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Origin Materials (NasdaqCM:ORGN) Q3 2025 Earnings Call November 13, 2025 05:00 PM ET Speaker2Thank you for standing by. This is the conference operator. Welcome to the Origin Materials third quarter 2025 earnings call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the confer ...

Third Quarter 2025 Earnings Call Enabling the world's transition to sustainable materials USE OF PROJECTIONS. This presentation contains Origin's projected financial information. Such projected financial information is forward-looking and is for illustrative purposes only. It should not be relied upon as being indicative of future results. The assumptions and estimates underlying such projected financial information are inherently uncertain and are subject to many significant business, economic, competitive ...

Financial Performance - Total revenues for Q3 2025 were $4.657 million, a decrease of 43.5% compared to $8.202 million in Q3 2024[15] - Net loss for Q3 2025 was $16.382 million, compared to a net loss of $36.763 million in Q3 2024, representing a 55.5% improvement[15] - Total revenues for the nine months ended September 30, 2025, were $15.9 million, down 27.7% from $22.1 million for the same period in 2024[96] - Loss from operations for the three months ended September 30, 2025, was $(16.9) million, compared to $(32.4) million for the same period in 2024[96] - Loss from operations for the nine months ended September 30, 2025, was $(64.5) million, a decrease from $(68.7) million for the same period in 2024[96] - The company reported a net loss of $55.6 million for the nine months ended September 30, 2025, compared to a net loss of $70.2 million for the same period in 2024[20] - Total comprehensive loss for Q3 2025 was $18.580 million, compared to $34.245 million in Q3 2024, indicating a 45.8% reduction in losses[15] Expenses and Costs - Research and development expenses for the nine months ended September 30, 2025, were $9.907 million, down from $15.338 million in the same period of 2024, a reduction of 35.0%[15] - Operating expenses for Q3 2025 totaled $17.091 million, down from $32.466 million in Q3 2024, a reduction of 47.4%[15] - Research and development expenses for Q3 2025 were $3.328 million, down from $5.127 million in Q3 2024, a decrease of 35.1%[15] - The company incurred a net cash used in operating activities of $23.9 million for the nine months ended September 30, 2025[25] - The company recorded an impairment charge of $16.6 million related to long-lived assets during the nine months ended September 30, 2025[43] Assets and Liabilities - Total assets decreased to $327.345 million as of September 30, 2025, from $378.027 million as of December 31, 2024, a decline of 13.4%[14] - Cash and cash equivalents decreased to $34.061 million as of September 30, 2025, from $56.307 million as of December 31, 2024, a decrease of 39.4%[13] - Total stockholders' equity decreased to $294.987 million as of September 30, 2025, from $338.365 million as of December 31, 2024, a decline of 12.7%[14] - The company had total current liabilities of $13.287 million as of September 30, 2025, compared to $12.549 million as of December 31, 2024, an increase of 5.9%[13] - As of September 30, 2025, accounts receivable net was $15.5 million, down from $19.2 million as of December 31, 2024, reflecting a decrease of approximately 19%[37] - Inventory as of September 30, 2025, totaled $635,000, a decrease of approximately 27% from $866,000 as of December 31, 2024[38] Financing and Funding - The company is evaluating additional strategies to obtain funding for future operations, including equity and debt securities[26] - The company has not yet secured additional financing and there is no assurance it will obtain funding on acceptable terms[26] - The company received zero funding from the Canadian government research and development program during the three months ended September 30, 2025, compared to $8.1 million received in the same period of 2024[76] - The Company executed a Secured Promissory Note for €9.5 million (approximately $11.2 million) to finance equipment purchases, with a 10.56% interest rate and repayment starting in April 2026[106] Market and Customer Concentration - The company's top two customers accounted for approximately 100% of total revenue for the three and nine months ended September 30, 2025, and 100% and 94% for the same periods in 2024, indicating a high concentration of revenue[36] Equity and Stock Options - The weighted-average common shares outstanding for Q3 2025 were 149,340,474, an increase from 143,387,618 in Q3 2024[15] - As of September 30, 2025, the number of shares available for grant under the 2021 Equity Incentive Plan was 5,617,675, with a total of 30,752,349 shares reserved for issuance[88] - The total remaining compensation expense for RSU awards to be recognized under the 2021 Equity Incentive Plan is $8.9 million, expected to be recognized over an estimated weighted average period of 1.2 years[91] - Stock-based compensation expense for the three months ended September 30, 2025, was $1.7 million in general and administrative expenses and $0.5 million in research and development expenses[93] Legal and Regulatory Matters - The company has been involved in legal proceedings related to a putative securities class action and derivative complaints, with settlements entered into in October 2025[108] Other Financial Metrics - The company reported an unrealized gain on marketable securities of $311,000 for Q3 2025, compared to $690,000 in Q3 2024[15] - The company recognized revenue in accordance with ASC 606, with a focus on the transfer of promised goods or services to customers[47] - The Company reported total fair value of financial assets as of September 30, 2025, amounting to $41.22 million, with cash equivalents at $20.94 million and marketable securities at $20.28 million[61]

– Secures Convertible Debt Financing; Initial Tranche of $15 Million in Cash With Option to Raise Additional Capital Up to $90 Million Total to Maintain Healthy Cash Floor and Fund Growth – – Executes Non-Binding Term Sheet for an Additional $20 Million of Equipment Financing, Bringing Total CapFormer Equipment Financing to Approximately $30 Million – – Maintains Revenue and Run-Rate Adjusted EBITDA Guidance, Strong Customer Demand, and CapFormer Build-Out Timeline – accordance with our 'water first' growth ...

WEST SACRAMENTO, Calif.--(BUSINESS WIRE)--Origin Materials, Inc. ("Origin,†"Origin Materials,†or the "Company†) (Nasdaq: ORGN, ORGNW), a technology company with a mission to enable the world's transition to sustainable materials, today announced financial results for its third quarter ended September 30, 2025. Commentary from John Bissell, Origin CEO and Co-Founder: "Today, we are announcing financing that strengthens our balance sheet and provides access to additional capital that can be sta. ...

NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Origin Materials, Inc. (NASDAQ: ORGN) breached their fiduciary duties to shareholders. If you currently own Origin stock and acquired shares on or before February 23, 2023, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to lea. ...

Core Insights - The company is addressing investor concerns regarding its ability to survive until profitability, indicating a focus on long-term sustainability and growth [1] - There is an emphasis on upcoming developments in the next few months, suggesting potential positive changes that could impact stock performance [1] Group 1 - The company is confident in its survival until profitability, which is a critical concern for investors [1] - There is anticipation for the stock price to exceed $1 in the near future, reflecting investor optimism [1]

Financial Data and Key Metrics Changes - The company announced a reduction in manufacturing output estimates by approximately 50-15% for 2026 and 2027 compared to prior estimates due to delays in cap former factory acceptance testing [19] - Updated revenue guidance for 2026 is now $20 million to $30 million, and for 2027, it is $100 million to $200 million, down from previous estimates of $50 million to $70 million and $150 million to $210 million respectively [20] - The company ended the quarter with $69 million in cash, cash equivalents, and marketable securities, alongside a net accounts receivable balance of $17.9 million [20][21] Business Line Data and Key Metrics Changes - The first Origin PET bottle caps are now on store shelves, marking a significant milestone for the company and the packaging industry [6] - The company is focusing on five large functional segments within the $65 billion caps and closures market, including water, carbonated soft drinks, other beverage applications, food and pharmaceutical, and other non-beverage segments [10] Market Data and Key Metrics Changes - The company is targeting a $7 billion segment for non-carbonated water caps and a $6 billion segment for carbonated soft drinks [10] - The packaging industry is described as highly commoditized and competitive, with a noted lack of innovation [9] Company Strategy and Development Direction - The company is conducting a strategic review with RBC Capital Markets to identify strategies that can enhance access to manufacturing capacity and strategic capital [10] - A refinement of the go-to-market strategy has been initiated to prioritize high-value opportunities within the caps and closures market [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of tariffs on production costs and the need for strategic partnerships to mitigate these challenges [18] - The company remains optimistic about its growth potential, citing strong interest in its products and ongoing customer relationships [42] Other Important Information - The company has established a partnership with Berlin Packaging, which will help extend market reach for its PET caps [12] - The company is expanding its manufacturing capacity in Europe to respond to tariff pressures and enhance production capabilities [15] Q&A Session All Questions and Answers Question: Where can investors buy the product to support it? - The product is available on shelves with a small brand, Power Hydration, located in California [27] Question: Who are the closest competitors and how does Origin compare? - The company's technology is differentiated from existing PET cap production methods, allowing for better unit economics and material properties [29][30] Question: What is the status of the NASDAQ listing? - The company is currently in a grace period to meet the minimum stock price requirement and is optimistic about regaining compliance [36][39] Question: What should investors be excited about for the future? - The company is excited about the market introduction of its PET bottle caps and ongoing customer announcements, alongside strategic growth opportunities [41][43]

Financial Highlights - Origin Materials projects revenue of $20 million to $30 million in 2026[8] and $100 million to $200 million in 2027[8, 15] - The company anticipates achieving Adjusted EBITDA positive run rate in 2027[8, 15] - Manufacturing lines are expected to have a payback period of less than 18 months[12, 13] Market and Demand - The total addressable market for Origin closures is greater than $65 billion[8, 32, 57] - The company is currently in the $7 billion water market segment[56, 57] and is qualifying for the $6 billion carbonated soft drink (CSD) market[57, 60] - Demand currently exceeds projected manufacturing capacity for the foreseeable future[6, 72] Manufacturing and Technology - Origin Materials commenced production on its first CapFormer line in February 2025[17, 60] - The company is on track to have 8 to 10 CapFormer lines in operation in 2026[15, 17] - Origin Materials has secured over 70 patents protecting its technology and products[9, 75]