AVITA Medical Reports First Quarter 2025 Financial Results
- Commercial revenue grew 67% YoY to $18.5 million
- Strong gross profit margin of 84.7%
- Market opportunity expanded from $455M to $3.5B with new products
- Expected revenue growth of 55-65% for full-year 2025
- Projected GAAP profitability in Q4 2025
- Net loss improved from $18.7M to $13.9M YoY
- Operating expenses increased to $27.5 million
- Required waiver for Q1 revenue covenant from OrbiMed
- Cash position decreased to $25.8 million
- Still operating at a net loss of $13.9 million
- Gross margin slightly declined from 86.4% to 84.7% YoY
Insights
AVITA Medical's impressive 67% revenue growth and expanded market opportunity signal successful transformation toward profitability by Q4 2025.
AVITA Medical has delivered extraordinary 67% revenue growth in Q1, reaching
The company maintained a robust
Two strategic product launches are driving market expansion: RECELL GO mini (February launch) targeting smaller wounds in high-volume trauma centers, and Cohealyx (April 1 nationwide launch), their branded collagen-based dermal matrix. This portfolio diversification reduces single-product risk while creating cross-selling opportunities within existing accounts.
Operating expenses were
The company reaffirmed its 2025 guidance of
AVITA's commercial transformation from a service-oriented model to a focused selling approach is precisely what's needed to efficiently scale across their expanded product portfolio, supporting their projected substantial revenue growth through 2025.
VALENCIA, Calif., May 08, 2025 (GLOBE NEWSWIRE) -- AVITA Medical, Inc. (NASDAQ: RCEL, ASX: AVH), a leading therapeutic acute wound care company delivering transformative solutions, today reported financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Financial Highlights and Recent Developments
- Commercial revenue of
$18.5 million , an increase of approximately67% compared to the same period in 2024 - Gross profit margin of
84.7% - In February, launched RECELL GO mini™, designed to treat smaller wounds, targeting U.S. trauma centers treating a high volume of small-area wounds
- On April 1, initiated nationwide launch of Cohealyx™, an AVITA Medical-branded collagen-based dermal matrix
- Completed transformation of the commercial organization, shifting from a service-oriented, case-based support structure to a focused, selling-oriented model that enables scalable execution through AVITA Medical’s multi-product platform
“We’ve transformed from a single-product, burn-only company into an integrated, multi-product platform positioned to lead in therapeutic acute wound care,” said Jim Corbett, Chief Executive Officer of AVITA Medical. “With the February rollout of RECELL GO mini and the nationwide launch of Cohealyx on April 1, our portfolio now addresses a U.S. market opportunity that has expanded from
Commercial and Regulatory Priorities
- Continue to drive adoption of RECELL GO across burn and trauma centers to support broad adoption of core system
- Expand adoption within trauma centers of RECELL GO mini, a purpose-built solution designed for smaller wounds and optimized for integration into high-volume trauma workflows
- Drive awareness and adoption of Cohealyx in acute wound care by highlighting clinical outcomes and institutional value
- Leverage the redesigned commercial model to accelerate adoption and enable scalable growth across AVITA Medical’s multi-product platform
- Continue to develop clinical data for Cohealyx to support clinical efficacy and cost savings in the treatment of full-thickness wounds
- Support the adoption of PermeaDerm through commercial efforts and the ongoing PermeaDerm-I clinical study
- Complete the transfer of PermeaDerm manufacturing to AVITA Medical’s in-house facility
- Expect the notified body in the European Union to grant the CE mark for RECELL GO by mid-2025; fully prepared to meet supply demands upon approval
2025 Financial Guidance
AVITA Medical is reaffirming its previously issued guidance for full-year 2025:
- Commercial revenue is expected to be in the range of
$100 t o$106 million , reflecting growth of approximately55% to65% compared to the full-year 2024 - Expect to generate free cash flow in the second half of 2025 and achieve GAAP profitability in the fourth quarter
AVITA Medical Acute Wound Care Showcase 2025
On May 13, AVITA Medical will host its Acute Wound Care Showcase 2025, a virtual event highlighting the Company’s integrated approach to therapeutic acute wound care. The Showcase will feature presentations from Jim Corbett, Chief Executive Officer, and Dr. Katie Bush, Senior Vice President of Scientific and Medical Affairs, as well as case insights from treating surgeons and attending nurses. Attendees will also hear directly from patients who have been treated with AVITA Medical’s technologies. All interested parties may register and access the webcast via the Events & Presentations section of AVITA Medical’s Investor Relations site at ir.avitamedical.com. A replay will be available the following day.
First Quarter 2025 Financial Results
Commercial revenue was
Gross profit margin was
Total operating expenses for the quarter were
Other expense, net increased by
Net loss was
As of March 31, 2025, the Company had approximately
Webcast and Conference Call Information
AVITA Medical will host a conference call on Thursday, May 8, 2025, at 1:30 p.m. Pacific Time (Friday, May 9, 2025, at 6:30 a.m. Australian Eastern Standard Time) to discuss its first quarter 2025 financial results and recent business highlights. The live webcast will be available under the Events & Presentations section of the AVITA Medical website at ir.avitamedical.com. To participate by telephone, please register in advance to receive dial-in details and a personal PIN at https://register-conf.media-server.com/register/BI88e9b0f5d021416f94e97d9729bf6cfa. A replay of the webcast will be available shortly after the live event.
About AVITA Medical, Inc.
AVITA Medical® is a leading therapeutic acute wound care company delivering transformative solutions. Our technologies are designed to optimize wound healing, effectively accelerating the time to patient recovery. At the forefront of our platform is the RECELL® System, approved by the FDA for the treatment of thermal burn wounds and full-thickness skin defects. RECELL harnesses the healing properties of a patient’s own skin to create Spray-On Skin™ Cells, offering an innovative solution for improved clinical outcomes at the point-of-care. In the U.S., AVITA Medical also holds the exclusive rights to market, sell, and distribute both Cohealyx™, an AVITA Medical-branded collagen-based dermal matrix, and the exclusive rights to PermeaDerm®, a biosynthetic wound matrix.
In international markets, the RECELL System is approved to promote skin healing in a wide range of applications including burns and full-thickness skin defects. The RECELL System, excluding RECELL GO®, is TGA-registered in Australia, has received CE mark approval in Europe, and has PMDA approval in Japan.
To learn more, visit www.avitamedical.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements generally may be identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “intend,” “look forward,” “may,” “outlook,” “project,” “target,” “will,” “would,” and similar words or expressions, and the use of future dates. Forward-looking statements include, but are not limited to, statements relating to the timing and realization of regulatory approvals of our products; physician acceptance, endorsement, and use of our products; failure to achieve the anticipated benefits from approval of our products; the effect of regulatory actions; product liability claims; risks associated with international operations and expansion; and other business effects, including the effects of industry, as well as other economic or political conditions outside of the Company’s control. These statements are made as of the date of this release, and the Company undertakes no obligation to publicly update or revise any of these statements, except as required by law. For additional information and other important factors that may cause actual results to differ materially from forward-looking statements, please see the “Risk Factors” section of the Company’s latest Annual Report on Form 10-K and other publicly available filings for a discussion of these and other risks and uncertainties.
Authorized for release by the Chief Financial Officer of AVITA Medical, Inc.
| AVITA MEDICAL, INC. Consolidated Balance Sheets (In thousands, except share and per share data) | ||||||||
| As of | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 14,870 | $ | 14,050 | ||||
| Marketable securities | 10,948 | 21,835 | ||||||
| Accounts receivable, net | 12,045 | 11,786 | ||||||
| Prepaids and other current assets | 1,709 | 2,060 | ||||||
| Inventory | 8,395 | 7,269 | ||||||
| Total current assets | 47,967 | 57,000 | ||||||
| Plant and equipment, net | 9,894 | 10,018 | ||||||
| Operating lease right-of-use assets | 3,356 | 3,571 | ||||||
| Corporate-owned life insurance (“COLI”) asset | 2,605 | 3,006 | ||||||
| Intangible assets, net | 5,447 | 5,570 | ||||||
| Other long-term assets | 287 | 546 | ||||||
| Total assets | $ | 69,556 | $ | 79,711 | ||||
| LIABILITIES, NON-QUALIFIED DEFERRED COMPENSATION PLAN SHARE AWARDS AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| Accounts payable and accrued liabilities | $ | 8,677 | $ | 6,294 | ||||
| Accrued wages and fringe benefits | 8,346 | 10,451 | ||||||
| Current non-qualified deferred compensation (“NQDC”) liability | 495 | 2,094 | ||||||
| Contingent liability | 3,000 | - | ||||||
| Other current liabilities | 2,438 | 1,319 | ||||||
| Total current liabilities | 22,956 | 20,158 | ||||||
| Long-term debt | 41,464 | 42,245 | ||||||
| Non-qualified deferred compensation liability | 3,665 | 2,969 | ||||||
| Contract liabilities | 315 | 324 | ||||||
| Operating lease liabilities, long-term | 2,609 | 2,840 | ||||||
| Contingent liability, long-term | - | 3,000 | ||||||
| Warrant liabilities | 3,054 | 3,432 | ||||||
| Total liabilities | 74,063 | 74,968 | ||||||
| Non-qualified deferred compensation plan share awards | 64 | 244 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity (deficit): | ||||||||
| Common stock, | 3 | 3 | ||||||
| Preferred stock, | - | - | ||||||
| Company common stock held by the non-qualified deferred compensation plan | (1,308 | ) | (1,319 | ) | ||||
| Additional paid-in capital | 370,820 | 367,568 | ||||||
| Accumulated other comprehensive loss | (413 | ) | (1,939 | ) | ||||
| Accumulated deficit | (373,673 | ) | (359,814 | ) | ||||
| Total stockholders’ equity (deficit) | (4,571 | ) | 4,499 | |||||
| Total liabilities, non-qualified deferred compensation plan share awards and stockholders’ equity (deficit) | $ | 69,556 | $ | 79,711 | ||||
| AVITA MEDICAL, INC. Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) | ||||||||
| Three-Months Ended | ||||||||
| March 31, 2025 | March 31, 2024 | |||||||
| Sales revenue | $ | 18,325 | $ | 11,104 | ||||
| Lease revenue | 189 | - | ||||||
| Total revenues | 18,514 | 11,104 | ||||||
| Cost of sales | (2,833 | ) | (1,513 | ) | ||||
| Gross profit | 15,681 | 9,591 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | (14,834 | ) | (12,640 | ) | ||||
| General and administrative | (6,390 | ) | (8,963 | ) | ||||
| Research and development | (6,284 | ) | (5,194 | ) | ||||
| Total operating expenses | (27,508 | ) | (26,797 | ) | ||||
| Operating loss | (11,827 | ) | (17,206 | ) | ||||
| Interest expense | (1,233 | ) | (1,356 | ) | ||||
| Other expense, net | (791 | ) | (66 | ) | ||||
| Loss before income taxes | (13,851 | ) | (18,628 | ) | ||||
| Income tax expense | (8 | ) | (30 | ) | ||||
| Net loss | $ | (13,859 | ) | $ | (18,658 | ) | ||
| Net loss per common share: | ||||||||
| Basic and diluted | $ | (0.53 | ) | $ | (0.73 | ) | ||
| Weighted-average common shares: | ||||||||
| Basic and diluted | 26,253,565 | 25,637,783 | ||||||
Investor & Media Contact: Jessica Ekeberg Phone +1-661-904-9269 investor@avitamedical.com media@avitamedical.com
FAQ
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