Origin Materials Inc. reported third‑quarter 2025 revenue of $4.66 million, a sharp 84% shortfall from the $29.1 million consensus estimate and a decline of $3.94 million from the $8.60 million earned in the same quarter last year. The company also posted an earnings per share of –$0.11, missing the –$0.07 consensus by $0.04. The revenue miss is largely attributable to a planned reduction in the company’s supply‑chain activation program, which cut the volume of new orders and slowed the ramp‑up of production capacity.
The quarter’s net loss widened to $16.4 million, and adjusted EBITDA fell to a loss of $11.6 million, compared with a $12.0 million loss in Q3 2024. The larger loss reflects higher operating expenses associated with expanding manufacturing lines and the cost of securing a $15 million secured convertible debt facility, which the company used to fund equipment purchases and working‑capital needs. The company’s management noted that the financing, while dilutive, positions Origin Materials to accelerate its production of PET caps and to support the launch of new product features that enhance recyclability and performance.
Guidance for 2026 and 2027 remains unchanged: revenue is projected at $20 million to $30 million for 2026 and $100 million to $200 million for 2027, with adjusted EBITDA breakeven expected in 2027. The company reiterated its FY2025 revenue guidance of $20 million to $30 million, a revision that reflects the current pace of capacity expansion and the impact of the supply‑chain reduction. Management expressed confidence that the company’s technology leadership and new financing will enable it to capture market share as demand for sustainable PET caps grows.
CEO John Bissell emphasized that Origin Materials is “the clear technology leader for PET caps, poised to grow and dominate a new market category.” He highlighted the company’s progress in product development, the first order from Berlin Packaging, and the recent financing as key drivers of future growth. Bissell also noted that the company has settled securities litigation, fully covered by insurance, which removes a potential legal risk from the balance sheet.
Investors reacted with mixed sentiment. While the company’s guidance signals steady long‑term confidence, the significant revenue miss and continued net losses have tempered enthusiasm. Headwinds include production delays that push the startup of lines seven and eight from Q4 2026 to Q1 2027, and a NASDAQ delisting risk that has been extended to April 2026. Tailwinds remain strong customer demand, the company’s technological advantages, and the new financing that supports capacity expansion.
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