Financial Data and Key Metrics Changes - Fourth quarter revenue was $46.4 million, a decrease of 6.9% compared to the same quarter in 2024 [12] - Procedure revenue declined 13% to $31.8 million, while dietary supplement revenue grew 16% to $11.7 million [12][13] - Gross profit margin was 68.0%, down from 71.8%, primarily due to a $1.3 million charge related to a voluntary recall [14] - Net income for the fourth quarter was $2.6 million, with diluted earnings per share of $0.06, compared to $3.5 million and $0.10 in the previous year [15] - Adjusted EBITDA decreased to $11.7 million with an adjusted EBITDA margin of 25.2%, down from $15.1 million and 30.3% [16] Business Line Data and Key Metrics Changes - Procedure revenue was primarily impacted by a lower number of net new clinic additions and lower procedure volume [12] - Dietary supplement revenue growth was driven by the continued expansion of the e-commerce channel [13] - The company anticipates dietary supplement revenue to grow at a mid to high-single-digit rate in 2026 [14] Market Data and Key Metrics Changes - The company ended 2025 with over 90 salespeople, up from approximately 60 at the time of the sales reorganization [8] - The number of new Biote certified practitioners is a leading indicator of future procedure growth, with training sessions at full capacity [8] Company Strategy and Development Direction - The company aims to prioritize and accelerate new clinic growth, maximize value from existing top-tier clinics, and strengthen accountability and discipline throughout the organization [6][9] - In 2026, the company plans to expand its sales personnel from over 90 to approximately 120 and invest in technology to enhance the practitioner journey [10][11] - The company is focused on operational excellence and improving internal processes to drive sustainable growth in the hormone replacement and therapeutic wellness market [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about re-accelerating procedure revenue growth and scaling the business with greater efficiency [9] - The company anticipates a decrease in procedure revenue in the first half of 2026, with a return to growth expected in the second half [17] - Planned investments in sales and technology capabilities are expected to impact adjusted EBITDA in 2026 but are seen as essential for long-term growth [11][17] Other Important Information - The company is working closely with the FDA regarding a voluntary recall and has received positive feedback on its communication and handling of the situation [22] - The company is monitoring the impacts of the recall on its operations and customer relationships [30][50] Q&A Session Summary Question: Impact of FDA's removal of black box warnings for certain HRTs - Management views the removal as a positive tailwind, recognizing hormone optimization as a beneficial option for patients [21] Question: Details on procedure revenue growth and competitive environment - The decline in procedure revenue is attributed to higher attrition rates and lower volumes, with expectations for growth in the second half of 2026 [25][32] Question: EBITDA guidance and investment impacts - The anticipated decline in EBITDA is primarily due to investments in sales personnel and technology, aimed at driving future growth [34][39] Question: Areas of focus for technology platform improvements - The company is enhancing the practitioner experience through system improvements, both internally and with external support [44][47] Question: Timeline for ramping up Asteria production post-recall - The company aims to return to previous production levels as soon as possible, with ongoing monitoring of inventory levels [53][58]