Organogenesis Reports 57% Revenue Decline and $53.2 Million Net Loss in Q1 2026

Organogenesis Holdings Inc. reported a significant decline in financial performance for the first quarter of 2026, with total revenue of $37.2 million, a decrease of 57% from $86.7 million in the same period of 2025. The drop was primarily driven by a 63% decline in net product revenue from its Advanced Wound Care segment, which fell to $29.5 million from $79.9 million year-over-year. The company attributed this decline to increased clinician confusion and market disruption following changes in Medicare coverage policies for skin substitutes.

Operating expenses for the quarter totaled $106.1 million, down from $113.4 million in the prior year. The decrease was largely due to lower selling, general, and administrative expenses, which fell to $65.2 million from $72.5 million, reflecting reduced commissions and allowances for expected credit losses. However, research and development expenses increased by 42% to $15.2 million, driven by pre-launch activities related to the Dermagraft product and clinical research for the ReNu product.

Organogenesis reported a net loss of $53.2 million for the quarter, compared to a net loss of $18.8 million in the first quarter of 2025. The loss per share was $(0.44), a significant increase from $(0.17) in the prior year. The company also recorded an income tax benefit of $15.3 million, up from $6.9 million, primarily due to a higher pre-tax loss. As of March 31, 2026, the company had cash and cash equivalents of $91.4 million, down from $93.7 million at the end of 2025.

In terms of operational developments, Organogenesis has committed to a restructuring plan that includes closing its St. Petersburg, Florida facility, resulting in a reduction of approximately 10% of its workforce. This restructuring is expected to enhance productivity and profitability, with associated charges of $8.8 million recorded in the first quarter. The company also continues to focus on its product pipeline, with the rolling submission of a Biologics License Application (BLA) for ReNu initiated in December 2025 and completed in April 2026.

Looking ahead, Organogenesis anticipates that the ongoing changes in Medicare reimbursement policies may continue to impact product utilization and revenue. The company plans to prioritize certain products in its portfolio in response to these developments. Despite the challenges, Organogenesis remains committed to advancing its product offerings and improving operational efficiencies to drive future growth.