Organogenesis revenue falls 70% to $45.457 million, swings to a loss in third quarter
Key Facts
Organogenesis Holdings reported results on November 5 for the third quarter ended September 30, with product revenue of $45.457 million, down 70% from $150.487 million a year earlier, and a net loss of $29.6 million, or $0.25 per share. The company posted net income of $21.6 million, or $0.11 per share, in the corresponding quarter of 2025. The steepest contraction came in advanced wound care, which accounted for most of the sales decline during the period. The CEO said quarterly revenue improved from the previous quarter and market share gains were broad across the product portfolio. But the year-over-year comparison remained sharp, and the company paired its results with a lower full-year outlook and a more cautious path to improvement in the fourth quarter.
Advanced wound care revenue fell to $38.152 million from $141.451 million a year earlier, down 73%, making it the largest contributor to the decline in product revenue. Revenue in the surgical and sports medicine segment also fell 19% to $7.305 million, compared with $9.036 million in the corresponding period. The figures show declines across both core businesses, with most of the drop concentrated in wound care. The sequential improvement cited by management did not change the scale of the annual sales gap. The CEO said market share gains were “broad across the product portfolio,” signaling commercial performance within the portfolio alongside the overall decline recorded.
The sales contraction weighed on gross profitability: gross profit was $23.6 million, equal to 52% of product revenue, compared with $114.2 million and a 76% margin a year earlier. Operating expenses declined 42% to $74.9 million from $130.1 million, but the reduction did not prevent a net loss in the quarter. Adjusted EBITDA also swung to a loss of $22.4 million, from adjusted income of $30.1 million in the third quarter of 2025. The revenue decline therefore coincided with lower gross profit and a shift in this adjusted metric from income to loss. These indicators show the extent to which weaker sales affected the period’s results despite lower operating expenses.
For the nine months ended September 30, product revenue was $124.512 million, compared with $337.959 million in the corresponding period of 2025, down 63%. In the second quarter of 2026, the company reported revenue of $42.8 million, down 58% year over year, and a net loss of $96.3 million compared with a loss of $9.4 million in the second quarter of the prior year. In August, the CEO said the market’s recovery from the sharp contraction was slower than expected. The company also cited 2026 Medicare coverage and reimbursement changes among factors that could affect its business and results. It listed ongoing competition, access to financing, expansion of its Smithfield, Rhode Island facility, and the potential timing of approval and commercialization of Amnuvx among future risks.
Organogenesis lowered its 2026 revenue outlook to a range of $179.4 million to $200 million, representing an expected year-over-year decline of between 65% and 68%. The company said the revised outlook assumes a sequential improvement in the revenue trend during the fourth quarter, but “at a more moderate pace.” That puts the path of the coming quarter at the center of the new annual outlook, after management said revenue improved sequentially in the third quarter. ORGO shares closed at $0.8399 on November 5, the day results were announced. The available data did not provide a documented trading range for the session.