Organogenesis (NASDAQ:ORGO) Announces Quarterly Earnings Results

Organogenesis (NASDAQ:ORGO) posted its earnings results on Thursday. The company reported $0.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.10, Zacks reports. Organogenesis had a net margin of 5.32% and a return on equity of 22.64%. The business had revenue of $225.61 million for the quarter, compared to analysts’ expectations of $172.68 million.

Here are the key takeaways from Organogenesis’ conference call:

• The company reported record Q4 net product revenue of $225.1 million (up 78% YoY) with advanced wound care sales up 83%, beating the high end of prior guidance and driving strong margins and operating income improvement.
• For 2026 Organogenesis expects a 25%–38% decline in total net revenue YoY (Q1 ~50% decline) due to clinician confusion after CMS commentary on December 30, 2025, though management expects a recovery and positive adjusted EBITDA in H2 with high‑teens margins in Q4.
• Management views the recent CMS reimbursement reform as broadly favorable to PMA-classified products and a long‑term tailwind, but says December CMS actions created short‑term clinical confusion that temporarily reduced utilization of its PMA product.
• Balance sheet and strategic moves include $94.3 million in cash/restricted cash (down from $136.2M in 2024), no debt and a $75M revolver, plus capital investment in a new Smithfield, RI manufacturing/R&D center and a rolling BLA for ReNu expected to complete in H1 2026, which management calls transformational if approved.

Organogenesis Stock Performance

Shares of ORGO stock traded down $0.49 during mid-day trading on Friday, reaching $3.21. 1,686,783 shares of the company’s stock traded hands, compared to its average volume of 520,021. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.88 and a current ratio of 3.32. The firm has a market capitalization of $407.38 million, a PE ratio of 40.13 and a beta of 1.46. Organogenesis has a 12 month low of $2.61 and a 12 month high of $7.08. The firm has a 50 day moving average price of $4.23 and a two-hundred day moving average price of $4.59.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. BTIG Research dropped their target price on shares of Organogenesis from $9.00 to $8.00 and set a “buy” rating on the stock in a report on Friday. Weiss Ratings restated a “sell (d+)” rating on shares of Organogenesis in a research note on Monday, December 29th. Finally, Wall Street Zen lowered Organogenesis from a “strong-buy” rating to a “hold” rating in a report on Saturday. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $7.67.

Insiders Place Their Bets

In other Organogenesis news, Director Glenn H. Nussdorf sold 200,000 shares of the business’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $5.14, for a total transaction of $1,028,000.00. Following the completion of the sale, the director owned 2,565,591 shares of the company’s stock, valued at approximately $13,187,137.74. The trade was a 7.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 33.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ORGO. Creative Planning raised its stake in Organogenesis by 8.2% during the 3rd quarter. Creative Planning now owns 38,279 shares of the company’s stock worth $162,000 after acquiring an additional 2,887 shares during the period. Federated Hermes Inc. increased its stake in shares of Organogenesis by 52.8% in the fourth quarter. Federated Hermes Inc. now owns 8,541 shares of the company’s stock worth $44,000 after purchasing an additional 2,953 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of Organogenesis by 10.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 40,278 shares of the company’s stock valued at $209,000 after purchasing an additional 3,825 shares during the period. BNP Paribas Financial Markets raised its position in shares of Organogenesis by 57.0% during the 3rd quarter. BNP Paribas Financial Markets now owns 14,522 shares of the company’s stock valued at $61,000 after purchasing an additional 5,273 shares during the period. Finally, Quarry LP purchased a new position in shares of Organogenesis during the 3rd quarter valued at $25,000. 49.57% of the stock is currently owned by institutional investors.

Key Headlines Impacting Organogenesis

Here are the key news stories impacting Organogenesis this week:

• Positive Sentiment: Record Q4 results — Organogenesis reported Q4 revenue of $225.6M (big beat) and EPS that topped estimates, with strong gross‑profit and operating‑profit expansion and materially higher operating cash flow. This explains recent upside in sentiment from the quarter’s beat. Organogenesis Reports Fourth Quarter 2025 Financial Results
• Neutral Sentiment: Analyst price‑target adjustment — BTIG trimmed its target from $9.00 to $8.00 but maintained a Buy rating, still implying substantial upside from today’s price. This keeps some analyst support but signals more cautious optimism. BTIG Price Target Update via Benzinga
• Negative Sentiment: Weak FY‑2026 guidance — management issued revenue guidance of $350M–$420M for FY‑2026, well below consensus (~$543M). The large gap between the outlook and street expectations is the primary driver of the stock weakening today. FY‑2026 Guidance and Earnings Release (MarketBeat)
• Negative Sentiment: Insider and institutional flows — notable insider selling (reported large insider sales) and mixed institutional activity (some large redemptions/position cuts) may add selling pressure or indicate some investors are booking gains after the strong quarter. QuiverQuant Coverage of Q4 Results & Insider Activity

Organogenesis Company Profile

Organogenesis Inc operates as a regenerative medicine company focused on the development, manufacturing and commercialization of therapeutic solutions for wound care, surgical repair and sports medicine. The company’s product portfolio addresses a range of acute and chronic tissue repair needs, leveraging bioengineered skin substitutes, human placental-derived products and other allografts designed to promote healing and reduce scarring. Organogenesis markets its therapies to hospitals, outpatient clinics, wound care centers and other healthcare providers.

Key offerings include Apligraf, a living skin substitute for treatment of diabetic foot ulcers and venous leg ulcers; Dermagraft, a cryopreserved human fibroblast-derived dermal substitute; Grafix, a placental membrane allograft for complex and chronic wounds; and TheraSkin, a cryopreserved human skin allograft used in surgical and reconstructive procedures.