BTMD · Haymaker Acquisition Corp. III

Biote’s Q1 2026 results reflect significant operational disruption from the voluntary recall of certain hormone pellet products shipped by Asteria Health, which directly impaired procedure revenue—down 13.2% to $31.3 million—and compressed gross margin by 540 bps to 68.9%. The recall triggered higher procurement costs from third-party suppliers and reduced manufacturing efficiency at Asteria, contributing to a $4.1 million revenue shortfall versus Q1 2025 and a $6.5 million decline in operating income. Net income fell sharply to $2.7 million ($0.06 EPS), though this included only $2.1 million in earnout-related gains—$8.6 million less than the $10.7 million recorded in Q1 2025—indicating underlying profitability erosion beyond the recall impact. Adjusted EBITDA declined 36.6% to $8.7 million (19.4% margin), consistent with management’s emphasis on elevated commercial investment (sales team nearing ~120 reps) and ongoing inventory rebuilding to restore continuity of care. Despite near-term headwinds, management reaffirmed its full-year guidance—revenue above $190 million and Adjusted EBITDA above $38 million—and maintained its outlook for procedure revenue growth to resume in H2 2026, citing improving leading indicators: newly trained practitioners and new clinic growth. The press release explicitly attributes the Q1 softness to temporary, remediable supply constraints—not structural demand weakness—making the earnings miss operationally explainable but financially material given the magnitude of the year-over-year deterioration in core metrics.