Biote — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $43.3 million, a 9.6% decrease from $48.0 million in the prior year period.
• Procedure revenue declined 15.1% to $28.9 million, while dietary supplements revenue grew 7.3% to $12.0 million.
• Gross profit margin was 67.7%, down from 71.8% in the prior year, primarily due to residual impacts from a voluntary recall in January 2026 leading to increased use of lower-margin third-party pellets.
• Net income was $0.6 million (diluted EPS of $0.01), compared to net income of $9.2 million (diluted EPS of $0.22) in the prior year.
• Adjusted EBITDA was $5.1 million with a margin of 11.7%, compared to $12.9 million and a 26.9% margin in the prior year.
• Operating income was $2.5 million, versus $8.3 million in the prior year.
• Net income included a $1.0 million gain from changes in the fair value of earnout liabilities, compared to a $2.9 million gain in the prior year.
• Cash and cash equivalents decreased to $8.9 million at September 30, 2026, from $24.1 million at December 31, 2025.
• Total liabilities increased to $159.3 million at September 30, 2026, from $158.0 million at December 31, 2025.
• Stockholders' deficit was $57.6 million at September 30, 2026, compared to a deficit of $50.4 million at December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $6.4 million, compared to $27.6 million in the prior year period.
• Net cash used in financing activities for the nine months ended September 30, 2026, was $14.9 million, compared to $34.4 million in the prior year period.

Guidance and Future Outlook:

• The company maintains its full-year 2026 financial outlook unchanged from the second-quarter earnings release.
• Full-year 2026 revenue guidance remains above $175 million.
• Full-year 2026 Adjusted EBITDA guidance remains above $25 million.
• The company expects full-year 2026 dietary supplements revenue to grow at a mid- to high-single-digit rate from 2025.
• Management acknowledges that the return to growth is progressing more slowly than anticipated.

Business Segments and Product Lines:

• Procedure revenue, a key segment, saw a 15.1% decline in the third quarter.
• Dietary supplements revenue demonstrated growth of 7.3% in the third quarter.
• The company is focusing on strengthening clinical excellence and deepening practitioner relationships through the efforts of Chief Medical Officer Dr. Komal Bajaj.
• Strategic initiatives include enhancing the practitioner experience and increasing sales productivity.

Market and Competitive Landscape:

• Management notes early evidence of stabilization in underlying demand following a recent improvement in procedure volume.
• The company faces significant competition in the industry, which is a factor in forward-looking statements.
• The voluntary recall in January 2026 impacted margins and necessitated reliance on third-party pellet suppliers.

Risks and Challenges:

• A voluntary product recall of certain hormone pellets in January 2026 resulted in increased use of lower-margin third-party pellets and residual impacts on gross profit margins.
• The company faces risks related to the success of dietary supplements in attaining market acceptance and the ability to effectively support manufacturing of bio-identical hormones.
• Significant competition and heavy regulatory oversight in the industry are cited as potential risks.
• Forward-looking statements highlight risks regarding the ability to achieve financial guidance, potential need to revise guidance, and sensitivity to regulatory, economic, and competitive conditions.

Management Commentary and Tone:

• Bob Peterson, interim CEO, stated that while there is early evidence of stabilization in demand, the return to growth is progressing more slowly than anticipated.
• Management's immediate priorities are to improve sales productivity and strengthen engagement with trained practitioners.
• Dr. Komal Bajaj, Chief Medical Officer, is working to reinforce quality and consistency of care to deepen practitioner relationships.
• Management emphasized that foundational work completed over the past year provides a basis for improvement and that progress will be measured by the ability to deliver stronger, more consistent financial results.

Other Key Points:

• The company hosted a conference call on November 4, 2026, to review results.
• The balance sheet reflects a significant reduction in share repurchase liabilities, which were $18.5 million at December 31, 2025, and $0 at September 30, 2026.
• Earnout liabilities were $4.1 million at December 31, 2025, and $1.75 million (current portion) at September 30, 2026.
• The company incurred $5.6 million in legal settlement and related expenses for the nine months ended September 30, 2026, primarily related to the voluntary recall.
• The company extinguished debt and incurred $101.6 million in payments related to debt extinguishment and $4.3 million in debt issuance costs during the nine months ended September 30, 2026.
• The company repurchased $7.2 million of Class A common stock during the nine months ended September 30, 2026.
• The company borrowed $125 million on a term loan and repaid $17.5 million on revolving loans during the nine months ended September 30, 2026.