biote Corp. is an Irving, Texas-headquartered hormone optimization and healthy aging solutions company (Nasdaq: BTMD) operating through a network of Biote-certified practitioners who administer bio-identical hormone pellet therapy and dietary supplements to patients. For Q2 2026, the Company generated revenue of $44.2 million (down 9.5% YoY from $48.9 million), with procedure revenue of $30.3 million (down 13.9%, impacted by the January 2026 voluntary recall of certain hormone pellets from supplier Asteria Health) and dietary supplements revenue of $11.4 million (up 5.7% YoY). Gross margin compressed to 65.4% from 71.6% (recall-related: higher replacement pellet costs, reduced Asteria manufacturing efficiency). Operating loss of $(3.5) million (vs $10.8M income YoY), net loss of $(7.4)M ($(0.23)/share diluted), Adjusted EBITDA of $5.6M (12.6% margin, down from $15.2M, 31.1%). The Company updated FY2026 guidance: revenue above $175M (implied H2 ~$86M), Adjusted EBITDA above $25M, with procedure revenue expected to improve sequentially in Q3 and Q4 but remain negative YoY due to recall disruption. Cash of $11.2M (down from $24.1M), term loan of $121.5M (refinanced in Q2: $125M new borrowing, $101.6M extinguishment), no revolving debt. Interim CEO Bob Peterson (also CFO, CBO) cites "meaningful progress in advancing strategic initiatives" and expects H2 improvement from normalized Asteria inventory.
The investment thesis rests on three variables. The procedure revenue recovery and the Asteria supply chain normalization is the load-bearing core variable, with the January 2026 voluntary recall (certain hormone pellets from Asteria Health) disrupting Q1-Q2 procedure revenue (-13.9% YoY) and compressing margins (65.4% vs 71.6%), and the strategic intent is to restore normalized inventory at Asteria in H2 and return to YoY procedure revenue growth in 2027, and the market will track the quarterly procedure revenue trajectory and the gross margin recovery as real-time indicators. The dietary supplements growth and the practitioner network expansion is the load-bearing diversification variable, with supplements revenue of $11.4M (+5.7% YoY, mid-to-high single digit FY guidance unchanged), the Biote-certified practitioner network as the distribution moat, and the strategic intent is to accelerate supplements attach rates and expand the practitioner base, and the market will track the supplements growth rate and the practitioner certification metrics as real-time indicators. The capital structure refinancing and the liquidity management is the load-bearing financial variable, with the Q2 term loan refinancing ($125M new, $101.6M extinguished, $648K extinguishment loss), cash of $11.2M, no revolver drawn, and the strategic intent is to maintain liquidity through the recall recovery while funding the strategic initiatives, and the market will track the cash balance, the debt maturity profile, and the covenant compliance as real-time indicators.