Biote Corp. Reports Steep Q1 Profit Decline Amid Product Recall, Reaffirms Full-Year Guidance

summarizeSummary

Biote Corp. reported a substantial decline in Q1 net income and Adjusted EBITDA, with revenue falling due to a voluntary product recall, though full-year guidance was reaffirmed with a lowered outlook for H1 procedure revenue.

check_boxKey Events

• Significant Profit Decline

  Net income plummeted to $2.7 million ($0.06 diluted EPS) in Q1 2026, a sharp decrease from $15.8 million ($0.37 diluted EPS) in Q1 2025.

• Revenue Contraction

  Total revenue decreased 8.3% to $44.9 million, with procedure revenue declining 13.2% to $31.3 million, primarily due to a voluntary product recall.

• Adjusted EBITDA Plunge

  Adjusted EBITDA fell 36.6% to $8.7 million, with the Adjusted EBITDA margin contracting to 19.4% from 28.1% in the prior-year quarter.

• Product Recall Impact

  The voluntary recall of certain hormone pellet products led to higher sourcing costs for replacement products and reduced manufacturing efficiencies, significantly impacting gross profit margins.

auto_awesomeAnalysis

Biote Corp.'s first-quarter results show a significant decline in profitability, primarily driven by an 8.3% drop in total revenue and a 13.2% decrease in procedure revenue. The voluntary recall of certain hormone pellet products and associated higher costs severely impacted gross profit margins and net income. While management reaffirmed full-year revenue and Adjusted EBITDA guidance, the expectation for first-half procedure revenue growth has been moderately lowered, indicating continued near-term headwinds. Investors should monitor the company's progress in resolving supply constraints and achieving its stated goal of sales force expansion, as a return to procedure revenue growth in the second half of 2026 is critical for recovery. This follows the previous 8-K from April 3, 2026, which projected an EBITDA decline, now confirmed with specific Q1 figures.