Organogenesis (NASDAQ:ORGO) Issues Quarterly Earnings Results, Misses Estimates By $0.36 EPS

Organogenesis (NASDAQ:ORGO) announced its quarterly earnings data on Thursday. The company reported ($0.71) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.35) by ($0.36), Zacks reports. The firm had revenue of $43.76 million during the quarter, compared to analysts’ expectations of $54.27 million. Organogenesis had a negative net margin of 19.94% and a negative return on equity of 21.24%.

Here are the key takeaways from Organogenesis’ conference call:

• Q2 revenue fell sharply: Total revenue declined 58% year over year to $42.8 million, including a 61% drop in Advanced Wound Care sales, as CMS payment and coverage changes continued to pressure the skin-substitute market.
• 2026 guidance was reduced: The company now expects full-year revenue of $179 million to $215 million, representing a 62% to 68% year-over-year decline, with recovery anticipated to be more measured and weighted toward the fourth quarter.
• Sequential trends improved: Q2 net product revenue increased 18% from Q1, while Advanced Wound Care sales rose 23% and wound-care unit volume grew 30%, which management attributed to market-share gains and demand for evidence-backed products.
• Cost reductions are being implemented: Two 2026 restructurings, including a June workforce reduction of 138 employees, are expected to lower annual operating expenses by more than $32 million; management projects positive adjusted EBITDA in Q4.
• Pipeline and clinical evidence advanced: The FDA accepted Amnuvx’s biologics application and set an April 24, 2027 PDUFA date, while new studies supporting PuraPly AM and Affinity may strengthen future coverage decisions. The company also entered a potential $75 million at-the-market equity program to support working capital and strategic initiatives.

Organogenesis Trading Down 22.8%

Shares of NASDAQ ORGO traded down $0.55 during mid-day trading on Friday, reaching $1.86. 4,853,487 shares of the company’s stock were exchanged, compared to its average volume of 755,677. The company’s 50-day moving average is $2.42 and its 200-day moving average is $2.76. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.16 and a current ratio of 3.53. The firm has a market capitalization of $239.34 million, a price-to-earnings ratio of -2.16 and a beta of 1.34. Organogenesis has a 52-week low of $1.54 and a 52-week high of $7.08.

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. BTIG Research cut Organogenesis from a “buy” rating to a “neutral” rating in a report on Friday, May 8th. UBS Group set a $3.00 price objective on Organogenesis in a research report on Thursday, May 28th. Weiss Ratings downgraded Organogenesis from a “hold (c)” rating to a “sell (d)” rating in a research note on Monday, May 11th. Truist Financial reduced their price target on Organogenesis from $3.00 to $2.00 and set a “hold” rating on the stock in a report on Friday. Finally, Wall Street Zen cut shares of Organogenesis from a “sell” rating to a “strong sell” rating in a research report on Saturday. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $4.33.

Institutional Investors Weigh In On Organogenesis

Institutional investors have recently made changes to their positions in the stock. Quarry LP acquired a new position in shares of Organogenesis in the 3rd quarter worth approximately $25,000. Federated Hermes Inc. raised its position in Organogenesis by 52.8% in the fourth quarter. Federated Hermes Inc. now owns 8,541 shares of the company’s stock valued at $44,000 after purchasing an additional 2,953 shares during the period. Mercer Global Advisors Inc. ADV purchased a new position in shares of Organogenesis during the fourth quarter worth $57,000. Walleye Capital LLC purchased a new position in shares of Organogenesis during the second quarter worth $45,000. Finally, Oxford Asset Management LLP acquired a new stake in shares of Organogenesis in the fourth quarter valued at $66,000. 49.57% of the stock is currently owned by institutional investors and hedge funds.

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.