biote (NASDAQ:BTMD) used its fourth-quarter and full-year 2025 earnings call to outline changes made over the past year to its commercial organization and operating model, while also detailing near-term financial pressure tied to procedure trends, planned investments, and a voluntary recall at its Asteria Health manufacturing site.
Management highlights 2025 execution and commercial rebuild
Chief Executive Officer Bret Christensen said 2025 was a “pivotal and productive year,” citing changes to the company’s team, processes, and culture. He framed Biote’s work around three strategic objectives: accelerating new clinic growth, maximizing value from existing top-tier clinics, and strengthening accountability and discipline across the organization.
Biote ended 2025 with “over 90 salespeople,” up from about 60 at the time of the sales reorganization in May. Christensen said new team members helped stabilize clinic attrition and maximize new clinic starts in the fourth quarter. He also noted an acceleration in practitioner training attendance beginning in mid-November, with training sessions running at full capacity. Christensen described newly certified practitioners as a leading indicator of future procedure growth and said the company plans to continue investing in the commercial organization in 2026.
2026 priorities: expanded sales force and technology investment
Looking ahead, Christensen said Biote plans a “sizable and necessary investment” in sales and technology capabilities in 2026. The company expects to expand sales personnel from over 90 at the end of 2025 to approximately 120. In parallel, Biote plans to invest in its technology platform with the goal of creating a more seamless practitioner journey from initial training and certification through long-term clinic success.
Christensen said the technology investment is intended to improve the practitioner experience, enhance long-term retention, and expand sales of Biote-branded dietary supplements and other healthy aging solutions. He acknowledged the step-up in expenses is expected to impact adjusted EBITDA in 2026, but said management believes these investments are essential to accelerate growth and build long-term sustainable shareholder value.
Fourth-quarter results: revenue down as procedure revenue declined
Chief Financial Officer Bob Peterson reported fourth-quarter revenue of $46.4 million, down 6.9% from the prior-year period. Procedure revenue declined 13% to $31.8 million, which Peterson attributed primarily to fewer net new clinic additions and lower procedure volume. Dietary supplement revenue increased 16% to $11.7 million, driven by continued growth in Biote’s e-commerce channel. Peterson said dietary supplements are a complementary growth opportunity and forecast dietary supplement revenue to grow at a mid- to high-single-digit rate in 2026.
Gross profit margin was 68.0%, down from 71.8%. Peterson said the decline was due to a $1.3 million inventory charge recorded during the quarter related to a voluntary recall of specific lots of hormone pellets shipped by Asteria Health. He added that gross margin could see near-term pressure if product mix shifts toward more third-party manufacturing, though the company’s longer-term goal is to meet customer needs through Asteria.
Selling, general, and administrative expenses fell 25.1% to $24.7 million, reflecting lower legal expense and a temporary decrease in headcount. Net income was $2.6 million, or $0.06 per diluted share attributable to stockholders, compared with net income of $3.5 million, or $0.10 per diluted share, in the year-ago period. Peterson noted fourth-quarter 2025 net income included a $1.2 million gain from fair value changes in earn-out liabilities, versus a $0.8 million loss from such changes in the fourth quarter of 2024.
Adjusted EBITDA was $11.7 million with a 25.2% margin, down from adjusted EBITDA of $15.1 million and a 30.3% margin. Peterson attributed the decline to lower sales and reduced gross profit, partially offset by lower operating expenses related to the sales reorganization.
For full-year 2025, Peterson said cash flow from operations was $35.2 million and Biote ended the year with $24.1 million in cash and cash equivalents.
Recall, regulatory discussions, and manufacturing mix
During the Q&A, Christensen said the company announced a partial, voluntary recall at the end of January and has been working “hand in hand with the FDA.” He said feedback has been good and that communications to customers, product returns, and refilling orders have been planned in coordination with the agency.
Peterson said the recall contributed to the inventory charge and added that management is continuing to monitor potential impacts. He also discussed inventory rebuilding at Asteria following the recall, explaining that when inventory is removed from the market, it takes time to replenish supply.
On the manufacturing mix, Peterson said Biote is currently about “50/50” between pellets from Asteria and other providers, and noted the company had reached about 54% through Asteria at the end of the third quarter of 2025. He said the company would like to take more share over time, but did not provide a specific target percentage.
Guidance and operational indicators management is watching
For 2026, Peterson guided to revenue above $190 million and adjusted EBITDA greater than $38 million. He said year-over-year procedure revenue is expected to decline at a mid- to high-single-digit percentage rate in the first half of 2026, including a potential revenue and profit impact related to the recall, followed by a return to year-over-year procedure growth in the second half.
Management attributed first-half procedure pressure primarily to elevated practitioner and clinic attrition experienced in 2025 and lower net new customer starts. Christensen said attrition, which had historically been around 5%, moved to “high single digits” and that the company must live with that attrition dynamic for about 12 months in an annuity-like model.
Peterson added that the commercial team is working to retain customers, including through “selective ASP reductions,” while monitoring recall impacts and assessing whether newly trained practitioners become productive quickly. Christensen emphasized full training classes as an early sign of momentum, but said the next key measure is whether practitioners exiting training translate into procedures and product ordering.
Christensen also commented on the FDA’s removal of black box warnings for certain hormone replacement therapies, calling it a positive tailwind for broader awareness of hormone optimization. He reiterated there are “still no FDA-approved options for women for testosterone therapy” and said increased attention could support demand as awareness grows.
About biote (NASDAQ:BTMD)
biote Corp. operates in practice-building business within the hormone optimization space. It trains physicians and nurse practitioners in hormone optimization using bioidentical hormone replacement pellet therapy in men and women experiencing hormonal imbalance. The company offers Biote Method, a comprehensive end-to-end practice building platform that provides Biote-certified practitioners with the components developed for practitioners in the hormone optimization space comprising Biote Method education, training, and certification services; practice management software that allows Biote-certified practitioners to order, track, and manage hormone optimization product inventory and other administrative requirements; inventory management software to monitor pellet inventory; and information regarding available hormone replacement therapy products, as well as digital and point-of-care marketing support.
