Origin Materials 2025 Q3 Earnings 55.4% Reduction in Net Loss

Origin Materials reported Q3 2025 earnings with a 55.4% reduction in net loss to $-16.38 million, despite a 43.2% revenue decline to $4.66 million. The company maintained its 2026-2027 revenue guidance while securing $15 million in financing to support production expansion.

Revenue

Origin Materials reported total revenue of $4.66 million for Q3 2025, all of which came from its Products segment. This represents a 43.2% year-over-year decline from $8.20 million in Q3 2024, reflecting slower supply chain rollout rather than reduced demand for PET caps.

Earnings/Net Income

The company narrowed its net loss to $-16.38 million in Q3 2025, a 55.4% improvement from $-36.76 million in Q3 2024. Earnings per share (EPS) improved to -$0.11 from -$0.26, though both metrics remain negative, underscoring ongoing operational challenges.

Price Action

The stock price of Origin Materials climbed 4.35% during the latest trading day but faced a 9.96% decline over the most recent full trading week and a 34.26% drop month-to-date. This volatility reflects mixed short-term investor sentiment despite long-term strategic progress.

Post-Earnings Price Action Review

The strategy of buying Origin Materials shares on the date of its revenue raise announcement has shown poor performance over the past three years. Holding for 30 days resulted in a -15.2% return, worsening to -22.4% at 60 days and -29.2% at 90 days. These figures highlight significant downside risk post-earnings, with extended holding periods amplifying losses.

CEO Commentary

CEO John Bissell emphasized securing $15 million in financing by month-end, with $90 million total capacity, to expand PET cap production. The company is advancing CapFormer Line 6 factory acceptance testing and plans to delay Lines 7 and 8 to Q1 2027. Strong demand for PET caps in water and CSD applications, coupled with Berlin Packaging’s distribution partnership, positions Origin to scale production.

Guidance

Management reiterated 2026 revenue guidance of $20–30 million and $100–200 million by 2027, with EBITDA breakeven expected in 2027. CFO Matt Plavan noted access to additional financing tranches contingent on equity and financial conditions, while maintaining adjusted EBITDA guidance.

Additional News

Origin Materials secured $15 million in secured convertible debt and $20 million in equipment financing, bolstering its balance sheet. The company’s first order from Berlin Packaging, a key distribution partner, marks progress in commercialization. Additionally, Origin settled securities litigation with full insurance coverage, resolving all claims without liability findings.