Origin Materials Reports 20% Revenue Decline and Increased Losses in Q1 2025

Origin Materials, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenues of $5.43 million, down 20% from $6.83 million in the same period last year. The decrease was primarily attributed to a planned reduction in the company's supply chain activation program. The cost of revenues mirrored this trend, also decreasing by 20% to $5.32 million. The company recorded a net loss of $26.44 million, compared to a loss of $13.91 million in the prior year, reflecting a 90% increase in losses.

The company's operating expenses surged to $32.74 million, an 81% increase from $18.14 million in the previous year. This rise was largely driven by a $16.61 million impairment charge related to long-term assets, marking a significant operational challenge. Research and development expenses decreased by 43% to $3.30 million, attributed to reduced payroll and facility costs following a headcount reduction. General and administrative expenses remained relatively stable, increasing slightly to $10.11 million.

In terms of strategic developments, Origin Materials has made progress in its PET closures business, which aims to capture a share of the estimated $65 billion global closures market. The company successfully completed the Factory Acceptance Test for its first CapFormer System, which is designed for the production of PET closures. This system has commenced commercial production in February 2025, with plans to scale up operations further. The company is also focusing on expanding its furanics technology, which transforms biomass into sustainable materials, addressing a market opportunity estimated at $1 trillion.

Operationally, Origin Materials reported a decrease in cash and cash equivalents to $43.84 million as of March 31, 2025, down from $56.31 million at the end of 2024. The company’s total assets decreased to $348.98 million, while total liabilities were reported at $34.37 million. The company continues to rely heavily on a small number of customers, with two customers accounting for approximately 93% of total accounts receivable as of March 31, 2025.

Looking ahead, Origin Materials anticipates continued operating losses as it invests in scaling its manufacturing capabilities and expanding its product offerings. The company is actively seeking additional project financing and government incentives to support its growth strategy. Despite the current challenges, Origin remains focused on its mission to enable the transition to sustainable materials and is optimistic about the long-term potential of its innovative products.