Organogenesis (ORGO) investor relations material

Executive summary

• Q2 2026 net revenue was $42.8 million, down 58% year-over-year, with Advanced Wound Care revenue falling 61% and Surgical & Sports Medicine revenue down 18%.

• Net loss for Q2 2026 was $96.3 million, compared to $9.4 million in Q2 2025; adjusted net loss was $89.0 million.

• The decline was driven by CMS and Medicare reimbursement changes, regulatory uncertainty, and market contraction.

• Restructuring actions in 2026 included two workforce reductions and a facility closure, expected to lower annual operating expenses by over $32 million.

• Management noted sequential improvement and is prioritizing evidence-based products and new market expansion.

Financial highlights

• Q2 2026 net product revenue was $42.8 million, down 58% year-over-year; Advanced Wound Care revenue was $36.1 million, down 61%; Surgical & Sports Medicine revenue was $6.7 million, down 18%.

• Gross profit was $19.1 million (45% margin), down from 73% last year; non-GAAP gross profit was $20.9 million (49% margin).

• Operating loss was $51 million, up from $12.6 million last year; non-GAAP operating loss was $41.1 million, up from $10 million.

• GAAP net loss was $96.3 million, including $30 million non-cash tax expense; adjusted net loss was $89 million.

• Adjusted EBITDA loss was $34.4 million, compared to $3.6 million last year.

Outlook and guidance

• FY2026 net revenue expected between $179.0 million and $215.0 million, a 62–68% decline from FY2025.

• Sequential revenue improvement anticipated in Q3 and Q4, but at a slower pace than previously guided.

• Adjusted EBITDA loss expected to decrease by nearly 60% in H2 2026 versus H1, with positive adjusted EBITDA projected in Q4.

• Operating expenses (excluding COGS) expected to decrease 32% year-over-year in 2026, and over 40% in H2.

• Cash and working capital are expected to fund operations for at least 12 months.