Organogenesis (NASDAQ:ORGO) Announces Quarterly Earnings Results

Organogenesis (NASDAQ:ORGO) announced its quarterly earnings data on Thursday. The company reported ($0.77) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.35) by ($0.42), FiscalAI reports. Organogenesis had a negative net margin of 0.84% and a positive return on equity of 9.63%. The business had revenue of $43.76 million during the quarter, compared to the consensus estimate of $54.27 million.

Here are the key takeaways from Organogenesis’ conference call:

• Q2 revenue fell sharply: Total revenue declined 58% year over year to $42.8 million, including a 61% drop in Advanced Wound Care sales, as CMS payment and coverage changes continued to pressure the skin-substitute market.
• 2026 guidance was reduced: The company now expects full-year revenue of $179 million to $215 million, representing a 62% to 68% year-over-year decline, with recovery anticipated to be more measured and weighted toward the fourth quarter.
• Sequential trends improved: Q2 net product revenue increased 18% from Q1, while Advanced Wound Care sales rose 23% and wound-care unit volume grew 30%, which management attributed to market-share gains and demand for evidence-backed products.
• Cost reductions are being implemented: Two 2026 restructurings, including a June workforce reduction of 138 employees, are expected to lower annual operating expenses by more than $32 million; management projects positive adjusted EBITDA in Q4.
• Pipeline and clinical evidence advanced: The FDA accepted Amnuvx’s biologics application and set an April 24, 2027 PDUFA date, while new studies supporting PuraPly AM and Affinity may strengthen future coverage decisions. The company also entered a potential $75 million at-the-market equity program to support working capital and strategic initiatives.

Organogenesis Price Performance

Shares of Organogenesis stock traded up $0.04 on Thursday, reaching $2.41. The stock had a trading volume of 724,231 shares, compared to its average volume of 735,853. The business’s 50 day moving average is $2.44 and its two-hundred day moving average is $2.77. The company has a current ratio of 3.53, a quick ratio of 3.16 and a debt-to-equity ratio of 0.05. Organogenesis has a 1 year low of $2.04 and a 1 year high of $7.08. The company has a market cap of $310.12 million, a P/E ratio of -12.68 and a beta of 1.34.

Institutional Trading of Organogenesis

Several institutional investors and hedge funds have recently bought and sold shares of the company. Creative Planning boosted its stake in shares of Organogenesis by 8.2% in the 3rd quarter. Creative Planning now owns 38,279 shares of the company’s stock valued at $162,000 after purchasing an additional 2,887 shares in the last quarter. Federated Hermes Inc. raised its position in Organogenesis by 52.8% in the 4th quarter. Federated Hermes Inc. now owns 8,541 shares of the company’s stock worth $44,000 after purchasing an additional 2,953 shares during the period. Price T Rowe Associates Inc. MD raised its position in Organogenesis by 10.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 40,278 shares of the company’s stock worth $209,000 after purchasing an additional 3,825 shares during the period. BNP Paribas Financial Markets lifted its stake in Organogenesis by 57.0% in the third quarter. BNP Paribas Financial Markets now owns 14,522 shares of the company’s stock worth $61,000 after purchasing an additional 5,273 shares during the last quarter. Finally, Quarry LP bought a new stake in Organogenesis in the third quarter worth $25,000. 49.57% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Weiss Ratings cut Organogenesis from a “hold (c)” rating to a “sell (d)” rating in a research note on Monday, May 11th. Truist Financial started coverage on shares of Organogenesis in a research report on Thursday, May 28th. They set a “hold” rating and a $3.00 price target for the company. UBS Group set a $3.00 price objective on shares of Organogenesis in a report on Thursday, May 28th. BTIG Research lowered shares of Organogenesis from a “buy” rating to a “neutral” rating in a research report on Friday, May 8th. Finally, Wall Street Zen upgraded shares of Organogenesis from a “strong sell” rating to a “sell” rating in a research note on Saturday, June 20th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Organogenesis presently has an average rating of “Hold” and an average target price of $5.75.

Organogenesis Company Profile

Organogenesis Inc operates as a regenerative medicine company focused on the development, manufacturing and commercialization of therapeutic solutions for wound care, surgical repair and sports medicine. The company’s product portfolio addresses a range of acute and chronic tissue repair needs, leveraging bioengineered skin substitutes, human placental-derived products and other allografts designed to promote healing and reduce scarring. Organogenesis markets its therapies to hospitals, outpatient clinics, wound care centers and other healthcare providers.

Key offerings include Apligraf, a living skin substitute for treatment of diabetic foot ulcers and venous leg ulcers; Dermagraft, a cryopreserved human fibroblast-derived dermal substitute; Grafix, a placental membrane allograft for complex and chronic wounds; and TheraSkin, a cryopreserved human skin allograft used in surgical and reconstructive procedures.