biote Corp.

What they do

biote Corp. provides the 'Biote Method'—bioidentical hormone replacement therapy products and dietary supplements sold primarily through practitioner clinics. The company derives revenue from procedure-related hormone pellets (sourced internally via Asteria Health and third-party suppliers) and dietary supplements. It operates in the U.S. and is headquartered in Irving, Texas.

Revenue drivers

• Procedure revenue (hormone pellets) — Largest segment; revenue was $30.3 million in Q2 2026, down 13.9% year-over-year due to the January 2026 voluntary recall of certain pellets shipped by Asteria Health.
• Dietary supplements — Grew 5.7% in Q2 2026 to $11.4 million; a secondary but expanding revenue stream.

Recent performance

For Q2 2026 (three months ended June 30, 2026), total revenue fell 9.5% to $44.2 million from $48.9 million in Q2 2025. The company posted a net loss of $(7.4) million and diluted loss per share of $(0.23), versus net income of $3.9 million and EPS of $0.10 a year earlier. Gross margin dropped to 65.4% from 71.6% due to higher replacement pellet costs and reduced manufacturing efficiencies at Asteria Health. Operating income swung to a loss of $(3.5) million from income of $10.8 million. Adjusted EBITDA was $5.6 million (12.6% margin), down from $15.2 million (31.1% margin).

Strategy

Management says it is executing a 'strategic initiatives program' focused on enhancing the practitioner experience, accelerating sales productivity, and driving growth across its network. The company expects to move into the next phase of its roadmap in the second half of 2026, targeting deeper operational improvements to restore growth. Leadership emphasizes that foundational improvements over the past year have strengthened the core business but have not yet shown up in financial results. The company is also managing the aftermath of the voluntary recall, including sourcing replacement products from third-party suppliers.

Risks

• Voluntary product recall — The January 2026 recall of certain Asteria Health hormone pellets reduced revenue and margins; the full financial impact may persist through 2026.
• Negative equity and high leverage — As of June 30, 2026, total liabilities of $159.9 million exceed total assets of $101.7 million, with long-term debt of $118.4 million and shareholder equity of $(65.8) million.
• Dependence on third-party manufacturing — The company relies on third-party suppliers for pellet manufacturing, and replacement sourcing has been at higher costs, pressuring gross margin.
• Regulatory and competitive pressures — The hormone optimization industry is heavily regulated, and competition could limit market acceptance of the Biote Method and its dietary supplements.

Outlook

Management revised full-year 2026 guidance downward to reflect first-half performance and the recall’s impact. They expect procedure revenue to show sequential improvement in Q3 and Q4 2026 as Asteria Health inventory normalizes, but a return to year-over-year procedure revenue growth has been delayed. The company remains focused on executing its strategy and driving long-term fundamentals.