Origin Materials 2025 Q3 Earnings Revenue Falls 43.2% as Losses Narrow 55.4%

Origin Materials (ORGN) reported Q3 2025 earnings on November 14, 2025, with a revenue decline and improved net losses. The company’s shares rose briefly post-announcement but faced a 30-day downturn, underperforming the S&P 500. Despite the revenue miss, Origin maintained 2026–2027 guidance and secured new financing to scale operations.

Origin Materials posted Q3 2025 revenue of $4.66 million, a 43.2% year-over-year decline, missing expectations and reflecting slower supply chain execution rather than waning demand. While the company narrowed its net loss by 55.4% to $16.38 million, the results fell short of forecasts. Guidance for $20–30 million in 2026 revenue and EBITDA breakeven by 2027 remains unchanged.

Revenue

The company’s total revenue for Q3 2025 dropped 43.2% year-over-year to $4.66 million, driven by a contraction in the Products segment, which accounted for the entire revenue figure. The decline underscores challenges in scaling production and meeting customer demand, though management attributes the shortfall to delayed supply chain rollouts rather than reduced market appetite.

Earnings/Net Income

Origin narrowed its net loss to $16.38 million, or $0.11 per share, in Q3 2025, representing a 55.4% improvement from the $36.76 million loss in Q3 2024. The EPS reduction to $0.11 from $0.26 highlights progress in cost control and operational efficiency, though the company remains unprofitable.

Price Action

The stock price of Origin Materials climbed 4.35% on the day of the earnings announcement but declined 9.96% during the subsequent trading week, with a 34.26% month-to-date drop.

Post-Earnings Price Action Review

The strategy of buying Origin Materials shares on the date of its revenue raise announcement and holding for 30 days has shown poor performance over the past three years. The stock initially rose 0.39% on the announcement but fell 14.16% in the following 30 days, erasing gains and resulting in a 13.77% loss. Over the same period, the S&P 500 returned 38.13%, underscoring ORGN’s underperformance. This highlights the risks of relying on short-term news-driven strategies, as market expectations and volatility often outweigh immediate positive reactions.

CEO Commentary

CEO John Bissell emphasized progress in commercialization, including Berlin Packaging’s first order and global momentum for PET caps. Strategic priorities include completing CapFormer Line 6 by year-end and advancing Lines 7/8 in early 2027. Bissell highlighted breakthroughs in impact resistance and stress testing, reinforcing confidence in the company’s leadership in sustainable PET caps.

Guidance

Origin maintained 2026 revenue guidance of $20–30 million and projected $100–200 million in 2027, with EBITDA breakeven expected by 2027. CFO Matt Plavan noted a Q3 2025 burn rate of $15 million, split roughly 50–60% between operating and capital expenditures. The company secured $15 million in convertible debt and $30 million in equipment financing, with up to $90 million in additional capital available.

Additional News

Origin Materials closed a $15 million secured convertible debt facility, with $90 million in potential future tranches, to fund production expansion. The company’s first PET cap order from Berlin Packaging, a key distribution partner, signals growing market acceptance. Additionally, Origin settled securities litigation without financial liability, allowing focus on core operations and strategic reviews.