Origin Materials Posts 17% Revenue Drop, Cuts 2026 Guidance by 50%

Origin Materials reported Q2 2025 revenue of $5.8 million, down 17.1% YoY, and a net loss of $9.9 million. The company's first commercial PET bottlecaps sale was made, and Berlin Packaging was signed as a strategic customer. However, 2026 revenue guidance was reduced from $50-70 million to $20-30 million, and the path to profitability was pushed to 2027. Operating expenses declined, and cash use remained notable.

Origin Materials, Inc. (NASDAQ: ORGN) reported its second-quarter 2025 financial results, revealing a significant decline in revenue and a net loss, while also announcing its first commercial sale of PET bottle caps and securing a strategic customer. The company's financial performance and outlook have prompted a reduction in its 2026 revenue guidance.

Financial Highlights

For the quarter ended June 30, 2025, Origin Materials reported:
- Revenue of $5.8 million, down 17.1% year-over-year (YoY) [1].
- A net loss of $9.9 million, compared to a net loss of $4.9 million in the same period last year.
- Operating expenses declined to $10.1 million from $11.7 million in the prior year, representing a 14% decrease.
- Cash use remained notable, with the company burning $10.3 million in cash during the quarter.

Commercial Milestones

Origin Materials achieved a significant milestone by making its first commercial sale of PET bottle caps. The company's 1881 cap for non-carbonated water, a $7 billion segment of the caps market, is now available in stores [2]. Additionally, Berlin Packaging was signed as a strategic customer, further validating the company's technology in the competitive packaging market [3].

Revenue and Profitability Outlook

The company's 2026 revenue guidance was revised downward from a range of $50 million to $70 million to $20 million to $30 million. The path to profitability has been pushed to 2027, with the company expecting adjusted EBITDA positive status on a run-rate basis in that year [2]. This reduction in revenue guidance reflects manufacturing delays and the impact of tariff considerations on subcomponent deliveries and procurement [2].

Operational Progress

Origin Materials maintained its focus on building out its CapFormer lines, with significant progress made in advancing the various stages of order placement, manufacture, testing, and shipping of lines two through eight. However, the company experienced OEM manufacturing delays, pushing Factory Acceptance Testing (FAT) completion for each of its lines to be 30 to 90 days beyond its prior expectations [2].

Investor Implications

Despite the company's progress in commercializing its PET bottle cap technology and securing strategic customers, investors should remain cautious about the execution risks and the timeline for customer adoption. The significant disconnect between recent financial performance and future projections raises questions about the company's ability to achieve its ambitious targets in the projected timeframe.

References
- [1] https://www.marketscreener.com/news/origin-materials-q2-loss-narrows-revenue-declines-shares-fall-after-hours-ce7c51d9de89f523
- [2] https://seekingalpha.com/news/4485683-origin-materials-gaap-eps-of-0_09-revenue-of-5_81m
- [3] https://in.investing.com/news/company-news/origin-materials-q2-2025-slides-pet-bottle-caps-hit-market-amid-revenue-challenges-93CH-4966321