Origin Materials announces organizational realignment, business update

Origin Materials, a sustainable materials technology company based in West Sacramento, California, has announced an organizational realignment and cost containment measures to enhance its cash and capital resources dedicated to polyethylene terephthalate (PET) cap commercialization. 

These steps will allow Origin to achieve adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) run-rate breakeven in 2027. 

“We are closer now than ever before to successful delivery of our PET caps to multiple world-class beverage brands,” Origin CEO John Bissell says. “It has taken us longer to reach this point than expected which we believe has not had a negative impact on the strong interest in our product but has negatively impacted our stock price and consumed more resources than projected.”  

Bissell says that the company has taken necessary and non-dilutive measures to enhance its cash resources and reduce the amount of additional capital required to achieve cash-positive operations, while maintaining the required horsepower needed to commercialize its PET caps in 2026. 

He estimates that Origin has reduced operating expenses by approximately 25 percent through ceasing investments in its furanics platform, narrowing its PET cap format development initiatives in 2026 by deferring non-beverage cap format development to 2027 and limiting its CapFormer line build-out to the six lines already procured and scheduled to be installed. 

With these measures in place, which include a reduction in headcount, Origin expects its convertible debt and equipment debt financing arrangements to provide the necessary working capital to fund operations to achieve adjusted EBITDA run-rate breakeven in 2027. 

“Our prospective customers consume billions of caps per year, and they continue to expect to begin converting to our PET caps upon successful acceptance testing, which is underway,” Bissell says. “Due to the timing variability of those processes, we are limiting our forward financial guidance to the aforementioned expectation of reaching adjusted EBITDA run-rate breakeven in 2027. As we close customer offtake agreements, we expect our forecasting precision to improve and to be better positioned to provide addition guidance.” 

Origin says customer interest remains strong, and its 1881 PET pressurized water caps are slated for delivery to multiple brands in 2026 to continue acceptance testing. 

In August 2025, Origin announced that the first products with its PET caps had gone onto store shelves in California. In October 2025, Berlin Packaging placed its first order for PET caps, which Origin is fulfilling. 

The company has reduced annual operating expenditures from approximately $40 million to a projected $29 million by reducing headcount, indefinitely suspending furanics platform development expenses and focusing on the scope of new format development. 

Origin anticipates that it will incur approximately $0.9 million in restructuring charges in connection with the workforce reduction, primarily consisting of cash expenditures for severance and benefits costs. 

The company says it expects that the cost reductions will substantially reduce its financing requirements to reach profitability and position Origin to access additional tranches of the $100 million debt facility as needed. 

Origin says it believes the debt facility can serve near-term working capital requirements, provided prospective customers qualify its pressurized water cap in the expected timeframe. In addition, the company will continue to explore other financing options in the context of its strategic review process with RBC Capital.