Organon & Co. (OGN) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
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: 7.920
Low
5.00
Averages
8.50
High
12.00
Current: 7.920
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.
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- 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
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- 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
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- 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
