Good day, and welcome to the biote Corp. Fourth Quarter and Full Year 2025 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Szymon Serowiecki, Investor Relations. Please go ahead.

Thank you for joining us today. This afternoon, biote Corp. published financial results for the fourth quarter and full year ended December 31, 2025. This news release is available in the Investor Relations section of the company's website. Hosting today's call are Bret Christensen, Chief Executive Officer, and Bob Peterson, Chief Financial Officer. Before we get started, I would like to remind everyone that management statements during this call include forward-looking statements regarding, among other things, the company's financial results, future performance and growth opportunities, business outlook, strategic plans, anticipated benefits, goals, research and development, manufacturing and commercialization activities, its competitive position, regulatory process operations, benefits of its solutions, anticipated impact of macroeconomic conditions on the business, results of operations and financial conditions, and other matters that do not relate to historical facts. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties, some of which are beyond the company's control. Actual results could differ materially from expectations reflected in any forward-looking. These statements are subject to risks, uncertainties, and assumptions that are based on management's current expectations as of today. biote Corp. undertakes no obligation to update them in the future. Therefore, statements should not be relied upon as representing the company's views as of any subsequent date. For discussion of risks and other important facts that could affect their actual results, please refer to our SEC filings available on the SEC's website and in the Investor Relations section of our website as well as risks and other important factors discussed in the earnings release. Management also refers to EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures to provide additional information to investors. A reconciliation of the non-GAAP to GAAP measures is provided in our earnings release with the primary differences being stock-based compensation, fair value adjustments, certain liabilities, and other non-operating expenses. Please refer to our fourth quarter 2025 earnings release for a reconciliation of these non-GAAP measures to the most comparable GAAP measures. I will now turn the call over to Bret Christensen.

Thank you, Szymon. Thank you all for joining us. I will provide a summary of our key strategic and operational accomplishments in 2025 and discuss our priorities in 2026. Bob will then review our fourth quarter financial results and provide our 2026 financial outlook. After our comments, we will open the call for your questions. 2025 was a pivotal and productive year for biote Corp., marked by important changes to the biote Corp. team, our processes, and our culture. Through our decisive actions, we achieved progress against our strategic plan, and I believe we became a more resilient, more disciplined, and more effective organization. These qualities position biote Corp. to drive increased and sustainable growth in the large and underserved market of hormone replacement and therapeutic wellness. As you recall, our top three strategic objectives were, one, prioritizing and accelerating new clinic growth; two, maximizing value from existing top-tier clinics; and three, strengthening accountability and discipline throughout the company. I will begin with our progress on new clinics, which are fundamental to generating consistent revenue and earnings growth over the long term. To accomplish this goal, we rebuilt a significant portion of our commercial team and recruited new leadership and talent who bring fresh energy and a high-performance mindset to our business. To help ensure their success, we have empowered our sales team with upgraded tools and training and designed a new incentive compensation framework that aligns with our high-growth objectives. We also completed the restructuring of our commercial team by geographic region and by sales role. This new structure has two key advantages. One, it enables us to provide a higher level of service to our existing accounts; and two, it allows us to remain laser-focused on driving new clinic growth and optimizing new practitioner success. We ended 2025 with over 90 salespeople, up from approximately 60 at the time of our sales reorganization last May. I am pleased to report that our new team members are stabilizing clinic attrition and maximizing new clinic starts in the fourth quarter. In addition, from mid-November to present, we have seen an acceleration in the number of practitioners attending our trainings, with all of our training sessions at full capacity. This reflects our recent success in recruiting new practitioners and broadening our training options for them. Because the number of new biote Corp. certified practitioners is typically a leading indicator of procedure growth in the future, we plan to build on this momentum by continuing to invest in our commercial organization in 2026. Our second strategic objective was to maximize value from our top-tier clinics. To accomplish this, we deepened our relationships with existing practitioners, which reinforced our role as an essential partner that is committed to their success. Second, we continue to introduce innovative, science-based solutions that promote patient health span and vitality and advance the standard of care. Third, to minimize unanticipated clinic attrition, we leveraged data analytics to evaluate and refine contract and incentive models that strengthen the longer-term value equation of our top practitioners. Turning now to our third strategic objective. We emphasized accountability and discipline in our pursuit of operational excellence. Most importantly, we have strengthened and refined the internal processes and systems that underpin our operating model. These enhancements improved our data analytics and productivity, enabling more consistent execution. Having strengthened our core capabilities, I am cautiously optimistic we will reaccelerate procedure revenue growth and scale the business with greater efficiency. I would now like to comment on our strategic plans for 2026. Over the past year, we have laid the groundwork for a more efficient and more disciplined operating model, one that positions us to deliver stronger and more consistent financial performance in the years ahead. In 2026, we will focus on advancing the progress we achieved in 2025. For example, we will be making a sizable and necessary investment in our sales and technology capabilities. Specifically, we intend to expand our sales personnel from over 90 at the end of 2025 to approximately 120. Concurrent with this investment in our commercial team, we will be investing in our leading-edge technology platform in 2026. This investment is designed to facilitate a more efficient and seamless practitioner journey from initial training and certification to driving a successful biote Corp. clinic over the long term. We also anticipate that this investment will enhance long-term practitioner retention while expanding sales of our biote Corp. branded dietary supplements and other healthy aging solutions. I am confident now is the right time to make these investments, which we believe are essential to accelerate growth, expand our market opportunity, and further enhance engagement with existing practitioners. While this step-up in expenses will impact our adjusted EBITDA in 2026, we believe these planned investments position our team to reach our long-term strategic, operational, and financial objectives. I will now turn the call over to Bob Peterson to review our fourth quarter results and provide our financial guidance for 2026.

Thank you, Bret, and good afternoon, everyone. Unless otherwise noted, all quarterly financial comparisons in my prepared remarks are made against the 2024 fourth quarter. Fourth quarter revenue was $46,400,000, a decrease of 6.9%. Procedure revenue declined 13% to $31,800,000, while dietary supplement revenue grew 16% to $11,700,000. Similar to recent quarters, procedure revenue was primarily impacted by a lower number of net new clinic additions and lower procedure volume during 2025. As Bret noted, in 2026, we anticipate increasing our investment in our sales capabilities to capture a larger share of our available market opportunity. Dietary supplement revenue increased 16% to $11,700,000, primarily driven by the continued growth of our e-commerce channel. Dietary supplements represent an important and complementary market growth opportunity, strengthening patient engagement with biote Corp. by meeting their evolving needs for safe and effective healthy aging solutions. Looking forward, we forecast our dietary supplements revenue will grow at a mid to high single-digit rate in 2026. Gross profit margin was 68% compared to 71.8%. The decrease was due to a $1,300,000 charge to inventory during 2025 as a result of the impact of a voluntary recall of specific lots of hormone pellets shipped by Asteria Health. We could see a potential near-term impact to gross margin if our product mix includes more third-party manufacturing. Our long-term goal is to meet customer needs through our Asteria site. Excluding this charge, gross margin reflected the benefit of efficiencies gained from vertical integration of our 503B manufacturing facility and effective cost management. Selling, general, and administrative expenses decreased 25.1% to $24,700,000. The decrease reflected lower legal expense and a temporary decrease in headcount. Net income was $2,600,000. Diluted earnings per share attributed to biote Corp. stockholders was $0.06, compared to net income of $3,500,000 and diluted earnings per share attributed to biote Corp. stockholders of $0.10. Net income for 2025 included a gain of $1,200,000 due to changes in the fair value of the earn-out liabilities. Net income for 2024 included a loss of $800,000 due to changes in the fair value of the earn-out liabilities. Adjusted EBITDA decreased to $11,700,000, with an adjusted EBITDA margin of 25.2%. This compares to adjusted EBITDA of $15,100,000 and adjusted EBITDA margin of 30.3%. Both adjusted EBITDA and adjusted EBITDA margin decreased due to lower sales and reduced gross profit, partially offset by lower operating expenses as a result of our sales reorganization. For the 2025 year, cash flow from operations was $35,200,000. As of 12/31/2025, cash and cash equivalents were $24,100,000. Now turning to our financial outlook for 2026. As previously mentioned, we anticipate investing to advance our sales and technology capabilities. While this planned investment will cause a step-up in operating expenses in the near term, we expect the benefit will be evidenced by an improvement in our procedure revenue expected to start in 2026. With respect to our 2026 revenue guidance, year-on-year procedure revenue is expected to decrease at a mid to high single-digit percentage rate in 2026, which includes a potential revenue and profit impact related to the recall. We anticipate an expected return to year-on-year procedure growth in 2026. Dietary supplement revenue is expected to grow at a mid to high single-digit rate from 2025. Overall, we forecast 2026 revenues above $190,000,000 and adjusted EBITDA of greater than $38,000,000.

Thanks, Bob. I am pleased with the progress the entire biote Corp. team has achieved in the past year. We laid much of the foundational groundwork that I believe will enable us to drive a higher and more consistent level of financial performance. Our planned investments in 2026 represent a key inflection point for biote Corp. that I believe are essential to effectively address our large market opportunity and build long-term, sustainable shareholder value. Operator, let's now open the call for questions.

Thank you. We will now begin the question and answer session. The first question will come from Leszek Sulewski with Truist Securities. Please go ahead.

Hey, this is Jeevan on for Les. Thanks for taking our questions. What is your take on the FDA's removal of black box warnings for certain HRTs and maybe how this could potentially impact demand? And then also for the voluntary recall, can you elaborate on any feedback and whether you see this event changing the regulatory bar or competitive dynamics in the space?

Yeah. Hi, this is Bret. Thanks for that. First, on the black box warning that was removed now really almost just a little less than a year ago, that along with the entire talk track of the FDA seems to be a positive tailwind for us and others. It is a good sign that finally hormone optimization is getting recognized as a great option. It has always been a good option for men and women and is getting the attention that they deserve as there are still no FDA-approved options for women for testosterone therapy. So all in all, it is a great thing for us. It reinforces what we have known, that there is no harm that comes from testosterone and a tremendous amount of benefit that patients can get through different modalities of HRT. So it is a good thing. We look for continued support from clinicians and patients alike for awareness. As far as the recall goes, as you know, we, at January, announced a partial recall, a voluntary recall that we are doing just out of an abundance of caution, working hand in hand with the FDA. So the feedback has been good. We are working hand in hand with the FDA on almost everything that we do. So communication to our customers, taking the product back, refilling those orders, all of that has been done in planning with the FDA. So we are in lockstep with their guidance in this entire recall. Our customers have been responsive, and we are happy with where we are at so far.

The next question will come from Kaitlyn Joan Korich with Jefferies. Please go ahead.

Hi, everyone. Good evening. Thanks for taking my question. I just wanted to drill into the procedure revenue growth in the first half, and is it purely the number of procedures that will be down while the number of practitioners are ticking higher, or is there also some element of promos or discounting that we should be considering? Any color there, and also, if anything has changed in the competitive environment would be helpful. Thank you.

Yeah. Hi, Kaitlyn. This is Bret. I will start with that, and then Bob can add some specifics. Throughout last year, we highlighted an increase in attrition. And for us, when we talk about attrition, we are talking about practitioner and clinic attrition. And so while that has been stable for us for years at around 5%, last year, we highlighted that accelerated to high single digits. And so that is where we have exited the year in 2024. The lower volume that we are highlighting in 2026 in the first half until we return to growth in the second half really is just that same attrition that we have experienced at a higher rate in the past. Remember, with an annuity model, we live with that attrition for 12 months. So attrition was higher last year, and mostly that was clinic attrition, which does mean lower volumes. So that is where we exited the year. We anticipate that will change this year. We will return to growth in the second half through volume growth. But the majority of that lower procedure revenue was volume.

That is right. And I think the only other thing to add there is, as Bret mentioned, we are in the process now of watching some of those new customers that are coming in the door. And wanting to see, he highlighted in the remarks that trainings were full. We will need to continue to watch those individuals to make sure that they are productive and start quickly. I cannot stress enough, we are in the, you know, we are about a month, month and a half into the recall, and we just want to continue to monitor the impact there also. I think that gives a little bit of additional color.

Got it. Thank you.