Organogenesis Holdings Inc.

Q2 2026 net product revenue was $42.8 million, down 58% year over year. Advanced Wound Care revenue was $36.1 million, down 61%, and Surgical & Sports Medicine revenue was $6.7 million, down 18%. Gross profit was $19.1 million, or 45% of net product revenue, versus 73% last year; non-GAAP gross profit was $20.9 million, or 49%. Operating loss was $51 million versus $12.6 million last year; GAAP net loss was $96.3 million versus $9.4 million; adjusted EBITDA loss was $34.4 million versus $3.6 million. Cash, cash equivalents and restricted cash were $46.8 million at June 30, 2026, with no debt. Full-year 2026 guidance was lowered to total net revenue of $179 million to $215 million, including Advanced Wound Care revenue of $151 million to $183 million, Surgical & Sports Medicine revenue of $26 million to $30 million, and grant income of $1.9 million. Management still expects sequential revenue improvement in Q3 and Q4, but at a more measured pace, with positive adjusted EBITDA generation expected in Q4 and second-half adjusted EBITDA loss down meaningfully versus the first half.

Gary Gillheeney said the quarter reflected the sharp contraction and slow recovery in the skin substitute market after CMS changes, but he emphasized that Organogenesis is taking share and seeing improving month-to-month trends. He framed the company as best positioned in the category because of its FDA-category breadth, evidence base, and PMA-approved Apligraf, and said the company is doubling down on wound care while also pushing into new markets through Amnuvx. His tone was defensive on the near-term environment but confident on the long-term market position and clinical differentiation.

David Francisco emphasized that Q2 results were better sequentially than the first quarter, with total revenue up 18% quarter over quarter and Advanced Wound Care up 23%. He broke out the cost actions: operating expenses were $94.7 million, down $18.8 million year over year, while non-GAAP operating expenses excluding cost of goods were $63 million, down $20.4 million, and the March restructuring is expected to save about $13.4 million annually. He also said the June restructuring should save about $18 million annually, cash at quarter-end was $46.8 million with no debt, and the company expects current cash plus product sales to fund operations and capex for at least 12 months. The company also entered an ATM facility for up to $75 million, with proceeds intended for working capital, R&D and other strategic initiatives.

Analysts focused on what would give management confidence that CMS is stabilizing the market, how to think about Q3 versus Q4 pacing, and whether products are getting paid versus being delayed or clawed back. Gary said CMS’s reinstated $127.14 reimbursement rate and the maintained tier structure around PMA, 510(k) and 361 products are helping stabilize the market, and he said clinicians are becoming more comfortable with the current framework. On product mix, he said the main concern is post-application clawbacks for products without RCT evidence, which he described as creating a flight to quality and benefiting Organogenesis. On guidance, management said the low end reflects somewhat less than current growth and the high end reflects current growth plus modest market expansion, with Q4 weighted a bit more than Q3. They also said Dermagraft manufacturing build-out is being slowed to preserve cash, delaying launch by roughly a year.