Organogenesis Holdings Inc. Reports Fourth Quarter 2025 Financial Results, Posts Record Revenue
Rhea-AI Summary
Organogenesis Holdings (Nasdaq: ORGO) reported record 2025 results with net product revenue $563.0M and fourth-quarter net product revenue of $225.1M (Q4 2025 vs Q4 2024 +78%). Net income was $37.0M for FY2025 and $43.7M in Q4 2025. Adjusted EBITDA was $98.1M for FY2025 and $84.2M for Q4. As of Dec 31, 2025 the company held $94.3M cash with no outstanding debt. Fiscal 2026 guidance assumes total net revenue $350M–$420M, reflecting an expected near-term revenue decline and recovery later in 2026.
Positive
- Q4 net product revenue $225.1M (+78% YoY)
- FY2025 net product revenue $563.0M (+17% YoY)
- Q4 Adjusted EBITDA $84.2M (Q4 2025)
- No outstanding debt as of Dec 31, 2025
Negative
- 2026 revenue guidance $350M–$420M (25%–38% decline vs 2025)
- Cash balance declined to $94.3M from $136.2M YoY
Market Reaction – ORGO
Following this news, ORGO has declined 7.43%, reflecting a notable negative market reaction. Our momentum scanner has triggered 10 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $3.42. This price movement has removed approximately $35M from the company's valuation.
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Key Figures
Market Reality Check
Peers on Argus
ORGO gained about 1.99% pre-release. Peers were mixed: EOLS (+4.41%), AQST (+0.85%), ESPR (+0.60%), while SIGA (-0.15%) and AKBA (-3.20%) declined, pointing to stock-specific drivers.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Q3 2025 earnings | Positive | +44.7% | Record Q3 2025 revenue, higher net income and raised full-year guidance. |
| Aug 07 | Q2 2025 earnings | Negative | +0.8% | Q2 2025 revenue decline and net loss despite maintaining a strong balance sheet. |
| May 08 | Q1 2025 earnings | Negative | -42.7% | Q1 2025 revenue drop and widened net loss versus prior year quarter. |
| Feb 27 | Q4 2024 earnings | Positive | +102.3% | Strong Q4 2024 and full-year 2024 growth with positive net income and guidance. |
| Nov 12 | Q3 2024 earnings | Positive | +28.4% | Q3 2024 revenue growth and higher net income, with updated full-year guidance. |
Earnings releases have often triggered strong price moves, mostly positive; one quarter with weaker results saw a sharp selloff, showing high sensitivity to financial updates.
Over the past year, Organogenesis has reported a mix of challenging and improving quarterly results. Q1 and Q2 2025 showed revenue declines and net losses, while Q3 2025 delivered record revenue of $150.5M and raised guidance, driving a strong positive reaction. Earlier, Q4 2024 and Q3 2024 featured solid growth and positive earnings. Today’s report of record 2025 revenue and profitability, paired with a sharply lower 2026 revenue outlook, sits within this pattern of the market reacting strongly to earnings shifts and guidance changes.
Historical Comparison
In the last five earnings releases, ORGO’s stock moved an average of ±26.7%, showing that earnings and guidance updates have been major catalysts.
Earnings over 2024–2025 show a path from steady 2024 growth into a volatile 2025, with early-quarter revenue declines followed by record Q3 and now record full-year 2025 results.
Market Pulse Summary
The stock is down -7.4% following this news. A negative reaction despite strong 2025 results would fit the market’s sensitivity to guidance and policy shifts. While revenue reached a record $563.0M with net income of $37.0M, management guided 2026 revenue down 25%–38%, reflecting anticipated disruption from CMS payment reforms. Past earnings have produced large moves, both up and down, so investors may reassess sustainability of recent strength against the tougher 2026 outlook.
Key Terms
adjusted ebitda financial
non-gaap operating income financial
redeemable convertible preferred stock financial
restricted stock units financial
right-of-use assets financial
operating lease obligations financial
impairment financial
AI-generated analysis. Not financial advice.
CANTON, Mass., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Organogenesis Holdings Inc. (Nasdaq: ORGO), a leading regenerative medicine and tissue innovations company focused on empowering healing through the development, manufacturing, and sale of products for the advanced wound care, and surgical and sports medicine markets, today reported financial results for the fourth quarter and the year ended December 31, 2025.
Fourth Quarter 2025 Financial Results Summary:
- Net product revenue of
$225.1 million for the fourth quarter of 2025, an increase of$98.4 million compared to net product revenue of$126.7 million for the fourth quarter of 2024. Net product revenue for the fourth quarter of 2025 consists of:- Net product revenue from Advanced Wound Care products of
$217.2 million , an increase of83% from the fourth quarter of 2024. - Net product revenue from Surgical & Sports Medicine products of
$7.9 million , a decrease of2% from the fourth quarter of 2024.
- Net product revenue from Advanced Wound Care products of
- Net income of
$43.7 million for the fourth quarter of 2025, compared to net income of$7.7 million for the fourth quarter of 2024, an increase in net income of$36.0 million . - Adjusted EBITDA of
$84.2 million for the fourth quarter of 2025, compared to Adjusted EBITDA of$18.2 million for the fourth quarter of 2024, an increase of$66.0 million . - Adjusted net income of
$52.9 million for the fourth quarter of 2025, compared to adjusted net income of$8.8 million for the fourth quarter of 2024, an increase of$44.1 million .
Fiscal Year 2025 Financial Results Summary:
- Net product revenue of
$563.0 million for the year ended December 31, 2025, an increase of$81.0 million compared to net product revenue of$482.0 million for the year ended December 31, 2024. Net product revenue for the year ended December 31, 2025 consists of:- Net product revenue from Advanced Wound Care products of
$531.2 million , an increase of17% year over year. - Net product revenue from Surgical & Sports Medicine products of
$31.8 million , an increase of12% year over year.
- Net product revenue from Advanced Wound Care products of
- Net income of
$37.0 million for the year ended December 31, 2025, compared to net income of$0.9 million for the year ended December 31, 2024, an increase of$36.2 million . - Adjusted EBITDA of
$98.1 million for the year ended December 31, 2025, compared to Adjusted EBITDA of$49.8 million for the year ended December 31, 2024, an increase of$48.4 million . - Adjusted net income of
$55.2 million for the year ended December 31, 2025, compared to adjusted net income of$20.5 million for the year ended December 31, 2024, an increase of$34.7 million .
“We delivered record performance in 2025 by demonstrating a sustained ability to execute on our strategy in a complex and challenging market,” said Gary S. Gillheeney, Sr., President, Chief Executive Officer and Chair of the Board for Organogenesis. “With meaningful payment reform in place, we believe we are well positioned to navigate short-term market confusion and deliver long-term growth driven by the most comprehensive and evidenced-backed portfolio on the market.”
Mr. Gillheeney, Sr. continued: “While we expect the first half of 2026 to be impacted by the market adapting to the sweeping changes from CMS to reform coverage and payment for skin substitutes, we expect to drive significant market share gains in the second half of 2026, and we remain confident in the long-term opportunity for Organogenesis. After a period of transition in the market in 2026, we expect to return to normalized growth in 2027.”
Fourth Quarter 2025 Financial Results:
| Three Months Ended December 31, | Change | |||||||||||||||
| 2025 | 2024 | $ | % | |||||||||||||
| (in thousands, except for percentages) | ||||||||||||||||
| Advanced Wound Care | $ | 217,168 | $ | 118,585 | $ | 98,583 | 83 | % | ||||||||
| Surgical & Sports Medicine | 7,903 | 8,071 | (168 | ) | (2 | %) | ||||||||||
| Net product revenue | $ | 225,071 | $ | 126,656 | $ | 98,415 | 78 | % | ||||||||
Net product revenue for the fourth quarter of 2025 was
Gross profit for the fourth quarter of 2025 was
Operating expenses for the fourth quarter of 2025 were
Operating income for the fourth quarter of 2025 was
Total other income (expense), net, for the fourth quarter of 2025 was
Net income for the fourth quarter of 2025 was
Adjusted EBITDA was
Adjusted net income was
Non-GAAP operating income was
Fiscal Year 2025 Financial Results:
| Year Ended December 31, | Change | |||||||||||||||
| 2025 | 2024 | $ | % | |||||||||||||
| (in thousands, except for percentages) | ||||||||||||||||
| Advanced Wound Care | $ | 531,242 | $ | 453,639 | $ | 77,603 | 17 | % | ||||||||
| Surgical & Sports Medicine | 31,788 | 28,404 | 3,384 | 12 | % | |||||||||||
| Net product revenue | $ | 563,030 | $ | 482,043 | $ | 80,987 | 17 | % | ||||||||
Net product revenue for the year ended December 31, 2025 was
Gross profit for the year ended December 31, 2025 was
Operating expenses for the year ended December 31, 2025 were
Operating income for the year ended December 31, 2025 was
Total other income (expense), net, for the year ended December 31, 2025, was
Net income for the year ended December 31, 2025 was
Adjusted EBITDA was
Adjusted net income was
Non-GAAP operating income was
As of December 31, 2025, the Company had
Fiscal Year 2026 Outlook:
For the year ending December 31, 2026, the Company expects:
- Total net revenue between
$350.0 million and$420.0 million , representing a decline in the range of25% to38% , as compared to total net revenue of$564.2 million for the year ended December 31, 2025.- The 2026 total net revenue guidance range assumes a significant year-over-year decline in revenue for the three months ending March 31, 2026, and strong quarter-over-quarter growth in the second, third and fourth quarters of fiscal year 2026.
- The 2026 total net revenue guidance range assumes a significant year-over-year decline in revenue for the three months ending March 31, 2026, and strong quarter-over-quarter growth in the second, third and fourth quarters of fiscal year 2026.
Fourth Quarter Earnings Conference Call:
Management will host a conference call at 5:00 p.m. Eastern Time on February 26th to discuss the results of the quarter and the fiscal year, and to provide a corporate update with a question and answer session. Those who would like to participate may access the live webcast here, or access the teleconference here. The live webcast can also be accessed via the company’s website at investors.organogenesis.com. The webcast will be archived on the company website for approximately one year.
| ORGANOGENESIS HOLDINGS INC. UNAUDITED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share and per share data) | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 93,679 | $ | 135,571 | ||||
| Restricted cash | 652 | 580 | ||||||
| Accounts receivable, net of allowance for credit losses of | 217,451 | 109,861 | ||||||
| Inventories, net | 29,627 | 26,219 | ||||||
| Asset held for sale (Note 8) | 2,425 | — | ||||||
| Prepaid expenses and other current assets | 18,354 | 13,710 | ||||||
| Total current assets | 362,188 | 285,941 | ||||||
| Property and equipment, net | 103,711 | 89,128 | ||||||
| Intangible assets, net | 9,145 | 12,468 | ||||||
| Goodwill | 28,772 | 28,772 | ||||||
| Operating lease right-of-use assets, net | 55,749 | 37,110 | ||||||
| Deferred tax asset, net | 29,962 | 39,462 | ||||||
| Other assets | 9,203 | 5,005 | ||||||
| Total assets | $ | 598,730 | $ | 497,886 | ||||
| Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of finance lease obligations | $ | 9,435 | $ | 1,170 | ||||
| Current portion of operating lease obligations - related party | 4,258 | 3,671 | ||||||
| Current portion of operating lease obligations | 4,949 | 4,272 | ||||||
| Accounts payable | 31,949 | 28,911 | ||||||
| Accrued expenses and other current liabilities | 49,533 | 39,453 | ||||||
| Total current liabilities | 100,124 | 77,477 | ||||||
| Finance lease obligations, net of current portion | 12,788 | 718 | ||||||
| Operating lease obligations, net of current portion - related party | 28,237 | 8,283 | ||||||
| Operating lease obligations, net of current portion | 22,470 | 25,198 | ||||||
| Other liabilities | 1,193 | 894 | ||||||
| Total liabilities | 164,812 | 112,570 | ||||||
| Commitments and contingencies (Note 20) | ||||||||
| Series A redeemable convertible preferred stock, | 133,789 | 122,419 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 13 | 13 | ||||||
| Additional paid-in capital | 303,194 | 302,994 | ||||||
| Accumulated deficit | (3,078 | ) | (40,110 | ) | ||||
| Total stockholders' equity | 300,129 | 262,897 | ||||||
| Total liabilities, redeemable convertible preferred stock, and stockholders' equity | $ | 598,730 | $ | 497,886 | ||||
| ORGANOGENESIS HOLDINGS INC. UNAUDITEDCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (amounts in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue: | ||||||||||||||||
| Net product revenue | $ | 225,071 | $ | 126,656 | $ | 563,030 | $ | 482,043 | ||||||||
| Grant income | 536 | — | 1,139 | — | ||||||||||||
| Total revenue | 225,607 | 126,656 | 564,169 | 482,043 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of goods sold | 49,918 | 31,051 | 137,522 | 115,741 | ||||||||||||
| Selling, general and administrative | 100,174 | 73,856 | 326,236 | 294,513 | ||||||||||||
| Research and development | 10,286 | 11,530 | 44,542 | 50,271 | ||||||||||||
| Write-down to fair value for asset held for sale | 1,940 | — | 11,175 | — | ||||||||||||
| Impairment of property and construction | — | — | — | 18,842 | ||||||||||||
| Write-down of capitalized internal-use software costs | — | — | — | 3,959 | ||||||||||||
| Total operating expenses | 162,318 | 116,437 | 519,475 | 483,326 | ||||||||||||
| Income (loss) from operations | 63,289 | 10,219 | 44,694 | (1,283 | ) | |||||||||||
| Other income (expense), net: | ||||||||||||||||
| Interest income (expense), net | 236 | 61 | 2,281 | (1,544 | ) | |||||||||||
| Other income (expense), net | (98 | ) | (27 | ) | (5 | ) | 20 | |||||||||
| Total other income (expense), net | 138 | 34 | 2,276 | (1,524 | ) | |||||||||||
| Net income (loss) before income taxes | 63,427 | 10,253 | 46,970 | (2,807 | ) | |||||||||||
| Income tax benefit (expense) | (19,727 | ) | (2,580 | ) | (9,938 | ) | 3,668 | |||||||||
| Net income and comprehensive income | 43,700 | 7,673 | 37,032 | 861 | ||||||||||||
| Accretion of redeemable convertible preferred stock to redemption value | (150 | ) | (412 | ) | (540 | ) | (412 | ) | ||||||||
| Cumulative dividend on redeemable convertible preferred stock | (2,788 | ) | (1,386 | ) | (10,830 | ) | (1,386 | ) | ||||||||
| Undistributed earnings allocated to participating redeemable convertible preferred stock | (9,228 | ) | (738 | ) | (5,640 | ) | — | |||||||||
| Net income (loss) attributable to common stockholders | $ | 31,534 | $ | 5,137 | $ | 20,022 | $ | (937 | ) | |||||||
| Net income (loss) per share: | ||||||||||||||||
| Basic | $ | 0.25 | $ | 0.04 | $ | 0.16 | $ | (0.01 | ) | |||||||
| Diluted | $ | 0.24 | $ | 0.04 | $ | 0.15 | $ | (0.01 | ) | |||||||
| Weighted-average common shares outstanding | ||||||||||||||||
| Basic | 126,913,293 | 129,679,843 | 126,738,136 | 131,673,278 | ||||||||||||
| Diluted | 132,206,983 | 132,162,370 | 130,248,412 | 131,673,278 | ||||||||||||
| ORGANOGENESIS HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS (amounts in thousands, except share and per share data) | ||||||||||||
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income | $ | 37,032 | $ | 861 | $ | 4,945 | ||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
| Depreciation and amortization | 15,273 | 13,623 | 10,448 | |||||||||
| Amortization of intangible assets | 3,323 | 3,403 | 4,918 | |||||||||
| Reduction in the carrying value of right-of-use assets | 8,342 | 8,348 | 8,083 | |||||||||
| Non-cash interest expense | 375 | 394 | 427 | |||||||||
| Deferred interest expense | — | 305 | 490 | |||||||||
| Deferred tax expense (benefit) | 9,500 | (10,719 | ) | 2,012 | ||||||||
| Loss on disposal of property and equipment | 188 | 1,140 | 235 | |||||||||
| Loss on lease termination | — | — | 559 | |||||||||
| Loss on extinguishment of term loan | — | 215 | — | |||||||||
| Provision recorded for credit losses | 8,213 | 3,938 | 1,297 | |||||||||
| Adjustment for excess and obsolete inventories | 15,353 | 8,210 | 6,580 | |||||||||
| Stock-based compensation | 13,298 | 10,578 | 8,996 | |||||||||
| Write-down to fair value for asset held for sale (Note 8) | 11,175 | — | — | |||||||||
| Impairment of property and construction (Note 8) | — | 18,842 | — | |||||||||
| Write-down of capitalized internal-use software costs (Note 8) | — | 3,959 | — | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (115,803 | ) | (31,800 | ) | 5,539 | |||||||
| Inventories | (17,915 | ) | (6,204 | ) | (8,179 | ) | ||||||
| Prepaid expenses and other current and other assets | (183 | ) | (2,549 | ) | (10,115 | ) | ||||||
| Operating leases | (8,491 | ) | (14,066 | ) | (8,439 | ) | ||||||
| Accounts payable | (528 | ) | (2,372 | ) | (108 | ) | ||||||
| Accrued expenses and other current liabilities | 10,381 | 9,164 | 3,138 | |||||||||
| Other liabilities | 158 | (1,062 | ) | 91 | ||||||||
| Net cash provided by (used in) operating activities | (10,309 | ) | 14,208 | 30,917 | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of property and equipment | (14,151 | ) | (10,032 | ) | (24,364 | ) | ||||||
| Net cash used in investing activities | (14,151 | ) | (10,032 | ) | (24,364 | ) | ||||||
| Cash flows from financing activities: | ||||||||||||
| Construction of landlord assets, net of tenant allowance | (14,461 | ) | — | — | ||||||||
| Term loan repayments under the 2021 Credit Agreement | — | (66,563 | ) | (4,688 | ) | |||||||
| Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs | — | 120,688 | — | |||||||||
| Payments for the repurchase of common stock | — | (25,479 | ) | — | ||||||||
| Principal repayments of finance lease obligations | (1,171 | ) | (1,081 | ) | (485 | ) | ||||||
| Proceeds from the exercise of stock options | 157 | 1,247 | — | |||||||||
| Payments of withholding taxes in connection with RSUs vesting | (1,885 | ) | (1,175 | ) | (332 | ) | ||||||
| Net cash provided by (used in) financing activities | (17,360 | ) | 27,637 | (5,505 | ) | |||||||
| Change in cash, cash equivalents and restricted cash | (41,820 | ) | 31,813 | 1,048 | ||||||||
| Cash, cash equivalents, and restricted cash, beginning of year | 136,151 | 104,338 | 103,290 | |||||||||
| Cash, cash equivalents, and restricted cash, end of year | $ | 94,331 | $ | 136,151 | $ | 104,338 | ||||||
| Supplemental disclosure of cash flow information: | ||||||||||||
| Cash paid for interest | $ | — | $ | 4,970 | $ | 5,436 | ||||||
| Cash paid for income taxes | $ | 5,346 | $ | 6,965 | $ | 3,052 | ||||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||
| Cumulative effect adjustment for adoption of ASU No. 2016-13 | $ | — | $ | — | $ | 615 | ||||||
| Change in purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities | $ | 715 | $ | (432 | ) | $ | 841 | |||||
| Right-of-use assets obtained through operating lease obligations | $ | 26,981 | $ | 5,109 | $ | 5,869 | ||||||
| Right-of-use assets obtained through finance lease obligations | $ | 21,506 | $ | — | $ | 3,454 | ||||||
| Redeemable convertible preferred stock issuance costs included in accrued expenses | $ | — | $ | 67 | $ | — | ||||||
| Prepaid rent reclassified to right-of-use assets | $ | — | $ | 230 | $ | — | ||||||
| Landlord asset additions included in accounts payable and other liabilities, net of tenant allowances | $ | 2,691 | $ | — | $ | — | ||||||
| Accretion to redemption value and cumulative dividends on redeemable convertible preferred stock | $ | 11,370 | $ | 1,798 | $ | — | ||||||
Non-GAAP Financial Measures
Our management uses financial measures that are not in accordance with generally accepted accounting principles in the United States, or GAAP, in addition to financial measures in accordance with GAAP to evaluate our operating results. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. Our management uses Adjusted EBITDA and Adjusted net income to evaluate our operating performance and trends and make planning decisions. Our management believes Adjusted EBITDA and Adjusted net income help identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude. Accordingly, we believe that Adjusted EBITDA and Adjusted net income provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision-making.
Adjusted EBITDA
Adjusted EBITDA consists of GAAP net income excluding: (i) interest expense (income), net, (ii) income tax expense (benefit), (iii) depreciation and amortization, (iv) amortization of intangible assets, (v) stock-based compensation expense, and (vi) additional infrequently occurring adjustments described in more detail below.
The following table presents a reconciliation of GAAP net income to non-GAAP EBITDA and non-GAAP Adjusted EBITDA, for the periods presented:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| ($, in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income | $ | 43,700 | $ | 7,673 | $ | 37,032 | $ | 861 | ||||||||
| Interest expense (income), net | (236 | ) | (61 | ) | (2,281 | ) | 1,544 | |||||||||
| Income tax expense (benefit) | 19,727 | 2,580 | 9,938 | (3,668 | ) | |||||||||||
| Depreciation and amortization | 4,066 | 3,615 | 15,273 | 13,623 | ||||||||||||
| Amortization of intangible assets | 798 | 834 | 3,323 | 3,403 | ||||||||||||
| EBITDA | 68,055 | 14,641 | 63,285 | 15,763 | ||||||||||||
| Stock-based compensation expense | 4,324 | 2,891 | 13,298 | 10,578 | ||||||||||||
| Write-down to fair value for asset held for sale (1) | 1,940 | — | 11,175 | — | ||||||||||||
| Restructuring charge (2) | — | — | 516 | — | ||||||||||||
| Impairment of property and construction (3) | — | — | — | 18,842 | ||||||||||||
| Write-down of capitalized software costs (4) | — | — | — | 3,959 | ||||||||||||
| Disposal of construction in progress (5) | — | 645 | — | 645 | ||||||||||||
| FDA BLA fees for ReNu (6) | 4,682 | — | 4,682 | — | ||||||||||||
| PFS regulation related charges (7) | 3,723 | — | 3,723 | — | ||||||||||||
| Inventory write-downs (8) | 1,458 | — | 1,458 | — | ||||||||||||
| Adjusted EBITDA | $ | 84,182 | $ | 18,177 | $ | 98,137 | $ | 49,787 | ||||||||
(1) Amount reflects the fair value adjustment of a purchased building classified as held for sale.
(2) Amounts reflect employee retention and benefits as well as other exit costs associated with our restructuring activities.
(3) Amount reflects the impairment of a purchased building and associated unfinished construction work.
(4) Amount reflects the write-down of costs previously capitalized as construction in progress in the development of internal-use software, that the Company determined have no future value.
(5) Amount reflects construction in progress terminated and disposed of at one of our Canton, Massachusetts facilities, resulting from the Company’s decision to move certain operations to a new manufacturing facility in Smithfield, RI.
(6) Amount reflects fees paid to the FDA in connection with the ReNu BLA filing.
(7) Amount reflects non-recurring inventory write-down adjustments for excess and obsolete inventory resulting from a shift in product lines due to the Physician Fee Schedule (“PFS”) regulatory changes of
(8) Amount reflects non-recurring inventory write-down adjustments for excess and obsolete inventory resulting from a one-time loss of key distributor in a certain international location.
Adjusted net income
Adjusted net income is defined as GAAP net income plus (i) amortization of intangible assets and (ii) additional infrequently occurring adjustments described in more detail below, less the estimated tax on these adjustments.
The following table presents a reconciliation of GAAP net income to non-GAAP Adjusted net income, for the periods presented:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| ($, in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income | $ | 43,700 | $ | 7,673 | $ | 37,032 | $ | 861 | ||||||||
| Amortization of intangible assets | 798 | 834 | 3,323 | 3,403 | ||||||||||||
| Write-down to fair value for asset held for sale (1) | 1,940 | — | 11,175 | — | ||||||||||||
| Restructuring charge (2) | — | — | 516 | — | ||||||||||||
| Impairment of property and construction (3) | — | — | — | 18,842 | ||||||||||||
| Write-down of capitalized software costs (4) | — | — | — | 3,959 | ||||||||||||
| Disposal of construction in progress (5) | — | 645 | — | 645 | ||||||||||||
| FDA BLA fees for ReNu (6) | 4,682 | — | 4,682 | — | ||||||||||||
| PFS regulation related charges (7) | 3,723 | — | 3,723 | — | ||||||||||||
| Inventory write-downs (8) | 1,458 | — | 1,458 | — | ||||||||||||
| Tax on above | (3,402 | ) | (399 | ) | (6,717 | ) | (7,249 | ) | ||||||||
| Adjusted net income | $ | 52,899 | $ | 8,753 | $ | 55,192 | $ | 20,461 | ||||||||
(1) Amount reflects the fair value adjustment of a purchased building classified as held for sale.
(2) Amounts reflect employee retention and benefits as well as other exit costs associated with our restructuring activities.
(3) Amount reflects the impairment of a purchased building and associated unfinished construction work.
(4) Amount reflects the write-down of costs previously capitalized as construction in progress in the development of internal-use software, that the Company determined have no future value.
(5) Amount reflects construction in progress terminated and disposed of at one of our Canton, Massachusetts facilities, resulting from the Company’s decision to move certain operations to a new manufacturing facility in Smithfield, RI.
(6) Amount reflects fees paid to the FDA in connection with the ReNu BLA filing.
(7) Amount reflects non-recurring inventory write-down adjustments for excess and obsolete inventory resulting from a shift in product lines due to PFS regulatory changes of
(8) Amount reflects non-recurring inventory write-down adjustments for excess and obsolete inventory resulting from a one-time loss of key distributor in a certain international location.
Non-GAAP Operating Income
Non-GAAP operating income is defined as GAAP income (loss) from operations plus (i) amortization of intangible assets and (ii) additional infrequently occurring adjustments described in more detail below.
The following table presents a reconciliation of GAAP income (loss) from operations to non-GAAP operating income, for the periods presented:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| ($, in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Income (loss) from operations | $ | 63,289 | $ | 10,219 | $ | 44,694 | $ | (1,283 | ) | |||||||
| Amortization of intangible assets | 798 | 834 | 3,323 | 3,403 | ||||||||||||
| Write-down to fair value for asset held for sale (1) | 1,940 | — | 11,175 | — | ||||||||||||
| Restructuring charge (2) | — | — | 516 | — | ||||||||||||
| Impairment of property and construction (3) | — | — | — | 18,842 | ||||||||||||
| Write-down of capitalized software costs (4) | — | — | — | 3,959 | ||||||||||||
| Disposal of construction in progress (5) | — | 645 | — | 645 | ||||||||||||
| FDA BLA fees for ReNu (6) | 4,682 | — | 4,682 | — | ||||||||||||
| PFS regulation related charges (7) | 3,723 | — | 3,723 | — | ||||||||||||
| Inventory write-downs (8) | 1,458 | — | 1,458 | — | ||||||||||||
| Non-GAAP operating income | $ | 75,890 | $ | 11,698 | $ | 69,571 | $ | 25,566 | ||||||||
(1) Amount reflects the fair value adjustment of a purchased building classified as held for sale.
(2) Amounts reflect employee retention and benefits as well as other exit costs associated with our restructuring activities.
(3) Amount reflects the impairment of a purchased building and associated unfinished construction work.
(4) Amount reflects the write-down of costs previously capitalized as construction in progress in the development of internal-use software, that the Company determined have no future value.
(5) Amount reflects construction in progress terminated and disposed of at one of our Canton, Massachusetts facilities, resulting from the Company’s decision to move certain operations to a new manufacturing facility in Smithfield, RI.
(6) Amount reflects fees paid to the FDA in connection with the ReNu BLA filing.
(7) Amount reflects non-recurring inventory write-down adjustments for excess and obsolete inventory resulting from a shift in product lines due to PFS regulatory changes of
(8) Amount reflects non-recurring inventory write-down adjustments for excess and obsolete inventory resulting from a one-time loss of key distributor in a certain international location.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts of future events. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “assume,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include statements relating to the Company’s expected quarterly and annual revenue for fiscal 2026, the Company’s expectations regarding the impact of CMS’ updated 2026 Medicare reimbursement and coverage changes, and the Company’s longer-term expectations regarding market share gains, opportunities and growth. Forward-looking statements with respect to the operations of the Company, strategies, prospects, and other aspects of the business of the Company are based on current expectations that are subject to known and unknown risks and uncertainties, which could cause actual results or outcomes to differ materially from expectations expressed or implied by such forward-looking statements. These factors include, but are not limited to: (1) the impact of any changes to the coverage and reimbursement levels for the Company’s products, particularly in light of CMS’ updated 2026 Medicare reimbursement and coverage changes; (2) the Company faces significant and continuing competition, which could adversely affect its business, results of operations and financial condition; (3) rapid technological change could cause the Company’s products to become obsolete and if the Company does not enhance its product offerings through its research and development efforts, it may be unable to effectively compete; (4) to be commercially successful, the Company must convince physicians that its products are safe and effective alternatives to existing treatments and that its products should be used in their procedures; (5) the Company’s ability to raise funds to expand its business; (6) the Company has incurred losses in the prior periods and may incur losses in the future; (7) changes in applicable laws or regulations; (8) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (9) the Company’s ability to maintain production or obtain supply of its products in sufficient quantities to meet demand; (10) the Company’s ability to build out its Smithfield, Rhode Island facility on time and on budget; (11) whether the Company is able to obtain regulatory approval for and successfully commercialize ReNu; and (12) other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including Item 1A (Risk Factors) of the Company’s Form 10-K for the year ended December 31, 2025 and its subsequently filed periodic reports. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Although it may voluntarily do so from time to time, the Company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
About Organogenesis Holdings Inc.
Organogenesis Holdings Inc. is a leading regenerative medicine company focused on the development, manufacture, and commercialization of solutions for the advanced wound care and surgical and sports medicine markets. Organogenesis offers a comprehensive portfolio of innovative regenerative products to address patient needs across the continuum of care. For more information, visit www.organogenesis.com.
Investor Inquiries: ICR Healthcare Mike Piccinino, CFA OrganoIR@icrinc.com Press and Media Inquiries: Organogenesis communications@organo.com
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