Organogenesis Q3 2026 revenue drops 70% to $45.5M
Adjusted EBITDA shifted to a $22.4 million loss in the third quarter, compared with $30.1 million of income a year earlier.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Organogenesis Holdings Inc. (ORGO) reported third-quarter 2026 net product revenue of $45.5 million, down 70% from $150.5 million a year earlier. Advanced Wound Care revenue was $38.2 million, down 73%, while Surgical & Sports Medicine revenue was $7.3 million, down 19%. Gross profit was $23.6 million, or 52% of net product revenue, versus $114.2 million, or 76%, a year earlier. The company recorded a $29.6 million net loss, compared with $21.6 million net income.
For the first nine months of 2026, net product revenue was $124.5 million, down 63%, and net loss was $179.1 million versus $6.7 million. Net cash used in operating activities was $29.1 million, compared with $49.7 million. Cash, cash equivalents and restricted cash totaled $26.9 million as of September 30, 2026, with no outstanding debt obligations. For 2026, Organogenesis now expects total net revenue of $179.4 million to $200.0 million, a 65% to 68% decline from 2025; management expects fourth-quarter sequential revenue improvement at a more measured rate than prior guidance assumed.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointNine-month operating cash use fell to $29.1 million from $49.7 million.
Negative
- Major pointThird-quarter net revenue fell 70% to $45.5 million year over year.
- Major pointNine-month net loss reached $179.1 million, versus $6.7 million.
- Major point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 revenue outlook carries a 65% to 68% decline.
Filing Explained
The Q3 report adds that Organogenesis had 129,793,728 common shares outstanding on
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Non-GAAP operating income (loss) financial
redeemable convertible preferred stock financial
right-of-use assets financial
Earnings Snapshot
For the year ending December 31, 2026, total net revenue is expected to be $179.4 million to $200.0 million, a 65% to 68% decline from 2025.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was ORGO's third-quarter 2026 revenue?
What is ORGO's revenue outlook for 2026?
What drove ORGO's third-quarter revenue decline?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
Date of Report (Date of Earliest Event Reported):
(Exact Name of Registrant as specified in its charter)
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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||
(Address of principal executive offices) |
|
(Zip Code) |
(Registrant’s telephone number, including area code)
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 November 5, 2026, the Company announced via press release its results for the fiscal third quarter ended September 30, 2026. 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. |
|
Description |
99.1 |
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Press Release dated November 5, 2026 |
104 |
|
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. |
|
|
|
By: |
/s/ Lori Freedman |
Name: |
Lori Freedman |
Title: |
Chief Administrative and Legal Officer |
Date: November 5, 2026
Exhibit 99.1
FOR IMMEDIATE RELEASE
Organogenesis Holdings Inc. Reports Third Quarter 2026 Financial Results
CANTON, Mass., (November 5, 2026) -- Organogenesis Holdings Inc. (Nasdaq: ORGO), a leading regenerative medicine and tissue innovations company focused on empowering healing through the development, manufacture, and sale of product solutions for the Advanced Wound Care and Surgical & Sports Medicine markets, today reported financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 Financial Results Summary:
“We continue to strengthen our position as a leader in regenerative medicine as customers choose a partner and products they trust,” said Gary S. Gillheeney, Sr., President, Chief Executive Officer and Chair of the Board for Organogenesis. “Third quarter revenue increased sequentially, and our market share gains are broad-based across our portfolio. We are defining a sustainable future for advanced wound care as we emerge from the market reset a stronger company anchored by evidence-based living cell products that we believe will be the cornerstone of the market going forward.”
Third Quarter 2026 Financial Results:
|
|
Three Months Ended September 30, |
|
|
Change |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
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$ |
|
|
% |
|
||||
|
|
(in thousands, except for percentages) |
|
|||||||||||||
Advanced Wound Care |
|
$ |
38,152 |
|
|
$ |
141,451 |
|
|
$ |
(103,299 |
) |
|
|
(73 |
%) |
Surgical & Sports Medicine |
|
|
7,305 |
|
|
|
9,036 |
|
|
|
(1,731 |
) |
|
|
(19 |
%) |
Net product revenue |
|
$ |
45,457 |
|
|
$ |
150,487 |
|
|
$ |
(105,030 |
) |
|
|
(70 |
%) |
Net product revenue for the third quarter of 2026 was $45.5 million, compared to $150.5 million for the third quarter of 2025, a decrease of $105.0 million, or 70%. The decrease in net product revenue was driven by a decrease of $103.3 million, or 73%, in net product revenue for Advanced Wound Care products.
Gross profit for the third quarter of 2026 was $23.6 million, or 52% of net product revenue, compared to $114.2 million, or 76% of net product revenue for the third quarter of 2025, a decrease of $90.7 million, or 79%.
Operating expenses for the third quarter of 2026 were $74.9 million compared to $130.1 million for the third quarter of 2025, a decrease of $55.2 million, or 42%. Cost of goods sold was $21.9 million for the third quarter of 2026, compared to $36.3 million for the third quarter of 2025, a decrease of $14.4 million, or 40%. Selling, general and administrative expenses were $45.1 million for the third quarter of 2026, compared to $79.7 million for the third quarter of 2025, a decrease of $34.7 million, or 43%. R&D expense was $8.0 million for the third quarter of 2026, compared to $13.2 million for the third quarter of 2025, a decrease of $5.3 million, or 40%.
Operating loss for the third quarter of 2026 was $29.5 million, compared to an operating income of $20.7 million for the third quarter of 2025, an increase in operating loss of $50.2 million.
Total other expense, net, for the third quarter of 2026 was $0.1 million, compared to total other income, net, of $0.4 million for the third quarter of 2025, a decrease of $0.6 million.
Net loss for the third quarter of 2026 was $29.6 million, or $(0.25) per share, compared to net income of $21.6 million, or $0.11 per share, for the third quarter of 2025, an increase in net loss of $51.2 million, or $(0.36) per share.
Adjusted net loss was $29.3 million for the third quarter of 2026, compared to adjusted net income of $23.2 million for the third quarter of 2025, an increase in adjusted net loss of $52.5 million.
Adjusted EBITDA loss was $22.4 million for the third quarter of 2026, compared to Adjusted EBITDA income of $30.1 million for the third quarter of 2025, an increase in Adjusted EBITDA loss of $52.5 million.
Non-GAAP operating loss was $29.1 million for the third quarter of 2026, compared to non-GAAP operating income of $23.0 million for the third quarter of 2025, an increase in non-GAAP operating loss of $52.1 million.
Nine Months Ended September 30, 2026 Financial Results:
|
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Nine Months Ended September 30, |
|
|
Change |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands, except for percentages) |
|
|||||||||||||
Advanced Wound Care |
|
$ |
103,780 |
|
|
$ |
314,074 |
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|
$ |
(210,294 |
) |
|
|
(67 |
%) |
Surgical & Sports Medicine |
|
|
20,732 |
|
|
|
23,885 |
|
|
|
(3,153 |
) |
|
|
(13 |
%) |
Net product revenue |
|
$ |
124,512 |
|
|
$ |
337,959 |
|
|
$ |
(213,447 |
) |
|
|
(63 |
%) |
Net product revenue for the nine months ended September 30, 2026 was $124.5 million, compared to $338.0 million for the nine months ended September 30, 2025, a decrease of $213.4 million, or 63%. The decrease in net product revenue was driven by a decrease of $210.3 million, or 67%, in net product revenue for Advanced Wound Care products.
Gross profit for the nine months ended September 30, 2026 was $53.2 million, or 43% of net product revenue, compared to $250.4 million, or 74% of net product revenue for the nine months ended September 30, 2025, a decrease of $197.2 million, or 79%.
Operating expenses for the nine months ended September 30, 2026 were $275.8 million compared to $357.2 million for the nine months ended September 30, 2025, a decrease of $81.3 million, or 23%. Cost of goods sold was $71.3 million for the nine months ended September 30, 2026, compared to $87.6 million for the nine months ended September 30, 2025, a decrease of $16.3 million, or 19%. Selling, general and administrative expenses were $164.2 million for the nine months ended September 30, 2026, compared to $226.1 million for the nine months ended September 30, 2025, a decrease of $61.8 million, or 27%. R&D expense was $41.4 million for the nine months ended September 30, 2026, compared to $34.3 million for the nine months ended September 30, 2025, an increase of $7.2 million, or 21%.
Operating loss for the nine months ended September 30, 2026 was $149.4 million, compared to an operating loss of $18.6 million for the nine months ended September 30, 2025, an increase in operating loss of $130.8 million.
Total other income, net, for the nine months ended September 30, 2026 was $0.4 million, compared to $2.1 million for the nine months ended September 30, 2025, a decrease of $1.7 million.
Net loss for the nine months ended September 30, 2026 was $179.1 million, or $(1.47) per share, compared to net loss of $6.7 million, or $(0.12) per share, for the nine months ended September 30, 2025, an increase in net loss of $172.4 million, or $(1.35) per share.
Adjusted net loss was $162.1 million for the nine months ended September 30, 2026, compared to adjusted net income of $2.3 million for the nine months ended September 30, 2025, an increase in adjusted net loss of $164.4 million.
Adjusted EBITDA loss was $104.9 million for the nine months ended September 30, 2026, compared to Adjusted EBITDA income of $14.0 million for the nine months ended September 30, 2025, an increase in Adjusted EBITDA loss of $118.9 million.
Non-GAAP operating loss was $126.1 million for the nine months ended September 30, 2026, compared to non-GAAP operating loss of $6.3 million for the nine months ended September 30, 2025, an increase in non-GAAP operating loss of $119.8 million.
As of September 30, 2026, the Company had $26.9 million in cash, cash equivalents and restricted cash and no outstanding debt obligations, compared to $94.3 million in cash, cash equivalents and restricted cash and no outstanding debt obligations as of December 31, 2025.
Fiscal Year 2026 Outlook:
For the year ending December 31, 2026, the Company now expects:
Third Quarter Earnings Conference Call:
Management will host a conference call at 5:00 p.m. Eastern Time on November 5th 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 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 CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share and per share data)
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
21,326 |
|
|
$ |
93,679 |
|
Restricted cash |
|
|
163 |
|
|
|
652 |
|
Accounts receivable, net |
|
|
92,687 |
|
|
|
217,451 |
|
Inventories, net |
|
|
26,683 |
|
|
|
29,627 |
|
Asset held for sale |
|
|
— |
|
|
|
2,425 |
|
Prepaid expenses and other current assets |
|
|
17,268 |
|
|
|
18,354 |
|
Total current assets |
|
|
158,127 |
|
|
|
362,188 |
|
Property and equipment, net |
|
|
98,600 |
|
|
|
103,711 |
|
Intangible assets, net |
|
|
2,571 |
|
|
|
9,145 |
|
Goodwill |
|
|
28,772 |
|
|
|
28,772 |
|
Operating lease right-of-use assets, net |
|
|
47,808 |
|
|
|
55,749 |
|
Deferred tax asset, net |
|
|
— |
|
|
|
29,962 |
|
Other assets |
|
|
33,027 |
|
|
|
9,203 |
|
Total assets |
|
$ |
368,905 |
|
|
$ |
598,730 |
|
Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Current portion of finance lease obligations |
|
$ |
897 |
|
|
$ |
9,435 |
|
Current portion of operating lease obligations - related party |
|
|
4,846 |
|
|
|
4,258 |
|
Current portion of operating lease obligations |
|
|
3,569 |
|
|
|
4,949 |
|
Accounts payable |
|
|
22,478 |
|
|
|
31,949 |
|
Accrued expenses and other current liabilities |
|
|
15,859 |
|
|
|
49,533 |
|
Total current liabilities |
|
|
47,649 |
|
|
|
100,124 |
|
Finance lease obligations, net of current portion |
|
|
10,372 |
|
|
|
12,788 |
|
Operating lease obligations, net of current portion - related party |
|
|
24,472 |
|
|
|
28,237 |
|
Operating lease obligations, net of current portion |
|
|
20,360 |
|
|
|
22,470 |
|
Other liabilities |
|
|
3,311 |
|
|
|
1,193 |
|
Total liabilities |
|
|
106,164 |
|
|
|
164,812 |
|
Commitments and contingencies (Note 15) |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Series A redeemable convertible preferred stock, $0.0001 par value; 130,000 shares authorized, issued and outstanding; liquidation preference of $150,922 and $142,217 at September 30, 2026 and December 31, 2025, respectively. |
|
|
143,004 |
|
|
|
133,789 |
|
|
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
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; 130,522,276 and 127,680,424 shares issued; 129,793,728 and 126,951,876 shares outstanding at September 30, 2026 and December 31, 2025, respectively. |
|
|
13 |
|
|
|
13 |
|
Additional paid-in capital |
|
|
302,164 |
|
|
|
303,194 |
|
Accumulated deficit |
|
|
(182,440 |
) |
|
|
(3,078 |
) |
Total stockholders’ equity |
|
|
119,737 |
|
|
|
300,129 |
|
Total liabilities, redeemable convertible preferred stock, and stockholders' equity |
|
$ |
368,905 |
|
|
$ |
598,730 |
|
ORGANOGENESIS HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(amounts in thousands, except share and per share data)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net product revenue |
|
$ |
45,457 |
|
|
$ |
150,487 |
|
|
$ |
124,512 |
|
|
$ |
337,959 |
|
Grant income |
|
|
— |
|
|
|
377 |
|
|
|
1,928 |
|
|
|
603 |
|
Total revenue |
|
|
45,457 |
|
|
|
150,864 |
|
|
|
126,440 |
|
|
|
338,562 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of goods sold |
|
|
21,898 |
|
|
|
36,251 |
|
|
|
71,343 |
|
|
|
87,604 |
|
Selling, general and administrative |
|
|
45,087 |
|
|
|
79,743 |
|
|
|
164,238 |
|
|
|
226,062 |
|
Research and development |
|
|
7,961 |
|
|
|
13,221 |
|
|
|
41,419 |
|
|
|
34,256 |
|
Fair value adjustment to assets held for sale |
|
|
— |
|
|
|
922 |
|
|
|
(1,188 |
) |
|
|
9,235 |
|
Total operating expenses |
|
|
74,946 |
|
|
|
130,137 |
|
|
|
275,812 |
|
|
|
357,157 |
|
Income (loss) from operations |
|
|
(29,489 |
) |
|
|
20,727 |
|
|
|
(149,372 |
) |
|
|
(18,595 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income (expense), net |
|
|
(61 |
) |
|
|
415 |
|
|
|
457 |
|
|
|
2,045 |
|
Other income (expense), net |
|
|
(71 |
) |
|
|
18 |
|
|
|
(59 |
) |
|
|
93 |
|
Total other income (expense), net |
|
|
(132 |
) |
|
|
433 |
|
|
|
398 |
|
|
|
2,138 |
|
Net income (loss) before income taxes |
|
|
(29,621 |
) |
|
|
21,160 |
|
|
|
(148,974 |
) |
|
|
(16,457 |
) |
Income tax benefit (expense) |
|
|
(8 |
) |
|
|
407 |
|
|
|
(30,078 |
) |
|
|
9,789 |
|
Net income (loss) and comprehensive income (loss) |
|
|
(29,629 |
) |
|
|
21,567 |
|
|
|
(179,052 |
) |
|
|
(6,668 |
) |
Accretion of redeemable convertible preferred stock to redemption value |
|
|
(181 |
) |
|
|
(140 |
) |
|
|
(510 |
) |
|
|
(390 |
) |
Cumulative dividend on redeemable convertible preferred stock |
|
|
(2,959 |
) |
|
|
(2,734 |
) |
|
|
(8,705 |
) |
|
|
(8,042 |
) |
Undistributed earnings allocated to participating redeemable convertible preferred stock |
|
|
— |
|
|
|
(4,168 |
) |
|
|
— |
|
|
|
— |
|
Net income (loss) attributable to common stockholders |
|
$ |
(32,769 |
) |
|
$ |
14,525 |
|
|
$ |
(188,267 |
) |
|
$ |
(15,100 |
) |
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.25 |
) |
|
$ |
0.11 |
|
|
$ |
(1.47 |
) |
|
$ |
(0.12 |
) |
Diluted |
|
$ |
(0.25 |
) |
|
$ |
0.11 |
|
|
$ |
(1.47 |
) |
|
$ |
(0.12 |
) |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
128,990,436 |
|
|
|
126,881,709 |
|
|
|
128,489,389 |
|
|
|
126,679,109 |
|
Diluted |
|
|
128,990,436 |
|
|
|
130,848,995 |
|
|
|
128,489,389 |
|
|
|
126,679,109 |
|
ORGANOGENESIS HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands, except share and per share data)
|
|
Nine Months Ended |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(179,052 |
) |
|
$ |
(6,668 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
11,769 |
|
|
|
11,207 |
|
Amortization of intangible assets |
|
|
6,574 |
|
|
|
2,525 |
|
Reduction in the carrying value of right-of-use assets |
|
|
7,071 |
|
|
|
6,193 |
|
Non-cash interest expense |
|
|
211 |
|
|
|
208 |
|
Deferred tax expense (benefit) |
|
|
29,962 |
|
|
|
(6,129 |
) |
Provision recorded for credit losses |
|
|
1,161 |
|
|
|
5,403 |
|
Loss on disposal of property and equipment |
|
|
723 |
|
|
|
73 |
|
Adjustment for excess and obsolete inventories |
|
|
12,639 |
|
|
|
7,963 |
|
Stock-based compensation |
|
|
9,494 |
|
|
|
8,974 |
|
Fair value adjustment to assets held for sale |
|
|
(1,188 |
) |
|
|
9,235 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
123,603 |
|
|
|
(64,325 |
) |
Inventories |
|
|
(14,746 |
) |
|
|
(14,954 |
) |
Prepaid expenses and other current assets and other assets |
|
|
6,924 |
|
|
|
(3,298 |
) |
Operating leases |
|
|
(5,798 |
) |
|
|
(6,302 |
) |
Accounts payable |
|
|
(6,922 |
) |
|
|
643 |
|
Accrued expenses and other current liabilities |
|
|
(31,731 |
) |
|
|
(1,943 |
) |
Other liabilities |
|
|
186 |
|
|
|
1,466 |
|
Net cash used in operating activities |
|
|
(29,120 |
) |
|
|
(49,729 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(5,712 |
) |
|
|
(9,499 |
) |
Sale of asset held for sale |
|
|
3,612 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(2,100 |
) |
|
|
(9,499 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Payments of withholding taxes in connection with RSUs vesting |
|
|
(3,050 |
) |
|
|
(1,798 |
) |
Proceeds from the exercise of stock options |
|
|
— |
|
|
|
155 |
|
Principal repayments of finance lease obligations |
|
|
(10,598 |
) |
|
|
(869 |
) |
Issuance of common stock in connection with the ATM facility, net of offering costs |
|
|
1,432 |
|
|
|
— |
|
Construction of landlord assets, net of tenant allowance |
|
|
(23,958 |
) |
|
|
(10,039 |
) |
Net cash used in financing activities |
|
|
(36,174 |
) |
|
|
(12,551 |
) |
Change in cash, cash equivalents and restricted cash |
|
|
(67,394 |
) |
|
|
(71,779 |
) |
Cash, cash equivalents, and restricted cash, beginning of period |
|
|
94,331 |
|
|
|
136,151 |
|
Cash, cash equivalents, and restricted cash, end of period |
|
$ |
26,937 |
|
|
$ |
64,372 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Cash paid for income taxes |
|
$ |
— |
|
|
|
4,086 |
|
Supplemental disclosure of non-cash investing and financing activities: |
|
|
|
|
|
|
||
Accretion to redemption value and cumulative dividends on redeemable convertible preferred stock |
|
$ |
9,215 |
|
|
$ |
8,432 |
|
Change in purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities |
|
$ |
(236 |
) |
|
$ |
(2,029 |
) |
Right-of-use assets obtained through finance lease obligations |
|
$ |
(357 |
) |
|
$ |
2,282 |
|
Right-of-use assets obtained through operating lease obligations |
|
$ |
— |
|
|
$ |
2,388 |
|
Deemed dividend for anti-dilution adjustment to convertible preferred stock |
|
$ |
310 |
|
|
$ |
— |
|
Landlord asset additions included in accounts payable and accrued expenses and other current liabilities, net of tenant allowances |
|
$ |
2,909 |
|
|
$ |
1,925 |
|
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 income (loss) to non-GAAP EBITDA and non-GAAP Adjusted EBITDA, for the periods presented:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
(Unaudited, in thousands) |
|
|||||||||||||
Net income (loss) |
|
$ |
(29,629 |
) |
|
$ |
21,567 |
|
|
$ |
(179,052 |
) |
|
$ |
(6,668 |
) |
Interest (income) expense, net |
|
|
61 |
|
|
|
(415 |
) |
|
|
(457 |
) |
|
|
(2,045 |
) |
Income tax (benefit) expense |
|
|
8 |
|
|
|
(407 |
) |
|
|
30,078 |
|
|
|
(9,789 |
) |
Depreciation and amortization |
|
|
3,927 |
|
|
|
4,029 |
|
|
|
11,769 |
|
|
|
11,207 |
|
Amortization of intangible assets (1) |
|
|
433 |
|
|
|
842 |
|
|
|
6,574 |
|
|
|
2,525 |
|
EBITDA |
|
|
(25,200 |
) |
|
|
25,616 |
|
|
|
(131,088 |
) |
|
|
(4,770 |
) |
Stock-based compensation expense |
|
|
2,806 |
|
|
|
3,065 |
|
|
|
9,494 |
|
|
|
8,974 |
|
Inventory write-downs (2) |
|
|
— |
|
|
|
— |
|
|
|
3,327 |
|
|
|
— |
|
Restructuring charge (3) |
|
|
— |
|
|
|
516 |
|
|
|
8,957 |
|
|
|
516 |
|
Fair value adjustment to assets held for sale (4) |
|
|
— |
|
|
|
922 |
|
|
|
(1,188 |
) |
|
|
9,235 |
|
R&D program termination costs (5) |
|
|
— |
|
|
|
— |
|
|
|
5,588 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(22,394 |
) |
|
$ |
30,119 |
|
|
$ |
(104,910 |
) |
|
$ |
13,955 |
|
Adjusted Net Income (Loss)
Adjusted net loss is defined as GAAP net income (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 September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
(Unaudited, in thousands) |
|
|||||||||||||
Net income (loss) |
|
$ |
(29,629 |
) |
|
$ |
21,567 |
|
|
$ |
(179,052 |
) |
|
$ |
(6,668 |
) |
Amortization of intangible assets (1) |
|
|
433 |
|
|
|
842 |
|
|
|
6,574 |
|
|
|
2,525 |
|
Inventory write-downs (2) |
|
|
— |
|
|
|
— |
|
|
|
3,327 |
|
|
|
— |
|
Restructuring charge (3) |
|
|
— |
|
|
|
516 |
|
|
|
8,957 |
|
|
|
516 |
|
Fair value adjustment to assets held for sale (4) |
|
|
— |
|
|
|
922 |
|
|
|
(1,188 |
) |
|
|
9,235 |
|
R&D program termination costs (5) |
|
|
— |
|
|
|
— |
|
|
|
5,588 |
|
|
|
— |
|
Tax on above |
|
|
(117 |
) |
|
|
(616 |
) |
|
|
(6,280 |
) |
|
|
(3,315 |
) |
Adjusted net income (loss) |
|
$ |
(29,313 |
) |
|
$ |
23,231 |
|
|
$ |
(162,074 |
) |
|
$ |
2,293 |
|
Non-GAAP Operating Income (Loss)
Non-GAAP operating income (loss) 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 (loss), for the periods presented:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
|
|
(Unaudited, in thousands) |
|
|||||||||||||
Income (loss) from operations |
|
$ |
(29,489 |
) |
|
$ |
20,727 |
|
|
$ |
(149,372 |
) |
|
$ |
(18,595 |
) |
Amortization of intangible assets (1) |
|
|
433 |
|
|
|
842 |
|
|
|
6,574 |
|
|
|
2,525 |
|
Inventory write-downs (2) |
|
|
— |
|
|
|
— |
|
|
|
3,327 |
|
|
|
— |
|
Restructuring charge (3) |
|
|
— |
|
|
|
516 |
|
|
|
8,957 |
|
|
|
516 |
|
Fair value adjustment to assets held for sale (4) |
|
|
— |
|
|
|
922 |
|
|
|
(1,188 |
) |
|
|
9,235 |
|
R&D program termination costs (5) |
|
|
— |
|
|
|
— |
|
|
|
5,588 |
|
|
|
— |
|
Non-GAAP operating income (loss) |
|
$ |
(29,056 |
) |
|
$ |
23,007 |
|
|
$ |
(126,114 |
) |
|
$ |
(6,319 |
) |
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, competitive positioning and long-term opportunities. 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 (and on what timeline) the Company is able to obtain regulatory approval for and successfully commercialize Amnuvx; 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 and tissue innovations company focused on empowering healing through the development, manufacture, and sale of solutions for the Advanced Wound Care and Surgical & 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