Organogenesis Holdings (ORGO) Earnings Date & Reports

Key Takeaways

• Organogenesis reported third quarter 2026 net product revenue of $45.5 million, a decline of 70% from $150.5 million a year earlier, as the Advanced Wound Care reset continued to pressure its core franchise.
• Advanced Wound Care revenue fell 73% to $38.2 million, while Surgical & Sports Medicine revenue declined 19% to $7.3 million.
• The company posted a GAAP net loss of $29.6 million, or $(0.25) per share, versus net income of $21.6 million, or $0.11 per share, in the prior-year quarter.
• Results came in below consensus, which had projected revenue of about $52.1 million and a loss per share of $(0.19).
• Despite the year-over-year decline, total revenue rose 6% sequentially, and management pointed to broad-based market share gains across the portfolio.
• The company narrowed its full-year 2026 revenue outlook to a range of $179 million to $200 million, implying a 65% to 68% decline for the year.
• For more context on Organogenesis, you can review its Major News, Today's Price Move, Price Targets, and Forecast on additional pages.
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Earnings Context and Why It Matters

Organogenesis is navigating one of the most disruptive periods in its history. A sweeping policy overhaul by the Centers for Medicare & Medicaid Services (CMS) has reshaped coverage and payment for skin-substitute products, triggering a sharp reset in the Advanced Wound Care market that drives the vast majority of the company's revenue. This report offers investors a critical read on whether the company can stabilize its top line, protect gross margins, and defend its competitive position as reimbursement dynamics settle. With revenue down sharply year over year but improving sequentially, the quarter serves as an important checkpoint on management's thesis that share gains in the back half of 2026 will set up a return to normalized growth.

Reported Results

For the third quarter ended September 30, 2026, Organogenesis reported net product revenue of $45.5 million, a decline of 70% from $150.5 million in the same period a year earlier. Advanced Wound Care revenue fell 73% to $38.2 million, while Surgical & Sports Medicine revenue decreased 19% to $7.3 million. Both the revenue figure and the loss per share came in below analyst expectations, which had called for roughly $52.1 million in revenue and a loss of $(0.19) per share.

Gross profit was $23.6 million, or 52% of net product revenue, down from a gross margin of 76% in the prior-year quarter. Operating expenses declined 42% to $74.9 million, reflecting lower selling, general and administrative (SG&A) costs and reduced research and development (R&D) spending, yet the company still recorded an operating loss of $29.5 million compared with operating income of $20.7 million a year earlier. The GAAP (generally accepted accounting principles) net loss was $29.6 million, or $(0.25) per share. Adjusted net loss was $29.3 million, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was a loss of $22.4 million, versus positive $30.1 million in the prior-year quarter.

The company ended the quarter with $26.9 million in cash, cash equivalents, and restricted cash and no outstanding debt, down from $94.3 million at year-end 2025. Management updated full-year 2026 guidance to total net revenue of $179 million to $200 million, implying a 65% to 68% year-over-year decline, a slightly more measured recovery than the prior range had assumed.

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Market Reaction and Investor Sentiment

The initial reaction to the report was negative. Shares of ORGO traded lower in after-hours trading following the release, as the revenue and earnings-per-share misses and the tempered full-year outlook outweighed the encouraging sequential improvement. Investors remain focused on whether the wound-care market reset has bottomed and how quickly the company can convert portfolio share gains into stabilizing revenue and a return to profitability. Sentiment heading into and out of the quarter reflects a tension between management's confidence in its evidence-based product lineup and lingering uncertainty over clinician behavior and reimbursement policy in the post-reset environment.

Forward Outlook and Key Factors to Monitor

Looking ahead, the central question for investors is the pace at which the Advanced Wound Care market stabilizes following the CMS-driven reimbursement changes. Management expects sequential revenue improvement to continue in the fourth quarter and has signaled that share gains are broadening across the portfolio, but the absolute revenue base remains far below historical levels.

Several factors will shape the next few quarters. First, watch gross margin, which compressed to 52% this quarter as fixed manufacturing costs and inventory-related charges were absorbed by a smaller revenue base. Second, monitor cash and liquidity, given that cash fell to $26.9 million even as the company continues to evaluate alternative financing strategies to fund key investments.

Product and capacity initiatives also matter. The planned commercialization of Amnuvix and enhancements at the Smithfield facility represent potential catalysts, while the company's evidence-based living cell products remain central to its long-term positioning. Finally, the ability to manage operating expenses without undermining its commercial footprint will be critical as management works to return to normalized growth beyond 2026.

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