Organon (OGN) Q4 2025 earnings summary

Executive summary

• Full year 2025 revenue was $6.2 billion, down 3% year-over-year on both reported and constant currency bases, with adjusted EBITDA of $1.91 billion and adjusted diluted EPS of $3.66, reflecting a 30.7% margin.

• Results were impacted by loss of exclusivity, pricing pressures, and divestitures, partially offset by growth in biosimilars (notably HADLIMA), Emgality, Vtama, and the fertility business.

• FDA approved sNDA to extend Nexplanon duration from three to five years, broadening its market potential.

• Divested JADA System for $390 million in net proceeds, with funds directed to debt reduction; divestiture completed in January 2026.

• Achieved over $200 million in cost savings, keeping adjusted EBITDA margins flat despite gross margin pressure.

Financial highlights

• Revenue declined 3% year-over-year to $6.2 billion; adjusted EBITDA decreased 3% to $1.91 billion, with adjusted gross margin at 60.1% (down from 61.6% in 2024) and adjusted EBITDA margin at 30.7% (flat year-over-year).

• Adjusted diluted EPS fell 11% year-over-year to $3.66.

• Net loss for Q4 2025 was $205 million, including a $301 million non-cash goodwill impairment; full-year non-GAAP adjusted net income was $954 million.

• Free cash flow before one-time costs was $960 million for 2025; after one-time costs, $659 million.

Outlook and guidance

• 2026 revenue and adjusted EBITDA expected to be flat with 2025 at $6.2 billion and $1.9 billion, respectively; adjusted gross margin expected to decline 75-100 bps.

• Expects volume growth of $150 million (2.4%) in 2026, driven by Vtama, Emgality, biosimilars, and ex-US Nexplanon.

• Net leverage targeted below 4x by end of 2026, aided by JADA divestiture proceeds.

• Non-GAAP tax rate for 2026 estimated at 27.5%-29.5%, up due to OECD Pillar Two and other tax changes.