Organogenesis (NASDAQ:ORGO – Get Free Report) released its quarterly earnings results on Thursday. The company reported ($0.77) earnings per share for the quarter, missing the consensus estimate of ($0.35) by ($0.42), FiscalAI reports. The company had revenue of $43.76 million during the quarter, compared to analyst estimates of $54.27 million. Organogenesis had a negative net margin of 0.84% and a positive return on equity of 9.63%.
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 Stock Performance
ORGO stock traded up $0.04 during trading hours on Thursday, reaching $2.41. The stock had a trading volume of 724,231 shares, compared to its average volume of 735,853. The stock has a 50-day simple moving average of $2.44 and a 200 day simple moving average of $2.77. Organogenesis has a fifty-two week low of $2.04 and a fifty-two week high of $7.08. The stock has a market capitalization of $310.12 million, a PE ratio of -12.68 and a beta of 1.34. The company has a debt-to-equity ratio of 0.05, a current ratio of 3.53 and a quick ratio of 3.16.
Institutional Investors Weigh In On Organogenesis
Wall Street Analyst Weigh In
A number of research firms have issued reports on ORGO. Wall Street Zen upgraded Organogenesis from a “strong sell” rating to a “sell” rating in a report on Saturday, June 20th. BTIG Research cut Organogenesis from a “buy” rating to a “neutral” rating in a research report on Friday, May 8th. Truist Financial initiated coverage on Organogenesis in a report on Thursday, May 28th. They set a “hold” rating and a $3.00 price objective for the company. Weiss Ratings cut shares of Organogenesis from a “hold (c)” rating to a “sell (d)” rating in a research note on Monday, May 11th. Finally, UBS Group set a $3.00 price objective on shares of Organogenesis in a report on Thursday, May 28th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $5.75.
Read Our Latest Analysis on Organogenesis
About Organogenesis
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.
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