Organogenesis (ORGO) Q2 2026 Earnings Call Transcript

Organogenesis Holdings Inc. hosted its second quarter 2026 earnings conference call with President, Chief Executive Officer, and Chair of the Board Gary S. Gillheeney, Sr., and Chief Financial Officer David Francisco. The call began with a disclaimer about forward-looking statements potentially differing from actual results due to inherent risks and uncertainties, including those outlined in the company's SEC filings.

The operator reminded attendees that the call would be recorded and available on the company's website for replay.

Gillheeney acknowledged the significant contraction and slow recovery in the skin substitute market due to CMS actions and comments in late 2025. This led to a 58% year-over-year decline in total revenue, primarily attributed to a 61% drop in sales of Advanced Wound Care products. Despite this, the company saw encouraging trends in operating environment improvement and net product revenue increase of 18% quarter-over-quarter, driven by a 23% rise in Advanced Wound Care product sales.

The company emphasized its strong market position in the skin substitute market, with a 30% increase in wound care unit volume quarter-over-quarter, outperforming industry declines. Gillheeney attributed the performance below expectations to the slow recovery from the market contraction resulting from CMS reform coverage and payment. The company stated its optimism for the future, noting CMS efforts to address waste, fraud, and abuse, which may promote market stabilization.

Looking ahead, Organogenesis plans to focus on clinical evidence, publishing new studies to support its evidence-based portfolio. The company remains committed to leadership in the skin substitute market, leveraging its diverse and comprehensive product range across FDA classifications to maintain a competitive edge.