biote (NASDAQ:BTMD) reported lower third-quarter revenue and profit as its procedure business continued to feel the effects of a voluntary recall earlier in 2026. Management maintained its full-year guidance but said a return to growth is taking longer than anticipated.
Revenue for the quarter ended Sept. 30 fell 9.6% from a year earlier to $43.3 million. Procedure revenue declined 15.1% to $28.9 million, while dietary supplements revenue rose 7.3% to $12 million, primarily due to growth in e-commerce.
Interim Chief Executive Officer and Chief Financial Officer Bob Peterson said modest increases in average daily procedure volume during the quarter provided early evidence of stabilizing demand. Still, he cautioned that the company needs to demonstrate sustained improvement across its network of clinics.
Recall Weighs on Procedure Revenue and Margins
Peterson attributed the decline in procedure revenue to the voluntary recall in January, which he said delayed improvements in clinic attrition and new clinic starts. The recall also contributed to a decline in gross margin to 67.7% from 71.8% a year earlier, as biote increased its use of lower-margin pellets from third-party suppliers.
Gross margin improved by 231 basis points from the second quarter as the company began shifting back toward internally manufactured pellets in the latter half of the third quarter. Peterson said he expects further sequential margin improvement as Asteria Health supplies a greater share of pellets and biote gains efficiencies from its vertically integrated structure.
As of the call, Asteria had returned to pre-recall production levels and would supply more than 50% of shipped pellets, Peterson said. That compares with 30% in the second quarter of 2026 and more than 50% in the fourth quarter of 2025.
Net income fell to $0.6 million, or $0.01 per diluted share attributable to biote stockholders, from $9.2 million, or $0.22 per diluted share, a year earlier. The latest quarter included a $1 million gain from a change in the fair value of earnout liabilities, compared with a $2.9 million gain a year earlier. Adjusted EBITDA was $5.1 million, with a margin of 11.7%.
Selling, general and administrative expenses rose 2.6% year over year to $26.8 million, but fell 20.8% from the second quarter, primarily because of lower legal settlements and other legal-related expenses. The company generated $3.7 million in cash from operations during the third quarter and ended September with $8.9 million in cash and cash equivalents, down from $11.2 million at the end of June.
Focus on Sales and Practitioner Retention
Peterson said biote’s immediate priorities are improving sales productivity and strengthening practitioner engagement. The company is using data and analytics to identify clinics that need support, guide sales coaching and monitor clinic retention, procedure volume and sales productivity.
During the question-and-answer session, Peterson said the recovery has been slower in part because the company spent the first half of the year responding to the recall. He also said changes to the sales team and its culture take time, as does rebuilding pipelines of prospective customers.
Peterson pointed to one competitive region where changes to sales representatives were followed by more prospecting calls and practitioner meetings, growth in same-store sales and retention of business. He said the company aims to replicate those efforts across its regions.
Chief Medical Officer Dr. Komal Bajaj said she is using practitioner feedback to shape clinical education and make resources more practical and accessible. Bajaj said the company seeks to reflect available evidence in its educational content and communicate its limitations clearly.
Full-Year Guidance Maintained
biote maintained its 2026 forecast for revenue above $175 million and adjusted EBITDA above $25 million. Peterson said recent procedure trends support the outlook, while emphasizing that the company has more work to do on clinic retention, practitioner engagement and consistent procedure volume.
Asked about a normalized growth rate, Peterson did not provide a numerical target. He said biote is managing through changes in the business and that upgrading the organization and changing its culture will take time. He also said it was too early to discuss specific selling, general and administrative expense opportunities for 2027.
About biote (NASDAQ:BTMD)
Biote Inc (NASDAQ: BTMD) is a healthcare company focused on hormone optimization and personalized care. Through its provider-enabled platform, the company supports physicians and other healthcare professionals who offer bioidentical hormone replacement therapy and related wellness services.
The company’s offerings include the Biote Method, a hormone pellet therapy program designed for eligible men and women, as well as nutritional supplements, patient education, clinical training, and practice-management support.
