Biote Reports First Quarter 2025 Financial Results
Strong financial performance driven in part by increased gross margin from vertical integration
Announces organizational restructuring to drive sustainable growth and build long-term value
Maintains 2025 financial outlook
First Quarter 2025 Financial Highlights
-
Revenue of
$49.0 million -
Gross profit margin of
74.3% -
Net income of
$15.8 million $0.37 $(5.7) million $(0.12) -
Adjusted EBITDA1 of
$13.8 million 28.1%
“Biote’s first quarter results benefited from efficiencies related to the vertical integration of our 503B manufacturing facility as well as growth in our dietary supplements business,” said Bret Christensen, Biote Chief Executive Officer. “Total first quarter revenue increased
Mr. Christensen continued, “Last year, Biote embarked on an ambitious plan designed to strengthen our competitive moat and broaden our capabilities to better serve the growing market for hormone optimization and therapeutic wellness. Among our key accomplishments were the phased launch of BioteRx, the vertical integration of our 503B manufacturing facility and the introduction of targeted enhancements to our proprietary clinical decision support software.
“Having expanded our capabilities and product offerings, Biote today is announcing a strategic organizational restructuring designed to drive sustainable growth and create long-term value for stakeholders. The decisive actions we are taking aim to significantly increase new provider wins, maximize value from our existing top-tier providers, and improve our financial performance by enhancing our operational accountability and discipline. I believe that these initiatives, coupled with our focus on optimizing sales and marketing strategy, will strengthen our commercial organization through increased productivity.”
2025 First Quarter Financial Review
(All financial result comparisons made are against the prior-year period unless otherwise noted)
Total revenue was
Gross profit margin was
Operating income was
Net income was
Adjusted EBITDA for the first quarter of 2025 was
Subsequent Event
Today Biote announced an organizational restructuring of the Company’s commercial teams to support Biote’s newly expanded capabilities and drive improved operational and financial performance. The Company’s restructuring actions seek to prioritize new clinic growth, maximize value from existing top-tier providers and strengthen accountability and discipline throughout the organization.
We are taking the following actions:
- Realigning our commercial organization and directing all resources to drive revenue growth
-
Consistent with our strategy, we are strengthening sales force productivity by transitioning certain commercial support personnel to active field sales roles, effectively increasing sales representatives by
25% without hiring new personnel - Streamlining our sales leadership to enhance sales efficiency and drive more consistent performance across the entire commercial team
- Directly aligning our sales compensation with internal sales goals
- Extending our leadership position by enhancing our compelling value proposition to providers and patients
The Company expects to incur a charge of approximately
2025 Financial Outlook
Mr. Christensen concluded, “Biote remains on track to meet our financial guidance for fiscal 2025. The strategic reorganization we are undertaking represents an important next step in Biote’s evolution as we continue our mission to transform healthy aging and become the preferred single-source provider of evidence-based therapeutic wellness solutions.”
($ in millions) |
2025 Guidance Ranges |
Revenue |
|
Adjusted EBITDA2 |
|
-
2025 Procedure revenue is expected to increase approximately 2
-4% from 2024. -
2025 Dietary supplements revenue is expected to increase approximately 5
-10% from 2024.
For the second quarter of 2025, the Company expects revenue and Adjusted EBITDA to be similar to or slightly higher than that of the second quarter of 2024.
Conference Call:
Biote management will host a conference call to review these results and provide a business update beginning at 5:00 p.m. ET on Wednesday, May 7, 2025. To access the conference call by telephone, please dial (844) 481-2820 (
Discussion of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, Biote has disclosed Adjusted EBITDA, a non-GAAP financial measure that it calculates as net income before interest, taxes and depreciation and amortization, further adjusted to exclude stock-based compensation, litigation expenses, legal settlements, transaction-related expenses, merger and acquisition expenses, fair value adjustments to certain equity instruments classified as liabilities and other expenses. Below we have provided a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure.
We present Adjusted EBITDA and Adjusted EBITDA margin because it is a key measure used by our management to evaluate our operating performance, generate future operating plans and determine payments under compensation programs. Accordingly, we believe that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.
Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows:
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA and Adjusted EBITDA margin do not reflect cash capital expenditure requirements for such replacements of our assets;
- Adjusted EBITDA and Adjusted EBITDA margin do not reflect changes in, or cash requirements for, our working capital needs; and
- Adjusted EBITDA and Adjusted EBITDA margin do not reflect tax payments that may represent a reduction in cash available to us.
In addition, Adjusted EBITDA and Adjusted EBITDA margin are subject to inherent limitations as it reflects the exercise of judgment by Biote’s management about which expenses are excluded or included. A reconciliation is provided in the financial statement tables included below in this press release for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Because of these limitations, you should consider Adjusted EBITDA and Adjusted EBITDA margin alongside other financial performance measures, including net income and our other GAAP results.
Forward-Looking Non-GAAP Financial Measures
The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because it could not do so without unreasonable effort due to the unavailability of certain information needed to calculate reconciling items. For example, the Company has not included a reconciliation of projected Adjusted EBITDA to GAAP net income (loss), which is the most directly comparable GAAP measure, for the periods presented in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company’s projected Adjusted EBITDA excludes certain items that are inherently uncertain and difficult to predict including, but not limited to, share-based compensation expense, income taxes, due diligence expenses and legal expenses. Due to the variability, complexity and limited visibility of the adjusting items that would be excluded from projected Adjusted EBITDA in future periods, management does not forecast them for internal use and therefore cannot create a quantitative projected Adjusted EBITDA to GAAP net income (loss) reconciliation for the periods presented without unreasonable efforts. A quantitative reconciliation of projected Adjusted EBITDA to GAAP net income (loss) for the periods presented would imply a degree of precision and certainty as to these future items that does not exist and could be confusing to investors. From a qualitative perspective, it is anticipated that the differences between projected Adjusted EBITDA to GAAP net income (loss) for the periods presented will consist of items similar to those described in the financial tables later in this release, including, for example and without limitation, share-based compensation expense, income taxes, due diligence expenses and legal expenses. The timing and amount of any of these excluded items could significantly impact the Company’s GAAP net income (loss) for a particular period. When planning, forecasting and analyzing future periods, the Company does so primarily on a non-GAAP basis without preparing a GAAP analysis.
About Biote
Biote is transforming healthy aging through innovative, personalized hormone optimization and therapeutic wellness solutions delivered by Biote-certified medical providers. Biote trains practitioners to identify and treat early indicators of aging conditions, an underserved global market, providing affordable symptom relief for patients and driving clinic success for practitioners.
_____________________________ |
1Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Please see “Discussion of non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measure. |
2 Please see “Forward-Looking Non-GAAP Financial Measures" below for additional information about forward-looking Adjusted EBITDA. |
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words “may,” “can,” “should,” “will,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “hope,” “believe,” “seek,” “target,” “continue,” “could,” “might,” “ongoing,” “potential,” “predict,” “would” and other similar expressions, are intended to identify forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual results or developments to differ materially from those expressed or implied by such forward-looking statements, including but not limited to: anticipated benefits and successful execution of our organizational restructuring; the success of our dietary supplements to attain significant market acceptance among clinics, practitioners and their patients; our customers’ reliance on certain third parties to support the manufacturing of bio-identical hormones for prescribers; our and our customers’ sensitivity to regulatory, economic, environmental and competitive conditions in certain geographic regions; our ability to increase the use by practitioners and clinics of the Biote Method at the rate that we anticipate or at all; our ability to grow our business; the significant competition we face in our industry; the impact of strategic acquisitions and the implementation of our growth strategies; our limited operating history; our ability to protect our intellectual property; the heavy regulatory oversight in our industry; changes in applicable laws or regulations; changes to international tariffs,
Financial Tables
Biote Corp. |
||||||||
Condensed Consolidated Balance Sheets (In Thousands) (Unaudited) |
||||||||
|
|
March 31, |
|
December 31, |
||||
|
|
2025 |
|
2024 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
41,700 |
|
|
$ |
39,342 |
|
Accounts receivable, net |
|
|
7,765 |
|
|
|
7,631 |
|
Inventory, net |
|
|
13,451 |
|
|
|
14,845 |
|
Other current assets |
|
|
5,764 |
|
|
|
6,309 |
|
Total current assets |
|
|
68,680 |
|
|
|
68,127 |
|
Property and equipment, net |
|
|
8,389 |
|
|
|
6,973 |
|
Capitalized software, net |
|
|
3,760 |
|
|
|
3,877 |
|
Goodwill |
|
|
5,833 |
|
|
|
5,833 |
|
Intangible assets, net |
|
|
5,192 |
|
|
|
5,500 |
|
Operating lease right-of-use assets |
|
|
3,113 |
|
|
|
3,246 |
|
Deferred tax assets, net |
|
|
28,340 |
|
|
|
28,742 |
|
Other non-current assets |
|
|
72 |
|
|
|
72 |
|
Total assets |
|
$ |
123,379 |
|
|
$ |
122,370 |
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
3,335 |
|
|
$ |
5,813 |
|
Accrued expenses |
|
|
10,228 |
|
|
|
11,293 |
|
Term loan, current |
|
|
6,250 |
|
|
|
6,250 |
|
Deferred revenue, current |
|
|
3,036 |
|
|
|
2,961 |
|
Earnout liabilities, current |
|
|
— |
|
|
|
100 |
|
Operating lease liabilities, current |
|
|
540 |
|
|
|
523 |
|
Share repurchase liabilities, current |
|
|
25,081 |
|
|
|
24,574 |
|
Total current liabilities |
|
|
48,470 |
|
|
|
51,514 |
|
Term loan, net of current portion |
|
|
99,847 |
|
|
|
101,199 |
|
Deferred revenue, net of current portion |
|
|
1,450 |
|
|
|
1,553 |
|
Operating lease liabilities, net of current portion |
|
|
2,747 |
|
|
|
2,890 |
|
Share repurchase liabilities, net of current portion |
|
|
44,858 |
|
|
|
44,300 |
|
Other non-current liability |
|
|
— |
|
|
|
1,500 |
|
TRA liability |
|
|
4,386 |
|
|
|
4,479 |
|
Earnout liabilities, net of current portion |
|
|
6,447 |
|
|
|
17,135 |
|
Total liabilities |
|
|
208,205 |
|
|
|
224,570 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ Deficit |
|
|
|
|
||||
Preferred stock |
|
|
— |
|
|
|
— |
|
Class A common stock |
|
|
3 |
|
|
|
3 |
|
Class V voting stock |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
— |
|
|
|
— |
|
Accumulated deficit |
|
|
(84,346 |
) |
|
|
(100,297 |
) |
Accumulated other comprehensive loss |
|
|
(39 |
) |
|
|
(35 |
) |
Treasury stock, at cost |
|
|
(5,600 |
) |
|
|
(5,600 |
) |
biote Corp.’s stockholders’ deficit |
|
|
(89,981 |
) |
|
|
(105,928 |
) |
Noncontrolling interest |
|
|
5,155 |
|
|
|
3,728 |
|
Total stockholders’ deficit |
|
|
(84,826 |
) |
|
|
(102,200 |
) |
Total liabilities and stockholders’ deficit |
|
$ |
123,379 |
|
|
$ |
122,370 |
|
Biote Corp. |
||||||||
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (In Thousands, except share and per share amounts) (Unaudited) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
2025 |
|
2024 |
||||
Revenue: |
|
|
|
|
||||
Product revenue |
|
$ |
47,025 |
|
|
$ |
46,035 |
|
Service revenue |
|
|
1,967 |
|
|
|
769 |
|
Total revenue |
|
|
48,992 |
|
|
|
46,804 |
|
Cost of revenue |
|
|
|
|
||||
Cost of products |
|
|
11,654 |
|
|
|
12,887 |
|
Cost of services |
|
|
956 |
|
|
|
565 |
|
Cost of revenue |
|
|
12,610 |
|
|
|
13,452 |
|
Selling, general and administrative |
|
|
26,692 |
|
|
|
22,925 |
|
Income from operations |
|
|
9,690 |
|
|
|
10,427 |
|
Other income (expense), net: |
|
|
|
|
||||
Interest expense, net |
|
|
(2,905 |
) |
|
|
(1,660 |
) |
Gain (loss) from change in fair value of earnout liabilities |
|
|
10,688 |
|
|
|
(12,089 |
) |
Other expense |
|
|
(18 |
) |
|
|
(2 |
) |
Total other income (expense), net |
|
|
7,765 |
|
|
|
(13,751 |
) |
Income (loss) before provision for income taxes |
|
|
17,455 |
|
|
|
(3,324 |
) |
Income tax expense |
|
|
1,616 |
|
|
|
2,402 |
|
Net income (loss) |
|
|
15,839 |
|
|
|
(5,726 |
) |
Less: Net income (loss) attributable to noncontrolling interest |
|
|
2,121 |
|
|
|
(1,565 |
) |
Net income (loss) attributable to biote Corp. stockholders |
|
$ |
13,718 |
|
|
$ |
(4,161 |
) |
|
|
|
|
|
||||
Other comprehensive loss: |
|
|
|
|
||||
Foreign currency translation adjustments |
|
|
(4 |
) |
|
|
(1 |
) |
Other comprehensive loss |
|
|
(4 |
) |
|
|
(1 |
) |
Comprehensive income (loss) |
|
$ |
15,835 |
|
|
$ |
(5,727 |
) |
|
|
|
|
|
||||
Net income per common share |
|
|
|
|
||||
Basic |
|
$ |
0.44 |
|
|
$ |
(0.12 |
) |
Diluted |
|
$ |
0.37 |
|
|
$ |
(0.12 |
) |
Weighted average common shares outstanding |
|
|
|
|
||||
Basic |
|
|
31,485,777 |
|
|
|
34,621,166 |
|
Diluted |
|
|
36,952,961 |
|
|
|
34,621,166 |
|
Biote Corp. |
||||||||
Condensed Consolidated Statements of Cash Flows (In Thousands) (Unaudited) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
2025 |
|
2024 |
||||
Operating Activities |
|
|
|
|
||||
Net income (loss) |
|
$ |
15,839 |
|
|
$ |
(5,726 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
857 |
|
|
|
750 |
|
Bad debt expense |
|
|
773 |
|
|
|
161 |
|
Amortization of debt issuance costs |
|
|
211 |
|
|
|
202 |
|
Provision for obsolete inventory |
|
|
442 |
|
|
|
70 |
|
Non-cash lease expense |
|
|
133 |
|
|
|
80 |
|
Non-cash interest on share repurchase liability |
|
|
1,065 |
|
|
|
— |
|
Share-based compensation expense |
|
|
2,127 |
|
|
|
1,763 |
|
(Gain) loss from change in fair value of earnout liabilities |
|
|
(10,688 |
) |
|
|
12,089 |
|
Deferred income taxes |
|
|
508 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(907 |
) |
|
|
(1,329 |
) |
Inventory |
|
|
952 |
|
|
|
75 |
|
Other assets |
|
|
545 |
|
|
|
619 |
|
Accounts payable |
|
|
(2,478 |
) |
|
|
(109 |
) |
Deferred revenue |
|
|
(28 |
) |
|
|
(22 |
) |
Accrued expenses |
|
|
(2,665 |
) |
|
|
(1,178 |
) |
Payments pursuant to TRA |
|
|
(93 |
) |
|
|
— |
|
Operating lease liabilities |
|
|
(126 |
) |
|
|
(73 |
) |
Net cash provided by operating activities |
|
|
6,467 |
|
|
|
7,372 |
|
Investing Activities |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(1,630 |
) |
|
|
(704 |
) |
Purchases of capitalized software |
|
|
(218 |
) |
|
|
(350 |
) |
Acquisitions, net of cash acquired |
|
|
— |
|
|
|
(11,122 |
) |
Net cash used in investing activities |
|
|
(1,848 |
) |
|
|
(12,176 |
) |
Financing Activities |
|
|
|
|
||||
Repurchases of common stock |
|
|
— |
|
|
|
(4,088 |
) |
Principal repayments on term loan |
|
|
(1,563 |
) |
|
|
(1,562 |
) |
Proceeds from exercise of stock options |
|
|
— |
|
|
|
324 |
|
Distributions |
|
|
(694 |
) |
|
|
(83 |
) |
Net cash used in financing activities |
|
|
(2,257 |
) |
|
|
(5,409 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(4 |
) |
|
|
(2 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
2,358 |
|
|
|
(10,215 |
) |
Cash and cash equivalents at beginning of period |
|
|
39,342 |
|
|
|
89,002 |
|
Cash and cash equivalents at end of period |
|
$ |
41,700 |
|
|
$ |
78,787 |
|
Supplemental Disclosure of Cash Flow Information |
|
|
|
|
||||
Cash paid for interest |
|
$ |
2,016 |
|
|
$ |
2,230 |
|
Cash paid for income taxes |
|
$ |
2 |
|
|
$ |
2 |
|
Non-cash investing and financing activities |
|
|
|
|
||||
Capital expenditures and capitalized software included in accounts payable |
|
$ |
— |
|
|
$ |
85 |
|
Shares issued to acquire Simpatra |
|
$ |
— |
|
|
$ |
1,574 |
|
Biote Corp. |
||||||||
Reconciliation of Adjusted EBITDA to Net Income (Loss) (Unaudited) |
||||||||
The following table presents a reconciliation of net income (loss) to Adjusted EBITDA, as well as the calculation of net income (loss) margin and Adjusted EBITDA margin, for each of the periods indicated. |
||||||||
|
|
Three Months Ended |
||||||
|
|
March 31, |
||||||
(in thousands) |
|
2025 |
|
2024 |
||||
Net income (loss) |
|
$ |
15,839 |
|
|
$ |
(5,726 |
) |
Interest expense, net(1) |
|
|
2,905 |
|
|
|
1,660 |
|
Income tax expense |
|
|
1,616 |
|
|
|
2,486 |
|
Depreciation and amortization(2) |
|
|
857 |
|
|
|
750 |
|
Share-based compensation expense(3) |
` |
|
2,127 |
|
|
|
1,763 |
|
Litigation expenses-former owner(4) |
|
|
150 |
|
|
|
601 |
|
Litigation-other(5) |
|
|
465 |
|
|
|
70 |
|
Legal settlement and related expenses(6) |
|
|
36 |
|
|
|
— |
|
Transaction-related expenses(7) |
|
|
— |
|
|
|
45 |
|
Other expenses(8) |
|
|
335 |
|
|
|
85 |
|
Merger and acquisition expenses(9) |
|
|
110 |
|
|
|
419 |
|
(Gain) loss from change in fair value of earnout liabilities |
|
|
(10,688 |
) |
|
|
12,089 |
|
Adjusted EBITDA |
|
$ |
13,752 |
|
|
$ |
14,242 |
|
Total revenue |
|
$ |
48,992 |
|
|
$ |
46,804 |
|
Net income (loss) margin(10) |
|
|
32.3 |
% |
|
|
-12.2 |
% |
Adjusted EBITDA margin(11) |
|
|
28.1 |
% |
|
|
30.4 |
% |
(1) |
Represents cash and non-cash interest on our debt obligations, commitment fees for our unused Revolving Loans, net of interest income earned on our money market account and short-term investment. For the three months ended March 31, 2025, interest expense, net included |
|
(2) |
Represents depreciation expense on property and equipment, amortization expense on capitalized software and amortization expense on purchased intangible assets. Depreciation expense of |
|
(3) |
Represents employee compensation expense associated with equity-based stock awards. This includes expense associated with equity incentive instruments including phantom stock awards, stock options and restricted stock units. |
|
(4) |
Represents legal expenses to defend the Company against claims asserted by the Company’s former owner. |
|
(5) |
Represents litigation expenses other than those incurred in connection with claims asserted by the Company’s former owner that are not related to the Company’s ongoing business. |
|
(6) |
Represents legal expenses incurred in connection with litigation settlement gains or losses. |
|
(7) |
Represents transaction costs including legal fees of |
|
(8) |
Represents strategic consulting and legal expenses related to the recent CEO transition of |
|
(9) |
Represents legal fees and professional fees totaling |
|
(10) |
Net income (loss) margin is defined as net income (loss) divided by total revenue. |
|
(11) |
Adjusted EBITDA margin is defined as adjusted EBITDA divided by total revenue. |
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AdvisIRy Partners
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Source: Biote Corp.
