Biote revenue falls 8.3% after pellet recall but guidance holds firm

Biote Corp. reported a first-quarter revenue decline of 8.3 percent to $44.9 million after a voluntary product recall disrupted its hormone pellet supply and distracted its sales force from growth objectives.

"While our first quarter performance fell short of our expectations due to the voluntary product recall, we continued to move forward on key initiatives that support our long-term strategy," Bret Christensen, Chief Executive Officer, said in a statement.

The company's procedure revenue fell 13.2 percent from the prior year, while its dietary supplement sales channel grew 19.1 percent. Biote reported diluted earnings per share of $0.06, a significant drop from $0.37 in the same period last year.

Metric	Q1 2026 Actual	Q1 2025 Actual	YoY Change
Revenue	$44.9 million	$48.9 million*	-8.3%
Net Income	$2.7 million	$15.8 million	-82.9%
Diluted EPS	$0.06	$0.37	-83.8%
Adjusted EBITDA	$8.7 million	Not Disclosed	Down
(Q1 2025 Revenue calculated from Q1 2026 revenue and 8.3% decline)

Despite the weak start to the year, Biote maintained its full-year 2026 guidance for revenue above $190 million and adjusted EBITDA greater than $38 million, projecting a return to growth in the second half.

The first-quarter results were directly impacted by the January recall of certain hormone pellets, which management estimated caused a $1.7 million revenue shortfall and $1.5 million in incremental costs. Gross profit margin compressed to 68.9 percent from 74.3 percent a year earlier, reflecting $1.1 million in recall-related costs and the use of higher-cost third-party suppliers.

Procedure revenue, the company's core business, was $31.3 million. In contrast, revenue from dietary supplements climbed to $11.0 million, driven by e-commerce. Management reaffirmed that it expects the supplement segment to grow at a mid- to high single-digit rate for the full year.

To address supply issues, Biote has added a second production shift at its internal pharmacy, Asteria Health, which supplied only 30 percent of pellets in the quarter, down from over 50 percent previously. CEO Bret Christensen said the company is "probably just weeks away from a more normalized situation."

The company also highlighted progress in its strategic initiatives, including the expansion of its sales force to approximately 120 representatives and the training of over 200 new practitioners, a leading indicator for future revenue.

The maintained guidance suggests management is confident that the recall's impact is temporary and that pent-up demand, combined with an expanded sales team, will fuel a second-half recovery. Investors will watch the second-quarter results closely for signs of supply normalization and a rebound in procedure volumes.

This article is for informational purposes only and does not constitute investment advice.