Organogenesis (NASDAQ:ORGO) Releases Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Organogenesis (NASDAQ:ORGO) announced its quarterly earnings results on Thursday. The company reported $0.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.10, Zacks reports. Organogenesis had a positive return on equity of 4.01% and a negative net margin of 1.30%.The firm had revenue of $225.61 million for the quarter, compared to the consensus estimate of $172.68 million.

Here are the key takeaways from Organogenesis’ conference call:

• The company reported record Q4 net product revenue of $225.1 million (up 78% YoY) with advanced wound care sales up 83%, beating the high end of prior guidance and driving strong margins and operating income improvement.
• For 2026 Organogenesis expects a 25%–38% decline in total net revenue YoY (Q1 ~50% decline) due to clinician confusion after CMS commentary on December 30, 2025, though management expects a recovery and positive adjusted EBITDA in H2 with high‑teens margins in Q4.
• Management views the recent CMS reimbursement reform as broadly favorable to PMA-classified products and a long‑term tailwind, but says December CMS actions created short‑term clinical confusion that temporarily reduced utilization of its PMA product.
• Balance sheet and strategic moves include $94.3 million in cash/restricted cash (down from $136.2M in 2024), no debt and a $75M revolver, plus capital investment in a new Smithfield, RI manufacturing/R&D center and a rolling BLA for ReNu expected to complete in H1 2026, which management calls transformational if approved.

Organogenesis Trading Down 11.5%

Shares of NASDAQ ORGO traded down $0.43 during trading on Friday, hitting $3.28. 922,390 shares of the company were exchanged, compared to its average volume of 683,639. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.88 and a current ratio of 3.32. Organogenesis has a 12-month low of $2.61 and a 12-month high of $7.08. The company has a fifty day moving average price of $4.27 and a 200-day moving average price of $4.60. The firm has a market capitalization of $415.64 million, a PE ratio of -27.30 and a beta of 1.46.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Weiss Ratings reiterated a “sell (d+)” rating on shares of Organogenesis in a research report on Monday, December 29th. BTIG Research cut their target price on shares of Organogenesis from $9.00 to $8.00 and set a “buy” rating for the company in a report on Friday. Finally, Wall Street Zen raised shares of Organogenesis from a “hold” rating to a “strong-buy” rating in a research note on Saturday, November 8th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $7.67.

Key Stories Impacting Organogenesis

Here are the key news stories impacting Organogenesis this week:

• Positive Sentiment: Record Q4 financial beat — Organogenesis reported $225.6M in Q4 revenue (roughly +78% YoY), outsized margin expansion and EPS that topped estimates, providing clear fundamental upside that supported the stock. Organogenesis Stock Rises on Q4 2025 Earnings
• Positive Sentiment: Company press release confirms “record revenue” and outlines the quarter’s operational highlights, reinforcing management’s narrative on durable top‑line momentum. Q4 2025 Financial Results Press Release
• Neutral Sentiment: Earnings call and transcript coverage are available for investors wanting color on product trends, gross margin drivers and channel dynamics — useful for modeling but not new facts. Q4 2025 Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Additional call transcripts and write‑ups (Yahoo, The Motley Fool) expand on the quarter; these are distributional resources rather than new catalysts. Yahoo Finance Q4 Highlights
• Neutral Sentiment: BTIG lowered its price target from $9 to $8 but kept a Buy rating — that trims upside expectations versus earlier coverage but still implies material upside. Benzinga
• Negative Sentiment: Conservative FY‑2026 guidance — management’s revenue range of about $350M–$420M is well below street consensus (~$543M), creating downward pressure as investors re‑price forward expectations. (Guidance disclosed with the earnings release.)
• Negative Sentiment: Insider selling and some institutional rebalancing were noted in coverage; recent insider share sales and sizable institutional position changes can weigh on sentiment. Insider & Institutional Activity (Quiver)

Insiders Place Their Bets

In other news, Director Glenn H. Nussdorf sold 200,000 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $5.14, for a total transaction of $1,028,000.00. Following the completion of the sale, the director owned 2,565,591 shares in the company, valued at $13,187,137.74. This trade represents a 7.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 33.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Organogenesis

Institutional investors have recently added to or reduced their stakes in the business. Strs Ohio acquired a new stake in shares of Organogenesis in the first quarter valued at about $105,000. Creative Planning boosted its position in Organogenesis by 84.5% during the second quarter. Creative Planning now owns 35,392 shares of the company’s stock worth $130,000 after acquiring an additional 16,205 shares during the last quarter. Cetera Investment Advisers acquired a new position in Organogenesis in the 2nd quarter valued at $222,000. American Century Companies Inc. lifted its stake in shares of Organogenesis by 25.6% during the 2nd quarter. American Century Companies Inc. now owns 164,793 shares of the company’s stock worth $603,000 after purchasing an additional 33,573 shares during the period. Finally, Russell Investments Group Ltd. boosted its holdings in shares of Organogenesis by 36.6% during the second quarter. Russell Investments Group Ltd. now owns 168,152 shares of the company’s stock worth $617,000 after purchasing an additional 45,021 shares during the last quarter. Hedge funds and other institutional investors own 49.57% of the company’s stock.

About Organogenesis

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.