Company Performance - Biote Corp. reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, but down from $0.23 per share a year ago, representing an earnings surprise of 33.33% [1] - The company posted revenues of $48.99 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.51%, compared to $46.8 million in the same quarter last year [2] - Biote Corp. has surpassed consensus EPS estimates in all four of the last quarters, but has only topped consensus revenue estimates once during the same period [2] Stock Performance - Biote Corp. shares have declined approximately 45.5% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The current Zacks Rank for Biote Corp. is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $50.2 million, and for the current fiscal year, it is $0.39 on revenues of $205.41 million [7] - The outlook for the Medical - Products industry, to which Biote Corp. belongs, is currently in the bottom 28% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Data and Key Metrics Changes - The company reported total revenue of $49 million for Q1 2025, an increase of 4.7% compared to the same period in 2024 [15] - Adjusted EBITDA decreased by 3.4% to $13.8 million, with an adjusted EBITDA margin of 28.1% [17] - Gross profit margin improved by 300 basis points to 74.3% due to vertical integration of the manufacturing facility [9][16] - Net income was $15.8 million, with diluted earnings per share of $0.37, compared to a net loss of $5.7 million in Q1 2024 [17] Business Line Data and Key Metrics Changes - Procedure revenue decreased by 3.6% to $36 million, attributed to reduced commercial effectiveness and a slowdown in new clinic additions [15] - Dietary supplement revenue increased by 25.5% to $9.3 million, primarily driven by growth in the e-commerce channel [15][16] Market Data and Key Metrics Changes - The company expects solid growth from the dietary supplements business throughout the year, despite potential challenges in the second half due to tougher comparisons [15][67] - The company anticipates a one-time charge of approximately $600,000 to $800,000 in Q2 2025 due to restructuring efforts [18] Company Strategy and Development Direction - The company announced a strategic organizational restructuring aimed at driving sustainable profitable growth and creating long-term value for shareholders [10][14] - Key objectives include accelerating new provider wins, strengthening relationships with existing top-tier providers, and improving financial performance through enhanced accountability [11][12] - The company is focused on expanding its capabilities within the hormone and therapeutic wellness space [10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 will be a transition year financially, but expressed confidence in the actions taken to accelerate growth and realize the company's full potential [14][20] - The management team highlighted the importance of the clinical decision support software (CDSS) launch, which has impacted new clinic starts and procedure volumes [26][30] Other Important Information - Selling, general, and administrative expenses increased by 16.4% to $26.7 million, reflecting increased investment in sales and marketing [16] - Cash and cash equivalents as of March 31, 2025, were $41.7 million, up from $39.3 million at the end of 2024 [18] Q&A Session Summary Question: Can you talk about the supplements business and if there was anything one-time in it? - Management confirmed that the strong performance in the supplements business was primarily driven by e-commerce and not due to any one-time items [23] Question: What happened with the procedures and competition? - Management indicated that the decline in procedure volume was mainly due to the launch of CDSS and ongoing competition, but no significant changes in the marketplace [25][26] Question: What is different about today's sales force realignment? - The recent realignment is focused on growth rather than cost-cutting, with a 25% increase in the field sales team to drive new clinic growth [36][37] Question: What is the status of the CDSS implementation? - Management confirmed that CDSS is fully deployed, and the focus is now on leveraging it to improve clinic performance [39][40] Question: What is the outlook for procedure revenue growth? - Management acknowledged potential risks to the 2% to 4% growth guidance for procedure revenue but expressed confidence in the overall revenue and EBITDA guidance for the year [78][80]

Financial Data and Key Metrics Changes - Total revenue increased by 4.7% to $49 million compared to the first quarter of 2024 [14] - Procedure revenue decreased by 3.6% to $36 million, primarily due to reduced commercial effectiveness and a slowdown in new clinic additions [14] - Dietary supplement revenue increased by 25.5% to $9.3 million, driven by growth in the e-commerce channel [14] - Gross profit margin improved by 300 basis points to 74.3% due to vertical integration of the 503B manufacturing facility [7][15] - Adjusted EBITDA decreased by 3.4% to $13.8 million, with an adjusted EBITDA margin of 28.1% [17] - Net income was $15.8 million, including a $10.7 million gain from changes in fair value of earn-out liabilities [16] Business Line Data and Key Metrics Changes - The dietary supplements business showed strong performance, particularly in e-commerce, with no one-time items affecting results [23][24] - Procedure revenue decline was attributed to a slowdown in new clinic additions and a minor decrease in procedure volumes [7][14] Market Data and Key Metrics Changes - The company experienced competitive pressures impacting procedure revenue, but no significant changes in the marketplace were noted [25][26] - The attrition rate remained stable at around 5%, with a slight uptick believed to be temporary [50] Company Strategy and Development Direction - The company announced a strategic organizational restructuring aimed at driving sustainable profitable growth and creating long-term value for shareholders [9][10] - Key objectives include accelerating new provider wins, strengthening relationships with existing top-tier providers, and improving financial performance through enhanced accountability [10][12] - The company is focused on expanding its nationwide network and improving sales productivity by increasing the field sales team by approximately 25% [10][11] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 to be a transition year financially, with confidence in the actions taken to accelerate growth and realize full potential [13][20] - The company maintains its guidance for 2025 revenue between $200 million to $208 million and adjusted EBITDA of $59 million to $64 million [18] Other Important Information - The company expects to incur a one-time charge of approximately $600,000 to $800,000 in the second quarter of 2025 due to restructuring [18] Q&A Session Summary Question: Can you talk more about the supplements business and if there was anything one-time in it? - Management confirmed solid performance in the e-commerce business with no one-time items affecting results [23][24] Question: What happened with the procedures, and is there anything changing in the marketplace? - Management noted that the decline in procedure revenue was mainly volume-related, with no significant changes in the marketplace [25][26] Question: What is different about today's sales force realignment announcement? - The current realignment is focused on growth, not cost-cutting, and aims to increase sales productivity [34][35] Question: Can you elaborate on the decline in volume from the base business? - The decline was mainly due to lower contributions from new starts and a slight uptick in attrition, which is expected to stabilize [50][52] Question: What gives you confidence in the 2% to 4% procedure revenue growth guidance? - Management acknowledged potential risks but expressed confidence in the overall guidance for revenue and EBITDA, emphasizing the need for effective execution of changes [75][76]

[Biote Q1 2025 Financial Results](index=1&type=section&id=Biote%20Reports%20First%20Quarter%202025%20Financial%20Results) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Biote reported Q1 2025 revenue of **$49.0 million** (+4.7% YoY) and a net income of **$15.8 million**, a significant turnaround from prior year loss Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $49.0 million | $46.8 million | +4.7% YoY | | Gross Profit Margin | 74.3% | 71.3% | +3.0 p.p. | | Net Income (Loss) | $15.8 million | $(5.7) million | N/A | | Diluted EPS | $0.37 | $(0.12) | N/A | | Adjusted EBITDA | $13.8 million | $14.2 million | -2.8% YoY | | Adjusted EBITDA Margin | 28.1% | 30.4% | -2.3 p.p. | [2025 First Quarter Financial Review](index=2&type=section&id=2025%20First%20Quarter%20Financial%20Review) Total revenue grew **4.7%** to **$49.0 million**, driven by dietary supplements, while gross margin improved to **74.3%** due to vertical integration Q1 2025 Revenue Breakdown (YoY) | Revenue Stream | Q1 2025 | Change (YoY) | | :--- | :--- | :--- | | Total Revenue | $49.0 million | +4.7% | | Procedure Revenue | N/A | -3.6% | | Dietary Supplement Revenue | N/A | +25.5% | - Gross profit margin increased to **74.3%** from **71.3%** in Q1 2024, primarily due to the vertical integration of the company's 503B manufacturing facility and effective cost management[7](index=7&type=chunk) - Net income for Q1 2025 was **$15.8 million**, which included a gain of **$10.7 million** from changes in the fair value of earnout liabilities, contrasting with a net loss of **$(5.7) million** in Q1 2024 that included a loss of **$(12.1) million** from the same liabilities[8](index=8&type=chunk) - Adjusted EBITDA and its margin decreased to **$13.8 million** and **28.1%** respectively, down from **$14.2 million** and **30.4%** in the prior-year period, primarily due to increased sales and marketing activities[9](index=9&type=chunk) [Subsequent Event: Organizational Restructuring](index=2&type=section&id=Subsequent%20Event) Biote announced a strategic organizational restructuring of its commercial teams to drive new clinic growth and improve financial performance, expecting **$0.6 million to $0.8 million** in Q2 2025 severance costs - The company is undertaking a strategic organizational restructuring with key actions including realigning the commercial organization, increasing sales representatives by **25%**, streamlining sales leadership, and aligning sales compensation with goals[10](index=10&type=chunk) - The company expects to incur a charge of approximately **$0.6 million to $0.8 million** in Q2 2025 for severance costs related to the restructuring[11](index=11&type=chunk) [2025 Financial Outlook](index=3&type=section&id=2025%20Financial%20Outlook) Biote maintained its full-year 2025 guidance, projecting revenue between **$202 million and $208 million** and Adjusted EBITDA between **$59 million and $64 million** Full Year 2025 Guidance | Metric | 2025 Guidance Range ($ in millions) | | :--- | :--- | | Revenue | $202 - $208 | | Adjusted EBITDA | $59 - $64 | - For the full year 2025, the company expects procedure revenue to increase approximately **2-4%** and dietary supplements revenue to increase approximately **5-10%** from 2024[17](index=17&type=chunk) - 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[13](index=13&type=chunk) [Financial Tables](index=6&type=section&id=Financial%20Tables) This section provides detailed unaudited consolidated financial statements, including Balance Sheets, Statements of Operations, Cash Flows, and Adjusted EBITDA reconciliation [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $41,700 | $39,342 | | Total current assets | $68,680 | $68,127 | | Total assets | $123,379 | $122,370 | | Total current liabilities | $48,470 | $51,514 | | Total liabilities | $208,205 | $224,570 | | Total stockholders' deficit | $(84,826) | $(102,200) | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Statement of Operations Highlights (in thousands, except per share data) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total revenue | $48,992 | $46,804 | | Gross Profit | $36,382 | $33,352 | | Income from operations | $9,690 | $10,427 | | Net income (loss) | $15,839 | $(5,726) | | Diluted EPS | $0.37 | $(0.12) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Highlights (in thousands) | Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $6,467 | $7,372 | | Net cash used in investing activities | $(1,848) | $(12,176) | | Net cash used in financing activities | $(2,257) | $(5,409) | | Net increase (decrease) in cash | $2,358 | $(10,215) | | Cash and cash equivalents at end of period | $41,700 | $78,787 | [Reconciliation of Adjusted EBITDA to Net Income (Loss)](index=9&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20to%20Net%20Income%20(Loss)) Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net income (loss) | $15,839 | $(5,726) | | Adjustments (Interest, Taxes, D&A, etc.) | $(2,087) | $19,968 | | Adjusted EBITDA | $13,752 | $14,242 |

Revenue Growth - Revenue for the year ended December 31, 2024, was $197.2 million, up from $185.4 million in 2023, representing a growth of approximately 9.7%[37] - The compound annual growth rate (CAGR) for procedure revenue from 2019 to 2024 was 8.9%[37] - The total U.S. market opportunity for hormone replacement therapy (HRT) products is estimated to exceed $7 billion, with an expected annual growth rate of 7% through 2026[25] Market Opportunity - Approximately 20 million men over age 45 in the U.S. are affected by hypogonadism, with only about 10 million (12%) undergoing testosterone treatment[26] - An average of 27 million women between the ages of 45 and 64 experience menopause annually, yet only 28% (approximately 13 million) undergo HRT[26] Practitioner Engagement - Biote-certified practitioners have performed approximately five million hormone optimization procedures, with over 400,000 active patients as of December 31, 2024[29] - The retention rate among Biote-certified practitioners is over 95% as of December 31, 2024[33] - Biote has contracted with over 8,600 practitioners who have adopted the Biote Method in their practices[33] Product Offerings - Biote-branded dietary supplements represent approximately 18% of annual revenues, with an average supplement volume per practice of approximately $9,100 as of 2024[47] - The company has expanded its product offerings to include 24 dietary supplements since 2013, with prices ranging from $9.46 to $50.45[60] - Biote's dietary supplement business has grown at an 11.5% CAGR from 2019 to 2024[93] Revenue Sources - The service fees generated from hormone replacement therapy (HRT) procedures utilizing pellets accounted for approximately 76% of total revenue in 2024[71] - Biote-branded dietary supplement sales accounted for approximately 18% of total revenue in 2024, with 76% of partnered clinics offering these products[60] Operational Infrastructure - The company employs a 123-person sales force to attract new practitioners and support existing clinics, enhancing overall productivity[73] - The company has developed a comprehensive platform that includes education, training, and practice management tools specifically for hormone optimization[42] - As of December 31, 2024, Biote has contracted with over 8,600 certified practitioners across more than 4,700 partnered clinics, with 900 new clinics added in 2024, contributing to 66% of revenue growth[68] Compliance and Regulatory Environment - The healthcare regulatory landscape is complex and subject to rapid changes, which may impact the company's operations and compliance[119] - The company is subject to various federal and state healthcare regulations, including the Health Insurance Portability and Accountability Act (HIPAA), which mandates the protection of sensitive patient health information[164] - The company must navigate complex state and federal healthcare fraud and abuse laws, which could result in fines and restrictions on its operations if violated[159] Market Challenges - The hormone replacement therapy market is highly competitive, with over 30 brands in the dietary supplement space, posing challenges for market penetration and share[195] - Future revenue growth could slow or decline due to increasing competition and market saturation, impacting profitability[202] - The company faces risks related to potential violations of federal and state healthcare laws, which could lead to legal and financial repercussions[209] International Expansion - The company plans to expand operations into new international markets, including Argentina, Brazil, Colombia, and Canada, which will involve significant resources and management attention[221] - Expansion into new markets may face regulatory, economic, and political risks, including localization of the platform and compliance with local data privacy laws[222] Employee and Practitioner Relations - The company is highly dependent on key personnel, and losing any of them could severely disrupt operations and growth prospects[204] - Attracting and retaining contracts with Biote-certified practitioners and clinics is crucial for maintaining business and brand image[205] Financial Reporting and Structure - Biote Holdings, LLC completed a business combination with Haymaker Acquisition Corp. III, resulting in the formation of biote Corp. on May 26, 2022[172] - The company operates under an umbrella partnership-C corporation (Up-C) structure, which may have implications for its financial reporting and tax obligations[172] Supply Chain and Inventory Management - The company has increased its safety stock for dietary supplements from three weeks to four weeks due to global supply chain disruptions[109] - The reliance on third-party manufacturers for dietary supplements entails risks, including potential inventory shortages and compliance issues, which could adversely affect the company's operations[182]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $49.8 million, up 9% from the prior year period [21] - Fourth quarter gross profit margin was 71.8%, a 247 basis point increase from the fourth quarter of 2023 [25] - Net income was $3.5 million, down from $12.1 million in the fourth quarter of 2023 [26] - Adjusted EBITDA increased 11.4% to $15.1 million, with an adjusted EBITDA margin of 30.3% [27] - Cash flow from operations for fiscal year 2024 was $45.2 million, compared to $26.9 million for fiscal year 2023 [28] Business Line Data and Key Metrics Changes - Procedure revenue growth increased 5%, primarily driven by growth of established top-tier clinics [21] - Dietary supplement revenue increased 10.2% year-over-year, benefiting from the transition to the Amazon channel [24] Market Data and Key Metrics Changes - The company expects 2025 procedure revenue to increase approximately 2% to 4% from 2024 [29] - Dietary supplement revenue is expected to increase approximately 5% to 10% from 2024 [29] Company Strategy and Development Direction - The company has focused on strengthening its competitive moat through new and enhanced proprietary offerings [13] - The acquisition of Asteria Health in 2024 has allowed for vertical integration of manufacturing, generating cost efficiencies [14] - The launch of the BioteRx wellness platform is seen as a key competitive differentiator [15] - The company aims to expand its share of internally manufactured pellets as it gains additional state licenses [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that procedure revenue growth was negatively impacted by a reduction in procedure volume during the transition to upgraded software [22] - The company is confident about the benefits of its clinical decision support software but expects new customer growth to slow in the first half of 2025 [23] - Management believes Biote has entered 2025 with a position of strength, underpinned by strategic assets that enhance capabilities [18] Other Important Information - The company has trained over 8,000 practitioners, representing a fraction of the total available patient and practitioner population [33] - Management emphasizes the importance of maximizing value from top-tier providers and adding new practitioners to broaden the network [36][37] Q&A Session Summary Question: Can you help reconcile the procedural revenue growth guidance? - Management indicated that new customers are a material part of the business, and growth in new customers is essential for future growth [44] Question: Can you provide more color on the three areas of focus mentioned? - Management highlighted the need to service existing accounts, focus on new clinic starts, and improve execution within the commercial organization [49][50][53] Question: Are patients being lost to GLP-1 offerings? - Management stated that they do not see a lack of interest in hormone optimization despite the growth of GLP-1s [61] Question: What is the current status of the onboarding process for the new software? - The rollout of the new software is complete, but it will be a continuous improvement project [77] Question: Do you expect gross margin to stay in the low 70 range in 2025? - Management confirmed that they are seeing solid benefits from Asteria, which is included in the guidance [80] Question: Has there been any uptick in churn among productive clinics? - Management reported no loss of customers or clinics due to the new software [85] Question: How is the Amazon channel performing for dietary supplements? - Management indicated that they are progressing well with the Amazon channel and do not see any issues [88] Question: How big is the clinical network today? - Management reported over 8,600 providers and emphasized the importance of training and onboarding new practitioners [91]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Q4 & Full Year 2024 Financial Highlights](index=1&type=section&id=Q4%20%26%20Full%20Year%202024%20Financial%20Highlights) Biote reported a 9.0% revenue increase in Q4 2024 to $49.8 million and a 6.4% increase for the full year to $197.2 million. The company achieved a net income of $3.5 million in Q4 and $0.05 million for the full year. Gross profit margins improved in both periods, primarily due to efficiencies from the vertical integration of its 503B manufacturing facility. The company ended the year with $39.3 million in cash Fourth Quarter 2024 Financial Highlights (vs. Q4 2023) | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $49.8 million | $45.7 million | +9.0% | | Procedure Revenue | $36.6 million | N/A | N/A | | Gross Profit Margin | 71.8% | 69.4% | +2.4 p.p. | | Net Income | $3.5 million | $12.1 million | -71.1% | | Diluted EPS | $0.10 | $0.18 | -44.4% | | Adjusted EBITDA | $15.1 million | $13.6 million | +11.0% | | Adjusted EBITDA Margin | 30.3% | 29.7% | +0.6 p.p. | Full Year 2024 Financial Highlights (vs. FY 2023) | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $197.2 million | $185.4 million | +6.4% | | Procedure Revenue | $150.3 million | N/A | N/A | | Gross Profit Margin | 70.5% | 68.8% | +1.7 p.p. | | Net Income (Loss) | $0.05 million | $(2.8) million | N/A | | Diluted EPS | $0.09 | $0.13 | -30.8% | | Adjusted EBITDA | $58.2 million | $55.3 million | +5.2% | | Adjusted EBITDA Margin | 29.5% | 29.8% | -0.3 p.p. | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted significant progress in 2024, strengthening the company's foundation for future growth. Key achievements include the launch of the BioteRx platform and upgraded software, which enhance their competitive position. They also noted improved manufacturing efficiency through the integration of Asteria Health. Despite a temporary slowdown in procedure volume due to the software transition, the company maintains a strong financial position and cash flow generation - CFO Bob Peterson noted that full-year **2024 revenue increased 6.4%** and gross profit margin improved due to the vertical integration of their 503B manufacturing facility[3](index=3&type=chunk) - The transition to upgraded clinical decision support software impacted Q4 procedure volume, but the company is providing additional training to practitioners[3](index=3&type=chunk) - CEO Bret Christensen stated that the launch of the BioteRx platform and upgraded software have strengthened the company's competitive moat and capabilities in hormone optimization[5](index=5&type=chunk) - The integration and growth of Asteria Health have optimized manufacturing efficiency and strengthened the supply chain[5](index=5&type=chunk) [Detailed Financial Review](index=2&type=section&id=Detailed%20Financial%20Review) [Fourth Quarter 2024 Financial Review](index=2&type=section&id=Fourth%20Quarter%202024%20Financial%20Review) In Q4 2024, revenue increased 9.0% to $49.8 million, driven by 5.0% growth in procedure revenue and 10.2% growth in dietary supplement revenue. Procedure growth was tempered by a software transition and a focus on training existing practitioners. Gross margin improved to 71.8% from 69.4% due to vertical integration. However, operating income fell to $2.8 million from $5.5 million, impacted by higher employee-related and legal expenses. Net income decreased to $3.5 million, largely due to a $0.8 million loss from fair value changes of earnout liabilities, compared to a $5.4 million gain in the prior-year period - Q4 revenue grew **9.0% to $49.8 million**. Procedure revenue grew **5.0%**, while dietary supplement revenue grew **10.2%**, benefiting from a transition to an Amazon e-commerce platform[6](index=6&type=chunk) - Procedure revenue growth was negatively impacted by a reduction in volume as clinics transitioned to new software and a focus on training existing practitioners, which slowed the addition of new clinics[6](index=6&type=chunk) - Gross profit margin increased to **71.8% from 69.4%** in Q4 2023, attributed to the vertical integration of the 503B manufacturing facility and cost management[7](index=7&type=chunk) - Operating income decreased to **$2.8 million from $5.5 million** due to employee-related investments and additional legal expenses[7](index=7&type=chunk) - Net income for Q4 2024 was **$3.5 million**, compared to **$12.1 million** in Q4 2023. The decrease was significantly influenced by a loss on the change in fair value of earnout liabilities versus a gain in the prior year[8](index=8&type=chunk) [Full Year 2024 Financial Review](index=2&type=section&id=Full%20Year%202024%20Financial%20Review) For the full year 2024, revenue grew 6.4% to $197.2 million, primarily driven by procedure revenue growth. Gross profit margin expanded to 70.5% from 68.8% in 2023, thanks to manufacturing integration and cost controls. Operating income rose 10.3% to $31.6 million. The company reported a net income of $0.05 million, a significant turnaround from a net loss of $2.8 million in 2023. Adjusted EBITDA increased to $58.2 million, though the margin slightly decreased to 29.5% Full Year 2024 vs. 2023 Performance | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $197.2 million | $185.4 million | +6.4% | | Gross Profit Margin | 70.5% | 68.8% | +1.7 p.p. | | Operating Income | $31.6 million | $28.7 million | +10.3% | | Net Income (Loss) | $0.05 million | $(2.8) million | N/A | | Adjusted EBITDA | $58.2 million | $55.3 million | +5.2% | - The increase in gross profit margin for 2024 was primarily due to the vertical integration of the 503B manufacturing facility and effective cost management[11](index=11&type=chunk) - The improvement in operating income was driven by revenue growth and higher gross profit, which offset higher operating expenses[11](index=11&type=chunk) [2025 Financial Outlook](index=3&type=section&id=2025%20Financial%20Outlook) [Management Strategic Focus for 2025](index=3&type=section&id=Management%20Strategic%20Focus%20for%202025) For 2025, management will focus on three key commercial execution strategies to drive accelerated growth. These include maximizing value from top-tier providers, intensifying efforts to add new practitioners to the network, and strengthening accountability and discipline within the commercial organization. While these changes are expected to be implemented quickly, management anticipates a lag before results manifest in accelerated revenue growth later in the year - The company has identified several areas of emphasis for 2025 to drive accelerated growth[13](index=13&type=chunk) - Strengthening efforts to maximize the value of top-tier providers - Intensifying focus on adding new practitioners to broaden the network and reinvigorate procedure revenue growth - Driving revenue growth by improving accountability and discipline throughout the commercial organization[13](index=13&type=chunk) [2025 Guidance](index=3&type=section&id=2025%20Guidance) Biote projects fiscal 2025 revenue to be between $202 million and $208 million, with Adjusted EBITDA in the range of $59 million to $64 million. Procedure revenue is expected to grow 2-4%, while dietary supplements revenue is forecasted to increase 5-10%. For Q1 2025, revenue is expected to be slightly higher than Q1 2024, but Adjusted EBITDA is projected to be about 5% lower due to increased sales and marketing activities Fiscal 2025 Guidance | Metric | 2025 Guidance Range ($ in millions) | | :--- | :--- | | Revenue | $202 - $208 | | Adjusted EBITDA | $59 - $64 | - **2025 procedure revenue** is expected to increase approximately **2-4%** from 2024[13](index=13&type=chunk) - **2025 dietary supplements revenue** is expected to increase approximately **5-10%** from 2024[14](index=14&type=chunk) - Q1 2025 revenue is expected to be slightly higher than Q1 2024, while Q1 2025 Adjusted EBITDA is expected to be approximately **5% lower YoY** due to increased sales and marketing activities[15](index=15&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2024, Biote's balance sheet shows total assets of $122.4 million, a decrease from $155.3 million at year-end 2023, primarily due to a reduction in cash and cash equivalents from $89.0 million to $39.3 million. Total liabilities increased significantly to $224.6 million from $191.8 million, driven by new share repurchase liabilities. This resulted in an increased total stockholders' deficit of $102.2 million compared to $36.5 million in the prior year Selected Balance Sheet Data (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $39,342 | $89,002 | | Total current assets | $68,127 | $122,343 | | Total assets | $122,370 | $155,295 | | Total current liabilities | $51,514 | $22,215 | | Total liabilities | $224,570 | $191,841 | | Total stockholders' deficit | $(102,200) | $(36,546) | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For the year ended December 31, 2024, Biote generated total revenue of $197.2 million, up from $185.4 million in 2023. Income from operations grew to $31.6 million. Despite higher interest expense and a significant loss from the change in fair value of earnout liabilities, the company posted a net income of $46 thousand, a positive shift from a net loss of $2.8 million in the prior year. Diluted earnings per share attributable to stockholders was $0.09 Consolidated Statement of Operations Highlights (in thousands) | Account | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Total revenue | $197,191 | $185,360 | | Gross Profit | $139,061 | $127,483 | | Income from operations | $31,611 | $28,657 | | Net income (loss) | $46 | $(2,805) | | Net income attributable to biote Corp. stockholders | $3,157 | $3,316 | | Diluted EPS | $0.09 | $0.13 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the full year 2024, net cash provided by operating activities was $45.2 million, a significant increase from $26.9 million in 2023. Net cash used in investing activities was $18.8 million, mainly for acquisitions. Net cash used in financing activities was substantial at $76.1 million, driven by payments on repurchase liability ($62.2 million) and term loan repayments ($6.3 million). This resulted in a net decrease in cash and cash equivalents of $49.7 million, ending the year with a balance of $39.3 million Summary of Cash Flows (in thousands) | Activity | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $45,243 | $26,883 | | Net cash used in investing activities | $(18,798) | $(2,713) | | Net cash used in financing activities | $(76,083) | $(14,380) | | Net (decrease) increase in cash | $(49,660) | $9,771 | | Cash and cash equivalents at end of period | $39,342 | $89,002 | [Non-GAAP Financial Measures & Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Discussion of Non-GAAP Financial Measures](index=4&type=section&id=Discussion%20of%20Non-GAAP%20Financial%20Measures) Biote uses Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP measures, to evaluate operating performance and generate future plans. The company defines Adjusted EBITDA as net income before interest, taxes, depreciation, and amortization, further adjusted for items like stock-based compensation, litigation expenses, and fair value adjustments. Management believes these measures provide useful, comparable information to investors, but acknowledges their limitations and advises considering them alongside GAAP results - Biote discloses Adjusted EBITDA, a non-GAAP measure, calculated as net income adjusted for interest, taxes, depreciation, amortization, stock-based compensation, litigation expenses, and other specific items[18](index=18&type=chunk) - Management uses Adjusted EBITDA as a key measure to evaluate operating performance, generate future operating plans, and determine compensation[19](index=19&type=chunk) - The company does not provide a reconciliation for forward-looking Adjusted EBITDA to GAAP net income due to the unreasonable effort required to predict uncertain items like share-based compensation and legal expenses[22](index=22&type=chunk) [Reconciliation of Adjusted EBITDA to Net Income](index=10&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20to%20Net%20Income) For the full year 2024, Biote's net income of $46 thousand was reconciled to an Adjusted EBITDA of $58.2 million. Major adjustments included a $19.6 million loss from the change in fair value of earnout liabilities, $11.0 million in net interest expense, and $8.7 million in share-based compensation. For Q4 2024, net income of $3.5 million was reconciled to an Adjusted EBITDA of $15.1 million, with key adjustments including legal settlement losses and litigation expenses Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income (loss) | $3,483 | $12,078 | $46 | $(2,805) | | Adjusted EBITDA | $15,123 | $13,574 | $58,225 | $55,256 | | Net income (loss) margin | 7.0% | 26.4% | 0.0% | (1.5)% | | Adjusted EBITDA margin | 30.3% | 29.7% | 29.5% | 29.8% | - Significant adjustments for FY 2024 included a **$19.6 million loss** from change in fair value of earnout liabilities, **$11.0 million** in net interest expense, **$8.7 million** in share-based compensation, and a **$5.0 million** legal settlement loss[33](index=33&type=chunk)[34](index=34&type=chunk)

Company Performance - biote Corp. (BTMD) has returned approximately 28.5% year-to-date, significantly outperforming the average loss of 2.4% in the Medical sector [4] - The Zacks Consensus Estimate for BTMD's full-year earnings has increased by 46.2% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - biote Corp. is currently ranked 2 (Buy) in the Zacks Rank system, which focuses on earnings estimates and revisions [3] Industry Context - biote Corp. is part of the Medical - Products industry, which consists of 87 companies and is currently ranked 80 in the Zacks Industry Rank [6] - The Medical - Products industry has seen an average gain of about 11.4% year-to-date, with biote Corp. outperforming this group [6] - In contrast, the Medical Services industry, which includes another outperforming stock, Doximity (DOCS), is ranked 132 and has declined by 12.3% year-to-date [6][5]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

Core Viewpoint - Biote Corp. (BTMD) has seen a 27% increase in share price over the past four weeks, closing at $6.63, with analysts suggesting a potential upside of 43.9% based on a mean price target of $9.54 [1] Price Targets - The average price target consists of five estimates ranging from $8 to $11, with a standard deviation of $1.12, indicating a potential increase of 20.7% to 65.9% from the current price [2] - A low standard deviation suggests a strong agreement among analysts regarding the price targets, which can be a useful starting point for further research [7] Analyst Sentiment - Analysts show strong agreement in revising earnings estimates higher for BTMD, which correlates with potential stock price increases [9] - The Zacks Consensus Estimate for the current year has risen by 44.8% over the past month, with two estimates increasing and no negative revisions [10] Zacks Rank - BTMD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside [11] Caution on Price Targets - While price targets are a common metric, they should be approached with skepticism as they may not reliably indicate actual stock price movements [5][8]