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1. Company Snapshot

1.a. Company Description

Organogenesis Holdings Inc., a regenerative medicine company develops, manufactures, and commercializes solutions for the advanced wound care, and surgical and sports medicine markets in the United States.The company's advanced wound care products include Affinity, an amniotic membrane wound covering in which viable cells growth factors/cytokines, and ECM proteins in the native tissue are preserved; Apligraf, a bioengineered living cell therapy that produce spectrum of cytokines and growth factors; Dermagraft, a bioengineered product that produces human collagen, ECM, proteins, and cytokines; NuShield, a wound covering tissue includes both amnion and chorion membranes for spongy/intermediate layer intact; PuraPly , a antimicrobial barrier that enables conformability and fluid drainage; and Novachor, an amniotic membrane wound covering in which viable cells, growth factors/cytokines, and ECM proteins are preserved.Its surgical and sports medicine products comprise NuCel, a dehydrated placental tissue surgically applied to the target tissue to support native healing; ReNu, a cryopreserved suspension used to support healing of soft tissues; and FiberOS and OCMP used as a bone void filler primarily in orthopedic and neurosurgical applications.


The company's pipeline products include PuraPly XT and PuraPly MZ to treat chronic, acute, and open wounds; PuraForce, a bioengineered porcine collagen surgical matrix for use in soft tissue reinforcement applications; and TransCyte, a bioengineered tissue for the treatment of partial thickness burns.It serves hospitals, wound care centers, government facilities, ambulatory service centers, and physician office through direct sales force and independent agencies.The company was founded in 1985 and is headquartered in Canton, Massachusetts.

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1.b. Last Insights on ORGO

Organogenesis Holdings Inc.'s recent performance was negatively driven by a quarterly loss of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.04. This compares to a loss of $0.02 per share in the same period last year. The company's financial results for the first quarter of 2025 were impacted by escalating medical care costs, partly offset by growing membership in all three businesses. The high medical care ratios, which increased by 14.1% year-over-year, likely hurt the company's Q1 earnings. Additionally, the company's premium revenue growth was driven by higher premiums in its government-backed Medicaid insurance plans, but this growth was not enough to offset the rising medical care costs.

1.c. Company Highlights

2. Organogenesis Holdings' Q3 2025 Earnings: A Strong Performance

Organogenesis Holdings reported a robust third quarter, with net product revenue reaching $150.5 million, a 31% year-over-year increase and a 49% sequential rise. Advanced Wound Care net product revenue was $141.5 million, up 31% year-over-year. Gross profit was $114.2 million, or 76% of net product revenue, compared to 77% last year. The company's GAAP net income for the quarter was $21.6 million, an increase of $9.2 million from the previous year, with earnings per share (EPS) coming in at $0.18, slightly below estimates of $0.21.

Publication Date: Nov -25

📋 Highlights
  • Revenue Surpasses Guidance: Q3 net product revenue reached $150.5M (+31% YoY), driven by 31% growth in Advanced Wound Care ($141.5M) and 25% growth in Surgical & Sports Medicine.
  • CMS Reimbursement Policy Finalized: New per-square-centimeter payment model for skin substitutes, effective Jan 1, 2026, is expected to reduce Medicare spending abuse and standardize payments.
  • Product Portfolio Strength: Three key products (Apligraf, Affinity, NuShield) are positioned to benefit from LCDs, with Apligraf projected to secure higher reimbursement rates in 2026.
  • Margin Expansion Despite Costs: Gross profit hit $114.2M (76% of revenue), down slightly from 77% YoY, while operating income surged $14.5M to $20.7M despite 19% increase in operating expenses.

Revenue Growth Drivers

The strong revenue performance was driven by the growth in sales of Advanced Wound Care products, which increased 31% year-over-year, and Surgical & Sports Medicine products, which rose 25% year-over-year. The company's focus on building deep customer relationships and promoting access to existing and recently launched products contributed to this record revenue performance. As Gary Gillheeney noted, "We believe that our team's strong execution and commitment to our strategy... contributed to this record revenue performance."

Guidance Update

Organogenesis updated its 2025 revenue guidance, expecting net revenue between $500 million and $525 million, representing a year-over-year increase in the range of 4% to 9%. The company's profitability guidance for 2025 now assumes gross margins in the range of approximately 74% to 76%. Analysts estimate next year's revenue growth at 6.3%, indicating a continued upward trajectory.

Valuation Metrics

With a P/E Ratio of -77.85 and a P/S Ratio of 1.47, the market appears to be pricing in a challenging growth environment. However, the company's strong brand equity, deep customer relationships, and innovative products position it for long-term success. The recent CMS finalization of skin substitute classifications based on FDA regulatory status is expected to address abuse under the current system and drive growth for Organogenesis.

Regulatory Developments

The CMS's new policy on skin substitute classifications is expected to benefit Organogenesis, with its Apligraf product for DFU and VLU, and Affinity and NuShield products for DFU, being on the covered list if the LCDs take effect as scheduled on January 1, 2026. This development presents an enormous opportunity for the company to serve more patients and drive growth. Additionally, the company's meeting with the FDA in December regarding ReNu is a significant milestone, with a possible 2-month delay in filing expected.

3. NewsRoom

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Organogenesis Holdings Inc. (ORGO) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Organogenesis Holdings Inc. Reports Third Quarter 2025 Financial Results, Posts Record Revenue and Raises 2025 Guidance

Nov -06

Source: globenewswire.com

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Organogenesis Applauds CMS's Significant Step In Payment Reform

Nov -03

Source: globenewswire.com

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Organogenesis Holdings Inc. Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Oct -31

Source: globenewswire.com

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Cwm LLC Sells 18,000 Shares of Organogenesis $ORGO

Oct -30

Source: defenseworld.net

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Organogenesis Holdings Inc. - ORGO

Oct -28

Source: prnewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Organogenesis Holdings Inc. - ORGO

Oct -23

Source: prnewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Organogenesis Holdings Inc. - ORGO

Oct -18

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.87%)

6. Segments

Advanced Wound Care

Expected Growth: 5%

Organogenesis Holdings Inc.'s Advanced Wound Care segment growth is driven by increasing demand for effective wound healing solutions, rising prevalence of chronic wounds, and growing adoption of bioengineered skin substitutes. Additionally, strategic partnerships, expanded product offerings, and increasing awareness of the importance of wound care are contributing to the 5% growth rate.

Surgical and Sports Medicine

Expected Growth: 3%

Organogenesis Holdings Inc.'s Surgical and Sports Medicine segment growth is driven by increasing demand for minimally invasive procedures, advancements in tissue engineering, and rising adoption of bioengineered skin substitutes. Additionally, growing awareness of sports-related injuries and the need for effective treatments contribute to the segment's 3% growth.

7. Detailed Products

Apligraf

Apligraf is a bioengineered skin substitute used to treat venous leg ulcers and diabetic foot ulcers.

Dermagraft

Dermagraft is a bioengineered skin substitute used to treat diabetic foot ulcers.

NuShield

NuShield is a protective barrier used to prevent surgical site infections.

PuraPly

PuraPly is a antimicrobial barrier used to prevent surgical site infections.

Affinity

Affinity is a bioscaffold used to support tissue repair and regeneration.

8. Organogenesis Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Organogenesis Holdings Inc. is low due to the company's strong brand recognition and patented products.

Bargaining Power Of Customers

The bargaining power of customers for Organogenesis Holdings Inc. is medium due to the presence of a few large customers, but the company's products are highly specialized and difficult to substitute.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Organogenesis Holdings Inc. is low due to the company's ability to negotiate prices and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for Organogenesis Holdings Inc. is high due to the growing demand for regenerative medicine and the increasing number of companies entering the market.

Intensity Of Rivalry

The intensity of rivalry for Organogenesis Holdings Inc. is medium due to the presence of a few established competitors, but the company's strong brand recognition and patented products provide a competitive advantage.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.40%
Debt Cost 3.95%
Equity Weight 77.60%
Equity Cost 11.91%
WACC 10.12%
Leverage 28.87%

11. Quality Control: Organogenesis Holdings Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Eagle Pharma

A-Score: 5.0/10

Value: 10.0

Growth: 1.8

Quality: 8.3

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

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Organogenesis Holdings

A-Score: 4.6/10

Value: 8.4

Growth: 3.9

Quality: 5.5

Yield: 0.0

Momentum: 8.0

Volatility: 1.7

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Cyclo Therapeutics

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Value: 8.0

Growth: 3.4

Quality: 5.0

Yield: 0.0

Momentum: 5.5

Volatility: 1.0

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Cumberland Pharmaceuticals

A-Score: 3.3/10

Value: 6.9

Growth: 2.3

Quality: 5.2

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

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TherapeuticsMD

A-Score: 3.2/10

Value: 7.3

Growth: 4.8

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

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Rockwell Medical

A-Score: 2.6/10

Value: 6.4

Growth: 4.2

Quality: 3.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.17$

Current Price

5.17$

Potential

-0.00%

Expected Cash-Flows