Organogenesis (NASDAQ: ORGO) warns of 2026 revenue drop after record 2025
Rhea-AI Filing Summary
Organogenesis Holdings Inc. reported record results for 2025, driven by strong growth in advanced wound care. Net product revenue for the year reached $563.0 million, up 17% from 2024, with advanced wound care contributing $531.2 million. Net income improved to $37.0 million from $0.9 million, and Adjusted EBITDA nearly doubled to $98.1 million.
In the fourth quarter of 2025, net product revenue rose 78% to $225.1 million, and net income jumped to $43.7 million. Gross margin remained strong at 76% for the year. The company ended 2025 with $94.3 million in cash, cash equivalents and restricted cash and no outstanding debt obligations.
For 2026, management expects total net revenue between $350.0 million and $420.0 million, a decline of 25% to 38% from total net revenue of $564.2 million in 2025. The company anticipates a sharp revenue drop in early 2026 due to CMS reimbursement and coverage changes for skin substitutes, followed by stronger quarter-over-quarter growth later in the year and a return to more “normalized” growth in 2027.
Positive
- Record revenue and profitability in 2025: Net product revenue rose to $563.0 million (up 17% year over year), net income improved to $37.0 million from $0.9 million, and Adjusted EBITDA nearly doubled to $98.1 million, highlighting strong operating leverage.
- Exceptional Q4 2025 performance: Fourth-quarter net product revenue jumped 78% to $225.1 million, with net income increasing to $43.7 million and Adjusted EBITDA reaching $84.2 million, indicating strong exit momentum heading into 2026.
- Solid balance sheet flexibility: The company ended 2025 with $94.3 million in cash, cash equivalents and restricted cash and no outstanding debt obligations, providing financial capacity to navigate reimbursement-driven volatility.
Negative
- Guided to steep 2026 revenue decline: Total net revenue for 2026 is forecast between $350.0 million and $420.0 million, a 25%–38% drop from 2025’s $564.2 million, mainly due to CMS reimbursement and coverage changes for skin substitutes.
- Negative 2025 operating cash flow and lower cash balance: Net cash used in operating activities was $10.3 million in 2025, and cash, cash equivalents and restricted cash declined to $94.3 million from $136.2 million year over year, tempering the strong earnings improvement.
Insights
Record 2025 results contrast with sharply lower 2026 revenue guidance driven by reimbursement changes.
Organogenesis delivered a very strong 2025, with net product revenue up
The outlook for
Strategically, leadership expects market confusion in early 2026 but believes its evidence-backed wound-care portfolio can gain share as reimbursement settles, with a goal of returning to “normalized” growth in
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Not Applicable
(Registrant’s name or former address, if change since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act: |
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 26, 2026, the Company announced via press release its results for the fiscal fourth quarter and fiscal year ended December 31, 2025. A copy of the Company’s press release is hereby furnished to the Commission and incorporated herein by reference as Exhibit 99.1.
The information in the press release attached as Exhibit 99.1 is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. |
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Description |
99.1 |
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Press Release dated February 26, 2026 |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Organogenesis Holdings Inc. |
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By: |
/s/ Lori Freedman |
Name: |
Lori Freedman |
Title: |
Chief Administrative and Legal Officer |
Date: February 26, 2026
Exhibit 99.1
FOR IMMEDIATE RELEASE
Organogenesis Holdings Inc. Reports Fourth Quarter 2025 Financial Results, Posts Record Revenue
CANTON, Mass., (February 26, 2026) -- 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:
Fiscal Year 2025 Financial Results Summary:
“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:
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Three Months Ended December 31, |
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Change |
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2025 |
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2024 |
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$ |
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% |
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(in thousands, except for percentages) |
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Advanced Wound Care |
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$ |
217,168 |
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$ |
118,585 |
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$ |
98,583 |
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83 |
% |
Surgical & Sports Medicine |
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7,903 |
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8,071 |
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(168 |
) |
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(2 |
%) |
Net product revenue |
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$ |
225,071 |
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$ |
126,656 |
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$ |
98,415 |
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78 |
% |
Net product revenue for the fourth quarter of 2025 was $225.1 million, compared to $126.7 million for the fourth quarter of 2024, an increase of $98.4 million, or 78%. The increase in net product revenue was driven by an increase of $98.6 million, or 83%, in net product revenue for Advanced Wound Care products, and a decrease of $0.2 million, or 2%, in net product revenue for Surgical & Sports Medicine products.
Gross profit for the fourth quarter of 2025 was $175.2 million, or 78% of net product revenue, compared to $95.6 million, or 75% of net product revenue for the fourth quarter of 2024, an increase of $79.5 million, or 83%.
Operating expenses for the fourth quarter of 2025 were $162.3 million, compared to $116.4 million for the fourth quarter of 2024, an increase of $45.9 million, or 39%. Cost of goods sold was $49.9 million for the fourth quarter of 2025, compared to $31.1 million for the fourth quarter of 2024, an increase of $18.9 million, or 61%. Selling, general and administrative expenses were $100.2 million for the fourth quarter of 2025, compared to $73.9 million for the fourth quarter of 2024, an increase of $26.3 million, or 36%. R&D expense was $10.3 million for the fourth quarter of 2025, compared to $11.5 million for the fourth quarter of 2024, a decrease of $1.2 million, or 11%. The Company recorded write-down expense of $1.9 million in the fourth quarter of 2025.
Operating income for the fourth quarter of 2025 was $63.3 million, compared to an operating income of $10.2 million for the fourth quarter of 2024, an increase in operating income of $53.1 million, or 519%.
Total other income (expense), net, for the fourth quarter of 2025 was $0.1 million income, compared to less than $0.1 million income for the fourth quarter of 2024, an increase of $0.1 million.
Net income for the fourth quarter of 2025 was $43.7 million, or $0.25 per share, compared to a net income of $7.7 million, or $0.04 per share, for the fourth quarter of 2024, an increase in net income of $36.0 million, or $0.21 per share.
Adjusted EBITDA was $84.2 million for the fourth quarter of 2025, compared to $18.2 million for the fourth quarter of 2024, an increase of $66.0 million, or 363%.
Adjusted net income was $52.9 million for the fourth quarter of 2025, compared to $8.8 million for the fourth quarter of 2024, an increase of $44.1 million, or 504%.
Non-GAAP operating income was $75.9 million for the fourth quarter of 2025, compared to $11.7 million for the fourth quarter of 2024, an increase of $64.2 million, or 549%.
Fiscal Year 2025 Financial Results:
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Year Ended December 31, |
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Change |
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2025 |
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2024 |
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$ |
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% |
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(in thousands, except for percentages) |
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Advanced Wound Care |
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$ |
531,242 |
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$ |
453,639 |
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$ |
77,603 |
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17 |
% |
Surgical & Sports Medicine |
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31,788 |
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28,404 |
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3,384 |
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12 |
% |
Net product revenue |
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$ |
563,030 |
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$ |
482,043 |
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$ |
80,987 |
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17 |
% |
Net product revenue for the year ended December 31, 2025 was $563.0 million, compared to $482.0 million for the year ended December 31, 2024, an increase of $81.0 million, or 17%. The increase in net product revenue was driven by an increase of $77.6 million, or 17%, in net product revenue for Advanced Wound Care products and an increase of $3.4 million, or 12%, in net product revenue for Surgical & Sports Medicine products.
Gross profit for the year ended December 31, 2025 was $425.5 million, or 76% of net product revenue, compared to $366.3 million, or 76% of net product revenue for the year ended December 31, 2024, an increase of $59.2 million, or 16%.
Operating expenses for the year ended December 31, 2025 were $519.5 million compared to $483.3 million for the year ended December 31, 2024, an increase of $36.1 million or 7%. Cost of goods sold was $137.5 million for the year ended December 31, 2025, compared to $115.7 million for the year ended December 31, 2024, an increase of $21.8 million, or 19%. Selling, general and administrative expenses were $326.2 million for the year ended December 31, 2025, compared to $294.5 million for the year ended December 31, 2024, an increase of $31.7 million, or 11%. R&D expense was $44.5 million for the year ended December 31, 2025, compared to $50.3 million for the year ended December 31, 2024, a decrease of $5.7 million, or 11%. For the years ended December 31, 2025 and 2024, the Company recorded impairment and write-down expenses of $11.2 million and $22.8 million, respectively.
Operating income for the year ended December 31, 2025 was $44.7 million, compared to operating loss of ($1.3) million for the year ended December 31, 2024, an increase in operating income of $46.0 million.
Total other income (expense), net, for the year ended December 31, 2025, was $2.3 million income, compared to $(1.5) million expense for the year ended December 31, 2024, a change of $3.8 million.
Net income for the year ended December 31, 2025 was $37.0 million, or $0.16 per share, compared to net income of $0.9 million or $(0.01) per share, for the year ended December 31, 2024, an increase in net income of $36.2 million, or $0.17 per share.
Adjusted EBITDA was $98.1 million for the year ended December 31, 2025, compared to $49.8 million for the year ended December 31, 2024, an increase of $48.4 million, or 97%.
Adjusted net income was $55.2 million for the year ended December 31, 2025, compared to $20.5 million for the year ended December 31, 2024, an increase in adjusted net income of $34.7 million, or 170%.
Non-GAAP operating income was $69.6 million for the year ended December 31, 2025, compared to $25.6 million for the year ended December 31, 2024, an increase in Non-GAAP operating income of $44.0 million, or 172%.
As of December 31, 2025, the Company had $94.3 million in cash, cash equivalents and restricted cash and no outstanding debt obligations, compared to $136.2 million in cash, cash equivalents and restricted cash and no outstanding debt obligations as of December 31, 2024.
Fiscal Year 2026 Outlook:
For the year ending December 31, 2026, the Company expects:
Fourth Quarter Earnings Conference Call:
Management will host a conference call at 5:00 p.m. Eastern Time on February 26th to discuss the results of the quarter and the fiscal year, and to provide a corporate update with a question and answer session. Those who would like to participate may access the live webcast here, or access the teleconference here. The live webcast can also be accessed via the company’s website at investors.organogenesis.com. The webcast will be archived on the company website for approximately one year.
ORGANOGENESIS HOLDINGS INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share and per share data)
|
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December 31, |
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|||||
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2025 |
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2024 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
93,679 |
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$ |
135,571 |
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Restricted cash |
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652 |
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580 |
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Accounts receivable, net of allowance for credit losses of $16,089 and $9,576 |
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217,451 |
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109,861 |
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Inventories, net |
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29,627 |
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26,219 |
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Asset held for sale (Note 8) |
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2,425 |
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— |
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Prepaid expenses and other current assets |
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18,354 |
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13,710 |
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Total current assets |
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362,188 |
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285,941 |
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Property and equipment, net |
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103,711 |
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89,128 |
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Intangible assets, net |
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9,145 |
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12,468 |
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Goodwill |
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28,772 |
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28,772 |
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Operating lease right-of-use assets, net |
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55,749 |
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37,110 |
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Deferred tax asset, net |
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29,962 |
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39,462 |
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Other assets |
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9,203 |
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|
5,005 |
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Total assets |
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$ |
598,730 |
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$ |
497,886 |
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Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity |
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Current liabilities: |
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Current portion of finance lease obligations |
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$ |
9,435 |
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$ |
1,170 |
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Current portion of operating lease obligations - related party |
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4,258 |
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3,671 |
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Current portion of operating lease obligations |
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4,949 |
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4,272 |
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Accounts payable |
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|
31,949 |
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|
28,911 |
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Accrued expenses and other current liabilities |
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49,533 |
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|
39,453 |
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Total current liabilities |
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|
100,124 |
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77,477 |
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Finance lease obligations, net of current portion |
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|
12,788 |
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|
|
718 |
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Operating lease obligations, net of current portion - related party |
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|
28,237 |
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|
|
8,283 |
|
Operating lease obligations, net of current portion |
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22,470 |
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|
25,198 |
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Other liabilities |
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|
1,193 |
|
|
|
894 |
|
Total liabilities |
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|
164,812 |
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|
112,570 |
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Commitments and contingencies (Note 20) |
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Series A redeemable convertible preferred stock, $0.0001 par value; 130,000 shares authorized, issued and outstanding; liquidation preference of $142,217 and $131,387 at December 31, 2025 and 2024, respectively. |
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|
133,789 |
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122,419 |
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Stockholders’ equity: |
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|
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Preferred stock, $0.0001 par value; 870,000 shares authorized; none issued or outstanding |
|
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value; 400,000,000 shares authorized; 127,680,424 and 126,458,784 shares issued; 126,951,876 and 125,730,236 shares outstanding at December 31, 2025 and 2024, respectively |
|
|
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. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(amounts in thousands, except share and per share data)
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|
Three Months Ended December 31, |
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|
Year Ended December 31, |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenue: |
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Net product revenue |
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$ |
225,071 |
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$ |
126,656 |
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$ |
563,030 |
|
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$ |
482,043 |
|
Grant income |
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|
536 |
|
|
|
— |
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|
1,139 |
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|
|
— |
|
Total revenue |
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|
225,607 |
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126,656 |
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|
|
564,169 |
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482,043 |
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Operating expenses: |
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|
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|
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||||
Cost of goods sold |
|
|
49,918 |
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|
31,051 |
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|
137,522 |
|
|
|
115,741 |
|
Selling, general and administrative |
|
|
100,174 |
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|
73,856 |
|
|
|
326,236 |
|
|
|
294,513 |
|
Research and development |
|
|
10,286 |
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|
|
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 |
|
|
— |
|
|
|
— |
|
|
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— |
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18,842 |
|
Write-down of capitalized internal-use software costs |
|
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— |
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|
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— |
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|
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— |
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|
|
3,959 |
|
Total operating expenses |
|
|
162,318 |
|
|
|
116,437 |
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|
|
519,475 |
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|
483,326 |
|
Income (loss) from operations |
|
|
63,289 |
|
|
|
10,219 |
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|
|
44,694 |
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|
|
(1,283 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|
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|
||||
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 |
|
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 |
|
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 |
|
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
FAQ
How did Organogenesis (ORGO) perform financially in full-year 2025?
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What guidance did Organogenesis (ORGO) provide for 2026 revenue?
How are CMS reimbursement changes expected to impact Organogenesis (ORGO)?
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Filing Exhibits & Attachments
2 documentsPress Releases
