Origin Materials(ORGN) - 2025 Q2 - Quarterly Results

Management Commentary and Strategic Update CEO John Bissell highlights the commercial launch of Origin PET bottlecaps and a strategic review to accelerate value capture and address capacity gaps - The first Origin PET bottlecaps are now on store shelves, a world's first for the company, initially targeting the $7 billion non-carbonated water market[2] - Announced Berlin Packaging, the world's largest Hybrid Packaging Supplier®, as its first publicly named customer for PET 1881 caps[2][6] - Launched a strategic review with financial advisor RBC Capital Markets to explore opportunities for enhancing manufacturing capacity, distribution, and access to strategic capital[3] - Refined its go-to-market strategy to prioritize five large market segments: water ($7B), carbonated soft drinks ($6B), other beverages ($18B), non-beverage food/pharma ($20B), and other non-beverage ($17B)[3] Manufacturing and Supply Chain Update The company faces manufacturing delays and increased capital needs due to tariffs, leading to a new European production partnership - Factory Acceptance Testing (FAT) completion for CapFormer lines two through eight is expected to be delayed by 30 to 90 days due to OEM manufacturing and procurement issues[2][6] - FAT for CapFormers seven and eight is now planned for the second half of 2026, revised from Q1 2026, primarily due to capital constraints and tariff exposure[6] - Announced a new European mass production partnership with Royal Hordijk to diversify manufacturing, expand its global footprint, and mitigate U.S. tariff impacts on European imports[6] - The company faces increased capital requirements due to tariffs on CapFormer subsystems sourced from Europe, with a 15% tariff on EU imports and a 39% tariff on Switzerland imports[7] Revised 2026-2027 Financial Guidance Revised 2026-2027 revenue guidance and pushed Adjusted EBITDA breakeven to 2027 due to CapFormer delays Revised Guidance | Guidance Metric | Prior Guidance (Millions USD) | Updated Guidance (Millions USD) | | :--- | :--- | :--- | | 2026 Revenue | $50M - $70M | $20M - $30M | | 2027 Revenue | $150M - $210M | $100M - $200M | - The Adjusted EBITDA run-rate breakeven target has been pushed from 2026 into 2027 due to production delays[7] Second Quarter 2025 Financial Performance Q2 2025 revenue decreased to $5.8 million, while net loss and Adjusted EBITDA loss significantly narrowed year-over-year Q2 Financial Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | | :--- | :--- | :--- | | Revenue | $5.8 million | $7.0 million | | Operating Expenses | $15.1 million | $18.5 million | | Net Loss | $12.7 million | $19.5 million | | Adjusted EBITDA Loss | $9.9 million | $12.9 million | - As of June 30, 2025, the company held $69.4 million in cash, cash equivalents, and marketable securities[8] - The company identified significant future cash sources, including the collection of $17.9 million in net accounts receivable and the sale of $9.0 million in land held for sale[8][9] Financial Statements This section provides detailed unaudited condensed consolidated financial statements for the period ended June 30, 2025 Condensed Consolidated Balance Sheets This section details the company's financial position, including assets, liabilities, and equity, as of June 30, 2025 Balance Sheet Summary | Balance Sheet Item | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $101,584 | $139,174 | | Property, plant, and equipment, net | $229,068 | $203,919 | | Total Assets | $348,377 | $378,027 | | Total Current Liabilities | $15,941 | $12,549 | | Total Liabilities | $37,251 | $39,662 | | Total Stockholders' Equity | $311,126 | $338,365 | Condensed Consolidated Statements of Operations This section outlines the company's revenues, expenses, and net loss for the three months ended June 30, 2025, and 2024 Income Statement Summary | Income Statement Item (Three Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Total Revenues | $5,813 | $7,033 | | Total Operating Expenses | $15,148 | $18,464 | | Loss from Operations | $(14,966) | $(18,257) | | Net Loss | $(12,747) | $(19,499) | | Net Loss Per Share, basic & diluted | $(0.09) | $(0.14) | Condensed Consolidated Statements of Cash Flows This section details cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Cash Flow Summary | Cash Flow Item (Six Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(15,733) | $(31,697) | | Net cash (used in) provided by investing activities | $(665) | $2,205 | | Net cash (used in) provided by financing activities | $(4,485) | $6,806 | | Net decrease in cash and cash equivalents | $(21,012) | $(19,818) | | Cash and cash equivalents end of the period | $35,295 | $55,684 | Reconciliation of GAAP to Non-GAAP Measures This section reconciles GAAP Net Loss to non-GAAP Adjusted EBITDA for the three months ended June 30, 2025, and 2024 GAAP to Non-GAAP Reconciliation | Reconciliation (Three Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net loss (GAAP) | $(12,747) | $(19,499) | | Stock-based compensation | $2,280 | $2,536 | | Depreciation and amortization | $2,782 | $2,813 | | Other adjustments | $(1,221) | $1,238 | | Adjusted EBITDA (Non-GAAP) | $(9,904) | $(12,908) |