Origin Materials, Inc. Reports Operating and Financial Results for Fourth Quarter and Full Year 2024
– On Track for Eight CapFormer Lines in 2025, Ramping to 2026 Revenue Expectation of
– Projecting Run-Rate EBITDA Positive in 2026 –
– Arranging Debt Financing to Ramp Manufacturing Capacity and Maintain Healthy Cash Floor, No Additional Equity Capital Anticipated –
“This year was transformational for Origin and Q4 was an inflection point for our caps and closures business,” said Origin CEO and Co-Founder John Bissell. “In 2024 we introduced the world to the first fully recyclable
Bissell added: “As we stand up manufacturing, continuous improvement is the rule.” Forthcoming lines are expected to incorporate Origin design modifications to increase throughput and result in superior unit economics. To reiterate and expand on our previous guidance: we expect gross margins for caps in the mid double-digits and capital cost per line to end up in the mid-single digit millions. To further improve margins, we may also choose to acquire PET extruders for installations where we believe vertical integration is optimal versus renting extrusion or purchasing sheet from our manufacturing partners. We anticipate the payback period for the average CapFormer line, separate from any extruders, to be less than 18 months. We plan to stand up additional Origin CapFormer lines at a roughly similar pace to our 2025 deployment in 2026, accelerating as capital allows. We also expect full-year 2026 revenue of
Lastly, Origin is updating guidance for expected profitability timing primarily due to a delayed start to line 1 commercial production and the subsequent impact on timing for lines 2 through 8: We now expect to achieve EBITDA positive results on a run-rate basis by the end of 2026, updated from the first half of 2026. Bissell continued: “The fundamentals of our business are strong, including substantial demand for the product, high barriers to entry, and strong strategic interest in Origin across customers and partners. We are increasingly in the enviable position of having indicative demand that significantly exceeds our fulfillment capability for several years to come. Our bigger challenge is to bring supply online as fast as practical to better meet demand and gain market share. We continue to make strides pursuing the opportunity to convert a meaningful amount of market share in the
Company Fourth Quarter and Recent Business Highlights
Origin Materials reported quarterly revenue of
-
We announced the commencement of PET cap commercial production. We expect our first CapFormer line, in
Reed City, Michigan , to produce hundreds of millions of PET caps each year. With the commencement of line 1 production, we anticipate many strategic benefits will be open to us, including more favorable equipment financing terms, more demand for our products, and increased interest in licensing. - We confirmed that three new CapFormer lines are nearing completion, maintaining our target of having eight lines online by the end of 2025. These new systems will be completed and rolled out on a staggered basis. We have also successfully expanded our CapFormer manufacturing relationships in order to ensure redundancy and additional capacity.
- We are providing more information on timing to revenue realization. Following commencement of commercial production mid-February we have increased our ability to perform customer qualification. We expect to begin realizing caps revenue in earnest concurrently with our next three lines commencing production and customer order fulfillment during Q3, with meaningful revenue generation by Q4 of this year and a strong 2025 exit revenue run-rate. Similarly, we expect the first products with Origin caps to appear on shelves in Q3 2025 or potentially as early as late Q2 2025.
- We are in the process of securing debt financing to fund our capital equipment build-out and working capital needs to maintain a healthy minimum cash floor at all times. The expected short payback period per line makes for an attractive financing opportunity for lenders, and we are curating a number of financing proposals for all lines we have on order and in production. We do not anticipate needing to raise equity capital to finance our growth.
- We significantly enhanced our IP portfolio, deepening Origin’s technology advantage. Our patent portfolio now comprises over 70 issued patents, as well as dozens of pending applications. In January 2025, five applications published covering single and double-walled closures, knurled and threaded closures, and methods of making our closures via thermoforming. Origin’s IP lets us make a new, lighter, better-performing cap than our competitors can make, using a proprietary CapForming method our competitors can't duplicate.
Results for Fourth Quarter and Full Year 2024
Cash, cash equivalents and marketable securities were
Revenue for the fourth quarter was
Revenue for the full year was
Operating expenses for the fourth quarter were
Full year 2024 operating expenses were
Net loss was
Adjusted EBITDA loss was
Shares outstanding as of December 31, 2024 were 148.6 million including 3.0 million shares that are subject to forfeiture based on share price performance targets previously disclosed in our filings.
For a reconciliation of non-GAAP figures to the applicable GAAP figures, please see the table captioned ‘Reconciliation of GAAP and Non-GAAP Results' set forth at the end of this press release.
Webcast and Conference Call Information
Company management will host a webcast and conference call on March 13, 2025, at 5:00 p.m. Eastern Time, to discuss the Company's financial results.
Interested investors and other parties can listen to a webcast of the live conference call and access the Company’s quarterly update presentation by logging onto the Investor Relations section of the Company's website at https://investors.originmaterials.com/.
The conference call can be accessed live over the phone by dialing +1-844-481-2515 (domestic) or +1-412-317-0644 (international). A telephonic replay will be available approximately three hours after the call by dialing 1-844-512-2921, or for international callers, +1-412-317-6671. The conference ID for the live call and pin number for the replay is 10197107. The replay will be available until 11:59 p.m. Eastern Time on March 20, 2025.
About Origin Materials, Inc.
Origin is a technology company with a mission to enable the world’s transition to sustainable materials. Our innovations include PET caps and closures that bring recycling circularity and enhanced performance to a
Non-GAAP Financial Information
To supplement the Company’s financial results presented in accordance with generally accepted accounting principles in
The Company believes that the presentation of Adjusted EBITDA is appropriate to provide additional information to investors about our operating profitability adjusted for certain non-cash items, non-routine items that the Company does not expect to continue at the same level in the future, as well as other items that are not core to the Company’s operations. Further, the Company believes Adjusted EBITDA provides a meaningful measure of operating profitability because the Company uses it for evaluating the Company’s business performance, making budgeting decisions, and comparing performance against that of other peer companies using similar measures.
Non-GAAP financial measures are not defined under
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable
For more information on Adjusted EBITDA, please see the table captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.
Cautionary Note on Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “project,” “potential,” “seem,” “seek,” “target,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Origin’s business strategy, anticipated customer demand, revenue potential, near-term and long term revenue potential of caps and closures, the projection that Origin will achieve positive EBITDA results by the end of 2026, the estimated output and unit economics of Origin’s CapFormer lines, pace and anticipated timing of bringing Origin’s CapFormer lines online and anticipated revenue generated from such systems, the average payback period for Origin’s CapFormer lines, anticipated timing of commercializing Origin’s products and delivering those products to customers, anticipated benefits resulting from Origin’s commencement of commercial production, including the availability of favorable equipment financing terms and increases in product and licensing demand, estimated total addressable market, anticipated benefits of and demand for Origin’s potential products, ability to convert MOUs and other potential customer interest into revenue, commercial and operating plans, product development plans and announcements of such plans, expectations about Origin’s future financing arrangements, including Origin’s ability to enter into financing arrangements on favorable terms, expectations about whether Origin will raise equity capital in the future, and anticipated growth and projected financial information. From time to time, the Company discloses approximate levels of customer demand based on information received from current and potential customers as to amounts of product they wish to purchase at a certain price over a certain term in the future. The Company does not discount such indications of customer demand by the likelihood of their conversion to actual revenue or the time until such conversion. Some customers may overstate the amount of product they wish to purchase and one should not assume that demand figures disclosed by the Company will necessarily translate into comparable levels of revenue. The forward-looking statements are based on various assumptions, whether or not identified in this press release, and on the current plans, objectives, estimates, expectations, and intentions of the management of Origin and are not predictions of actual performance and inherently involve significant risks and uncertainties. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Origin. These forward-looking statements are subject to a number of risks and uncertainties including, but not limited to, the fact that Origin may be unable to successfully commercialize its products; the effects of competition on Origin’s business; the uncertainty of the projected financial information with respect to Origin; disruptions and other impacts to Origin’s business. Other factors that could adversely affect the Company’s operations include those discussed in Origin’s Annual Report on Form 10-K filed with the
ORIGIN MATERIALS, INC. CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share and per share data) |
December 31,
|
|
December 31,
|
|||||
ASSETS |
|
|
|
|||||
Current assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
56,307 |
|
|
$ |
75,502 |
|
|
Marketable securities |
|
46,613 |
|
|
|
82,761 |
|
|
Accounts receivable and unbilled receivable, net of allowance for credit losses of |
|
19,179 |
|
|
|
16,128 |
|
|
Other receivables |
|
2,526 |
|
|
|
3,449 |
|
|
Inventory |
|
866 |
|
|
|
912 |
|
|
Prepaid expenses and other current assets |
|
2,401 |
|
|
|
8,360 |
|
|
Land held for sale |
|
11,282 |
|
|
|
— |
|
|
Total current assets |
|
139,174 |
|
|
|
187,112 |
|
|
Property, plant, and equipment, net |
|
203,919 |
|
|
|
243,118 |
|
|
Operating lease right-of-use asset |
|
3,735 |
|
|
|
4,468 |
|
|
Intangible assets, net |
|
73 |
|
|
|
121 |
|
|
Deferred tax assets |
|
621 |
|
|
|
1,261 |
|
|
Other long-term assets |
|
30,505 |
|
|
|
25,754 |
|
|
Total assets |
$ |
378,027 |
|
|
$ |
461,834 |
|
|
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
Accounts payable |
$ |
2,921 |
|
|
$ |
1,858 |
|
|
Accrued expenses |
|
2,779 |
|
|
|
7,689 |
|
|
Operating lease liabilities, current |
|
323 |
|
|
|
367 |
|
|
Notes payable, short-term |
|
3,772 |
|
|
|
1,730 |
|
|
Other liabilities, current |
|
2,754 |
|
|
|
918 |
|
|
Derivative liability |
|
— |
|
|
|
300 |
|
|
Total current liabilities |
|
12,549 |
|
|
|
12,862 |
|
|
Earnout liability |
|
2,486 |
|
|
|
1,783 |
|
|
Canadian Government Research and Development Program liability |
|
14,399 |
|
|
|
7,348 |
|
|
Common stock warrants liability |
|
4,566 |
|
|
|
1,341 |
|
|
Notes payable, long-term |
|
1,730 |
|
|
|
3,459 |
|
|
Operating lease liabilities |
|
3,858 |
|
|
|
4,207 |
|
|
Other liabilities, long-term |
|
74 |
|
|
|
8,327 |
|
|
Total liabilities |
|
39,662 |
|
|
|
39,327 |
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Preferred stock, |
|
— |
|
|
|
— |
|
|
Common stock, |
|
15 |
|
|
|
15 |
|
|
Additional paid-in capital |
|
393,186 |
|
|
|
382,854 |
|
|
(Accumulated deficit) retained earnings |
|
(38,127 |
) |
|
|
45,570 |
|
|
Accumulated other comprehensive loss |
|
(16,709 |
) |
|
|
(5,932 |
) |
|
Total stockholders’ equity |
|
338,365 |
|
|
|
422,507 |
|
|
Total liabilities and stockholders’ equity |
$ |
378,027 |
|
|
$ |
461,834 |
|
ORIGIN MATERIALS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME |
||||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|||||||||||||
(In thousands, except share and per share data) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Revenues: |
|
|
|
|
|
|
|
|||||||||
Products |
$ |
9,222 |
|
|
$ |
9,667 |
|
|
$ |
31,279 |
|
|
$ |
23,896 |
|
|
Services |
|
— |
|
|
|
3,396 |
|
|
|
3 |
|
|
|
4,909 |
|
|
Total revenues |
|
9,222 |
|
|
|
13,063 |
|
|
|
31,282 |
|
|
|
28,805 |
|
|
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
9,210 |
|
|
|
9,477 |
|
|
|
30,864 |
|
|
|
23,591 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Research and development |
|
3,216 |
|
|
|
5,953 |
|
|
|
18,554 |
|
|
|
21,351 |
|
|
General and administrative |
|
10,155 |
|
|
|
11,474 |
|
|
|
40,766 |
|
|
|
35,382 |
|
|
Depreciation and amortization |
|
2,769 |
|
|
|
2,342 |
|
|
|
10,715 |
|
|
|
3,363 |
|
|
Impairment of assets |
|
76 |
|
|
|
— |
|
|
|
15,246 |
|
|
|
— |
|
|
Total operating expenses |
|
16,216 |
|
|
|
19,769 |
|
|
|
85,281 |
|
|
|
60,096 |
|
|
Loss from operations |
|
(16,204 |
) |
|
|
(16,183 |
) |
|
|
(84,863 |
) |
|
|
(54,882 |
) |
|
Other income (expenses): |
|
|
|
|
|
|
|
|||||||||
Investment income |
|
1,336 |
|
|
|
1,995 |
|
|
|
6,783 |
|
|
|
6,303 |
|
|
Interest expenses |
|
(58 |
) |
|
|
(131 |
) |
|
|
(371 |
) |
|
|
(131 |
) |
|
Gain (loss) in fair value of derivatives |
|
53 |
|
|
|
(551 |
) |
|
|
290 |
|
|
|
69 |
|
|
(Loss) gain in fair value of common stock warrants liability |
|
(312 |
) |
|
|
2,093 |
|
|
|
(3,225 |
) |
|
|
29,531 |
|
|
Gain (loss) in fair value of earnout liability |
|
1,698 |
|
|
|
1,846 |
|
|
|
(703 |
) |
|
|
40,983 |
|
|
Other income (expenses), net |
|
231 |
|
|
|
(817 |
) |
|
|
(939 |
) |
|
|
838 |
|
|
Total other income, net |
|
2,948 |
|
|
|
4,435 |
|
|
|
1,835 |
|
|
|
77,593 |
|
|
(Loss) income before income tax (provision) benefit |
|
(13,256 |
) |
|
|
(11,748 |
) |
|
|
(83,028 |
) |
|
|
22,711 |
|
|
Income tax (provision) benefit |
|
(266 |
) |
|
|
1,310 |
|
|
|
(669 |
) |
|
|
1,087 |
|
|
Net (loss) income |
|
(13,522 |
) |
|
|
(10,438 |
) |
|
|
(83,697 |
) |
|
|
23,798 |
|
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|||||||||
Unrealized (loss) gain on marketable securities |
|
(13 |
) |
|
|
1,848 |
|
|
|
2,197 |
|
|
|
6,355 |
|
|
Foreign currency translation adjustment |
|
(9,267 |
) |
|
|
4,450 |
|
|
|
(12,974 |
) |
|
|
3,666 |
|
|
Total other comprehensive (loss) income |
|
(9,280 |
) |
|
|
6,298 |
|
|
|
(10,777 |
) |
|
|
10,021 |
|
|
Total comprehensive (loss) income |
$ |
(22,802 |
) |
|
$ |
(4,140 |
) |
|
$ |
(94,474 |
) |
|
$ |
33,819 |
|
|
Net (loss) income per share, basic |
$ |
(0.09 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.58 |
) |
|
$ |
0.17 |
|
|
Net (loss) income per share, diluted |
$ |
(0.09 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.58 |
) |
|
$ |
0.17 |
|
|
Weighted-average common shares outstanding, basic |
|
144,056,554 |
|
|
|
140,739,995 |
|
|
|
143,192,630 |
|
|
|
139,718,385 |
|
|
Weighted-average common shares outstanding, diluted |
|
144,056,554 |
|
|
|
140,739,995 |
|
|
|
143,192,630 |
|
|
|
142,658,423 |
|
ORIGIN MATERIALS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
Year Ended December 31, |
|||||||
(in thousands) |
2024 |
|
2023 |
|||||
Cash flows from operating activities |
|
|
|
|||||
Net (loss) income |
$ |
(83,697 |
) |
|
$ |
23,798 |
|
|
Adjustments to reconcile net (loss) income to net cash used in operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
10,715 |
|
|
|
3,363 |
|
|
Provision for credit losses |
|
1,230 |
|
|
|
— |
|
|
Stock-based compensation |
|
10,080 |
|
|
|
9,400 |
|
|
Loss on reserves |
|
639 |
|
|
|
— |
|
|
Impairment of assets |
|
15,246 |
|
|
|
— |
|
|
Realized loss (gain) on marketable securities |
|
946 |
|
|
|
(1,018 |
) |
|
Amortization of premium and discount of marketable securities, net |
|
(190 |
) |
|
|
3,750 |
|
|
Change in fair value of derivative |
|
(290 |
) |
|
|
(69 |
) |
|
Change in fair value of common stock warrants liability |
|
3,225 |
|
|
|
(29,531 |
) |
|
Change in fair value of earnout liability |
|
703 |
|
|
|
(40,983 |
) |
|
Deferred tax provision (benefit) |
|
640 |
|
|
|
(1,246 |
) |
|
Other non-cash expenses |
|
518 |
|
|
|
615 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable and other receivables |
|
(3,359 |
) |
|
|
(15,230 |
) |
|
Inventory |
|
46 |
|
|
|
(912 |
) |
|
Prepaid expenses and other current assets |
|
2,397 |
|
|
|
(4,994 |
) |
|
Other long-term assets |
|
(4,750 |
) |
|
|
(12,761 |
) |
|
Accounts payable |
|
373 |
|
|
|
909 |
|
|
Accrued expenses |
|
(3,590 |
) |
|
|
4,985 |
|
|
Operating lease liability |
|
(350 |
) |
|
|
(534 |
) |
|
Other liabilities, current |
|
(1,362 |
) |
|
|
65 |
|
|
Other liabilities, long-term |
|
— |
|
|
|
38 |
|
|
Net cash used in operating activities |
|
(50,830 |
) |
|
|
(60,355 |
) |
|
Cash flows from investing activities |
|
|
|
|||||
License prepayment within other long-term assets |
|
— |
|
|
|
(7,913 |
) |
|
Purchases of property, plant, and equipment |
|
(8,953 |
) |
|
|
(102,188 |
) |
|
Purchases of marketable securities |
|
(1,817,317 |
) |
|
|
(3,626,305 |
) |
|
Sales of marketable securities |
|
1,751,508 |
|
|
|
3,605,216 |
|
|
Maturities of marketable securities |
|
103,321 |
|
|
|
157,422 |
|
|
Net cash provided by investing activities |
|
28,559 |
|
|
|
26,232 |
|
|
Cash flows from financing activities |
|
|
|
|||||
Payment of notes payable |
|
(4,793 |
) |
|
|
— |
|
|
Proceeds from Canadian Government Research and Development Program |
|
8,097 |
|
|
|
— |
|
|
Proceeds from exercise of stock options |
|
252 |
|
|
|
146 |
|
|
Net cash provided by financing activities |
|
3,556 |
|
|
|
146 |
|
|
Effects of foreign exchange rate changes on the balance of cash and cash equivalents, and restricted cash |
|
(480 |
) |
|
|
1,131 |
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
(19,195 |
) |
|
|
(32,846 |
) |
|
Cash, cash equivalents and restricted cash, beginning of the year |
|
75,502 |
|
|
|
108,348 |
|
|
Cash and cash equivalents at end of the year |
$ |
56,307 |
|
|
$ |
75,502 |
|
Origin Materials, Inc. Reconciliation of GAAP and Non-GAAP Results |
||||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|||||||||||||
(in thousands) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Net (loss) income |
$ |
(13,522 |
) |
|
$ |
(10,438 |
) |
|
$ |
(83,697 |
) |
|
$ |
23,798 |
|
|
Stock-based compensation |
|
2,304 |
|
|
|
2,369 |
|
|
|
10,080 |
|
|
|
9,400 |
|
|
Depreciation and amortization |
|
2,769 |
|
|
|
2,342 |
|
|
|
10,715 |
|
|
|
3,363 |
|
|
Impairment of assets |
|
76 |
|
|
|
— |
|
|
|
15,246 |
|
|
|
— |
|
|
Investment income |
|
(1,336 |
) |
|
|
(1,995 |
) |
|
|
(6,783 |
) |
|
|
(6,303 |
) |
|
Interest expenses |
|
58 |
|
|
|
131 |
|
|
|
371 |
|
|
|
131 |
|
|
(Gain) loss in fair value of derivatives |
|
(53 |
) |
|
|
551 |
|
|
|
(290 |
) |
|
|
(69 |
) |
|
Loss (gain) in fair value of common stock warrants liability |
|
312 |
|
|
|
(2,093 |
) |
|
|
3,225 |
|
|
|
(29,531 |
) |
|
(Gain) loss in fair value of earnout liability |
|
(1,698 |
) |
|
|
(1,846 |
) |
|
|
703 |
|
|
|
(40,983 |
) |
|
Other (income) expenses, net |
|
(231 |
) |
|
|
817 |
|
|
|
939 |
|
|
|
(838 |
) |
|
Income tax provision (benefit) |
|
266 |
|
|
|
(1,310 |
) |
|
|
669 |
|
|
|
(1,087 |
) |
|
Cash severance |
|
— |
|
|
|
484 |
|
|
|
455 |
|
|
|
484 |
|
|
Adjusted EBITDA |
$ |
(11,055 |
) |
|
$ |
(10,988 |
) |
|
$ |
(48,367 |
) |
|
$ |
(41,635 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250313435956/en/
Origin Materials
Investors:
ir@originmaterials.com
Media:
media@originmaterials.com
Source: Origin Materials, Inc.