.22. Adjusted EBITDA was $12.9 million with a margin of 26.9%.
* Cash flow from operations was $27.6 million, and cash and cash equivalents were $28.0 million at quarter-end.
* Biote completed share repurchases and settled founder obligations, resulting in cash flow savings.

Q&A

* Kaumil Gajrawala, Jefferies: Asked about hiring pace, costs, and impact on procedures. Christensen responded that "we've made great progress recently and are about 85% of where we want to be by the end of the year and we're committed to getting there," explaining that slower new starts and higher attrition have resulted in lower volumes year-over-year.
* Gajrawala, Jefferies: Asked about the Donovitz settlements. Peterson stated, "we are confident that this makes sense for the company given the future cash flow savings."
* Leszek Sulewski, Truist: Asked about feedback from the marketing event and trends. Christensen described the event as "a real sense of family... a lot of collaboration, a lot of problem solving, a lot of discussion," and said it's too early to see post-event trends but expects retention benefits.
* Sulewski, Truist: Asked about focus on top-tier accounts and timing for procedural growth inflection. Christensen emphasized ongoing efforts but noted it's "too early yet to forecast when we'll start to see things go in a different direction."
* Jeff Van Sinderen, B. Riley: Inquired about attrition. Christensen said attrition was "similar to the elevated rate" from Q2, citing competition and coverage gaps as key drivers.
* Van Sinderen, B. Riley: Asked about savings from the Donovitz agreements. Peterson detailed cash flow savings of $7.5 million from Marci Donovitz and $11.1 million from Gary Donovitz.
* Jungwon Kim, TD Cowen: Asked about sales force ramp and supplement business outlook. Peterson noted a typical 3- to 6-month ramp for new hires and confirmed that supplement growth was "right in line with where we would have expected."
* George Kelly, ROTH Capital: Inquired about marketing event spend and Asteria facility. Peterson said the event cost was about $1.3 million and Asteria supplied over 50% of pellets, expecting gradual ramp up.

SENTIMENT ANALYSIS

* Analysts focused on sales force hiring, attrition, procedural volume trends, and the impact of founder settlements, with a slightly negative tone due to persistent headwinds and uncertainty on the timing of growth inflection.
* Management maintained a confident tone during prepared remarks, emphasizing progress and strategic clarity, but was more cautious and measured in Q&A, repeatedly noting uncertainty around the timing of volume recovery and growth inflection.
* Compared to the previous quarter, both analysts and management maintained a cautious stance, with ongoing concerns about procedure volumes and attrition, though management expressed confidence in the foundation being built.

QUARTER-OVER-QUARTER COMPARISON

* Revenue decreased from $48.9 million in Q2 to $48.0 million in Q3. Procedure revenue decline accelerated from 8.4% in Q2 to 10.4% in Q3, while dietary supplements growth slowed from 30.4% in Q2 to 8.4% in Q3.
* Gross profit margin increased slightly quarter-over-quarter.
* Management reiterated 2025 guidance, unchanged from Q2.
* Analysts' focus on attrition, procedural volumes, and the sales force rebuild remained consistent, with continued pressure for clarity on timing of improvement.
* Management's tone shifted from emphasizing initial restructuring to highlighting tangible progress and operational enhancements, though still cautious about near-term trends.

RISKS AND CONCERNS

* Management cited slower new clinic additions, elevated attrition, and lower procedure volume as ongoing challenges.
* Attrition remained at an elevated rate, with competition and gaps in sales coverage as primary drivers.
* Operational transformation and sales team rebuild are ongoing, with near-term revenue impact acknowledged.
* Analysts raised persistent concerns about timing of volume recovery and procedural growth inflection.

FINAL TAKEAWAY

Biote emphasized that substantial groundwork has been laid for long-term growth through strategic investments in commercial talent, operational systems, and practitioner engagement. While headwinds from sales force transition and competitive dynamics continued to impact near-term procedure revenues, management reiterated confidence in executing its plan and maintained guidance for fiscal 2025 revenue above $190 million and adjusted EBITDA above $50 million, expecting future benefits as initiatives mature and the sales team reaches full strength.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/btmd/earnings/transcripts]

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