Organogenesis Reports $86.7 Million Revenue in Q1 2025, Net Loss of $18.8 Million

Organogenesis Holdings Inc. reported a net revenue of $86.7 million for the first quarter of 2025, a decrease of 21% from $110.0 million in the same period of 2024. The decline was primarily driven by a significant drop in sales from the Advanced Wound Care segment, which fell by 23% to $79.9 million, attributed to increased uncertainty in customer behavior following delays in the implementation of new Medicare coverage determinations. In contrast, revenue from the Surgical & Sports Medicine segment increased by 11% to $6.8 million, reflecting improved customer buying patterns.

The company's gross profit also decreased, falling to $63.0 million from $81.3 million year-over-year, marking a 23% decline. This reduction was influenced by a shift in product mix and a decrease in sales volume, leading to a gross profit margin that contracted as a percentage of revenue. Operating expenses rose to $89.7 million from $85.1 million, largely due to a $6.6 million write-down related to assets held for sale, alongside increased personnel costs. As a result, Organogenesis reported a net loss of $18.8 million, compared to a loss of $2.1 million in the prior year.

In terms of operational metrics, the company maintained a workforce of approximately 256 direct sales representatives and 174 independent agencies as of March 31, 2025. The total cash and cash equivalents at the end of the quarter stood at $110.0 million, down from $135.6 million at the end of 2024. The company also reported a working capital of $203.1 million, which it expects to be sufficient to fund its operations for at least the next 12 months.

Strategically, Organogenesis is focused on expanding its product offerings and enhancing its manufacturing capabilities. The company has entered into a trademark license and manufacturing agreement with Vivex Biologics, which includes the sale of its CYGNUS product line. Additionally, the company is transitioning its Dermagraft manufacturing to a new facility in Smithfield, Rhode Island, expected to yield long-term cost savings. However, delays in this transition could adversely affect future revenues.

Looking ahead, Organogenesis anticipates continued challenges in the Advanced Wound Care market due to regulatory uncertainties and competitive pressures. The company is committed to leveraging its product pipeline and clinical data to drive growth, while also managing its operational costs and improving its financial performance. The outlook remains cautious, with the potential for further adjustments based on market conditions and regulatory developments.