ORGO · Organogenesis Holdings Inc.

Organogenesis Holdings Inc. disclosed sharply deteriorated Q1 2026 results, with net product revenue plummeting 58% year-over-year to $36.3 million, primarily due to a 63% collapse in Advanced Wound Care sales to $29.5 million while Surgical & Sports Medicine held steady at $6.8 million. Gross profit margins contracted dramatically from 73% to 29%, reflecting $52.5 million lower gross profit amid elevated cost of goods sold up 9% to $25.8 million. Operating expenses declined 6% to $106.1 million, driven by 10% lower SG&A to $65.2 million, though R&D rose 42% to $15.2 million; operating loss thus ballooned to $68.9 million from $26.7 million. Net loss reached $53.2 million or $(0.44) per share, versus $18.8 million or $(0.17) prior year, with Adjusted EBITDA loss worsening to $48.2 million. CEO Gary S. Gillheeney acknowledged a 'challenging start' amid 'unprecedented disruption' but expressed confidence in H2 recovery, citing the ReNu BLA submission and clinical evidence. Balance sheet remains solid with $92.1 million in cash and no debt as of March 31, 2026, down slightly from $94.3 million at year-end. Updated FY2026 revenue guidance of $270-310 million signals 45-52% decline from 2025's $564.2 million, assuming measured Q2 improvement and prolonged market headwinds into H2, underscoring heightened execution risks for investors.