Organon & Co. (OGN) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy OGN?
Source: SeekingAlpha
Revenue Organon delivered $6.2 billion in revenue in 2025, down 3% year-over-year on both a reported and ex-exchange basis. The decline was attributed to the loss of exclusivity (LOE) of Atozet, policy-related changes in the U.S. for Nexplanon, and revised medical guidelines deprioritizing montelukast in certain international markets.
Adjusted EBITDA Adjusted EBITDA was $1.9 billion in 2025, consistent with the prior year. Despite a 150 basis point gross margin degradation, the company achieved over $200 million in cost savings, which offset investments in growth drivers like Vtama.
Women's Health Revenue Women's health revenue was down 16% ex-FX in Q4 2025 and down 2% for the full year. Nexplanon sales decreased 20% ex-FX in Q4 and 4% for the full year due to U.S. policy-related access restrictions, changes in purchasing practices by smaller clinics, and a transition to a 5-year label. However, strong ex-U.S. growth, particularly in Latin America, partially offset these declines.
Fertility Business Revenue The fertility business declined 6% ex-FX in Q4 2025 but grew 8% for the full year. Growth was driven by U.S. performance in the first half of 2025 and geographic expansion, which offset declines in China due to socioeconomic trends.
Biosimilars Revenue Biosimilars revenue grew, driven by Hadlima, which increased 61% ex-FX globally in 2025. Growth was attributed to its strong clinical profile, effective pricing strategy, and expansion into Canada and Puerto Rico. New launches like denosumab biosimilars and Tofidence also contributed.
Established Brands Revenue Established brands revenue declined 5% ex-FX in Q4 2025 and for the full year. The decline was primarily due to the LOE of Atozet, which was a 400 basis point headwind. However, contributions from Vtama and Emgality helped offset some of the pressure.
Gross Margin Non-GAAP adjusted gross margin was 60.1% for full year 2025, down from 61.6% in 2024. The decline was driven by pricing pressure and unfavorable product mix.
Adjusted EBITDA Margin Adjusted EBITDA margin was 30.7% for full year 2025, consistent with 2024. The decline in gross margin was offset by lower R&D expenses.
Net Income Net loss for Q4 2025 was $205 million, compared to net income of $109 million in Q4 2024. The loss included a non-cash goodwill impairment of $301 million related to stock price decline and underperformance in the U.S.
Free Cash Flow Free cash flow for full year 2025 was $960 million, consistent with the prior year. Onetime costs related to restructuring and manufacturing separation activities were $270 million.
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Analyst Views on OGN
Wall Street analysts forecast OGN stock price to rise
5 Analyst Rating
0 Buy
1 Hold
4 Sell
Strong Sell
Current: 7.060
Low
5.00
Averages
8.50
High
12.00
Current: 7.060
Low
5.00
Averages
8.50
High
12.00
About OGN
Organon & Co. is a global healthcare company. The Company is engaged in developing and delivering health solutions through a portfolio of prescription therapies and medical devices within women's health, biosimilars and a franchise of established medicines across a range of therapeutic areas. It has a portfolio of approximately 70 medicines and products across a range of therapeutic areas. It has a portfolio of contraception and fertility brands, including Nexplanon, NuvaRing, and Follistim AQ. Its Biosimilars portfolio spans across immunology and oncology treatments. It also has a portfolio of established brands, including brands in cardiovascular, dermatology and non-opioid pain management. It sells these products through various channels, including drug wholesalers and retailers, hospitals, government agencies and managed health care providers, such as pharmacy benefit managers and other institutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Organon & Co. Reports Q4 2025 Earnings Insights
- Financial Performance Overview: In 2025, Organon reported $6.2 billion in revenue and $1.9 billion in adjusted EBITDA, despite a 3% year-over-year revenue decline, indicating pressure in a competitive market landscape.
- Product Line Challenges: Sales of Nexplanon decreased by 20% in Q4 and 4% for the full year, reflecting the impact of U.S. policy changes and competitive pressures on women's health products, leading to an overall business downturn.
- Strategic Adjustments: The company opted to lower its dividend payout ratio, reallocating funds for debt reduction, and generated approximately $390 million in net proceeds from the divestiture of the Jada system to enhance financial flexibility.
- Future Outlook: Management anticipates that revenue and adjusted EBITDA for 2026 will align with 2025 figures at $6.2 billion and $1.9 billion, respectively, despite ongoing market challenges and margin pressures.
See More
Organon Stock Drops 13% Following Disappointing Q4 Earnings
- Organon Shares Fall: Organon shares experienced a 13% decline following the announcement of a profit miss in the fourth quarter.
- Impact of Earnings Report: The disappointing earnings report has raised concerns among investors regarding the company's financial performance and future outlook.
- Market Reaction: The significant drop in share price reflects investor sentiment and market reaction to the missed profit expectations.
- Future Projections: Analysts are now closely monitoring Organon's strategies and projections to assess potential recovery and growth opportunities.
See More
Organon Q4 Financials Miss Expectations, Shares Drop
- Disappointing Financials: Organon's Q4 adjusted EPS of $0.63 and revenue of $1.5B represent approximately 30% and 5% year-over-year declines, respectively, missing consensus estimates of $0.73 and $1.53B, indicating significant financial pressure on the company.
- Women's Health Segment Decline: The Women's Health unit generated $398M in revenue, reflecting a 15% drop year-over-year, marking the second consecutive quarter of decline, primarily due to policy-related demand headwinds in the U.S. and a $17M sales hit from Nexplanon contraceptive implant.
- Biosimilars Growth: Despite overall poor performance, Organon's biosimilar segment expanded by approximately 11% year-over-year, contributing $181M to the topline, showcasing growth potential in this area amidst broader challenges.
- Cautious Future Outlook: The company projects $6.2B in revenue for 2026, slightly below last year's $6.22B but above analysts' expectations of $6.11B, with adjusted EBITDA expected to reach nearly $1.9B, indicating some growth expectations despite ongoing challenges.
See More
Organon Declares $0.02 Quarterly Dividend in Line with Previous
- Quarterly Dividend Announcement: Organon declares a quarterly dividend of $0.02 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flow, although market sentiment regarding its future growth potential remains cautious.
- Dividend Yield: The forward yield of 1.04% reflects the returns provided to shareholders in the current economic environment, despite overall market skepticism about the company's stock performance.
- Shareholder Record Dates: The dividend will be payable on March 12, with a record date of February 23 and an ex-dividend date also on February 23, ensuring shareholders receive timely returns and bolstering investor confidence in the company's stability.
- Financial Performance Overview: Organon's non-GAAP EPS of $0.63 missed expectations by $0.10, while revenue of $1.51 billion met forecasts; however, the women's health unit's poor performance led to a Q4 miss, highlighting challenges in specific business areas.
See More
Organon Reports Q4 Earnings Miss with Cautious Outlook
- Earnings Report: Organon reported a non-GAAP EPS of $0.63, missing expectations by $0.10, indicating pressure on profitability that could undermine investor confidence.
- Revenue Performance: The company achieved $1.51 billion in revenue for Q4, aligning with market expectations; however, the overall performance remains weak, reflecting potential deficiencies in market demand.
- Market Outlook: Organon adopts a cautious outlook ahead of its earnings release, suggesting ongoing challenges, particularly in the highly competitive healthcare sector.
- Analyst Ratings: Seeking Alpha's Quant Rating on Organon reveals market concerns regarding its future performance, potentially prompting investors to reassess their investment strategies.
See More
Organon Q4 Earnings Report Analysis
- Disappointing Earnings: Organon's Q4 non-GAAP EPS of $0.63 missed expectations by $0.10, indicating pressure on profitability that may affect investor confidence moving forward.
- Revenue Decline: The company reported Q4 revenue of $1.51 billion, down 5% year-over-year, which, while in line with expectations, reflects overall sales weakness that could impact future growth outlook.
- 2026 Revenue Guidance: Organon projects 2026 revenue at $6.11 billion, demonstrating a cautious stance on future growth, particularly amid foreign exchange impacts and increasing market competition.
- Cost Control Challenges: The adjusted gross margin stands at 60.1%, expected to decline by 75-100 basis points compared to 2025, indicating challenges in cost management that may affect overall profitability.
See More
Organon & Co. Reports Q4 2025 Earnings Insights
- Financial Performance Overview: In 2025, Organon reported $6.2 billion in revenue and $1.9 billion in adjusted EBITDA, despite a 3% year-over-year revenue decline, indicating pressure in a competitive market landscape.
- Product Line Challenges: Sales of Nexplanon decreased by 20% in Q4 and 4% for the full year, reflecting the impact of U.S. policy changes and competitive pressures on women's health products, leading to an overall business downturn.
- Strategic Adjustments: The company opted to lower its dividend payout ratio, reallocating funds for debt reduction, and generated approximately $390 million in net proceeds from the divestiture of the Jada system to enhance financial flexibility.
- Future Outlook: Management anticipates that revenue and adjusted EBITDA for 2026 will align with 2025 figures at $6.2 billion and $1.9 billion, respectively, despite ongoing market challenges and margin pressures.
See More
Organon Stock Drops 13% Following Disappointing Q4 Earnings
- Organon Shares Fall: Organon shares experienced a 13% decline following the announcement of a profit miss in the fourth quarter.
- Impact of Earnings Report: The disappointing earnings report has raised concerns among investors regarding the company's financial performance and future outlook.
- Market Reaction: The significant drop in share price reflects investor sentiment and market reaction to the missed profit expectations.
- Future Projections: Analysts are now closely monitoring Organon's strategies and projections to assess potential recovery and growth opportunities.
See More
Organon Q4 Financials Miss Expectations, Shares Drop
- Disappointing Financials: Organon's Q4 adjusted EPS of $0.63 and revenue of $1.5B represent approximately 30% and 5% year-over-year declines, respectively, missing consensus estimates of $0.73 and $1.53B, indicating significant financial pressure on the company.
- Women's Health Segment Decline: The Women's Health unit generated $398M in revenue, reflecting a 15% drop year-over-year, marking the second consecutive quarter of decline, primarily due to policy-related demand headwinds in the U.S. and a $17M sales hit from Nexplanon contraceptive implant.
- Biosimilars Growth: Despite overall poor performance, Organon's biosimilar segment expanded by approximately 11% year-over-year, contributing $181M to the topline, showcasing growth potential in this area amidst broader challenges.
- Cautious Future Outlook: The company projects $6.2B in revenue for 2026, slightly below last year's $6.22B but above analysts' expectations of $6.11B, with adjusted EBITDA expected to reach nearly $1.9B, indicating some growth expectations despite ongoing challenges.
See More
Organon Declares $0.02 Quarterly Dividend in Line with Previous
- Quarterly Dividend Announcement: Organon declares a quarterly dividend of $0.02 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flow, although market sentiment regarding its future growth potential remains cautious.
- Dividend Yield: The forward yield of 1.04% reflects the returns provided to shareholders in the current economic environment, despite overall market skepticism about the company's stock performance.
- Shareholder Record Dates: The dividend will be payable on March 12, with a record date of February 23 and an ex-dividend date also on February 23, ensuring shareholders receive timely returns and bolstering investor confidence in the company's stability.
- Financial Performance Overview: Organon's non-GAAP EPS of $0.63 missed expectations by $0.10, while revenue of $1.51 billion met forecasts; however, the women's health unit's poor performance led to a Q4 miss, highlighting challenges in specific business areas.
See More
Organon Reports Q4 Earnings Miss with Cautious Outlook
- Earnings Report: Organon reported a non-GAAP EPS of $0.63, missing expectations by $0.10, indicating pressure on profitability that could undermine investor confidence.
- Revenue Performance: The company achieved $1.51 billion in revenue for Q4, aligning with market expectations; however, the overall performance remains weak, reflecting potential deficiencies in market demand.
- Market Outlook: Organon adopts a cautious outlook ahead of its earnings release, suggesting ongoing challenges, particularly in the highly competitive healthcare sector.
- Analyst Ratings: Seeking Alpha's Quant Rating on Organon reveals market concerns regarding its future performance, potentially prompting investors to reassess their investment strategies.
See More
Organon Q4 Earnings Report Analysis
- Disappointing Earnings: Organon's Q4 non-GAAP EPS of $0.63 missed expectations by $0.10, indicating pressure on profitability that may affect investor confidence moving forward.
- Revenue Decline: The company reported Q4 revenue of $1.51 billion, down 5% year-over-year, which, while in line with expectations, reflects overall sales weakness that could impact future growth outlook.
- 2026 Revenue Guidance: Organon projects 2026 revenue at $6.11 billion, demonstrating a cautious stance on future growth, particularly amid foreign exchange impacts and increasing market competition.
- Cost Control Challenges: The adjusted gross margin stands at 60.1%, expected to decline by 75-100 basis points compared to 2025, indicating challenges in cost management that may affect overall profitability.
See More
