This article first appeared on GuruFocus .
Release Date: August 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Biote Corp ( NASDAQ:BTMD ) has successfully resolved the voluntary product recall and Asteria Health is now operating at normalized inventory and increased production levels with a second production shift.
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The company expects improved profitability in the second half of 2026 as it increases the supply of internally manufactured pellets, reducing reliance on higher-cost third-party suppliers.
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Dietary supplements revenue grew 5.7% in Q2 2026, driven by continued growth in the e-commerce channel, and is forecasted to grow at a mid to high single-digit rate for the full year.
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Management has strengthened the corporate culture, realigned the commercial team, and is implementing a data-driven, performance-oriented approach to drive sustainable growth.
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Biote Corp ( NASDAQ:BTMD ) is actively evaluating inorganic growth opportunities to expand its platform and accelerate strategic progress, complementing its organic growth initiatives.
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The company has resolved many outstanding legal matters, which is expected to reduce quarterly legal expenses going forward.
Negative Points
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Biote Corp ( NASDAQ:BTMD ) reported a 9.5% decrease in total revenue to $44.2 million in Q2 2026, with procedure revenue declining 13.9% to $30.3 million.
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The voluntary product recall negatively impacted Q2 results, with an estimated $3.3 million impact on procedure revenue and $0.6 million in incremental costs, leading to a gross margin decline to 65.4% from 71.6%.
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The company experienced elevated clinic attrition (around 8%) and slower productivity from new clinics, as the sales team was focused on supporting recall-impacted clinics.
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Biote Corp ( NASDAQ:BTMD ) revised its full-year 2026 guidance downward, now expecting revenue above $175 million and adjusted EBITDA above $25 million, compared to prior guidance of revenue above $190 million and adjusted EBITDA above $38 million.
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The company reported a net loss of $7.4 million and diluted loss per share of $0.23 in Q2 2026, compared to net income of $3.9 million and EPS of $0.10 in the prior year period.
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SG&A expenses increased significantly to $32.4 million from $24.2 million, driven by higher legal expenses, and cash flow used by operations was negative $1.2 million in the quarter.
Q & A Highlights
Q: Can you provide more details on the strategy and ideal type of inorganic opportunities you are evaluating? Are they adjacent to your core business or more about consolidating the core? A: Bob Peterson, Interim CEO and CFO, stated that it is early to discuss specifics, but the company is evaluating opportunities that can support and strengthen its current platform. These opportunities would include capabilities to complement the core offering, adjacent products, and ways to enhance practitioner engagement and broaden their footprint within the space.
Q: Regarding the Asteria recall, have you lost practitioners that are difficult to bring back, and are there any lingering effects or changes in strategy to consider? A: Bob Peterson, Interim CEO and CFO, noted that the Asteria brand remains strong and practitioners appreciated the company's actions. The company is in a solid place regarding inventory and stock, and they do not foresee challenges in shifting inventory back to Asteria. This shift is underway and should lead to gross margin improvement.
Q: What led to the lower volume than expected compared to the last call, and what drove the elevated clinic attrition? What measures are you implementing in the second half to drive better retention? A: Bob Peterson, Interim CEO and CFO, explained that attrition remains at a high single-digit rate (~8%), with no material change. The recall and supply challenges hurt same-store sales and procedure volumes. For the second half, the focus is on strengthening clinic retention and enhancing the practitioner experience. Data shows that when reps visit accounts monthly and meet practitioners face-to-face, attrition improves, so the company is taking an activity-based, data-driven approach to improve sales productivity and new customer growth.
Q: Do you have the right number of sales force now, or do you need to expand further? A: Bob Peterson, Interim CEO and CFO, confirmed that the company now has a full sales force. The key moving forward is driving activity and performance through the right processes and systems, rather than expanding headcount.
Q: Regarding new clinic productivity being slower, is the issue delayed onboarding or lower utilization from new clinics? Does the guidance assume improvement in productivity in the second half? A: Bob Peterson, Interim CEO and CFO, stated that new clinics have not ramped as quickly as desired, primarily because the sales force was focused on supporting recall-impacted clinics in Q2. The guidance assumes sequential quarter-over-quarter improvements in procedure revenue in the second half, driven by the Phase 2 approach to salesforce productivity.
Q: Supplement revenue remains strong despite procedure disruption. How do you see this business evolving, and what's driving its resilience? A: Bob Peterson, Interim CEO and CFO, attributed the resilience to strong adoption and penetration among existing clinicians. The clinical decision support software makes solid recommendations for nutraceuticals, and the products are highly complementary to the pellet procedures. The company expects dietary supplements revenue to grow at a mid to high single-digit rate for 2026.
Q: What are you seeing that gives you confidence in the sequential improvement in procedure revenue for 3Q? Can you discuss July trends or the tail end of 2Q? A: Bob Peterson, Interim CEO and CFO, emphasized that the recall and supply challenges are behind them, with adequate supply restored. The company is driving accountability in the field, and data shows that the Asteria cohort declined during the supply shortage, while the non-Asteria cohort showed steady growth. With supply normalized and inventory built, the company has conviction it can grow sequentially in the second half of 2026.
Q: Outside of the recall, are there any new factors, like competition, impacting your attrition number? A: Bob Peterson, Interim CEO and CFO, stated that competition is consistent with no up or down pressure on attrition, which has remained relatively flat. The key to improving attrition and same-store sales is getting supply back into the hands of practitioners and having reps in front of doctors, focusing on activity and performance in the second half.
Q: SG&A was over $32 million in the quarter. Can you clarify the legal expenses and provide a normalized SG&A figure? A: Bob Peterson, Interim CEO and CFO, explained that the increase in legal expenses was due to the acceleration of several legal matters involving depositions and pre-litigation support. These matters have been settled and resolved positively, which will decrease expenses in the latter part of the year. The total adjusted impact of legal matters was around $6 million in the first half of the year, and these settlements will eliminate most material outstanding legal matters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
