What’s going on here?

Biote narrowly missed revenue forecasts last quarter, but booming supplement sales pushed both profit and future projections well above Wall Street’s hopes.

What does this mean?

Biote—the hormone therapy and wellness provider—reported second-quarter revenue of $48.90 million, just under LSEG’s $49.50 million estimate. While demand for Biote’s core medical procedures slowed and is expected to keep dipping into next year, sales of dietary supplements spiked 30% compared to last year. That growth helped net income climb to $3.9 million and lifted gross margins to 71.6% as Biote streamlined costs and boosted supply chain efficiency. Adjusted EBITDA for the quarter came in at $15.2 million, with operating income at $10.8 million and per-share earnings of $0.10. Management now sees 2025 revenue topping $190 million and adjusted EBITDA over $50 million, with supplement sales picking up the slack from declining procedures. Wall Street analysts are buying in: all six tracked recommend Biote, setting a $7.00 median price target—over 40% above the current share price.

Why should I care?

For markets: Wellness sector’s staying power shines through.

Biote’s double-digit supplement growth is propping up confidence despite slowing core procedures—a shift that’s showing up in improved margins and strong analyst support. With shares trading at a modest eight times forward earnings and every analyst on board, investor sentiment looks resilient. The company’s pivot from one-off procedures to higher-margin, recurring wellness products is grabbing attention as more see supplements as a steady, long-term play.

The bigger picture: Supplements rewrite the wellness industry playbook.

Biote’s strategy reflects a broader push across the wellness space to favor scalable, recurring revenue streams over traditional clinical services. Rising supplement sales hit on consumer preferences for ongoing self-care, while management’s push for efficiency and supply chain control could set a stronger foundation for future growth. As more companies trade treatments for wellness products, the industry may be setting up for a more defensible and diversified future.