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Origin Materials(ORGN) - 2025 Q1 - Quarterly Results

First Quarter 2025 Operating and Financial Results Overview and Key Highlights Origin Materials announced a strategic customer agreement for PET closures, but customer qualification delays and supply chain uncertainties defer commercial-scale revenue, leading to updated 2026 and 2027 guidance while reiterating run-rate Adjusted EBITDA positive by late 2026 - Announced a signed strategic customer agreement with a major packaging company for the development of large format PET closures for the ready to drink, wine, and spirits market125 - Customer product qualification is taking longer than projected, leading to a deferral of commercial-scale PET cap revenue generation by one to three quarters2 Updated Revenue and Profitability Guidance | Guidance Metric | Updated Forecast | | :--- | :--- | | 2026 Revenue | $50 million to $70 million | | 2027 Revenue | $150 million to $210 million | | Run-Rate Adjusted EBITDA Positive | By the back end of 2026 | Business and Operational Updates The company reports robust customer interest and pilot launch progress for PET caps, with CapFormer lines 5-8 production now expected in 1H 2026, alongside strategic efforts to diversify manufacturing and secure financing - Over twenty companies are qualifying or preparing to qualify Origin PET caps, including six Fortune 500 companies; customer interest remains strong with over sixty-five new inquiries in the last six weeks234 - The first customer pilot launch of beverages with PET closures is confirmed to be on track for Q3 2025 in the United States56 - CapFormer lines five through eight are now estimated to begin PET cap production in the first half of 2026, with factory acceptance testing expected in Q4 2025 and Q1 202615 - The company is pursuing both equipment financing for CapFormer lines and corporate debt in the second half of 2025 to maintain a healthy cash balance8 - Strategic adjustments include diversifying the manufacturing footprint to minimize tariff exposure and investing in owned PET extruders to improve line margins8 Financial Performance For Q1 2025, revenue decreased to $5.4 million from $6.8 million year-over-year due to a planned supply chain reduction, resulting in a wider net loss of $26.4 million primarily from a $16.6 million non-cash asset impairment, though Adjusted EBITDA loss improved to $11.0 million, with cash and equivalents at $83.0 million Q1 2025 Financial Highlights (vs. Q1 2024, in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $5.4 | $6.8 | | Operating Expenses | $32.7 | $18.1 | | Net Loss | $(26.4) | $(13.9) | | Adjusted EBITDA Loss | $(11.0) | $(12.9) | | Net Loss Per Share | $(0.18) | $(0.10) | - Cash, cash equivalents and marketable securities were $83.0 million as of March 31, 20257 - The increase in operating expenses was primarily driven by a $16.6 million non-cash impairment charge related to a biomass conversion technology contracting manufacturing agreement9 Financial Statements Condensed Consolidated Balance Sheets As of March 31, 2025, total assets decreased to $349.0 million from $378.0 million at year-end 2024, primarily due to reduced cash, cash equivalents, and marketable securities, while total liabilities also decreased to $34.4 million from $39.7 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $43,835 | $56,307 | | Total current assets | $119,509 | $139,174 | | Total assets | $348,977 | $378,027 | | Total current liabilities | $12,572 | $12,549 | | Total liabilities | $34,369 | $39,662 | | Total stockholders' equity | $314,608 | $338,365 | Condensed Consolidated Statements of Operations and Comprehensive Loss For Q1 2025, total revenues were $5.4 million, down from $6.8 million year-over-year, with a significant $16.6 million asset impairment charge leading to a $32.6 million loss from operations and a $26.4 million net loss, compared to a $13.9 million net loss in Q1 2024 Statement of Operations Summary (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total revenues | $5,430 | $6,825 | | Loss from operations | $(32,623) | $(17,997) | | Net loss | $(26,441) | $(13,913) | | Net loss per share, basic & diluted | $(0.18) | $(0.10) | Condensed Consolidated Statements of Cash Flows In Q1 2025, net cash used in operating activities significantly improved to $8.4 million from $16.7 million in Q1 2024, with net cash provided by investing activities at $0.5 million and financing activities using $4.5 million, resulting in a $12.5 million net decrease in cash and cash equivalents for the quarter Cash Flow Summary (in thousands) | Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(8,439) | $(16,735) | | Net cash provided by investing activities | $540 | $9,335 | | Net cash (used in) provided by financing activities | $(4,542) | $6,648 | | Net (decrease) increase in cash | $(12,472) | $271 | | Cash and cash equivalents, end of period | $43,835 | $75,773 | Other Information Reconciliation of GAAP and Non-GAAP Results The company reconciled its GAAP net loss of $26.4 million to a non-GAAP Adjusted EBITDA loss of $11.0 million for Q1 2025, an improvement from Q1 2024's $12.9 million loss, with major adjustments including a $16.6 million asset impairment, stock-based compensation, and depreciation & amortization Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss (GAAP) | $ (26,441) | $ (13,913) | | Impairment of assets | 16,610 | — | | Stock-based compensation | 2,289 | 2,781 | | Depreciation and amortization | 2,714 | 2,311 | | Other adjustments (net) | (1,182) | (4,084) | | Adjusted EBITDA (Non-GAAP) | $ (11,010) | $ (12,905) | Cautionary Note on Forward-Looking Statements This section warns investors that the press release contains forward-looking statements regarding business strategy, financial projections, and operational timelines, which are subject to significant risks and uncertainties, including commercialization challenges, competition, and tariffs, that could cause actual results to differ materially - Forward-looking statements include projections on business strategy, revenue potential, achieving positive run-rate Adjusted EBITDA by the end of 2026, and CapFormer deployment timelines21 - These statements are subject to risks and uncertainties such as the inability to successfully commercialize products, effects of competition and tariffs, and the uncertainty of financial projections22