Second Quarter 2026 Financial Results Summary:
- Net revenue of
$42.8 million for the second quarter of 2026, a decrease of$58.0 million compared to net revenue of$100.8 million for the second quarter of 2025. Net revenue for the second quarter of 2026 consists of:- Net revenue from Advanced Wound Care products of
$36.1 million , a decrease of 61% from the second quarter of 2025. - Net revenue from Surgical & Sports Medicine products of
$6.7 million , a decrease of 18% from the second quarter of 2025.
- Net revenue from Advanced Wound Care products of
- Net loss of
$96.3 million for the second quarter of 2026, compared to a net loss of$9.4 million for the second quarter of 2025, an increase in net loss of$86.9 million . - Adjusted net loss of
$89.0 million for the second quarter of 2026, compared to an adjusted net loss of$7.5 million for the second quarter of 2025, an increase in adjusted net loss of$81.5 million . - Adjusted EBITDA loss of
$34.4 million for the second quarter of 2026, compared to Adjusted EBITDA loss of$3.6 million for the second quarter of 2025, an increase in EBITDA loss of$30.7 million .
"We are encouraged by signs of measured improvement in business trends in the second quarter, though the pace of recovery from the significant market contraction is slower than we expected," said
Second Quarter 2026 Financial Results:
| Three Months Ended | Change | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| (in thousands, except for percentages) | ||||||||||||||||
| Advanced | $ | 36,146 | $ | 92,696 | $ | (56,550 | ) | (61 | %) | |||||||
| Surgical & Sports Medicine | 6,659 | 8,083 | (1,424 | ) | (18 | %) | ||||||||||
| Net product revenue | $ | 42,805 | $ | 100,779 | $ | (57,974 | ) | (58 | %) | |||||||
Net product revenue for the second quarter of 2026 was
Gross profit for the second quarter of 2026 was
Operating expenses for the second quarter of 2026 were
Operating loss for the second quarter of 2026 was
Total other income, net, for the second quarter of 2026 was
Net loss for the second quarter of 2026 was
Adjusted net loss was
Adjusted EBITDA loss was
Non-GAAP operating loss was
Six Months ended
| Six Months Ended | Change | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| (in thousands, except for percentages) | ||||||||||||||||
| Advanced | $ | 65,628 | $ | 172,623 | $ | (106,995 | ) | (62 | %) | |||||||
| Surgical & Sports Medicine | 13,427 | 14,849 | (1,422 | ) | (10 | %) | ||||||||||
| Net product revenue | $ | 79,055 | $ | 187,472 | $ | (108,417 | ) | (58 | %) | |||||||
Net product revenue for the six months ended
Gross profit for the six months ended
Operating expenses for the six months ended
Operating loss for the six months ended
Total other income, net, for the six months ended
Net loss for the six months ended
Adjusted net loss was
Adjusted EBITDA loss was
Non-GAAP operating loss was
As of
Fiscal Year 2026 Outlook:
For the year ending
- Total net revenue between
$179.0 million and$215.0 million , representing a decline in the range of 62% to 68%, as compared to total net revenue of$564.2 million for the year endedDecember 31, 2025 .- Our updated total revenue guidance continues to reflect the expectation that we see sequential improvement in our revenue trends in the in the third and fourth quarters, however, at a more measured rate versus what our prior guidance assumed, resulting in a second half revenue decline in the range of approximately 64% to 74% year over year, and compared to our prior guidance range which assumed a decline in the range of 45% to 52% year-over-year.
Second Quarter Earnings Conference Call:
Management will host a conference call at
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share and per share data) | ||||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 46,097 | $ | 93,679 | ||||
| Restricted cash | 747 | 652 | ||||||
| Accounts receivable, net | 100,937 | 217,451 | ||||||
| Inventories, net | 29,280 | 29,627 | ||||||
| Asset held for sale | 3,613 | 2,425 | ||||||
| Prepaid expenses and other current assets | 19,628 | 18,354 | ||||||
| Total current assets | 200,302 | 362,188 | ||||||
| Property and equipment, net | 101,531 | 103,711 | ||||||
| Intangible assets, net | 3,004 | 9,145 | ||||||
| 28,772 | 28,772 | |||||||
| Operating lease right-of-use assets, net | 49,912 | 55,749 | ||||||
| Deferred tax asset, net | — | 29,962 | ||||||
| Other assets | 22,925 | 9,203 | ||||||
| Total assets | $ | 406,446 | $ | 598,730 | ||||
| Liabilities, Redeemable Convertible Preferred Stock, and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of finance lease obligations | $ | 859 | $ | 9,435 | ||||
| Current portion of operating lease obligations - related party | 4,647 | 4,258 | ||||||
| Current portion of operating lease obligations | 3,807 | 4,949 | ||||||
| Accounts payable | 29,291 | 31,949 | ||||||
| Accrued expenses and other current liabilities | 18,359 | 49,533 | ||||||
| Total current liabilities | 56,963 | 100,124 | ||||||
| Finance lease obligations, net of current portion | 10,820 | 12,788 | ||||||
| Operating lease obligations, net of current portion - related party | 25,738 | 28,237 | ||||||
| Operating lease obligations, net of current portion | 21,079 | 22,470 | ||||||
| Other liabilities | 3,714 | 1,193 | ||||||
| Total liabilities | 118,314 | 164,812 | ||||||
| Commitments and contingencies (Note 15) | ||||||||
| Series A redeemable convertible preferred stock, | 139,864 | 133,789 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 13 | 13 | ||||||
| Additional paid-in capital | 300,756 | 303,194 | ||||||
| Accumulated deficit | (152,501 | ) | (3,078 | ) | ||||
| Total stockholders’ equity | 148,268 | 300,129 | ||||||
| Total liabilities, redeemable convertible preferred stock, and stockholders' equity | $ | 406,446 | $ | 598,730 | ||||
(amounts in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue: | ||||||||||||||||
| Net product revenue | $ | 42,805 | $ | 100,779 | $ | 79,055 | $ | 187,472 | ||||||||
| Grant income | 950 | 226 | 1,928 | 226 | ||||||||||||
| Total revenue | 43,755 | 101,005 | 80,983 | 187,698 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of goods sold | 23,673 | 27,630 | 49,445 | 51,353 | ||||||||||||
| Selling, general and administrative | 53,965 | 73,810 | 119,151 | 146,319 | ||||||||||||
| Research and development | 18,297 | 10,395 | 33,458 | 21,035 | ||||||||||||
| Fair value adjustment to assets held for sale | (1,188 | ) | 1,746 | (1,188 | ) | 8,313 | ||||||||||
| Total operating expenses | 94,747 | 113,581 | 200,866 | 227,020 | ||||||||||||
| Loss from operations | (50,992 | ) | (12,576 | ) | (119,883 | ) | (39,322 | ) | ||||||||
| Other income, net: | ||||||||||||||||
| Interest income, net | 138 | 669 | 518 | 1,630 | ||||||||||||
| Other income (expense), net | (26 | ) | 73 | 12 | 75 | |||||||||||
| Total other income, net | 112 | 742 | 530 | 1,705 | ||||||||||||
| Net loss before income taxes | (50,880 | ) | (11,834 | ) | (119,353 | ) | (37,617 | ) | ||||||||
| Income tax benefit (expense) | (45,387 | ) | 2,442 | (30,070 | ) | 9,382 | ||||||||||
| Net loss and comprehensive loss | (96,267 | ) | (9,392 | ) | (149,423 | ) | (28,235 | ) | ||||||||
| Accretion of redeemable convertible preferred stock to redemption value | (170 | ) | (129 | ) | (329 | ) | (250 | ) | ||||||||
| Cumulative dividend on redeemable convertible preferred stock | (2,902 | ) | (2,681 | ) | (5,746 | ) | (5,308 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (99,339 | ) | $ | (12,202 | ) | $ | (155,498 | ) | $ | (33,793 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic and diluted | $ | (0.77 | ) | $ | (0.10 | ) | $ | (1.21 | ) | $ | (0.27 | ) | ||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic and diluted | 128,674,548 | 126,853,536 | 128,238,204 | 126,576,130 | ||||||||||||
(amounts in thousands, except share and per share data) | ||||||||
| Six Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (149,423 | ) | $ | (28,235 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 7,842 | 7,178 | ||||||
| Amortization of intangible assets | 6,141 | 1,683 | ||||||
| Reduction in the carrying value of right-of-use assets | 4,974 | 4,077 | ||||||
| Non-cash interest expense | 181 | 139 | ||||||
| Deferred tax expense (benefit) | 29,962 | (2,292 | ) | |||||
| Provision recorded for credit losses | (2,975 | ) | 3,116 | |||||
| Loss on disposal of property and equipment | 395 | 44 | ||||||
| Adjustment for excess and obsolete inventories | 8,259 | 6,093 | ||||||
| Stock-based compensation | 6,688 | 5,909 | ||||||
| Fair value adjustment to assets held for sale | (1,188 | ) | 8,313 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 119,489 | (13,637 | ) | |||||
| Inventories | (11,812 | ) | (15,892 | ) | ||||
| Prepaid expenses and other current assets and other assets | 4,810 | (12,942 | ) | |||||
| Operating leases | (3,780 | ) | (4,147 | ) | ||||
| Accounts payable | (1,398 | ) | 1,637 | |||||
| Accrued expenses and other current liabilities | (29,281 | ) | (13,886 | ) | ||||
| Other liabilities | 590 | 34 | ||||||
| Net cash used in operating activities | (10,526 | ) | (52,808 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (4,246 | ) | (7,264 | ) | ||||
| Net cash used in investing activities | (4,246 | ) | (7,264 | ) | ||||
| Cash flows from financing activities: | ||||||||
| 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 | (10,188 | ) | (573 | ) | ||||
| Construction of landlord assets, net of tenant allowance | (19,476 | ) | — | |||||
| Net cash used in financing activities | (32,715 | ) | (2,344 | ) | ||||
| Change in cash, cash equivalents and restricted cash | (47,487 | ) | (62,416 | ) | ||||
| Cash, cash equivalents, and restricted cash, beginning of period | 94,331 | 136,151 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 46,844 | $ | 73,735 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Accretion to redemption value and cumulative dividends on redeemable convertible preferred stock | $ | 6,075 | $ | 5,558 | ||||
| Change in purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities | $ | (379 | ) | $ | (38 | ) | ||
| Landlord asset additions included in accounts payable and accrued expenses and other current liabilities, net of tenant allowances | $ | 3,704 | $ | — | ||||
| Right-of-use assets obtained through finance lease obligations | $ | (357 | ) | $ | — | |||
| Right-of-use assets obtained through operating lease obligations | $ | — | $ | 1,815 | ||||
Non-GAAP Financial Measures
Our management uses financial measures that are not in accordance with generally accepted accounting principles in
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 | Six Months Ended | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
| Net loss | $ | (96,267 | ) | $ | (9,392 | ) | $ | (149,423 | ) | $ | (28,235 | ) | ||||
| Interest income, net | (138 | ) | (669 | ) | (518 | ) | (1,630 | ) | ||||||||
| Income tax (benefit) expense | 45,387 | (2,442 | ) | 30,070 | (9,382 | ) | ||||||||||
| Depreciation and amortization | 3,668 | 3,734 | 7,842 | 7,178 | ||||||||||||
| Amortization of intangible assets (1) | 433 | 841 | 6,141 | 1,683 | ||||||||||||
| EBITDA | (46,917 | ) | (7,928 | ) | (105,888 | ) | (30,386 | ) | ||||||||
| Stock-based compensation expense | 3,052 | 2,542 | 6,688 | 5,909 | ||||||||||||
| Inventory write-downs (2) | — | — | 3,327 | — | ||||||||||||
| Restructuring charge (3) | 5,099 | — | 8,957 | — | ||||||||||||
| Fair value adjustment to assets held for sale (4) | (1,188 | ) | 1,746 | (1,188 | ) | 8,313 | ||||||||||
| R&D program termination costs (5) | 5,588 | — | 5,588 | — | ||||||||||||
| Adjusted EBITDA | $ | (34,366 | ) | $ | (3,640 | ) | $ | (82,516 | ) | $ | (16,164 | ) | ||||
| (1) | Amount includes |
| (2) | Amount reflects inventory write-down adjustments for excess and obsolete inventory resulting from LCD regulatory changes of |
| (3) | Amount reflects employee severance and benefits as well as other exit costs associated with the Company’s restructuring activities of |
| (4) | Amount reflects the fair value adjustment of a building sold in |
| (5) | Amount reflects termination costs associated with various R&D programs and vendors. |
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 | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
| Net loss | $ | (96,267 | ) | $ | (9,392 | ) | $ | (149,423 | ) | $ | (28,235 | ) | ||||
| Amortization of intangible assets (1) | 433 | 841 | 6,141 | 1,683 | ||||||||||||
| Inventory write-downs (2) | — | — | 3,327 | — | ||||||||||||
| Restructuring charge (3) | 5,099 | — | 8,957 | — | ||||||||||||
| Fair value adjustment to assets held for sale (4) | (1,188 | ) | 1,746 | (1,188 | ) | 8,313 | ||||||||||
| R&D program termination costs (5) | 5,588 | — | 5,588 | — | ||||||||||||
| Tax on above | (2,682 | ) | (698 | ) | (6,163 | ) | (2,699 | ) | ||||||||
| Adjusted net loss | $ | (89,017 | ) | $ | (7,503 | ) | $ | (132,761 | ) | $ | (20,938 | ) | ||||
| (1) | Amount includes |
| (2) | Amount reflects inventory write-down adjustments for excess and obsolete inventory resulting from LCD regulatory changes of |
| (3) | Amount reflects employee severance and benefits as well as other exit costs associated with the Company’s restructuring activities of |
| (4) | Amount reflects the fair value adjustment of a building sold in |
| (5) | Amount reflects termination costs associated with various R&D programs and vendors. |
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 | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
| Loss from operations | $ | (50,992 | ) | $ | (12,576 | ) | $ | (119,883 | ) | $ | (39,322 | ) | ||||
| Amortization of intangible assets (1) | 433 | 841 | 6,141 | 1,683 | ||||||||||||
| Inventory write-downs (2) | — | — | 3,327 | — | ||||||||||||
| Restructuring charge (3) | 5,099 | — | 8,957 | — | ||||||||||||
| Fair value adjustment to assets held for sale (4) | (1,188 | ) | 1,746 | (1,188 | ) | 8,313 | ||||||||||
| R&D program termination costs (5) | 5,588 | — | 5,588 | — | ||||||||||||
| Non-GAAP operating loss | $ | (41,060 | ) | $ | (9,989 | ) | $ | (97,058 | ) | $ | (29,326 | ) | ||||
| (1) | Amount includes |
| (2) | Amount reflects inventory write-down adjustments for excess and obsolete inventory resulting from LCD regulatory changes of |
| (3) | Amount reflects employee severance and benefits as well as other exit costs associated with the Company’s restructuring activities of |
| (4) | Amount reflects the fair value adjustment of a building sold in |
| (5) | Amount reflects termination costs associated with various R&D programs and vendors. |
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
About
Investor Inquiries:ICR Healthcare Mike Piccinino , CFAOrganoIR@icrinc.comPress and Media Inquiries:Organogenesiscommunications@organo.com
