Origin Materials, Inc. Annual Report - How They Did This Year

I’ve put together a simple guide to help you understand how Origin Materials performed this year. Instead of digging through dense legal filings, we are breaking down the business, their financial health, and what you should watch.

1. What does this company do?

Origin Materials focuses on sustainable materials. They have shifted their focus away from the "Origin 1" plant and are now betting on PET closures—the caps on plastic bottles. They have created a commercially viable PET cap that is fully recyclable. Because they use the same material as the bottle, they make recycling much more efficient than traditional caps made from different plastics.

2. Major Changes: The "Reverse Stock Split"

In March 2026, the company performed a 1-for-30 reverse stock split. If you owned 30 shares, you now own one. Because the stock price had fallen below $1.00, this move was necessary to remain compliant with Nasdaq exchange rules. It does not change the company’s total value or your ownership stake.

3. Business Progress

The company is moving from a research-focused model to a manufacturing one. They have one production line in Michigan making 100 million caps per year. They successfully tested six more lines, which they plan to install by late 2026 to scale production to over 700 million caps annually. In August 2025, they became the first company to put these PET caps on drinks sold in stores. They are targeting a $65 billion global market for bottle caps, aiming to replace existing caps without requiring bottlers to change their equipment.

4. Financial Health & Risks

This is the most important part for you as an investor. The company is currently in a high-risk phase:

• Survival Warning: The company lost $145 million this year and ended with about $85 million in cash. With a burn rate of $6–$8 million per month, management has noted that there is substantial doubt regarding their ability to continue operations without raising additional capital within the next year.
• Customer Risk: Revenue is highly concentrated, with two customers accounting for over 60% of total sales.
• Dilution: To fund new production lines and daily operating costs, the company sells new shares directly into the market. This increases the total share count, which reduces the ownership percentage of existing shareholders.
• Competition: They compete against packaging giants like Berry Global and Amcor. These competitors have significantly more cash, established supply chains, and the ability to lower prices to protect their market share.

5. Future Outlook

Origin Materials is now a "show me" story. They have proven the technology works in stores, but they must now manufacture at scale, sell profitably, and secure long-term funding. Success depends on lowering production costs to compete with cheaper, traditional caps.

Investor Checklist:

• Watch Production: Look for quarterly updates on production volume from the new lines.
• Monitor Cash: Keep an eye on how quickly they are spending their remaining cash reserves.
• Track Sales: Watch for new, high-volume sales agreements that diversify their customer base.

Note: This report is based on the latest SEC filings. The company is in a high-risk phase where survival is not guaranteed. Always do your own research before investing.