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]

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]