Organogenesis (ORGO) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 was $36.3 million, down 58% year-over-year, primarily due to a 63% decline in advanced wound care product sales following CMS and Medicare reimbursement changes and market disruption.

• Net loss for Q1 2026 was $53.2 million, compared to $18.8 million in Q1 2025, reflecting lower revenue, higher R&D, and restructuring charges.

• A restructuring in March 2026 included a workforce reduction of 88 employees (10% of staff), closure of the St. Petersburg facility, and $8.8 million in related charges, targeting $14 million in annualized cost savings.

• Despite revenue decline, unit volume outperformed industry trends, indicating market share gains, with management expecting further gains in the second half of 2026.

• Key regulatory milestones achieved: completed BLA submission for ReNu and positive clinical trial results for PuraPly AM.

Financial highlights

• Q1 net product revenue: $36.3 million, down 58% year-over-year.

• Advanced wound care revenue: $29.5 million, down 63%; surgical and sports medicine revenue: $6.8 million, flat year-over-year.

• Gross profit: $10.5 million (29% margin), down from 73% margin last year; non-GAAP gross profit: $14.8 million (41% margin).

• Operating loss: $68.9 million vs. $26.7 million last year; non-GAAP operating loss: $56 million vs. $19.3 million.

• GAAP net loss: $53.2 million vs. $18.8 million last year; adjusted net loss: $43.7 million vs. $13.4 million.

• Adjusted EBITDA loss: $48.2 million vs. $12.5 million last year.

• Cash and equivalents at quarter end: $92.1 million; no outstanding debt.

Outlook and guidance

• 2026 total net revenue guidance: $270–$310 million, a 45%–52% decline year-over-year, revised from prior guidance.

• Sequential revenue improvement expected through 2026, with normalization and profitability anticipated in Q4, though recovery may be prolonged.

• Operating expenses (excluding COGS) expected to decrease ~25% year-over-year, with >30% reduction in H2 2026.

• Positive adjusted EBITDA expected in the second half of 2026.

• Management anticipates sufficient liquidity to fund operations for at least 12 months beyond the filing date.