Third Quarter 2026
Filed Nov 5, 2026Organogenesis Holdings Inc. Reports Third Quarter 2026 Financial Results
Third-quarter net product revenue declined 70%, gross profit declined 79%, and the company reported a $29.6 million net loss versus $21.6 million of net income in the prior-year quarter. Management also updated full-year revenue guidance to $179.4 million to $200.0 million, reflecting a 65% to 68% decline versus 2025.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net product revenueGAAP | $45.5M | – | decrease of $105.0 million, or 70% |
| Q3 2026 total revenueGAAP | $45.46M | – | – |
| Q3 2026 grant incomeGAAP | — | – | – |
| Q3 2026 gross profitGAAP | $23.6 million, or 52% of net product revenue | – | decrease of $90.7 million, or 79% |
| Q3 2026 cost of goods soldGAAP | $21.9M | – | decrease of $14.4 million, or 40% |
| Q3 2026 selling, general and administrative expensesGAAP | $45.1M | – | decrease of $34.7 million, or 43% |
| Q3 2026 research and development expenseGAAP | $8M | – | decrease of $5.3 million, or 40% |
| Q3 2026 operating expensesGAAP | $74.9M | – | decrease of $55.2 million, or 42% |
| Q3 2026 operating lossGAAP | $29.5M | – | increase in operating loss of $50.2 million |
| Q3 2026 total other expense, netGAAP | $100K | – | decrease of $0.6 million |
| Q3 2026 net lossGAAP | $29.6M | – | increase in net loss of $51.2 million |
| Q3 2026 basic net loss per shareGAAP | $(0.25) per share | – | increase in net loss of $(0.36) per share |
| Q3 2026 diluted net loss per shareGAAP | $(0.25) per share | – | increase in net loss of $(0.36) per share |
| Q3 2026 adjusted net lossnon-GAAP | $29.3M | – | increase in adjusted net loss of $52.5 million |
| Q3 2026 Adjusted EBITDA lossnon-GAAP | $22.4M | – | increase in Adjusted EBITDA loss of $52.5 million |
| Q3 2026 non-GAAP operating lossnon-GAAP | $29.1M | – | increase in non-GAAP operating loss of $52.1 million |
| Nine months ended September 30, 2026 net product revenueGAAP | $124.5M | – | decrease of $213.4 million, or 63% |
| Nine months ended September 30, 2026 total revenueGAAP | $126.4M | – | – |
| Nine months ended September 30, 2026 grant incomeGAAP | $1.93M | – | – |
| Nine months ended September 30, 2026 gross profitGAAP | $53.2 million, or 43% of net product revenue | – | decrease of $197.2 million, or 79% |
| Nine months ended September 30, 2026 operating expensesGAAP | $275.8M | – | decrease of $81.3 million, or 23% |
| Nine months ended September 30, 2026 selling, general and administrative expensesGAAP | $164.2M | – | decrease of $61.8 million, or 27% |
| Nine months ended September 30, 2026 research and development expenseGAAP | $41.4M | – | increase of $7.2 million, or 21% |
| Nine months ended September 30, 2026 operating lossGAAP | $149.4M | – | increase in operating loss of $130.8 million |
| Nine months ended September 30, 2026 net lossGAAP | $179.1M | – | increase in net loss of $172.4 million |
| Nine months ended September 30, 2026 basic net loss per shareGAAP | $(1.47) per share | – | increase in net loss of $(1.35) per share |
| Nine months ended September 30, 2026 diluted net loss per shareGAAP | $(1.47) per share | – | increase in net loss of $(1.35) per share |
| Nine months ended September 30, 2026 adjusted net lossnon-GAAP | $162.1M | – | increase in adjusted net loss of $164.4 million |
| Nine months ended September 30, 2026 Adjusted EBITDA lossnon-GAAP | $104.9M | – | increase in Adjusted EBITDA loss of $118.9 million |
| Nine months ended September 30, 2026 non-GAAP operating lossnon-GAAP | $126.1M | – | increase in non-GAAP operating loss of $119.8 million |
| Nine months ended September 30, 2026 net cash used in operating activitiesGAAP | −$29.12M | – | – |
| Nine months ended September 30, 2026 net cash used in investing activitiesGAAP | −$2.1M | – | – |
| Nine months ended September 30, 2026 net cash used in financing activitiesGAAP | −$36.17M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 Advanced Wound CareThe company stated that the decline in net product revenue was driven by a decrease of $103.3 million, or 73%, in net product revenue for Advanced Wound Care products. | $38.2M | – | decrease of 73% |
| Q3 2026 Surgical & Sports MedicineNo specific segment driver was provided. | $7.3M | – | decrease of 19% |
| Nine months ended September 30, 2026 Advanced Wound CareThe company stated that the decrease in net product revenue was driven by a decrease of $210.3 million, or 67%, in net product revenue for Advanced Wound Care products. | $103.8M | – | decrease of 67% |
| Nine months ended September 30, 2026 Surgical & Sports MedicineNo specific segment driver was provided. | $20.7M | – | decrease of 13% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Year ending December 31, 2026 outlook
- RevenueTotal net revenue between $179.4 million and $200.0 million, representing a decline in the range of 65% to 68%, as compared to total net revenue of $564.2 million for the year ended December 31, 2025.
- NoteThe company expects sequential improvement in revenue trends in the fourth quarter, however, at a more measured rate versus what prior guidance assumed.
- NoteSecond half revenue decline in the range of approximately 68% to 74% year over year, compared to the prior guidance range which assumed a decline in the range of 64% to 74% year-over-year.
What drove it
- Third-quarter net product revenue declined by $105.0 million, or 70%, driven by the $103.3 million, or 73%, decline in Advanced Wound Care net product revenue.
- Management stated that third-quarter revenue increased sequentially and that market share gains were broad-based across the portfolio.
- The company cited LCD regulatory changes in connection with $3.3 million of inventory write-down adjustments for excess and obsolete inventory.
- Nine-month restructuring charges included employee severance and benefits, other exit costs associated with restructuring activities of $7.9 million, and $1.0 million of inventory write-down adjustments related to a facility closure.
- The nine-month non-GAAP reconciliations included $4.9 million of accelerated amortization of intangible assets due to a facility closure and R&D program termination costs of $5.6 million.
Concerns
- Advanced Wound Care revenue declined 73% in the third quarter and 67% in the nine-month period.
- Third-quarter gross profit was $23.6 million, or 52% of net product revenue, compared to $114.2 million, or 76% of net product revenue, in the prior-year quarter.
- The company reported a third-quarter operating loss of $29.5 million and a nine-month operating loss of $149.4 million.
- Cash, cash equivalents and restricted cash declined to $26.9 million as of September 30, 2026 from $94.3 million as of December 31, 2025.
- The company now expects fiscal 2026 total net revenue to decline 65% to 68% from fiscal 2025. It characterized expected fourth-quarter sequential improvement as occurring at a more measured rate than assumed in prior guidance.
What to watch
- The pace of expected sequential revenue improvement in the fourth quarter.
- Advanced Wound Care revenue trends following the market reset and the CMS updated 2026 Medicare reimbursement and coverage changes identified in the release.
- Gross profit and gross-profit rate recovery from $23.6 million, or 52% of net product revenue, in the third quarter.
- Cash use and liquidity following $29.1 million of net cash used in operating activities for the first nine months and a September 30 cash, cash equivalents and restricted cash balance of $26.9 million.
- Progress on the Smithfield, Rhode Island facility buildout and the timing of regulatory approval for and commercialization of Amnuvx.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash were $26.9 million as of September 30, 2026, compared to $94.3 million as of December 31, 2025.
- The company had no outstanding debt obligations as of September 30, 2026 and December 31, 2025.
- Accounts receivable, net, were $92,687 (in thousands) as of September 30, 2026, compared to $217,451 (in thousands) as of December 31, 2025.
- Net cash used in operating activities was $(29,120) (in thousands) for the nine months ended September 30, 2026, compared to $(49,729) (in thousands) for the nine months ended September 30, 2025.
- Purchases of property and equipment were $(5,712) (in thousands) for the nine months ended September 30, 2026.
- Issuance of common stock in connection with the ATM facility, net of offering costs, was $1,432 (in thousands) for the nine months ended September 30, 2026.
- Principal repayments of finance lease obligations were $(10,598) (in thousands) for the nine months ended September 30, 2026.
Analysis
Organogenesis reported a substantially weaker third quarter than the prior-year period. Net product revenue was $45.5 million, down $105.0 million, or 70%, while Advanced Wound Care revenue declined 73% to $38.2 million. Surgical & Sports Medicine revenue was $7.3 million, down 19%. Management stated that third-quarter revenue increased sequentially and that market share gains were broad-based, but the release did not provide the prior-quarter revenue figures.
The revenue contraction drove a sharp deterioration in profitability. Gross profit was $23.6 million, or 52% of net product revenue, compared with $114.2 million, or 76% of net product revenue, in the third quarter of 2025. Operating expenses fell 42% to $74.9 million, including a 43% reduction in selling, general and administrative expenses to $45.1 million, but those cost reductions did not offset the decline in gross profit. The company reported a $29.5 million operating loss and a $29.6 million net loss, compared with operating income of $20.7 million and net income of $21.6 million a year earlier.
Non-GAAP measures showed the same underlying pressure. Adjusted EBITDA was a loss of $22.4 million compared with Adjusted EBITDA income of $30.1 million in the prior-year quarter. Adjusted net loss was $29.3 million, compared with adjusted net income of $23.2 million, and non-GAAP operating loss was $29.1 million, compared with non-GAAP operating income of $23.0 million. For the nine-month period, the company disclosed inventory write-downs associated with LCD regulatory changes, restructuring charges, accelerated intangible-asset amortization due to a facility closure, and R&D program termination costs.
Liquidity declined during the nine-month period. Cash, cash equivalents and restricted cash were $26.9 million at September 30, 2026, versus $94.3 million at December 31, 2025, while the company reported no outstanding debt obligations at either date. Net cash used in operating activities was $(29,120) (in thousands), net cash used in investing activities was $(2,100) (in thousands), and net cash used in financing activities was $(36,174) (in thousands). The financing cash flow included $(23,958) (in thousands) for construction of landlord assets, net of tenant allowance, and $1,432 (in thousands) of net ATM proceeds.
For fiscal 2026, the company now expects total net revenue between $179.4 million and $200.0 million, a decline of 65% to 68% from $564.2 million in fiscal 2025. Management expects sequential improvement in fourth-quarter revenue trends, but stated that the pace will be more measured than assumed in prior guidance. The central reported issues are the scale of the Advanced Wound Care contraction, gross-profit compression, operating losses, reduced cash resources, and execution against the anticipated fourth-quarter revenue improvement.
Management, verbatim
Third quarter revenue increased sequentially, and our market share gains are broad-based across our portfolio. We are defining a sustainable future for advanced wound care as we emerge from the market reset a stronger company anchored by evidence-based living cell products that we believe will be the cornerstone of the market going forward.
Gary S. Gillheeney, Sr., President, Chief Executive Officer and Chair of the Board
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Dividends paid to common stockholders were not reported.
- Forward guidance for gross margin, operating expenses, tax rate, earnings, EPS, Adjusted EBITDA, operating cash flow, free cash flow, cash, or debt was not reported.
- A numerical prior-quarter revenue figure was not reported, so numerical sequential revenue growth cannot be provided.
- A Q3 2026 total revenue year-over-year change was not reported on the total revenue line.
- Q3 2026 and nine-month 2026 adjusted EPS were not reported.
- Q3 2026 and nine-month 2026 gross margin were not explicitly labeled as gross margin; the release reported gross profit as a percentage of net product revenue.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.