Organogenesis (ORGO) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenue was $42.8 million, down 58% year-over-year, with Advanced Wound Care revenue falling 61% and Surgical & Sports Medicine revenue down 18%.

• Net loss for Q2 2026 was $96.3 million, compared to $9.4 million in Q2 2025; adjusted net loss was $89.0 million.

• The decline was driven by CMS/Medicare reimbursement changes and regulatory uncertainty, leading to significant market contraction.

• Strategic restructuring in 2026 included workforce reductions and facility closures to cut annual operating expenses by over $32 million.

• Management noted sequential improvement and market share gains through evidence-based products, but recovery remains slower than anticipated.

Financial highlights

• Gross profit for Q2 2026 was $19.1 million (45% margin), down from $73.1 million (73% margin) in Q2 2025; non-GAAP gross profit was $20.9 million (49% margin).

• Operating loss for Q2 2026 was $51.0 million vs. $12.6 million last year; non-GAAP operating loss was $41.1 million vs. $10 million last year.

• Adjusted EBITDA loss for Q2 2026 was $34.4 million, up from $3.6 million in Q2 2025.

• Operating expenses decreased 17% year-over-year to $94.7 million; R&D expense rose 76% to $18.3 million, while SG&A fell 27%.

• Cash and equivalents at June 30, 2026 were $46.8 million, with no outstanding debt.

Outlook and guidance

• FY2026 net revenue expected between $179.0 million and $215.0 million, a 62–68% decline from FY2025, revised downward from prior guidance.

• Sequential revenue improvement anticipated in Q3 and Q4, but at a slower pace than previously guided.

• Adjusted EBITDA loss expected to decrease by nearly 60% in H2 2026 vs. H1, with positive adjusted EBITDA anticipated in Q4.

• Operating expenses (excluding COGS) to be reduced by 32% year-over-year in 2026, over 40% in H2.

• Cash and working capital are expected to fund operations for at least 12 months.