AVITA Medical Reports Second Quarter Results, Raises 2026 Revenue Guidance, and Expects Fourth Quarter Cash Flow Breakeven
Rhea-AI Summary
AVITA Medical (NASDAQ: RCEL) reported Q2 2026 revenue of $21.7 million, up 18% year over year and 13% sequentially, with a record gross margin of 81.9% and operating expenses reduced 6% to $24.6 million. Net loss improved to $7.7 million ($0.25 per share).
Growth was led by RECELL (Q2 revenue $18.5 million), supported by Cohealyx ($1.7 million), PermeaDerm ($0.6 million), and international sales ($0.9 million). According to AVITA Medical, net cash use fell to approximately $3.2 million, with quarter-end liquidity of $11.1 million.
The company raised its 2026 revenue guidance to $86–$89 million (20–24% growth over 2025) and now expects cash flow breakeven in Q4 2026. AVITA Medical also highlighted proposed 2027 CMS Medicare payment updates for procedures using RECELL that would introduce national physician payment and higher facility rates if finalized.
Positive
- Q2 2026 revenue $21.7M, up 18% year over year
- Gross margin 81.9%, up 70 basis points year over year
- Operating expenses down 6% year over year to $24.6M
- Net cash use reduced to ~$3.2M from $9.9M in Q1 2026
- 2026 revenue guidance raised to $86–$89M, implying 20–24% growth
- RECELL revenue $18.5M, ~11% sequential growth in Q2 2026
Negative
- Q2 2026 net loss $7.7M, or $0.25 per share
- Cash, equivalents, and marketable securities declined to $11.1M from $14.3M in Q1
- Loan facility balance increased to $46.7M from $43.0M at December 31, 2025
- Stockholders’ equity (deficit) widened to -$27.8M from -$16.7M at year-end 2025
News Explained
AVITA has no new committed financing; an additional $10 million borrowing tranche depends on a future revenue threshold.
The Q2 update is reported, while an additional
At
The proposed CMS payment rules would, if finalized, move RECELL physician payment from regional contractor pricing to a nationally published physician valuation and raise hospital outpatient and ambulatory surgical-center facility rates.
The material follow-ups are whether AVITA meets the revenue threshold before
Market Reaction – RCEL
Following this news, RCEL has gained 18.95%, reflecting a significant positive market reaction. Our momentum scanner has triggered 16 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $5.65. Trading volume is above average at 1.7x the average, suggesting increased trading activity.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 14 | Q1 earnings report | Positive | +4.6% | Revenue growth, improved loss, reaffirmed guidance, BARDA agreement, and RECELL GO clearance |
| Feb 12 | Q4 earnings report | Positive | +11.8% | Full-year revenue growth, improved cash efficiency, and 2026 guidance |
| Nov 06 | Q3 earnings report | Negative | +10.9% | Lowered guidance despite reduced expenses and improved net loss |
| Aug 07 | Q2 earnings report | Negative | -21.0% | Payment delays drove lower guidance and revised cash-breakeven expectations |
| May 08 | Q1 earnings report | Positive | -25.3% | Revenue growth, high gross margin, product launches, and reaffirmed guidance |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were mixed, with three aligned positive or negative moves and two divergences despite favorable or unfavorable announcements.
Key Terms
cash flow breakeven financial
medicare administrative contractor regulatory
category i cpt code regulatory
physician relative value units regulatory
allograft medical
AI-generated analysis. How Rhea-AI works. Not financial advice.
VALENCIA, Calif., Aug. 06, 2026 (GLOBE NEWSWIRE) -- AVITA Medical®, Inc. (NASDAQ: RCEL, ASX: AVH), a leading therapeutic acute wound care company delivering transformative solutions (“AVITA Medical,” or the “Company”), today reported financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Financial Highlights
- Q2 net revenue grew
18% year over year and13% sequentially quarter-over-quarter to a record$21.7 million - Revenue growth driven by continued execution across the Company's key commercial portfolio, led by RECELL® and supported by increasing adoption of Cohealyx® and PermeaDerm®, and complemented by consistent international revenue
- Gross profit margin of
81.9% , an increase of 70 basis points year-over-year, reflecting the growth of RECELL alongside the expansion of the Company’s other product portfolio
- Operating expenses were
$24.6 million , down6% year-over-year demonstrating continued operating discipline while supporting commercial growth - Net cash use improved to approximately
$3.2 million , from$9.9 million in Q1 2026, with cash, cash equivalents and marketable securities at the end of the quarter of approximately$11.1 million - Raised full-year 2026 net revenue guidance range to
$86 million to$89 million , reflecting confidence in continued commercial execution - The Company expects to reach cash flow breakeven in the fourth quarter 2026
Business Updates
- The Centers for Medicare & Medicaid Services released proposed calendar year 2027 Medicare payment updates for RECELL that, if adopted, would set national (as opposed to region-by-region) physician payment for the use of RECELL as well as increase hospital outpatient and ambulatory surgical center facility payment rates
- Expect to present PermeaDerm I study data in August
Cary Vance, President and Chief Executive Officer of AVITA Medical, commented:
“We delivered a strong second quarter, with revenue growing
David O'Toole, Chief Financial Officer, commented:
“During the second quarter, we maintained a disciplined approach to operating expenses while delivering record revenue and, as expected, a further reduction in net use of cash. As the business continues to scale, supported by sustained high gross margins, operating expense management, and improved timely customer cash collections, we expect to reach cash flow breakeven and to start generating cash in the fourth quarter of 2026.”
Updated Financial Guidance
Based on the Company’s second quarter performance, AVITA Medical is increasing its full-year 2026 revenue guidance to be in the range of
Second Quarter Financial Results
Total revenue was approximately
- RECELL (Q2 revenue of
$18.5 million , approximately11% growth compared to Q1 2026) continued to drive the business, with sequential growth supported by increasing physician confidence following reimbursement stabilization and continued adoption of RECELL GO mini, which expanded utilization in smaller wounds. - Cohealyx (Q2 revenue of
$1.7 million , approximately16% growth compared to Q1 2026) continued to build commercial momentum. Growth was further supported by favorable interim clinical data from the Company’s Cohealyx I clinical study reported in April demonstrating a faster time to skin grafting readiness than leading competitive products. - PermeaDerm (Q2 revenue of
$0.6 million , approximately40% growth compared to Q1 2026) gained traction during the second quarter. PermeaDerm is a wound temporizer, providing clinicians with an alternative to allograft to temporarily stabilize and protect the wound before definitive closure. The Company's PermeaDerm I clinical study evaluating PermeaDerm as a clinically comparable, lower-cost alternative to allograft is expected in August. - International (Q2 revenue of
$0.9 million , approximately26% growth compared to Q1 2026) continued to contribute consistent revenue from established international markets.
Gross profit margin was
Operating expenses were
The Company ended the quarter with approximately
The Company believes its current liquidity, together with expected operating improvements, provides capital to support execution of its commercial strategy and expected path to fourth-quarter cash flow breakeven. Under the Company's existing credit facility, an additional tranche of
Net loss improved to
CMS Proposes 2027 Medicare Provider Reimbursement for RECELL
In July, the Centers for Medicare & Medicaid Services (“CMS”) released the 2027 Medicare Physician Fee Schedule (“PFS”), Hospital Outpatient Prospective Payment System (“OPPS”), and Ambulatory Surgical Center (“ASC”) proposed rules addressing Medicare payment for Skin Cell Suspension Autograft, the procedure performed using RECELL The proposed rules reflect the new Category I CPT code family, effective January 1, 2027, and include proposed national physician relative value units based on the American Medical Association-RVS Update Committee recommended valuation, as well as proposed increases to hospital outpatient and ASC facility payment rates. If finalized, RECELL physician payment would transition from the current regional Medicare Administrative Contractor contractor-priced methodology to a more transparent, nationally published physician valuation framework under the PFS. CMS is expected to issue final rules later this year, with implementation effective January 1, 2027.
Second Quarter 2026 Webcast and Conference Call Information
AVITA Medical will host a conference call and webcast on Thursday, August 6, 2026, at 1:30 p.m. Pacific Time (Friday, August 7, 2026, at 6:30 a.m. Australian Eastern Standard Time) to discuss its financial results and recent business highlights.
To listen to the conference call webcast, please register and join using the following link: https://edge.media-server.com/mmc/p/j4xwf8nv.
To participate in the live earnings conference call, please register in advance to receive dial-in details and a personal PIN using the following link: https://register-conf.media-server.com/register/BI599cce9ea71e49dcb7e4c36b4612ff99.
For those unable to participate in the live broadcast, a replay will be available on the Events page of the Company’s investor relations website at: https://ir.avitamedical.com/events-and-presentations.
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 RECELL®, approved by the FDA for the treatment of thermal burn and trauma wounds. RECELL harnesses the healing properties of a patient’s own skin to create Spray-On Skin™, 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 Cohealyx®, an AVITA Medical-branded collagen-based dermal matrix, and the exclusive rights to manufacture, market, sell, and distribute PermeaDerm®, a biosynthetic wound matrix.
In international markets, RECELL is approved to promote skin healing in a wide range of applications, including thermal burn and trauma wounds. RECELL and RECELL GO® are CE-marked in Europe, have TGA certification in Australia, and are listed with Medsafe in New Zealand; RECELL is PMDA-approved in Japan.
To learn more, visit www.avitamedical.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This earnings 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,” “approximately,” “continue,” “consistent,” “could,” “expect,” “future,” “further,” “guidance,” “may,” “will,” 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; anticipated market share growth and revenue generation; physician acceptance, endorsement, and use of our products (including the impact of government reimbursement payment rates on such use); 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 earnings 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.
Investor & Media Contact:
Ben Atkins
Phone +1-805 341 1571
investor@avitamedical.com
media@avitamedical.com
Authorized for release by the Chief Financial Officer of AVITA Medical, Inc.
©2026 AVITA Medical. AVITA Medical®, Cohealyx®, RECELL®, RECELL GO®, and Spray-On SkinTM are trademarks of AVITA Medical. PermeaDerm® is a registered trademark owned by Stedical Scientific, Inc. All other trademarks are the properties of their respective owners.
| AVITA MEDICAL, INC. Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) | |||||||
| As of | |||||||
| June 30, 2026 | December 31, 2025 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 9,139 | $ | 10,243 | |||
| Marketable securities | 1,996 | 7,942 | |||||
| Accounts receivable, net | 9,867 | 9,086 | |||||
| Prepaids and other current assets | 2,105 | 1,293 | |||||
| Inventory | 5,287 | 6,926 | |||||
| Total current assets | 28,394 | 35,490 | |||||
| Plant and equipment, net | 7,678 | 8,630 | |||||
| Operating lease right-of-use assets | 2,655 | 2,899 | |||||
| Corporate-owned life insurance asset | 3,208 | 3,116 | |||||
| Intangible assets, net | 5,249 | 5,645 | |||||
| Other long-term assets | 593 | 612 | |||||
| Total assets | $ | 47,777 | $ | 56,392 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||
| Accounts payable and accrued liabilities | $ | 6,423 | $ | 8,959 | |||
| Accrued wages and fringe benefits | 8,821 | 7,813 | |||||
| Loan facility | 46,659 | 42,984 | |||||
| Current non-qualified deferred compensation liability | 506 | 276 | |||||
| Contingent liability | 3,000 | - | |||||
| Other current liabilities | 3,305 | 2,645 | |||||
| Total current liabilities | 68,714 | 62,677 | |||||
| Non-qualified deferred compensation liability | 3,927 | 3,697 | |||||
| Contract liabilities | 273 | 290 | |||||
| Operating lease liabilities, long-term | 1,822 | 2,135 | |||||
| Contingent liability, long-term | - | 3,000 | |||||
| Warrant liabilities | 879 | 1,243 | |||||
| Total liabilities | 75,615 | 73,042 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity (deficit): | |||||||
| Common stock | 3 | 3 | |||||
| Preferred stock | - | - | |||||
| Company common stock held by the non-qualified deferred compensation plan | (625 | ) | (1,293 | ) | |||
| Additional paid-in capital | 399,541 | 394,408 | |||||
| Accumulated other comprehensive loss | (82 | ) | (1,367 | ) | |||
| Accumulated deficit | (426,675 | ) | (408,401 | ) | |||
| Total stockholders’ equity (deficit) | (27,838 | ) | (16,650 | ) | |||
| Total liabilities and stockholders’ equity (deficit) | $ | 47,777 | $ | 56,392 | |||
| AVITA MEDICAL, INC. Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) | |||||||||||||||
| Three-Months Ended | Six-Months Ended | ||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||
| Sales revenue | $ | 21,489 | $ | 18,226 | $ | 40,553 | $ | 36,551 | |||||||
| Lease revenue | 213 | 192 | 400 | 381 | |||||||||||
| Total revenues | 21,702 | 18,418 | 40,953 | 36,932 | |||||||||||
| Cost of sales | (3,935 | ) | (3,469 | ) | (7,458 | ) | (6,303 | ) | |||||||
| Gross profit | 17,767 | 14,949 | 33,495 | 30,629 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing | (13,573 | ) | (14,314 | ) | (26,414 | ) | (29,147 | ) | |||||||
| General and administrative | (5,971 | ) | (6,666 | ) | (12,032 | ) | (13,057 | ) | |||||||
| Research and development | (5,078 | ) | (5,117 | ) | (10,707 | ) | (11,400 | ) | |||||||
| Total operating expenses | (24,622 | ) | (26,097 | ) | (49,153 | ) | (53,604 | ) | |||||||
| Operating loss | (6,855 | ) | (11,148 | ) | (15,658 | ) | (22,975 | ) | |||||||
| Interest expense | (1,463 | ) | (1,252 | ) | (2,887 | ) | (2,485 | ) | |||||||
| Other income, net | 688 | 2,484 | 293 | 1,693 | |||||||||||
| Loss before income taxes | (7,630 | ) | (9,916 | ) | (18,252 | ) | (23,767 | ) | |||||||
| Income tax expense | (33 | ) | (4 | ) | (22 | ) | (12 | ) | |||||||
| Net loss | $ | (7,663 | ) | $ | (9,920 | ) | $ | (18,274 | ) | $ | (23,779 | ) | |||
| Net loss per common share: | |||||||||||||||
| Basic and diluted | $ | (0.25 | ) | $ | (0.38 | ) | $ | (0.60 | ) | $ | (0.90 | ) | |||
| Weighted-average common shares: | |||||||||||||||
| Basic and diluted | 30,749,894 | 26,367,548 | 30,645,960 | 26,400,366 | |||||||||||
