CANTON, Mass., May 07, 2026 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2026.
First Quarter 2026 Financial Results Summary:
- Net revenue of $36.3 million for the first quarter of 2026, a decrease of $50.4 million compared to net revenue of $86.7 million for the first quarter of 2025. Net revenue for the first quarter of 2026 consists of:
- Net revenue from Advanced Wound Care products of $29.5 million, a decrease of 63% from the first quarter of 2025.
- Net revenue from Surgical & Sports Medicine products of $6.8 million, consistent with the first quarter of 2025.
- Net loss of $53.2 million for the first quarter of 2026, compared to a net loss of $18.8 million for the first quarter of 2025, an increase in net loss of $34.3 million.
- Adjusted net loss of $43.7 million for the first quarter of 2026, compared to an adjusted net loss of $13.4 million for the first quarter of 2025, an increase in adjusted net loss of $30.3 million.
- Adjusted EBITDA loss of $48.2 million for the first quarter of 2026, compared to Adjusted EBITDA loss of $12.5 million for the first quarter of 2025, an increase in EBITDA loss of $35.6 million.
“The first quarter presented a challenging start to the year, as expected; however, we remain well positioned to navigate this period of unprecedented disruption and continue to expect to drive significant market share gains in the second half of 2026,” said Gary S. Gillheeney, Sr., President, Chief Executive Officer, and Chair of the Board for Organogenesis. “We remain confident in the long-term opportunity for Organogenesis, supported by the largest, most comprehensive portfolio across multiple FDA classifications, a significant achievement with the ReNu BLA submission, and an ever-expanding body of clinical evidence.”
First Quarter 2026 Financial Results:
Three Months Ended March 31, Change 2026 2025 $ % (in thousands, except for percentages) Advanced Wound Care $29,482 $79,927 $(50,445) (63%)Surgical & Sports Medicine 6,768 6,766 2 0%Net product revenue $36,250 $86,693 $(50,443) (58%)Net product revenue for the first quarter of 2026 was $36.3 million, compared to $86.7 million for the first quarter of 2025, a decrease of $50.4 million, or 58%. The decrease in net product revenue was driven by a decrease of $50.4 million, or 63%, in net product revenue for Advanced Wound Care products.
Gross profit for the first quarter of 2026 was $10.5 million, or 29% of net product revenue, compared to $63.0 million, or 73% of net product revenue for the first quarter of 2025, a decrease of $52.5 million, or 83%.
Operating expenses for the first quarter of 2026 were $106.1 million compared to $113.4 million for the first quarter of 2025, a decrease of $7.3 million, or 6%. Cost of goods sold was $25.8 million for the first quarter of 2026, compared to $23.7 million for the first quarter of 2025, an increase of $2.0 million, or 9%. Selling, general and administrative expenses were $65.2 million for the first quarter of 2026, compared to $72.5 million for the first quarter of 2025, a decrease of $7.3 million, or 10%. R&D expense was $15.2 million for the first quarter of 2026, compared to $10.6 million for the first quarter of 2025, an increase of $4.5 million, or 42%. For the three months ended March 31, 2025, the Company recorded write-down expenses of $6.6 million.
Operating loss for the first quarter of 2026 was $68.9 million, compared to an operating loss of $26.7 million for the first quarter of 2025, an increase in operating loss of $42.1 million.
Total other income, net, for the first quarter of 2026 was $0.4 million, compared to $1.0 million for the first quarter of 2025, a decrease of $0.5 million.
Net loss for the first quarter of 2026 was $53.2 million, or $(0.44) per share, compared to net loss of $18.8 million, or $(0.17) per share, for the first quarter of 2025, an increase in net loss of $34.3 million, or $(0.27) per share.
Adjusted net loss was $43.7 million for the first quarter of 2026, compared to adjusted net loss of $13.4 million for the first quarter of 2025, an increase in adjusted net loss of $30.3 million.
Adjusted EBITDA loss was $48.2 million for the first quarter of 2026, compared to Adjusted EBITDA loss of $12.5 million for the first quarter of 2025, an increase in adjusted EBITDA loss of $35.6 million.
Non-GAAP operating loss was $56.0 million for the first quarter of 2026, compared to non-GAAP operating loss of $19.3 million for the first quarter of 2025, an increase in non-GAAP operating loss of $36.7 million.
As of March 31, 2026, the Company had $92.1 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:
- Total net revenue between $270.0 million and $310.0 million, representing a decline in the range of 45% to 52%, as compared to total net revenue of $564.2 million for the year ended December 31, 2025.
- The 2026 total net revenue guidance range assumes a sequential improvement in revenue trends in the second quarter, however, at a more measured rate versus what the prior guidance assumed resulting in a first half revenue decline in the range of approximately 52% to 49% year over year. We continue to expect strong sequential revenue growth in the third and fourth quarters of 2026, however, the low-end of the guidance range now assumes a more prolonged recovery in market-related headwinds resulting in a second half revenue decline similar to the first half of 2026.
First Quarter Earnings Conference Call:
Management will host a conference call at 5:00 p.m. Eastern Time on May 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 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) March 31, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents $91,379 $93,679 Restricted cash 720 652 Accounts receivable, net 116,908 217,451 Inventories, net 28,425 29,627 Asset held for sale 2,425 2,425 Prepaid expenses and other current assets 28,644 18,354 Total current assets 268,501 362,188 Property and equipment, net 104,078 103,711 Intangible assets, net 3,437 9,145 Goodwill 28,772 28,772 Operating lease right-of-use assets, net 53,742 55,749 Deferred tax asset, net 45,333 29,962 Other assets 16,129 9,203 Total assets $519,992 $598,730 Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity Current liabilities: Current portion of finance lease obligations $508 $9,435 Current portion of operating lease obligations - related party 4,451 4,258 Current portion of operating lease obligations 4,764 4,949 Accounts payable 28,615 31,949 Accrued expenses and other current liabilities 37,683 49,533 Total current liabilities 76,021 100,124 Finance lease obligations, net of current portion 12,358 12,788 Operating lease obligations, net of current portion - related party 26,993 28,237 Operating lease obligations, net of current portion 21,787 22,470 Other liabilities 1,486 1,193 Total liabilities 138,645 164,812 Commitments and contingencies (Note 15) Series A redeemable convertible preferred stock, $0.0001 par value; 130,000 shares authorized, issued and outstanding at March 31, 2026 and December 31, 2025; liquidation preference of $145,061 and $142,217 at March 31, 2026 and December 31, 2025, respectively. 136,792 133,789 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; 129,403,096 and 127,680,424 shares issued; 128,674,548 and 126,951,876 shares outstanding at March 31, 2026 and December 31, 2025, respectively. 13 13 Additional paid-in capital 300,776 303,194 Accumulated deficit (56,234) (3,078)Total stockholders’ equity 244,555 300,129 Total liabilities, redeemable convertible preferred stock, and stockholders' equity $519,992 $598,730
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE
LOSS
(amounts in thousands, except share and per share data) Three Months Ended
March 31, 2026 2025 Revenue: Net product revenue $36,250 $86,693 Grant income 978 — Total revenue 37,228 86,693 Operating expenses: Cost of goods sold 25,772 23,723 Selling, general and administrative 65,186 72,509 Research and development 15,161 10,640 Write-down to fair value for asset held for sale — 6,567 Total operating expenses 106,119 113,439 Loss from operations (68,891) (26,746)Other income, net: Interest income, net 380 961 Other income, net 38 2 Total other income, net 418 963 Net loss before income taxes (68,473) (25,783)Income tax benefit 15,317 6,940 Net loss and comprehensive loss (53,156) (18,843)Accretion of redeemable convertible preferred stock to redemption value (159) (121)Cumulative dividend on redeemable convertible preferred stock (2,844) (2,627)Net loss attributable to common stockholders $(56,159) $(21,591)Net loss, per share: Basic and diluted $(0.44) $(0.17)Weighted-average common shares outstanding Basic and diluted 127,797,013 126,295,642
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF
CASH FLOWS
(amounts in thousands, except share and per share data) Three Months Ended
March 31, 2026 2025 Cash flows from operating activities: Net loss $(53,156) $(18,843)Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 4,174 3,444 Amortization of intangible assets 5,708 842 Reduction in the carrying value of right-of-use assets 2,488 1,997 Non-cash interest expense 91 69 Deferred tax benefit (15,371) (1,266)Provision (adjustment) recorded for credit losses (3,959) 873 Loss on disposal of property and equipment - 19 Adjustment for excess and obsolete inventories 6,990 3,709 Stock-based compensation 3,636 3,367 Write-down to fair value for asset held for sale — 6,567 Changes in operating assets and liabilities: Accounts receivable 104,502 5,668 Inventories (8,730) (8,732)Prepaid expenses and other current assets and other assets (1,655) (5,123)Operating leases (2,400) (2,037)Accounts payable (2,003) (2,496)Accrued expenses and other current liabilities (19,481) (7,993)Other liabilities 293 — Net cash provided by (used in) operating activities 21,127 (19,935)Cash flows from investing activities: Purchases of property and equipment (3,146) (3,626)Net cash used in investing activities (3,146) (3,626)Cash flows from financing activities: Landlord assets under construction, net of tenant allowance (7,322) — Payments of withholding taxes in connection with RSUs vesting (3,051) (1,796)Proceeds from the exercise of stock options - 25 Principal repayments of finance lease obligations (9,840) (285)Net cash used in financing activities (20,213) (2,056)Change in cash, cash equivalents and restricted cash (2,232) (25,617)Cash, cash equivalents, and restricted cash, beginning of period 94,331 136,151 Cash, cash equivalents, and restricted cash, end of period $92,099 $110,534 Supplemental disclosure of non-cash investing and financing activities: Accretion to redemption value and cumulative dividends on redeemable convertible preferred stock $3,003 $2,748 Changes in purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities $39 $172 Right-of-use assets obtained through finance lease obligations $483 $— Landlord asset additions included in accounts payable and accrued expenses and other current liabilities, net of tenant allowances $4,067 $— Right-of-use assets obtained through operating lease obligations $- $1,642
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), (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 March 31, 2026 2025 (Unaudited, in thousands) Net loss $(53,156) $(18,843)Interest income, net (380) (961)Income tax benefit (15,317) (6,940)Depreciation and amortization 4,174 3,444 Amortization of intangible assets (1) 5,708 842 EBITDA (58,971) (22,458)Stock-based compensation expense 3,636 3,367 Inventory write-downs (2) 3,327 — Restructuring charge (3) 3,858 — Write-down to fair value for asset held for sale (4) — 6,567 Adjusted EBITDA $(48,150) $(12,524)Adjusted Net Loss
Adjusted net 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 loss, for the periods presented:
Three Months Ended March 31, 2026 2025 (Unaudited, in thousands) Net loss $(53,156) $(18,843)Amortization of intangible assets (1) 5,708 842 Inventory write-downs (2) 3,327 — Restructuring charge (3) 3,858 — Write-down to fair value for asset held for sale (4) — 6,567 Tax on above (3,481) (2,000)Adjusted net loss $(43,744) $(13,434)Non-GAAP Operating Loss
Non-GAAP operating 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 loss, for the periods presented:
Three Months Ended March 31, 2026 2025 (Unaudited, in thousands) Loss from operations $(68,891) $(26,746)Amortization of intangible assets (1) 5,708 842 Inventory write-downs (2) 3,327 — Restructuring charge (3) 3,858 — Write-down to fair value for asset held for sale (4) — 6,567 Non-GAAP operating loss $(55,998) $(19,337)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 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 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.