Organogenesis Holdings Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue for Q3 2026 was $45.5 million, a 70% decrease from $150.5 million in Q3 2025.
• Advanced Wound Care revenue was $38.2 million, down 73% year-over-year.
• Surgical & Sports Medicine revenue was $7.3 million, down 19% year-over-year.
• Net loss for Q3 2026 was $29.6 million ($0.25 per share), compared to net income of $21.6 million ($0.11 per share) in Q3 2025.
• Adjusted net loss for Q3 2026 was $29.3 million, compared to adjusted net income of $23.2 million in Q3 2025.
• Adjusted EBITDA loss for Q3 2026 was $22.4 million, compared to adjusted EBITDA income of $30.1 million in Q3 2025.
• Gross profit for Q3 2026 was $23.6 million (52% margin), down from $114.2 million (76% margin) in Q3 2025.
• Operating expenses for Q3 2026 were $74.9 million, down 42% from $130.1 million in Q3 2025.
• For the nine months ended September 30, 2026, net product revenue was $124.5 million, down 63% from $338.0 million in the prior year period.
• Net loss for the nine months ended September 30, 2026, was $179.1 million ($1.47 per share), compared to a net loss of $6.7 million ($0.12 per share) in the prior year period.
• Cash, cash equivalents, and restricted cash were $26.9 million as of September 30, 2026, down from $94.3 million as of December 31, 2025.
• The company had no outstanding debt obligations as of September 30, 2026.
• Accumulated deficit increased to $(182.4) million as of September 30, 2026, from $(3.1) million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 total net revenue guidance is lowered to a range of $179.4 million to $200.0 million, representing a 65% to 68% decline compared to $564.2 million in 2025.
• Management expects sequential revenue improvement in Q4 2026, though at a more measured rate than previously assumed.
• Second-half 2026 revenue decline is now expected to be between 68% and 74% year-over-year, revised from a prior range of 64% to 74%.

Business Segments and Product Lines:

• Advanced Wound Care revenue decreased 73% in Q3 2026 and 67% for the first nine months of 2026.
• Surgical & Sports Medicine revenue decreased 19% in Q3 2026 and 13% for the first nine months of 2026.
• R&D expense increased 21% to $41.4 million for the nine months ended September 30, 2026, compared to $34.3 million in the prior year period.
• Selling, general and administrative expenses decreased 43% to $45.1 million in Q3 2026 and 27% to $164.2 million for the nine months ended September 30, 2026.
• Cost of goods sold decreased 40% to $21.9 million in Q3 2026 and 19% to $71.3 million for the nine months ended September 30, 2026.

Market and Competitive Landscape:

• Management stated that market share gains are broad-based across the portfolio.
• The company is emerging from a market reset, anchored by evidence-based living cell products.
• The company faces significant and continuing competition which could adversely affect business results.
• CMS updated 2026 Medicare reimbursement and coverage changes are cited as a key factor impacting the business.

Risks and Challenges:

• The company has incurred losses in prior periods and may incur future losses.
• Risks include the ability to raise funds to expand the business.
• Potential for rapid technological change rendering products obsolete if R&D efforts do not enhance offerings.
• Dependence on convincing physicians that products are safe and effective alternatives to existing treatments.
• Risks related to the timeline for obtaining regulatory approval and commercializing Amnuvx.
• Potential delays or budget overruns in building out the Smithfield, Rhode Island facility.
• Risks associated with maintaining production or supply quantities to meet demand.
• Inventory write-downs of $3.3 million were recorded in the nine months ended September 30, 2026, due to LCD regulatory changes and facility closures.
• Restructuring charges of $8.9 million were recorded in the nine months ended September 30, 2026, including severance and exit costs.
• R&D program termination costs of $5.6 million were recorded in the nine months ended September 30, 2026.

Management Commentary and Tone:

• Gary S. Gillheeney, Sr., President, CEO, and Chair, stated the company is strengthening its position as a leader in regenerative medicine.
• Management expressed confidence that evidence-based living cell products will be the cornerstone of the market going forward.
• The tone indicates a focus on defining a sustainable future for advanced wound care while emerging from a market reset.

Other Key Points:

• A building classified as held for sale was sold in July 2026, resulting in a fair value adjustment.
• $4.9 million in accelerated amortization of intangible assets was recorded due to a facility closure.
• The company issued common stock in connection with an ATM facility, net of offering costs, generating $1.4 million in the nine months ended September 30, 2026.
• Principal repayments of finance lease obligations totaled $10.6 million in the nine months ended September 30, 2026.
• Construction of landlord assets, net of tenant allowance, totaled $24.0 million in the nine months ended September 30, 2026.
• Accretion of redeemable convertible preferred stock to redemption value was $0.5 million for the nine months ended September 30, 2026.
• Cumulative dividends on redeemable convertible preferred stock were $8.7 million for the nine months ended September 30, 2026.
• Accounts receivable decreased significantly by $123.6 million in the nine months ended September 30, 2026.
• Deferred tax asset of $29.9 million recorded in the prior year was fully reversed in the current period.