biote (BTMD) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenue of $49.0 million, up 4.7% year-over-year, driven by 25.5% growth in dietary supplements and improved gross margin from vertical integration, offsetting a decline in procedure revenue.

• Net income reached $15.8 million (EPS $0.37), reversing a net loss of $(5.7) million (EPS $(0.12)) in Q1 2024, aided by a $10.7 million gain from earnout liability fair value changes and cost savings.

• Adjusted EBITDA was $13.8 million (28.1% margin), down from $14.2 million (30.4% margin) in Q1 2024 due to increased sales and marketing spend.

• Announced a strategic organizational restructuring to accelerate growth, expand provider network, and improve commercial execution, including a 25% increase in sales reps and revised sales compensation.

• CEO Bret Christensen appointed effective February 1, 2025, with Teresa S. Weber transitioning to a strategic advisor role; 2025 is positioned as a transition year focused on long-term growth.

Financial highlights

• Gross profit margin improved to 74.3%, up 300 basis points year-over-year, reflecting benefits from vertical integration and cost management.

• Dietary supplement revenue rose 25.5% to $9.3 million, led by e-commerce channel growth; procedure revenue declined 3.6% to $36.0 million due to reduced commercial effectiveness and fewer new clinic additions.

• Product revenue was $47.0 million, service revenue $2.0 million; cost of revenue decreased 6.3% to $12.6 million.

• Selling, general and administrative expenses increased 16.4% to $26.7 million, mainly due to higher marketing, legal, and audit costs.

• Cash and cash equivalents increased to $41.7 million as of March 31, 2025, with $50 million available under the revolving credit facility.

Outlook and guidance

• Maintained 2025 guidance: revenue of $202–$208 million and adjusted EBITDA of $59–$64 million; Q2 2025 revenue and adjusted EBITDA expected to be similar or slightly higher than Q2 2024.

• Expects 2025 procedure revenue to grow 2–4% and dietary supplements revenue to grow 5–10% from 2024, with management acknowledging execution risk.

• Anticipates a one-time restructuring charge of $0.6–$0.8 million in Q2 2025.

• Liquidity is sufficient to fund operations and debt service for at least the next 12 months.