biote (BTMD) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial & Operational Highlights Biote's Q2 2025 saw $48.9 million revenue, improved profitability with $3.9 million net income and 19.1% Adjusted EBITDA growth, and a corporate reorganization Q2 2025 Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $48.9 million | $49.2 million | -0.6% | | Gross Profit Margin | 71.6% | 68.8% | +2.8 p.p. | | Net Income (Loss) | $3.9 million | $(10.4) million | N/A | | Diluted EPS | $0.10 | $(0.21) | N/A | | Adjusted EBITDA | $15.2 million | $12.7 million | +19.1% | | Adjusted EBITDA Margin | 31.1% | 25.9% | +5.2 p.p. | - Launched a corporate reorganization in early May, which included new leadership, expansion of corporate talent, and an upgraded sales compensation structure to enhance productivity[2] - The company's key strategic priorities are accelerating new provider acquisition, maximizing value from top-tier clinics, and strengthening the commercial organization[3] 2025 Second Quarter Financial Review Q2 2025 revenue was $48.9 million, with mixed segment performance, while gross profit margin expanded to 71.6% and operating income increased 72.7% to $10.8 million Q2 2025 Revenue Breakdown (YoY) | Revenue Stream | Q2 2025 | Change (YoY) | | :--- | :--- | :--- | | Total Revenue | $48.9 million | -0.6% | | Procedure Revenue | N/A | -8.4% | | Dietary Supplement Revenue | N/A | +30.4% | - Gross profit margin improved to 71.6% from 68.8% in the prior-year period, primarily due to the vertical integration of the 503B manufacturing facility and effective cost management[5] - Operating income increased by 72.7% to $10.8 million, resulting from higher gross profit and lower operating expenses[6] - Net income was $3.9 million, a significant turnaround from a net loss of $(10.4) million in Q2 2024, largely influenced by a smaller loss from the change in fair value of earnout liabilities ($(1.8) million in Q2 2025 vs $(13.9) million in Q2 2024)[7] 2025 Financial Outlook Biote revised its full-year 2025 guidance downwards, now expecting revenue above $190 million and Adjusted EBITDA above $50 million, due to ongoing commercial reorganization Revised Fiscal 2025 Guidance | Metric | Revised 2025 Guidance | Previous 2025 Guidance | | :--- | :--- | :--- | | Revenue | > $190 million | $202 - $208 million | | Adjusted EBITDA | > $50 million | $59 - $64 million | Revised 2025 Revenue Segment Outlook (vs. 2024) | Revenue Segment | Revised 2025 Forecast | Previous 2025 Forecast | | :--- | :--- | :--- | | Procedure Revenue | High single-digit % decrease | 2-4% growth | | Dietary Supplements Revenue | Mid-teens % growth | 5-10% growth | - The guidance was adjusted to account for the time it will take for the company's commercial reorganization and strategic changes to yield positive results[10] Discussion of Non-GAAP Financial Measures Biote uses non-GAAP measures like Adjusted EBITDA to evaluate operating performance, calculated by adjusting net income for specific non-cash and non-recurring items, with full reconciliation provided - Adjusted EBITDA is defined as net income adjusted for interest, taxes, depreciation, amortization, stock-based compensation, litigation expenses, transaction costs, and other specific items[13] - Management uses Adjusted EBITDA to evaluate operating performance, create future plans, and determine compensation[14] - The company does not provide a reconciliation for forward-looking Adjusted EBITDA guidance to GAAP net income due to the unreasonable effort required to predict certain excluded items like share-based compensation and legal expenses[19] Financial Statements Biote's financial statements show $19.6 million cash as of June 30, 2025, Q2 revenue of $48.9 million, net income of $3.9 million, and $13.6 million net cash from operations for the first six months Condensed Consolidated Balance Sheets As of June 30, 2025, Biote's total assets decreased to $104.8 million, cash to $19.6 million, and total liabilities to $183.6 million, while stockholders' deficit improved to $(78.8) million Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $19,601 | $39,342 | | Total current assets | $49,504 | $68,127 | | Total assets | $104,798 | $122,370 | | Total current liabilities | $50,537 | $51,514 | | Total liabilities | $183,638 | $224,570 | | Total stockholders' deficit | $(78,840) | $(102,200) | Condensed Consolidated Statements of Operations For Q2 2025, Biote reported total revenue of $48.9 million, gross profit of $35.0 million, and achieved a net income of $3.9 million ($0.10 diluted EPS), a significant improvement from a prior-year loss Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenue | $48,863 | $49,169 | | Income from operations | $10,765 | $6,233 | | Net income (loss) | $3,925 | $(10,368) | | Diluted EPS | $0.10 | $(0.21) | Condensed Consolidated Statements of Cash Flows For H1 2025, net cash from operations was $13.6 million, with $3.8 million used in investing and $29.5 million in financing, resulting in a $19.7 million decrease in cash, ending at $19.6 million Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $13,553 | $17,319 | | Net cash used in investing activities | $(3,810) | $(15,513) | | Net cash used in financing activities | $(29,489) | $(64,381) | | Net decrease in cash | $(19,741) | $(62,583) | | Cash at end of period | $19,601 | $26,419 | Reconciliation of Adjusted EBITDA to Net Income (Loss) The reconciliation shows Q2 2025 net income of $3.9 million adjusted for items like interest, tax, and share-based compensation, resulting in an Adjusted EBITDA of $15.2 million, up from $12.7 million in Q2 2024 Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income (loss) | $3,925 | $(10,368) | | Adjustments (Interest, Tax, D&A, etc.) | $11,249 | $23,110 | | Adjusted EBITDA | $15,174 | $12,742 | | Net income (loss) margin | 8.0% | -21.1% | | Adjusted EBITDA margin | 31.1% | 25.9% | - Key adjustments in Q2 2025 included $2.2M in share-based compensation, $0.6M in restructuring-related expenses for a workforce reduction, and a $1.8M loss from the change in fair value of earnout liabilities[30][31]