biote Q2 Earnings Call Highlights
Biote (NASDAQ: BTMD) reported Q2 net loss of $7.4M ($0.23/share) versus prior-year net income of $3.9M, and adjusted EBITDA of $5.6M (12.6% margin). Gross margin fell to 65.4% from 71.6% due to higher-cost third-party pellets during a disruption and $600k recall-related costs. Biote cut its 2026 outlook to revenue above $175M and adjusted EBITDA above $25M.
How this was made
The 30-second read
Why it matters
Gross margin fell to 65.4% from 71.6% a year earlier due to higher-cost third-party pellet sourcing and incremental recall-related costs, while operating expenses rose on legal activity. Management says supply challenges are behind it and expects improved third-quarter product mix and sequential procedure revenue, but still guides lower full-year revenue and adjusted EBITDA.
Market read
The key tradable update is the guidance reduction and the disclosed margin and cost drivers, alongside management’s expectation of sequential improvement later in 2026.
What to watch
The article attributes margin decline partly to Asteria-related recall costs and legal expenses; traders should watch whether settlements truly eliminate ongoing legal drag and whether procedure revenue stabilizes YoY in Q3-Q4.
Background
Biote’s Q2 call focused on pellet supply disruption, recall-related costs, legal expense acceleration, and a reduced 2026 outlook.
Ticker impact
Biote cut 2026 outlook, guided revenue above $175M and adjusted EBITDA above $25M, citing Q2 margin hit from pellet supply disruption.
Likely negative-to-neutral near-term as investors weigh lower full-year targets against management’s claim supply issues are behind them.
The article discloses a concrete guidance reduction plus specific margin drivers (gross margin down to 65.4%, higher legal costs, recall-related costs) and a stated expectation of sequential improvement in Q3-Q4.
Market effects
May increase scrutiny on hormone-optimization pellet supply chain resilience and gross-margin durability for practice-building models.
No clear regional spillover beyond US-listed biotech/practice-building peers.
Limited global relevance; story is company-specific supply and legal-cost execution.
Counterpoint
If supply normalization holds, the margin and procedure revenue trajectory could rebound faster than the market expects, making the guidance cut conservative.
Key entities
- companybiote Corp.
NASDAQ-listed hormone optimization practice-building company reporting Q2 results and cutting 2026 outlook.
- supplierAsteria
Supplied about 30% of Biote’s shipped pellets in Q2, with disruption driving higher-cost third-party sourcing.
- executivePeterson
Management speaker on the earnings call discussing supply normalization, brand strength, and cost outlook.
