Organogenesis (NASDAQ:ORGO) Releases Quarterly Earnings Results, Misses Expectations By $0.36 EPS

Organogenesis (NASDAQ:ORGO) posted its earnings results 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 for the quarter, compared to analysts’ expectations of $54.27 million. Organogenesis had a positive return on equity of 9.63% and a negative net margin of 0.84%.

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 30.5%

Organogenesis stock traded down $0.73 during mid-day trading on Friday, hitting $1.68. The company’s stock had a trading volume of 3,047,793 shares, compared to its average volume of 1,074,597. Organogenesis has a 1 year low of $1.54 and a 1 year high of $7.08. The stock’s fifty day moving average is $2.44 and its two-hundred day moving average is $2.77. The firm has a market capitalization of $215.54 million, a PE ratio of -8.82 and a beta of 1.34. The company has a current ratio of 3.53, a quick ratio of 3.16 and a debt-to-equity ratio of 0.05.

Institutional Investors Weigh In On Organogenesis

Institutional investors and hedge funds have recently modified their holdings of the company. Quarry LP purchased a new position in Organogenesis during the 3rd quarter valued at about $25,000. Federated Hermes Inc. lifted its position in shares of Organogenesis by 52.8% during 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. Walleye Capital LLC purchased a new position in shares of Organogenesis in the second quarter valued at approximately $45,000. Mercer Global Advisors Inc. ADV acquired a new position in shares of Organogenesis in the fourth quarter valued at approximately $57,000. Finally, BNP Paribas Financial Markets grew its holdings in shares of Organogenesis by 57.0% in the third 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 in the last quarter. Hedge funds and other institutional investors own 49.57% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on ORGO. Wall Street Zen raised Organogenesis from a “strong sell” rating to a “sell” rating in a research report on Saturday, June 20th. 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 target on Organogenesis in a research report on Thursday, May 28th. Weiss Ratings cut Organogenesis from a “hold (c)” rating to a “sell (d)” rating in a research report on Monday, May 11th. Finally, Truist Financial reduced their target price on Organogenesis from $3.00 to $2.00 and set a “hold” rating on the stock in a research report on Friday. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Organogenesis has an average rating of “Hold” and a consensus price target of $5.50.

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.