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 $110M to $140M –

– Projecting Run-Rate EBITDA Positive in 2026 –

– Arranging Debt Financing to Ramp Manufacturing Capacity and Maintain Healthy Cash Floor, No Additional Equity Capital Anticipated –

Origin Materials, Inc. ("Origin," "Origin Materials," or the "Company") (NASDAQ:ORGN, ORGNW)), a technology company with a mission to enable the world's transition to sustainable materials, today announced financial results for its fourth quarter and full year ended December 31, 2024.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250313435956/en/

"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 100% PET cap. In Q4, we finished fabrication of our first PET cap manufacturing line and have since turned on commercial production. In February 2025, we announced three new CapFormers are nearing completion, and we expect them to complete factory acceptance testing during Q2. We also confirmed we expect to have eight CapFormer lines online by the end of 2025. Simply put, we are deploying CapFormers as fast as practical to address the substantial and growing customer demand for our products. Our team is now laser focused on Origin's transformation into a closures manufacturing organization with healthy revenue and margins. In recent weeks, we have made millions of caps, many of which are now in the hands of some of the largest and most famous brands in the world to continue their qualification procedures and although these qualification shipments will not count as sales, they do demonstrate significant and important commercial pull-through. We look forward to naming customers in the weeks or months ahead. Many customers prefer to make an announcement as they draw nearer to having their products with Origin caps on shelves, which we anticipate taking place in Q3 or potentially as soon as late Q2."

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 $110M to $140M, separate from potential licensing revenue."

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 $65B annual caps and closure market to Origin's PET caps."

Company Fourth Quarter and Recent Business Highlights

Origin Materials reported quarterly revenue of $9.2 million generated by the Company's supply chain activation program. The Company also made significant progress in commercializing its caps and closures business.

• 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 $102.9 million as of December 31, 2024.

Revenue for the fourth quarter was $9.2 million compared to $13.1 million in the prior-year period, generated by the Company's supply chain activation program.

Revenue for the full year was $31.3 million compared to $28.8 million in the prior-year period, generated mainly by the Company's supply chain activation program.

Operating expenses for the fourth quarter were $16.2 million compared to $19.8 million in the prior-year period, a decrease of $3.6 million consisting primarily of a $2.7 million decrease in research and development expenses and a $1.3 million decrease in general and administrative expenses.

Full year 2024 operating expenses were $85.3 million compared to $60.1 million in the prior-year period, an increase of $25.2 million driven primarily by $15.2 million in non-cash impairment charges, a $5.4 million increase in general and administrative expenses, a $7.4 million increase in depreciation expenses driven by Origin 1 coming online during the fourth quarter of 2023, partially offset by a $2.8 million decrease in research and development expenses. A significant portion of costs incurred during the year of 2023 were capitalized as part of the development of Origin 1, whereas the costs to operate and maintain the plant are included in general and administrative expenses in 2024.

Net loss was $13.5 million for the fourth quarter compared to $10.4 million in the prior-year period. Full year 2024 net loss was $83.7 million compared to net income of $23.8 million in the prior-year period, a decrease of $107.5 million driven primarily by $25.2 million increase in total operating expenses, a $32.8 million decrease in fair value of common stock warrants liability, and a $41.7 million decrease in fair value of earnout liability.

Adjusted EBITDA loss was $11.1 million for the fourth quarter compared to $11.0 million in the prior-year period. Full year 2024 Adjusted EBITDA loss was $48.4 million compared to $41.6 million in the prior-year period.

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 ~$65 billion market, specialty materials, and our patented biomass conversion platform that transforms carbon into sustainable materials for a wide range of end products. For more information, visit www.originmaterials.com.

Non-GAAP Financial Information

To supplement the Company's financial results presented in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), the Company also uses non-GAAP financial measures, including Adjusted EBITDA, as supplemental measures to review and assess the Company's operating performance. Adjusted EBITDA is defined as net income or loss adjusted for (i) stock-based compensation, (ii) depreciation and amortization, (iii) impairment of assets, (iv) investment income, (v) interest expenses, (vi) change in fair value of derivatives, (vii) change in fair value of common stock warrants liability, (viii) change in fair value of earnout liability, (ix) other expenses (income), net, (x) income tax expenses (benefits) and (xi) cash severance.

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 U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, investors should not consider them in isolation. In addition, calculations of this non-GAAP financial information may be different from calculations used by other companies, and therefore comparability may be limited.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating our performance.

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 U.S. Securities and Exchange Commission ("SEC") on March 13, 2025 under the heading "Risk Factors," and other documents Origin has filed, or will file, with the SEC. These filings, when available, are available on the investor relations section of our website at investors.originmaterials.com and on the SEC's website at www.sec.gov. If any of these risks materialize or Origin's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks of which Origin does not presently know, or that Origin currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Origin undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required under applicable law. These forward-looking statements should not be relied upon as representing Origin's assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

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Origin Materials

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