Organogenesis Plunges 18.35% on Revenue Drop, Misses Expectations

On May 9, 2025, Organogenesis experienced a significant drop of 18.35% in pre-market trading, reflecting a challenging start to the year.

Organogenesis reported a 21% year-over-year decrease in net revenue for the first quarter of 2025, totaling $86.7 million. This decline was attributed to disruptions in customer demand, which also negatively impacted gross profit. The company's operating loss widened to $26.7 million, a substantial increase from the $3.9 million loss reported in the same period last year.

During the earnings call, Organogenesis highlighted the financial deterioration, with revenue dropping 21% year-over-year and net losses widening. The company's gross profit for the quarter was $63.0 million, representing 73% of net revenue, down from 74% in the previous year. Operating expenses also played a role in the financial performance, contributing to the overall loss.

The company's first-quarter revenue of $86.69 million fell short of market expectations, which were set at $90.77 million. This shortfall, combined with the broader financial challenges, has raised concerns among investors about the company's ability to navigate the current market conditions.