Origin Materials Reports Q3 2025 Financial Results and Announces New Financing
Origin Materials, Inc. (“Origin,” “the Company”) (Nasdaq: ORGN, ORGNW), a technology company focused on enabling the global transition to sustainable materials, today reported financial results for the third quarter ended September 30, 2025, and announced new financing initiatives to support growth.
CEO Commentary
John Bissell, CEO and Co-Founder of Origin, commented:
“This quarter, we strengthened our balance sheet with new financing that provides flexibility to scale our PET cap production as customer orders come online. Our financing combines equipment-backed and corporate-level debt, with the option to manage it through equity to optimize cash and cost of capital. We executed a secured convertible debt facility, with an initial $15 million in cash by month-end and the potential to increase to $90 million in tranches as needed. Additionally, a non-binding term sheet for $20 million in equipment financing is expected to close in the fourth quarter, bringing total CapFormer equipment financing capacity to roughly $30 million.”
Bissell added: “Operationally, our CapFormer deployment is on schedule. In California, we introduced what we believe are the only PET caps currently on the market for beverage products. Since then, we’ve gained global traction, with sales efforts in North America, Europe, South America, and Asia, including Berlin Packaging placing its first order. Our PET caps have been showcased at major industry conferences, and we remain the clear leader in PET cap commercialization.”
He continued: “We are also extending our technology lead. This quarter, we advanced two priority areas: impact resistance and multi-day heated horizontal stress testing, exceeding performance requirements across designs. Upcoming production trials aim to consolidate these features into a single PET cap design.”
Bissell concluded: “Origin’s technology creates commercial-ready PET caps, differentiating from HDPE and polypropylene options dominating the $65 billion closures market. Our caps excel in recyclability, barrier performance, diameter, weight, rigidity, recycled content, and optical clarity. We look forward to expanding customer qualifications from flat water into carbonated beverages and other formats.”
Third Quarter and Recent Business Highlights
Financing and Strategic Updates:
- Executed a secured convertible debt facility, initially closing $15 million in cash, with the capacity to reach $90 million to maintain liquidity and support growth. Details will be filed on Form 8-K with the SEC.
- Signed a non-binding term sheet for $20 million in additional equipment financing, bringing total CapFormer equipment financing to approximately $30 million. This supports five CapFormer lines, with staged drawdowns aligned with individual equipment delivery and site acceptance testing.
- Continued pursuit of additional equipment financing for future lines. The average financing coverage is expected at the low end of the previously stated 50-70% range due to increased “soft costs” from tariffs.
- Settled securities litigation with no findings of liability. The shareholder class action and derivative lawsuits filed in 2023 and 2025, respectively, were resolved through binding agreements fully covered by insurance.
- Strategic review with RBC Capital Markets is progressing, engaging potential counterparties productively.
- Maintained revenue and run-rate Adjusted EBITDA guidance:
- 2026 Revenue: $20 million – $30 million
- 2027 Revenue: $100 million – $200 million
- Adjusted EBITDA run-rate breakeven: 2027
Commercialization Highlights:
- Executing the “water first” strategy in the $65 billion global closures market, with a clear path to 2026 revenue targets.
- Berlin Packaging placed its first PET cap order, which Origin is fulfilling.
- PET cap designs have shown strong performance in impact resistance and multi-day heated horizontal stress testing, supporting qualification for carbonated soft drinks (CSD). Consolidation of successful features into a single cap design is underway.
- Water brand demand is growing, with more than half of customer prospects also potential CSD customers.
Production Capacity Updates:
- CapFormer deployment remains on track. Factory Acceptance Testing through Line 6 is expected by year-end 2025.
- Lines 7 and 8 startup may extend into Q1 2027 to optimize capital deployment, updated from previous Q4 2026 projections.
Third Quarter Financial Results:
- Cash, cash equivalents, and marketable securities: $54.3 million as of September 30, 2025.
- Net accounts receivable: $15.5 million, primarily from the legacy supply chain activation program winding down. Collection is expected to provide a significant cash source.
- Land held for sale in Geismar, Louisiana: $9.1 million, expected to generate additional cash.
- Revenue: $4.7 million, down from $8.2 million in Q3 2024 due to the planned reduction in the supply chain activation program.
- Operating expenses: $17.1 million, compared with $32.5 million in Q3 2024, reflecting a $15.0 million decrease in non-cash asset impairment and a $1.8 million drop in R&D expenses, offset by a $1.4 million increase in general and administrative expenses.
- Net loss: $16.4 million versus $36.8 million last year, driven by gains in stock warrant and earnout liabilities and decreased operating expenses.
- Adjusted EBITDA loss: $11.6 million, slightly improved from $12.0 million in Q3 2024.
- Shares outstanding: 150.5 million, including 1.5 million subject to forfeiture based on performance targets.
A reconciliation of non-GAAP figures to GAAP is included in the press release. Non-GAAP guidance for run-rate Adjusted EBITDA is not reconciled to GAAP due to variability in reconciling items.
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