Organogenesis Holdings Inc. reported a decline in financial performance for the second quarter of 2025, with total revenue of $101.0 million, down from $130.2 million in the same period last year. The decrease was primarily driven by a 23% drop in net product revenue, which fell to $100.8 million from $130.2 million. The company's Advanced Wound Care segment experienced a significant revenue decline of 25%, attributed to disruptions in customer behavior following delayed implementation of new Medicare coverage determinations. In contrast, the Surgical & Sports Medicine segment saw a 16% increase in revenue, reaching $8.1 million.
The company's operating expenses for the quarter totaled $113.6 million, a decrease from $144.1 million in the prior year. This reduction was largely due to lower research and development costs, which fell by 33% to $10.4 million, as well as a decrease in selling, general, and administrative expenses. Despite these reductions, Organogenesis reported a net loss of $9.4 million for the quarter, an improvement from a net loss of $17.0 million in the same quarter of 2024. The loss per share was $0.10, compared to $0.13 in the previous year.
In terms of operational metrics, the company had approximately 233 direct sales representatives and 175 independent agencies as of June 30, 2025. The total cash and cash equivalents decreased to $73.1 million from $135.6 million at the end of 2024. The company also reported a working capital of $189.1 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 is transitioning its Dermagraft manufacturing to a new facility in Smithfield, Rhode Island, with plans to resume sales by the end of 2027. Additionally, the company has entered into a trademark license and manufacturing agreement with Vivex Biologics, which includes a royalty structure based on net sales of certain products.
Looking ahead, Organogenesis anticipates challenges due to potential changes in Medicare reimbursement policies, which could impact product utilization and revenue. The company is actively monitoring these developments and is prepared to adapt its strategies accordingly. Overall, while the company has made progress in reducing losses and managing expenses, it faces significant headwinds in revenue generation and market conditions.
About Organogenesis Holdings Inc.
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