BTMD

Biote Corp. 10-Q Summary: Q2 2026

Business Context and Reporting Period

This filing covers the quarterly period ended June 30, 2026. Biote Corp. operates as a single segment business providing the "Biote Method," a platform for hormone optimization using bioidentical hormone replacement pellet therapy, alongside a line of dietary supplements. The company trains physicians and nurse practitioners to administer these therapies. As of June 30, 2026, the company had 28.7 million shares of Class A common stock outstanding.

Key Financial Metrics

Note: Debt figures include a $125 million Term Loan and $3.1 million current portion. Revolving loans were $0 at June 30, 2026.

Material Changes vs. Prior Period

• Revenue Decline: Total revenue decreased 9.5% in Q2 and 8.9% YTD compared to 2025. This was primarily driven by a decrease in pellet procedure revenue due to inventory constraints from a voluntary recall and lower productivity at newer clinics.
• Profitability Shift: The company reported a net loss of $7.4 million in Q2 2026, compared to a net income of $3.9 million in Q2 2025. Operating loss widened significantly due to increased SG&A expenses.
• SG&A Increase: Selling, General, and Administrative expenses rose 33.9% in Q2 to $32.4 million. This increase was largely attributable to $5.1 million in charges to settle various legal matters and increased legal defense costs.
• Debt Refinancing: In May 2026, the company refinanced its credit agreement, securing a new $125 million Term Loan and a $50 million Revolving Credit Facility. This resulted in a $0.6 million loss on extinguishment of debt.
• Share Repurchases: The company repurchased 2.4 million shares of Class A common stock in Q2 for $4.8 million. As of June 30, $5.2 million remained available under the repurchase program.

Guidance, Outlook, and Risks

• Voluntary Recall Impact: A voluntary recall of hormone pellets initiated in January 2026 negatively impacted revenue growth by an estimated $3.3 million in Q2 and $5.0 million YTD. The company incurred approximately $0.8 million in recall-related costs in Q2.
• CEO Transition: Bret Christensen resigned as CEO effective June 8, 2026. Robert C. Peterson was appointed Interim CEO.
• Legal Contingencies: The company recorded $5.1 million in charges for legal settlements in Q2. While management believes no single legal proceeding will have a material adverse effect, ongoing litigation risks remain.
• Internal Controls: The company disclosed that a previously reported material weakness in internal control over financial reporting (related to revenue recognition and IT general controls) has not been remediated as of June 30, 2026.
• Liquidity: Management believes current cash, operating cash flow, and the $50 million revolving credit facility are sufficient to fund operations for the next 12 months.

Investor Verification Checklist

• Recall Resolution: Verify the status of the January 2026 voluntary recall and whether inventory constraints have been fully resolved to support procedure volume recovery.
• Legal Exposure: Confirm if the $5.1 million settlement charge represents the final cost of current legal matters or if further liabilities are anticipated.
• Internal Control Remediation: Monitor the timeline and progress for remediation of the material weakness in internal controls, as this affects financial reporting reliability.
• Debt Covenants: Review compliance with the new credit agreement covenants, specifically the maximum total net leverage ratio (3.75:1.00) and minimum fixed charge coverage ratio (1.25:1.00).
• Revenue Mix: Assess the sustainability of the growth in dietary supplement revenue, which partially offset the decline in pellet procedure revenue.