Financial Data and Key Metrics Changes - Second quarter revenue was approximately flat at $48.9 million, reflecting an 8.4% decrease in procedure revenue, partially offset by over 30% sales growth in dietary supplements [13][14] - Gross profit margin improved to 71.6%, a 280 basis point increase, primarily due to cost savings from vertical integration [14] - Selling, general and administrative expenses decreased by 12.2% to $24.2 million, influenced by the timing of the annual marketing event and headcount adjustments [15] - Net income was $3.9 million, compared to a net loss of $10.4 million in the previous year, with diluted earnings per share of $0.10 [15][16] - Adjusted EBITDA increased by 19.1% to $15.2 million, with an adjusted EBITDA margin of 31.1% [16] Business Line Data and Key Metrics Changes - Procedure revenue experienced an 8.4% decline, attributed to slower growth in new clinic additions, higher attrition rates, and lower procedure volumes [13][14] - Dietary supplement revenue increased by 30.4% to $10.7 million, driven primarily by growth in the e-commerce channel [14] Market Data and Key Metrics Changes - The company anticipates high single-digit declines in procedure revenue for the full year, while dietary supplement growth is expected at approximately mid-teens percentage rate [18] - The company is adjusting its fiscal 2025 revenue guidance to above $190 million, reflecting the impacts of ongoing organizational restructuring [18] Company Strategy and Development Direction - The company is undergoing a strategic organizational restructuring aimed at driving sustainable growth, focusing on three key objectives: accelerating new provider wins, strengthening relationships with existing practitioners, and improving financial performance [7][8] - New leadership has been brought in to enhance commercial productivity and instill a high-performance culture [9][10] - The company is focused on capturing a larger share of the hormone replacement therapy and therapeutic wellness markets [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the organizational changes have been disruptive, particularly affecting procedure-related sales, but expressed confidence in the long-term growth strategy [12][13] - The company is committed to excellence and aims to achieve a higher level of operational and financial performance despite the challenges faced in 2025 [20] Other Important Information - Cash flow from operations for the second quarter was $7.1 million, with cash and cash equivalents at $19.6 million as of June 30, 2025, down from $41.7 million at the end of the previous quarter [17] Q&A Session Summary Question: Progress on verticalization process - Management indicated that penetration is currently in the low 40% range and plans to resume efforts to increase this in Q3 [22][23] Question: Absolute number of procedures down in the quarter - Management noted that headwinds include clinic attrition and lower volumes within existing clinics, which have been ongoing since the launch of the clinical decision support software [25][26] Question: Factors needed for metrics to turn around - Management expressed optimism that recent changes will lead to improved metrics, but it is too early to predict specific outcomes [28][30] Question: Drivers of faster attrition - Management clarified that GLP-1s are not impacting procedure revenue and attributed the headwinds to the launch of the clinical decision support software and organizational changes [36][37] Question: Changes in new clinic additions - Management acknowledged a slowdown in new starts and emphasized the need for improved retention and new clinic additions to drive growth [42][43] Question: Changes in sales force and marketing - Management highlighted that restructuring has focused on growth targets and accountability, with a revamped compensation plan to incentivize growth [48][49]