Organogenesis Holdings Inc. Reports Second Quarter 2025 Financial Results
Organogenesis Holdings (NASDAQ: ORGO) reported Q2 2025 financial results showing a decline in performance. The company posted net product revenue of $100.8 million, down 23% from $130.2 million in Q2 2024. The Advanced Wound Care segment saw a 25% decrease to $92.7 million, while Surgical & Sports Medicine revenue increased 16% to $8.1 million.
The company reported a net loss of $9.4 million ($0.10 per share), an improvement from a $17.0 million loss in Q2 2024. Adjusted EBITDA turned negative at $(3.6) million, compared to positive $15.6 million in the prior year. The company maintained a strong balance sheet with $73.7 million in cash and no debt.
For full-year 2025, Organogenesis updated guidance, projecting revenue between $480-$510 million, representing flat to 6% growth, with net income ranging from $(6.4) million to $16.4 million.
Organogenesis Holdings (NASDAQ: ORGO) ha comunicato i risultati finanziari del secondo trimestre 2025, evidenziando un calo delle performance. L'azienda ha registrato un fatturato netto da prodotti di 100,8 milioni di dollari, in diminuzione del 23% rispetto ai 130,2 milioni di dollari del secondo trimestre 2024. Il segmento Advanced Wound Care ha subito una riduzione del 25%, attestandosi a 92,7 milioni di dollari, mentre i ricavi del settore Surgical & Sports Medicine sono aumentati del 16%, raggiungendo gli 8,1 milioni di dollari.
La società ha riportato una perdita netta di 9,4 milioni di dollari (0,10 dollari per azione), un miglioramento rispetto alla perdita di 17,0 milioni del secondo trimestre 2024. L'EBITDA rettificato è diventato negativo, a -3,6 milioni di dollari, rispetto ai 15,6 milioni positivi dell'anno precedente. L'azienda ha mantenuto un bilancio solido con 73,7 milioni di dollari in liquidità e nessun debito.
Per l'intero 2025, Organogenesis ha aggiornato le previsioni, stimando ricavi compresi tra 480 e 510 milioni di dollari, con una crescita da nulla fino al 6%, e un utile netto che varia da una perdita di 6,4 milioni a un guadagno di 16,4 milioni di dollari.
Organogenesis Holdings (NASDAQ: ORGO) informó sus resultados financieros del segundo trimestre de 2025 mostrando un descenso en el desempeño. La compañía reportó ingresos netos por productos de 100,8 millones de dólares, una disminución del 23% respecto a los 130,2 millones de dólares del segundo trimestre de 2024. El segmento de Cuidado Avanzado de Heridas tuvo una caída del 25%, llegando a 92,7 millones de dólares, mientras que los ingresos de Cirugía y Medicina Deportiva aumentaron un 16%, alcanzando los 8,1 millones de dólares.
La empresa registró una pérdida neta de 9,4 millones de dólares (0,10 dólares por acción), mejorando respecto a la pérdida de 17,0 millones en el segundo trimestre de 2024. El EBITDA ajustado se volvió negativo, con -3,6 millones de dólares, en comparación con 15,6 millones positivos del año anterior. La compañía mantuvo un balance sólido con 73,7 millones de dólares en efectivo y sin deuda.
Para todo el año 2025, Organogenesis actualizó sus previsiones, proyectando ingresos entre 480 y 510 millones de dólares, representando un crecimiento del 0% al 6%, con ingresos netos que van desde una pérdida de 6,4 millones hasta una ganancia de 16,4 millones de dólares.
Organogenesis Holdings (NASDAQ: ORGO)는 2025년 2분기 재무 실적을 발표하며 실적 감소를 보였습니다. 회사는 순제품 매출 1억 800만 달러를 기록했으며, 이는 2024년 2분기의 1억 3,020만 달러에서 23% 감소한 수치입니다. 첨단 상처 치료 부문은 25% 감소한 9,270만 달러를 기록했으며, 외과 및 스포츠 의학 부문 매출은 16% 증가한 810만 달러를 기록했습니다.
회사는 순손실 940만 달러(주당 0.10달러)를 보고했으며, 이는 2024년 2분기의 1,700만 달러 손실에 비해 개선된 수치입니다. 조정 EBITDA는 전년도의 1,560만 달러 흑자에서 -360만 달러 적자로 전환되었습니다. 회사는 7,370만 달러의 현금과 무부채 상태로 견고한 재무구조를 유지했습니다.
2025년 전체에 대해 Organogenesis는 매출을 4억 8,000만 달러에서 5억 1,000만 달러 사이로 전망하며, 0%에서 6% 성장할 것으로 예상하고 순이익은 -640만 달러에서 1,640만 달러 사이로 예상했습니다.
Organogenesis Holdings (NASDAQ : ORGO) a publié ses résultats financiers du deuxième trimestre 2025, affichant une baisse de performance. La société a enregistré un chiffre d'affaires net produit de 100,8 millions de dollars, en baisse de 23 % par rapport à 130,2 millions de dollars au deuxième trimestre 2024. Le segment Advanced Wound Care a connu une diminution de 25 % à 92,7 millions de dollars, tandis que les revenus de la division Chirurgie et Médecine du Sport ont augmenté de 16 % pour atteindre 8,1 millions de dollars.
La société a déclaré une perte nette de 9,4 millions de dollars (0,10 dollar par action), une amélioration par rapport à la perte de 17,0 millions de dollars au deuxième trimestre 2024. L'EBITDA ajusté est devenu négatif à -3,6 millions de dollars, contre 15,6 millions positifs l'année précédente. L'entreprise a maintenu un bilan solide avec 73,7 millions de dollars en liquidités et aucune dette.
Pour l'année complète 2025, Organogenesis a mis à jour ses prévisions, projetant un chiffre d'affaires compris entre 480 et 510 millions de dollars, représentant une croissance stable à 6 %, avec un résultat net allant d'une perte de 6,4 millions à un bénéfice de 16,4 millions de dollars.
Organogenesis Holdings (NASDAQ: ORGO) meldete die Finanzergebnisse für das zweite Quartal 2025 und zeigte einen Rückgang der Leistung. Das Unternehmen erzielte einen Netto-Umsatz aus Produkten von 100,8 Millionen US-Dollar, was einem Rückgang von 23 % gegenüber 130,2 Millionen US-Dollar im zweiten Quartal 2024 entspricht. Das Segment Advanced Wound Care verzeichnete einen Rückgang um 25 % auf 92,7 Millionen US-Dollar, während die Einnahmen im Bereich Chirurgie & Sportmedizin um 16 % auf 8,1 Millionen US-Dollar stiegen.
Das Unternehmen meldete einen Nettoverlust von 9,4 Millionen US-Dollar (0,10 US-Dollar pro Aktie), eine Verbesserung gegenüber dem Verlust von 17,0 Millionen US-Dollar im zweiten Quartal 2024. Das bereinigte EBITDA wurde negativ bei -3,6 Millionen US-Dollar, verglichen mit positiven 15,6 Millionen US-Dollar im Vorjahr. Das Unternehmen behielt eine starke Bilanz mit 73,7 Millionen US-Dollar in bar und keiner Verschuldung.
Für das Gesamtjahr 2025 aktualisierte Organogenesis die Prognose und erwartet Umsätze zwischen 480 und 510 Millionen US-Dollar, was einem Wachstum von null bis sechs Prozent entspricht, mit einem Nettogewinn zwischen -6,4 Millionen und 16,4 Millionen US-Dollar.
- Net loss improved by $7.6 million year-over-year to $9.4 million
- Surgical & Sports Medicine revenue grew 16% to $8.1 million
- Operating expenses decreased by $30.5 million or 21%
- Maintained strong balance sheet with $73.7 million cash and no debt
- R&D expenses reduced by 33% to $10.4 million
- Net product revenue declined 23% to $100.8 million
- Advanced Wound Care revenue decreased 25% to $92.7 million
- Adjusted EBITDA turned negative at $(3.6) million from $15.6 million profit
- Cash position decreased from $136.2 million to $73.7 million since December 2024
- Gross margin declined to 73% from 78% year-over-year
Insights
ORGO reported significant revenue decline and shifted to losses, though narrower net loss versus prior year amid industry disruption.
Organogenesis delivered
Profitability metrics tell a concerning story. Gross margin contracted 500 basis points from
Despite the revenue and profitability challenges, ORGO did manage to reduce its net loss to
Cash conservation appears to be a priority, yet the balance sheet shows concerning trends. Cash and equivalents decreased to
Management's updated guidance suggests a potential stabilization, projecting full-year revenue between
The CEO's commentary points to industry disruption as a factor in current performance while expressing optimism about 2026 policy changes creating a "watershed moment" for the industry. This suggests the revenue declines may be temporary, though investors should carefully monitor if the anticipated policy benefits materialize as expected.
CANTON, Mass., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Organogenesis Holdings Inc. (Nasdaq: ORGO), a leading regenerative medicine company focused on the development, manufacture, and commercialization of product solutions for the Advanced Wound Care and Surgical & Sports Medicine markets, today reported financial results for the second quarter ended June 30, 2025.
Second Quarter 2025 Financial Results Summary:
- Net product revenue of
$100.8 million for the second quarter of 2025, a decrease of$29.5 million compared to net product revenue of$130.2 million for the second quarter of 2024. Net product revenue for the second quarter of 2025 consists of:- Net product revenue from Advanced Wound Care products of
$92.7 million , a decrease of25% from the second quarter of 2024. - Net product revenue from Surgical & Sports Medicine products of
$8.1 million , an increase of16% from the second quarter of 2024.
- Net product revenue from Advanced Wound Care products of
- Net loss of
$9.4 million for the second quarter of 2025, compared to a net loss of$17.0 million for the second quarter of 2024, a decrease in net loss of$7.6 million . - Adjusted net loss of
$7.5 million for the second quarter of 2025, compared to an adjusted net income of$0.2 million for the second quarter of 2024, a decrease in adjusted net income of$7.7 million . - Adjusted EBITDA loss of
$3.6 million for the second quarter of 2025, compared to Adjusted EBITDA income of$15.6 million for the second quarter of 2024, a decrease in Adjusted EBITDA income of$19.3 million .
“I’m pleased with the team’s performance in the second quarter and our focus on helping customers navigate a disrupted environment; looking ahead, the policy changes expected in 2026 will be a watershed moment for the industry, bringing stability and creating opportunities to serve even more patients,” said Gary S. Gillheeney, Sr., President, Chief Executive Officer and Chair of the Board for Organogenesis. “We believe we are well-positioned to continue to be a leader in the industry with our comprehensive portfolio, including products from all FDA classifications and offer greater access to PMA products. Additionally, we remain confident in the transformational potential of ReNu for knee OA and look forward to sharing top line data from our second phase three study this September.”
Second Quarter 2025 Financial Results:
| Three Months Ended June 30, | Change | |||||||||||||||
| 2025 | 2024 | $ | % | |||||||||||||
| (in thousands, except for percentages) | ||||||||||||||||
| Advanced Wound Care | $ | 92,696 | $ | 123,237 | $ | (30,541 | ) | (25 | %) | |||||||
| Surgical & Sports Medicine | 8,083 | 6,997 | 1,086 | 16 | % | |||||||||||
| Net product revenue | $ | 100,779 | $ | 130,234 | $ | (29,455 | ) | (23 | %) | |||||||
| Six Months Ended June 30, | Change | |||||||||||||||
| 2025 | 2024 | $ | % | |||||||||||||
| (in thousands, except for percentages) | ||||||||||||||||
| Advanced Wound Care | $ | 172,623 | $ | 227,101 | $ | (54,478 | ) | (24 | %) | |||||||
| Surgical & Sports Medicine | 14,849 | 13,109 | 1,740 | 13 | % | |||||||||||
| Net product revenue | $ | 187,472 | $ | 240,210 | $ | (52,738 | ) | (22 | %) | |||||||
Net product revenue for the second quarter of 2025 was
During the second quarter of 2025, the Company received a grant from a governmental agency and recorded
Gross profit for the second quarter of 2025 was
Operating expenses for the second quarter of 2025 were
Operating loss for the second quarter of 2025 was
Total other income (expense), net, for the second quarter of 2025 was
Net loss for the second quarter of 2025 was
Adjusted net loss was
Adjusted EBITDA loss was
Non-GAAP operating loss was
As of June 30, 2025, the Company had
First Half 2025 Financial Results:
| Six Months Ended June 30, | Change | |||||||||||||||
| 2025 | 2024 | $ | % | |||||||||||||
| (in thousands, except for percentages) | ||||||||||||||||
| Advanced Wound Care | $ | 172,623 | $ | 227,101 | $ | (54,478 | ) | (24 | %) | |||||||
| Surgical & Sports Medicine | 14,849 | 13,109 | 1,740 | 13 | % | |||||||||||
| Net product revenue | $ | 187,472 | $ | 240,210 | $ | (52,738 | ) | (22 | %) | |||||||
Net product revenue for the six months ended June 30, 2025 was
Gross profit for the six months ended June 30, 2025 was
Operating expenses for the six months ended June 30, 2025 were
Operating loss for the six months ended June 30, 2025 was
Total other income (expense), net, for the six months ended June 30, 2025 was
Net loss for the six months ended June 30, 2025 was
Adjusted net loss was
Adjusted EBITDA loss was
Non-GAAP operating loss was
As of June 30, 2025, the Company had
Fiscal Year 2025 Guidance:
For the year ending December 31, 2025 the Company is updating its prior revenue guidance and updating its profitability guidance and expects:
- Net product revenue between
$480.0 million and$510.0 million , representing a year-over-year change in the range of a roughly flat to an increase of6% , as compared to net product revenue of$482.0 million for the year ended December 31, 2024.- The 2025 net product revenue guidance range assumes:
- Net product revenue from Advanced Wound Care products between
$450.0 million and$475.0 million , a decrease of1% to an increase of5% year-over-year as compared to net product revenue of$453.6 million for the year ended December 31, 2024. - Net product revenue from Surgical & Sports Medicine products between
$30.0 million and$35.0 million , an increase of6% to23% year-over-year as compared to net product revenue of$28.4 million for the year ended December 31, 2024.
- Net product revenue from Advanced Wound Care products between
- The 2025 net product revenue guidance range assumes:
- Net income (loss) between
$(6.4) million and$16.4 million and adjusted net income between$5.5 million and$28.3 million . - EBITDA between
$6.2 million and$37.0 million and Adjusted EBITDA between$31.1 million and$61.9 million .
Second Quarter Earnings Conference Call:
Management will host a conference call at 5:00 p.m. Eastern Time on August 7th to discuss the results of the quarter, 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 by dialing 800-715-9871 (646-307-1963 for international callers) and providing access code: 634899. 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) | ||||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 73,076 | $ | 135,571 | ||||
| Restricted cash | 659 | 580 | ||||||
| Accounts receivable, net | 120,382 | 109,861 | ||||||
| Inventories, net | 33,042 | 26,219 | ||||||
| Asset held for sale (Note 6) | 5,287 | — | ||||||
| Prepaid expenses and other current assets | 27,777 | 13,710 | ||||||
| Total current assets | 260,223 | 285,941 | ||||||
| Property and equipment, net | 75,607 | 89,128 | ||||||
| Intangible assets, net | 10,785 | 12,468 | ||||||
| Goodwill | 28,772 | 28,772 | ||||||
| Operating lease right-of-use assets, net | 35,257 | 37,110 | ||||||
| Deferred tax asset, net | 41,754 | 39,462 | ||||||
| Other assets | 8,730 | 5,005 | ||||||
| Total assets | $ | 461,128 | $ | 497,886 | ||||
| Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of finance lease obligations | $ | 1,217 | $ | 1,170 | ||||
| Current portion of operating lease obligations - related party | 3,755 | 3,671 | ||||||
| Current portion of operating lease obligations | 4,796 | 4,272 | ||||||
| Accounts payable | 29,723 | 28,911 | ||||||
| Accrued expenses and other current liabilities | 26,348 | 39,453 | ||||||
| Total current liabilities | 65,839 | 77,477 | ||||||
| Finance lease obligations, net of current portion | 98 | 718 | ||||||
| Operating lease obligations, net of current portion - related party | 6,385 | 8,283 | ||||||
| Operating lease obligations, net of current portion | 24,565 | 25,198 | ||||||
| Other liabilities | 3,022 | 894 | ||||||
| Total liabilities | 99,909 | 112,570 | ||||||
| Commitments and contingencies (Note 15) | ||||||||
| Series A redeemable convertible preferred stock, | 127,977 | 122,419 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 13 | 13 | ||||||
| Additional paid-in capital | 301,574 | 302,994 | ||||||
| Accumulated deficit | (68,345 | ) | (40,110 | ) | ||||
| Total stockholders’ equity | 233,242 | 262,897 | ||||||
| Total liabilities, redeemable convertible preferred stock, and stockholders' equity | $ | 461,128 | $ | 497,886 | ||||
| ORGANOGENESIS HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (amounts in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue: | ||||||||||||||||
| Net product revenue | $ | 100,779 | $ | 130,234 | $ | 187,472 | $ | 240,210 | ||||||||
| Grant income | 226 | — | 226 | — | ||||||||||||
| Total revenue | 101,005 | 130,234 | 187,698 | 240,210 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of goods sold | 27,630 | 29,198 | 51,353 | 57,894 | ||||||||||||
| Selling, general and administrative | 73,810 | 76,540 | 146,319 | 148,862 | ||||||||||||
| Research and development | 10,395 | 15,587 | 21,035 | 28,397 | ||||||||||||
| Write-down to fair value for asset held for sale | 1,746 | — | 8,313 | — | ||||||||||||
| Impairment of property and construction | — | 18,842 | — | 18,842 | ||||||||||||
| Write-down of capitalized internal-use software costs | — | 3,959 | — | 3,959 | ||||||||||||
| Total operating expenses | 113,581 | 144,126 | 227,020 | 257,954 | ||||||||||||
| Loss from operations | (12,576 | ) | (13,892 | ) | (39,322 | ) | (17,744 | ) | ||||||||
| Other income (expense), net: | ||||||||||||||||
| Interest income (expense), net | 669 | (620 | ) | 1,630 | (1,134 | ) | ||||||||||
| Other income (expense), net | 73 | (28 | ) | 75 | (5 | ) | ||||||||||
| Total other income (expense), net | 742 | (648 | ) | 1,705 | (1,139 | ) | ||||||||||
| Net loss before income taxes | (11,834 | ) | (14,540 | ) | (37,617 | ) | (18,883 | ) | ||||||||
| Income tax benefit (expense) | 2,442 | (2,503 | ) | 9,382 | (260 | ) | ||||||||||
| Net loss and comprehensive loss | (9,392 | ) | (17,043 | ) | (28,235 | ) | (19,143 | ) | ||||||||
| Accretion of redeemable convertible preferred stock to redemption value | (129 | ) | — | (250 | ) | — | ||||||||||
| Cumulative dividend on redeemable convertible preferred stock | (2,681 | ) | — | (5,308 | ) | — | ||||||||||
| Net loss attributable to common stockholders | $ | (12,202 | ) | $ | (17,043 | ) | $ | (33,793 | ) | $ | (19,143 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic and diluted | $ | (0.10 | ) | $ | (0.13 | ) | $ | (0.27 | ) | $ | (0.14 | ) | ||||
| Weighted-average common shares outstanding | ||||||||||||||||
| Basic and diluted | 126,853,536 | 132,573,153 | 126,576,130 | 132,217,463 | ||||||||||||
| ORGANOGENESIS HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS (amounts in thousands, except share and per share data) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (28,235 | ) | $ | (19,143 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 7,178 | 6,438 | ||||||
| Amortization of intangible assets | 1,683 | 1,735 | ||||||
| Reduction in the carrying value of right-of-use assets | 4,077 | 4,364 | ||||||
| Non-cash interest expense | 139 | 209 | ||||||
| Deferred interest expense | — | 213 | ||||||
| Deferred tax benefit | (2,292 | ) | (5,689 | ) | ||||
| Provision recorded for credit losses | 3,116 | 2,032 | ||||||
| Loss on disposal of property and equipment | 44 | 434 | ||||||
| Adjustment for excess and obsolete inventories | 6,093 | 4,469 | ||||||
| Stock-based compensation | 5,909 | 4,975 | ||||||
| Write-down to fair value for asset held for sale (Note 6) | 8,313 | — | ||||||
| Impairment of property and construction (Note 6) | — | 18,842 | ||||||
| Write-down of capitalized internal-use software costs (Note 6) | — | 3,959 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (13,637 | ) | (25,978 | ) | ||||
| Inventories | (15,892 | ) | (2,009 | ) | ||||
| Prepaid expenses and other current assets and other assets | (12,942 | ) | (436 | ) | ||||
| Operating leases | (4,147 | ) | (5,908 | ) | ||||
| Accounts payable | 1,637 | (2,147 | ) | |||||
| Accrued expenses and other current liabilities | (13,886 | ) | 8,162 | |||||
| Other liabilities | 34 | 54 | ||||||
| Net cash used in operating activities | (52,808 | ) | (5,424 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (7,264 | ) | (4,102 | ) | ||||
| Net cash used in investing activities | (7,264 | ) | (4,102 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments of term loan under the 2021 Credit Agreement | — | (2,813 | ) | |||||
| Payments of withholding taxes in connection with RSUs vesting | (1,796 | ) | (1,174 | ) | ||||
| Proceeds from the exercise of stock options | 25 | 180 | ||||||
| Principal repayments of finance lease obligations | (573 | ) | (528 | ) | ||||
| Net cash used in financing activities | (2,344 | ) | (4,335 | ) | ||||
| Change in cash, cash equivalents and restricted cash | (62,416 | ) | (13,861 | ) | ||||
| Cash, cash equivalents, and restricted cash, beginning of period | 136,151 | 104,338 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 73,735 | $ | 90,477 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | $ | — | $ | 2,744 | ||||
| Cash paid for income taxes | $ | 3,791 | $ | 4,796 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Accretion to redemption value and cumulative dividends on redeemable convertible preferred stock | $ | 5,558 | $ | — | ||||
| Change in purchases of property and equipment included in accounts payable and accrued expenses | $ | (38 | ) | $ | 709 | |||
| Right-of-use assets obtained through operating lease obligations | $ | 1,815 | $ | 817 | ||||
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, adjusted net income (loss), and non-GAAP operating income (loss) to evaluate our operating performance and trends and make planning decisions. Our management believes Adjusted EBITDA, adjusted net income (loss) and non-GAAP operating income (loss) 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, adjusted net income (loss) and non-GAAP operating income (loss) 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 loss excluding: (i) interest (income) expense, net, (ii) income tax (benefit) expense, (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 loss to non-GAAP EBITDA and non-GAAP Adjusted EBITDA, for the periods presented:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
| Net loss | $ | (9,392 | ) | $ | (17,043 | ) | $ | (28,235 | ) | $ | (19,143 | ) | ||||
| Interest (income) expense, net | (669 | ) | 620 | (1,630 | ) | 1,134 | ||||||||||
| Income tax (benefit) expense | (2,442 | ) | 2,503 | (9,382 | ) | 260 | ||||||||||
| Depreciation and amortization | 3,734 | 3,366 | 7,178 | 6,438 | ||||||||||||
| Amortization of intangible assets | 841 | 834 | 1,683 | 1,735 | ||||||||||||
| EBITDA | (7,928 | ) | (9,720 | ) | (30,386 | ) | (9,576 | ) | ||||||||
| Stock-based compensation expense | 2,542 | 2,568 | 5,909 | 4,975 | ||||||||||||
| Write-down to fair value for asset held for sale (1) | 1,746 | — | 8,313 | — | ||||||||||||
| Impairment of property and construction (2) | — | 18,842 | — | 18,842 | ||||||||||||
| Write-down of capitalized internal-use software costs (3) | — | 3,959 | — | 3,959 | ||||||||||||
| Adjusted EBITDA | $ | (3,640 | ) | $ | 15,649 | $ | (16,164 | ) | $ | 18,200 | ||||||
(1) Amount reflects the fair value adjustment of a purchased building classified as held for sale.
(2) Amount reflects the impairment of a purchased building and associated unfinished construction work.
(3) Amount reflects the write-down of costs previously capitalized in the development of internal-use software, that the Company determined have no future value.
Adjusted Net Income (Loss)
Adjusted net income (loss) is defined as GAAP net loss 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 loss to non-GAAP adjusted net income (loss), for the periods presented:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
| Net loss | $ | (9,392 | ) | $ | (17,043 | ) | $ | (28,235 | ) | $ | (19,143 | ) | ||||
| Amortization of intangible assets | 841 | 834 | 1,683 | 1,735 | ||||||||||||
| Write-down to fair value for asset held for sale (1) | 1,746 | — | 8,313 | — | ||||||||||||
| Impairment of property and construction (2) | — | 18,842 | — | 18,842 | ||||||||||||
| Write-down of capitalized internal-use software costs (3) | — | 3,959 | — | 3,959 | ||||||||||||
| Tax on above | (698 | ) | (6,381 | ) | (2,699 | ) | (6,625 | ) | ||||||||
| Adjusted net income (loss) | $ | (7,503 | ) | $ | 211 | $ | (20,938 | ) | $ | (1,232 | ) | |||||
(1) Amount reflects the fair value adjustment of a purchased building classified as held for sale.
(2) Amount reflects the impairment of a purchased building and associated unfinished construction work.
(3) Amount reflects the write-down of costs previously capitalized in the development of internal-use software, that the Company determined have no future value.
Non-GAAP Operating Income (Loss)
Non-GAAP operating income (loss) is defined as GAAP 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 net loss from operations to non-GAAP operating income (loss), for the periods presented:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
| Loss from operations | $ | (12,576 | ) | $ | (13,892 | ) | $ | (39,322 | ) | $ | (17,744 | ) | ||||
| Amortization of intangible assets | 841 | 834 | 1,683 | 1,735 | ||||||||||||
| Write-down to fair value for asset held for sale (1) | 1,746 | — | 8,313 | — | ||||||||||||
| Impairment of property and construction (2) | — | 18,842 | — | 18,842 | ||||||||||||
| Write-down of capitalized internal-use software costs (3) | — | 3,959 | — | 3,959 | ||||||||||||
| Non-GAAP operating income (loss) | $ | (9,989 | ) | $ | 9,743 | $ | (29,326 | ) | $ | 6,792 | ||||||
(1) Amount reflects the fair value adjustment of a purchased building classified as held for sale.
(2) Amount reflects the impairment of a purchased building and associated unfinished construction work.
(3) Amount reflects the write-down of costs previously capitalized in the development of internal-use software, that the Company determined have no future value.
Projected EBITDA and Adjusted EBITDA
Amounts reported within the following table are presented and calculated based on underlying unrounded amounts. As a result, the sum of components may not equal corresponding totals due to rounding.
The following table presents a reconciliation of projected GAAP net income to projected non-GAAP EBITDA and projected non-GAAP Adjusted EBITDA included in our guidance for the year ending December 31, 2025:
| Year Ended December 31, | ||||||||
| 2025L | 2025H | |||||||
| Net income (loss) | $ | (6,400 | ) | $ | 16,400 | |||
| Interest income | (3,600 | ) | (3,600 | ) | ||||
| Income tax (benefit) expense | (1,700 | ) | 6,300 | |||||
| Depreciation and amortization | 14,700 | 14,700 | ||||||
| Amortization of intangible assets | 3,400 | 3,400 | ||||||
| EBITDA | $ | 6,200 | $ | 37,000 | ||||
| Stock-based compensation expense | 11,900 | 11,900 | ||||||
| Write-down to fair value for asset held for sale (1) | 8,300 | 8,300 | ||||||
| FDA fee | 4,600 | 4,600 | ||||||
| Adjusted EBITDA | $ | 31,100 | $ | 61,900 | ||||
(1) Amount reflects the fair value adjustment of a purchased building classified as held for sale.
Projected Adjusted Net Income
The following table presents a reconciliation of projected GAAP net income to projected non-GAAP adjusted net income included in our guidance for the year ending December 31, 2025:
| Year Ending December 31, | ||||||||
| 2025L | 2025H | |||||||
| Net income (loss) | $ | (6,400 | ) | $ | 16,400 | |||
| Amortization of intangible assets | 3,400 | 3,400 | ||||||
| Write-down to fair value for asset held for sale (1) | 8,300 | 8,300 | ||||||
| FDA fee | 4,600 | 4,600 | ||||||
| Tax on above | (4,400 | ) | (4,400 | ) | ||||
| Adjusted net income | $ | 5,500 | $ | 28,300 | ||||
(1) Amount reflects the fair value adjustment of a purchased building classified as held for sale.
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,” “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 revenue, net income, adjusted net income, EBITDA, and Adjusted EBITDA for fiscal 2025 and the breakdown of expected revenue in both its Advanced Wound Care and Surgical & Sports Medicine categories. 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 and uncertainty of any changes to the coverage and reimbursement levels for the Company’s products (including as a result of the proposed LCDs and the CMS proposed rule related to reimbursement for skin substitute products that could each take effect as soon as January 1, 2026); (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 current period and 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) any resurgence of the COVID-19 pandemic or the occurrence of another public health emergency and its impact, if any, on the Company’s fiscal condition and results of operations; (11) the impact of the suspension of commercialization of: (a) ReNu and NuCel in connection with the expiration of the FDA’s enforcement grace period for HCT/Ps on May 31, 2021 and (b) Dermagraft in the second quarter of 2022 pending transition of manufacturing to a new manufacturing facility or a third-party manufacturer; (12) whether the Company is able to obtain regulatory approval for and successfully commercialize ReNu; and (13) 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, 2024 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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