Organon & Co.

Fourth quarter 2025 revenue was $1.57 billion, down 8% at constant currency. Full-year 2025 revenue was $6.2 billion, down 3% reported and ex exchange. Full-year 2025 adjusted EBITDA was $1.9 billion, with adjusted EBITDA margin at 30.7% versus 30.7% in 2024. Fourth-quarter adjusted gross margin was 56.7% versus 60.6% in Q4 2024, and full-year adjusted gross margin was 60.1% versus 61.6% in 2024. Fourth-quarter adjusted net income was $165 million, or $0.63 per diluted share, versus $235 million, or $0.90, a year earlier; full-year adjusted net income was $954 million, or $3.66 per share, versus $1.065 billion, or $4.11. Full-year free cash flow before one-time costs was $960 million, and net leverage ended the year at about 4.3x. For 2026, Organon guided to revenue of about $6.2 billion and adjusted EBITDA of about $1.9 billion, with revenue roughly flat on a constant-currency, pro forma basis after the Jada divestiture, adjusted gross margin down 75 to 100 basis points, interest expense about $500 million, non-GAAP tax rate of 27.5% to 29.5%, and net leverage below 4x by year-end.

Joe Morrissey said 2025 showed Organon can hold profitability while managing major portfolio shifts, including the Atozet LOE, Nexplanon pressure, and policy changes in parts of the business. He emphasized the FDA approval extending Nexplanon to 5 years as a meaningful milestone that could broaden the product’s addressable market, and pointed to Hadlima, Vtama, Emgality, and fertility as offsetting growth drivers. His tone was confident but cautious, stressing balance-sheet repair, disciplined spending, and a focus on maintaining 2026 performance roughly in line with 2025.

Matt Walsh walked through the quarter’s mix of headwinds and offsets, including the $17 million Nexplanon channel impact in Q4, about $20 million of LOE headwind in the quarter, and $30 million of onetime gross-to-net adjustments embedded in price. He said adjusted gross margin fell to 56.7% in Q4 from 60.6% and to 60.1% for the year from 61.6%, with pricing pressure and unfavorable mix as key drivers, while adjusted EBITDA margin held at 30.7% for the full year. On cash and capital allocation, he cited $960 million of free cash flow before one-time costs, about $270 million of restructuring and manufacturing-separation activity in 2025, about $170 million of commercial milestone payments, $66 million of upfront payments, roughly $530 million of debt retired, and expectations for about $100 million of manufacturing-separation costs in 2026.

Analysts focused heavily on whether management has a complete handle on channel and purchasing issues, especially after an earlier Nexplanon investigation and a newly disclosed issue; Carrie Cox declined to add color. Questions also centered on biosimilar policy changes, with management saying FDA draft guidance on comparative efficacy studies looks more incremental than transformational, and on Nexplanon’s 2026 outlook, where management said the product should be roughly flat year over year as ex-U.S. growth and the 5-year label offset U.S. reinsertion loss and channel pressure. Other notable topics included the pace of OpEx savings, the new Nexplanon REMS program, which management said should be manageable because existing prescribers can be recertified in about 15 to 20 minutes, and the CEO search, for which the board said no public update was available.