Loading...
•
Sep 30
Origin Materials Q3 2025 Earnings Report
Origin Materials reported a narrower net loss and lower revenue in Q3 2025, as it continued its strategic shift away from its legacy supply chain activation program.
Key Takeaways
Origin Materials posted a net loss of $16.4 million on $4.7 million in revenue for Q3 2025. While revenue declined due to the wind-down of legacy programs, operating expenses dropped significantly. The company also secured new financing and continued executing on its PET cap commercialization strategy.
Q3 revenue was $4.7 million, down from $8.2 million in the prior year, due to the planned reduction of the supply chain activation program.
Net loss improved to $16.4 million from $36.8 million in Q3 2024, driven by lower operating expenses and gains from fair value adjustments.
Origin secured $15 million in convertible debt financing with access to up to $90 million, plus a non-binding term sheet for $20 million in equipment financing.
Strong progress continued in PET cap commercialization, including the first customer order from Berlin Packaging and positive product qualification testing.
Origin Materials
Origin Materials
Forward Guidance
Origin reaffirmed its revenue and Adjusted EBITDA run-rate guidance, highlighting continued execution and strong customer interest in PET caps, while also preparing for future strategic alternatives.
Positive Outlook
- Maintained revenue guidance for 2026 ($20M–$30M) and 2027 ($100M–$200M)
- Targeting Adjusted EBITDA run-rate breakeven in 2027
- CapFormer deployment remains on schedule through Line 6 by end of 2025
- Strong customer demand supports PET cap qualification progress
- Strategic review with RBC progressing with engagement from potential partners
Challenges Ahead
- Revenue declined YoY due to legacy program wind-down
- Operating expenses remain substantial despite improvements
- Ongoing cash burn reflected in negative free cash flow
- Macroeconomic conditions and tariffs increase equipment costs
- Uncertainty around timing and conversion of customer demand to revenue