AVITA Medical Reports Third Quarter Results
The additional credit-facility draw brings total borrowings to $60 million as AVITA targets fourth-quarter cash flow breakeven.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
AVITA Medical (NASDAQ: RCEL) reported third-quarter 2026 revenue of approximately $26.1 million, up 53% from the prior-year period. Revenue rose 20% sequentially, and gross margin increased to 84.0% from 81.3% a year earlier. Net loss narrowed to $6.2 million, or $0.20 per share, from $13.2 million, or $0.46 per share.
The company raised full-year revenue guidance to $92 million–$94 million from $86 million–$89 million and reaffirmed expected fourth-quarter cash flow breakeven. Quarterly net cash use improved to approximately $0.6 million, leaving approximately $10.5 million in cash and securities at September 30. After quarter-end, AVITA drew another $10 million under its credit facility, bringing total borrowings to $60 million. The going-concern qualification was removed. CMS finalized RECELL physician payment values and simplified billing codes, effective January 1, 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 revenue guidance increased to $92 million–$94 million from $86 million–$89 million.
- Major pointGoing-concern qualification removed; outstanding credit-facility debt is now classified as long-term.
- Major pointPermeaDerm I met its primary endpoint, demonstrating comparable graft take and wound healing to allograft.
- Moderate pointQ3 revenue reached approximately $26.1 million, up 53% year over year and 20% sequentially.
- Moderate pointGross margin increased to 84.0% from 81.3% in Q3 2025.
- Moderate pointQ3 net loss narrowed to $6.2 million, or $0.20 per share, from $13.2 million, or $0.46.
- Moderate pointQuarterly net cash use improved to approximately $0.6 million from $3.2 million in Q2 2026.
- Moderate pointPost-quarter credit draw added $10 million after AVITA satisfied the trailing-twelve-month revenue milestone. 2% of market cap
- Moderate point. Forward-looking: it has not happened yet and may not happen.CMS finalized RECELL national physician payment values and simplified billing codes, effective January 1, 2027.
- Moderate pointNine-month operating expenses decreased to $73.723 million from $76.631 million in 2025.
7 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Q4 revenue guidance implies $24.9 million–$26.9 million; AVITA reaffirmed expected Q4 2026 cash flow breakeven.
- Minor pointRECELL Q3 U.S. revenue reached $22.4 million, approximately 20% above Q2 2026.
- Minor pointCohealyx Q3 revenue reached $2.1 million, approximately 21% above Q2 2026.
- Minor point. Forward-looking: it has not happened yet and may not happen.RECELL gross margin was 88.4%; AVITA expects 86%–90% over the coming quarters.
- Minor pointQ3 general and administrative expenses decreased to $6.307 million from $7.227 million a year earlier.
- Minor pointNine-month revenue increased to $67.067 million from $53.995 million in 2025.
- Minor pointNine-month net loss narrowed to $24.496 million, or $0.80 per share, from $36.966 million, or $1.37.
Negative
- Moderate pointCredit-facility borrowings increased to $60 million following the additional $10 million draw. 2% of market cap
- Minor pointStockholders’ deficit widened to $31.037 million at September 30, 2026, from $16.650 million at December 31, 2025.
- Minor pointQ3 sales and marketing expenses increased to $13.566 million from $12.053 million a year earlier.
- Minor pointQ3 research and development expenses increased to $4.697 million from $3.748 million a year earlier.
- Minor pointQ3 interest expense increased to $1.479 million from $1.268 million a year earlier.
2 minor points
- Minor pointWarrant revaluation generated $2.1 million in non-cash expense, negatively affecting the quarter’s net loss.
- Minor pointCohealyx and PermeaDerm revenue-sharing terms lower overall gross margin.
News Explained
The
Details
Market move: RCEL +6.44% vs previous close. Q3 2026 earnings report
On Nov 5, the day this news came out, the latest delayed price for RCEL is 6.44% above the previous close. Argus tracked a peak move of +8.8% during the session. Our momentum scanner has recorded 31 alerts for this stock so far that day. The latest delayed price is $16.69. Relative volume is above average at 1.7x what this stock usually trades by this time of day.
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Key Figures
- Q3 revenue
- $26.1 million (+53% year over year)
- Third quarter 2026
- Gross margin
- 84.0% (+270 basis points year over year)
- Third quarter 2026
- 2026 revenue guidance
- $92 million to $94 million
- Raised from $86 million to $89 million
- Net cash use
- Approximately $0.6 million
- Q3 2026, compared with $3.2 million in Q2 2026
- Cash flow breakeven
- Q4 2026
- Company reaffirmed its expectation
- Product cost reduction
- 70%
- PermeaDerm I compared with allograft
- Preparation time reduction
- 95.7%
- PermeaDerm I compared with allograft
- Additional credit tranche drawn
- $10 million
- Drawn subsequent to quarter-end under the Perceptive Advisors credit facility
Previous Earnings Reports
-
Raised 2026 revenue guidance to $86–$89 million and expected Q4 cash flow breakeven.
-
Q3 revenue declined year over year and full-year revenue guidance was lowered.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
primary endpoint medical
allograft medical
going concern financial
warrant liabilities financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Delivers Strong Q3 With
Raises Full Year 2026 Revenue Guidance
VALENCIA, Calif., Nov. 05, 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 third quarter ended September 30, 2026.
Third Quarter 2026 Financial Highlights
- Q3 total revenue increased
53% year over year and20% sequentially to$26.1 million , driven primarily by continued growth in RECELL® and increasing adoption of Cohealyx® - Gross margin was
84.0% , an increase of 270 basis points year over year, reflecting higher RECELL revenue and improvements in manufacturing efficiency - Operating expenses were
$24.6 million , flat to the prior quarter demonstrating continued expense discipline even as the Company supported higher performance-based compensation associated with commercial growth - Net cash use improved to approximately
$0.6 million , compared with$3.2 million in Q2 2026. Cash, cash equivalents and marketable securities totaled approximately$10.5 million at September 30, 2026 - Raised full-year 2026 revenue guidance to
$92 million to$94 million and reaffirmed its expectation of achieving cash flow breakeven in Q4 2026 - Achieved the
$85 million trailing twelve-month revenue milestone required to access the remaining$10 million under the Company’s credit facility with Perceptive Advisors LLC, and subsequent to quarter-end, drew the additional tranche, strengthening the Company’s cash reserves - Based on improved operating performance and cash liquidity, the “going concern” qualification removed in the Quarterly Report on Form 10-Q
Business and Clinical Updates
- On November 4, 2026, the Centers for Medicare & Medicaid Services finalized national physician payment values and simplified billing codes for RECELL procedures, effective January 1, 2027
- PermeaDerm® I met its primary endpoint, demonstrating comparable clinical outcomes to allograft while reducing product costs by
70% and preparation time by95.7%
Cary Vance, President and Chief Executive Officer of AVITA Medical, commented:
“AVITA delivered another strong quarter, with revenue increasing
David O'Toole, Chief Financial Officer, commented:
“Reaching
Updated Financial Guidance
Based on its third-quarter performance, AVITA Medical is raising its full-year 2026 revenue guidance to
Third Quarter Financial Results
Total revenue was approximately
- RECELL (Q3 U.S. revenue of
$22.4 million , approximately20% growth compared to Q2 2026) continued to drive the business, reflecting higher procedure volumes and increased account ordering. - Cohealyx (Q3 revenue of
$2.1 million , approximately21% growth compared to Q2 2026) continued to build commercial momentum, reflecting an expanding customer base and additional hospital value analysis committee (VAC) approvals. - PermeaDerm (Q3 revenue of
$0.6 million , essentially flat compared to Q2 2026) maintained stable revenue. PermeaDerm I study results reported in August demonstrated comparable graft take and wound healing to allograft, with70% lower product cost and95.7% less preparation time. - International (Q3 revenue of
$0.9 million , essentially flat compared to Q2 2026) continued to contribute consistent revenue from established international markets.
Gross profit margin across all products was
Total operating expenses increased
Net cash use improved to approximately
Net loss improved to
The Company has achieved trailing twelve-month revenue of at least
Third Quarter 2026 Webcast and Conference Call Information
AVITA Medical will host a conference call and webcast on Thursday, November 5, 2026, at 1:30 p.m. Pacific Time (Friday, November 6, 2026, at 8:30 a.m. Australian Eastern Daylight 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/t9ebvg6s.
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/BIc1fb986424694712b09792666b770137.
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 contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s full-year 2026 revenue guidance and implied fourth-quarter revenue; its expectation of achieving cash flow breakeven in the fourth quarter of 2026; expected RECELL gross margin; the sufficiency of its liquidity and capital resources, including management’s assessment of its ability to continue as a going concern; anticipated adoption of RECELL, Cohealyx, and PermeaDerm; and the clinical, economic, and commercial potential of its products. Words such as “anticipate,” “believe,” “continue,” “could,” “expect,” “guidance,” “intend,” “may,” “on-track,” “plan,” “will,” and similar words or expressions, and the use of future dates, are intended to identify forward-looking statements. These statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, including variability in volumes and hospital ordering patterns; changes in, or delays in implementing, Medicare and other third-party reimbursement for RECELL, including the transition to national physician payment rates; the Company’s ability to collect receivables and manage operating expenses and working capital; the Company’s ability to comply with the covenants under its credit facility with Perceptive Advisors LLC and to service its indebtedness; changes in product mix and manufacturing costs affecting gross margin; the Company’s dependence on third parties for the supply of Cohealyx and PermeaDerm and the terms of its arrangements with those parties; the interpretation of clinical data and the scope of claims permitted under applicable FDA requirements; product liability and regulatory actions; and the other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and its subsequent Quarterly Reports on Form 10-Q. Forward-looking statements are made only as of the date of this release, and the Company undertakes no obligation to update or revise any of them, except as required by law.
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 | |||||||
| September 30, 2026 | December 31, 2025 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 10,500 | $ | 10,243 | |||
| Marketable securities | - | 7,942 | |||||
| Accounts receivable, net | 10,343 | 9,086 | |||||
| Prepaids and other current assets | 2,030 | 1,293 | |||||
| Inventory | 4,803 | 6,926 | |||||
| Total current assets | 27,676 | 35,490 | |||||
| Plant and equipment, net | 7,355 | 8,630 | |||||
| Operating lease right-of-use assets | 2,406 | 2,899 | |||||
| Corporate-owned life insurance (“COLI”) asset | 3,165 | 3,116 | |||||
| Intangible assets, net | 5,550 | 5,645 | |||||
| Other long-term assets | 642 | 612 | |||||
| Total assets | $ | 46,794 | $ | 56,392 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||
| Accounts payable and accrued liabilities | $ | 4,838 | $ | 8,959 | |||
| Accrued wages and fringe benefits | 11,499 | 7,813 | |||||
| Loan facility | - | 42,984 | |||||
| Current non-qualified deferred compensation (“NQDC”) liability | 554 | 276 | |||||
| Contingent liability | 3,000 | - | |||||
| Other current liabilities | 3,146 | 2,645 | |||||
| Total current liabilities | 23,037 | 62,677 | |||||
| Loan facility, long-term | 45,476 | - | |||||
| Non-qualified deferred compensation liability | 4,420 | 3,697 | |||||
| Contract liabilities | 265 | 290 | |||||
| Operating lease liabilities, long-term | 1,658 | 2,135 | |||||
| Contingent liability, long-term | - | 3,000 | |||||
| Warrant liabilities | 2,975 | 1,243 | |||||
| Total liabilities | 77,831 | 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 | 401,391 | 394,408 | |||||
| Accumulated other comprehensive income (loss) | 1,091 | (1,367 | ) | ||||
| Accumulated deficit | (432,897 | ) | (408,401 | ) | |||
| Total stockholders’ equity (deficit) | (31,037 | ) | (16,650 | ) | |||
| Total liabilities and stockholders’ equity (deficit) | $ | 46,794 | $ | 56,392 | |||
| AVITA MEDICAL, INC. Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) | |||||||||||||||
| Three-Months Ended | Nine-Months Ended | ||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||
| Sales revenue | $ | 25,862 | $ | 16,897 | $ | 66,415 | $ | 53,448 | |||||||
| Lease revenue | 252 | 165 | 652 | 547 | |||||||||||
| Total revenues | 26,114 | 17,062 | 67,067 | 53,995 | |||||||||||
| Cost of sales | (4,173 | ) | (3,187 | ) | (11,631 | ) | (9,490 | ) | |||||||
| Gross profit | 21,941 | 13,875 | 55,436 | 44,505 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing | (13,566 | ) | (12,053 | ) | (39,980 | ) | (41,200 | ) | |||||||
| General and administrative | (6,307 | ) | (7,227 | ) | (18,339 | ) | (20,283 | ) | |||||||
| Research and development | (4,697 | ) | (3,748 | ) | (15,404 | ) | (15,148 | ) | |||||||
| Total operating expenses | (24,570 | ) | (23,028 | ) | (73,723 | ) | (76,631 | ) | |||||||
| Operating loss | (2,629 | ) | (9,153 | ) | (18,287 | ) | (32,126 | ) | |||||||
| Interest expense | (1,479 | ) | (1,268 | ) | (4,366 | ) | (3,754 | ) | |||||||
| Other expense, net | (2,049 | ) | (2,751 | ) | (1,756 | ) | (1,058 | ) | |||||||
| Loss before income taxes | (6,157 | ) | (13,172 | ) | (24,409 | ) | (36,938 | ) | |||||||
| Income tax expense | (65 | ) | (15 | ) | (87 | ) | (28 | ) | |||||||
| Net loss | $ | (6,222 | ) | $ | (13,187 | ) | $ | (24,496 | ) | $ | (36,966 | ) | |||
| Net loss per common share: | |||||||||||||||
| Basic and diluted | $ | (0.20 | ) | $ | (0.46 | ) | $ | (0.80 | ) | $ | (1.37 | ) | |||
| Weighted-average common shares: | |||||||||||||||
| Basic and diluted | 30,866,230 | 28,393,445 | 30,720,190 | 27,012,691 | |||||||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were AVITA Medical’s third-quarter 2026 revenue and earnings?
AVITA Medical reported revenue of approximately $26.1 million and a net loss of $6.2 million, or $0.20 per basic and diluted share. Revenue increased 53% year over year. The comparable prior-year net loss was $13.2 million, or $0.46 per basic and diluted share.
What is AVITA Medical’s updated 2026 revenue guidance?
AVITA Medical raised its full-year 2026 revenue guidance to $92 million–$94 million, from $86 million–$89 million. The company expects approximately 28%–31% growth over 2025 revenue of $71.6 million and reaffirmed its expectation of cash flow breakeven in the fourth quarter of 2026.
What did AVITA Medical’s PermeaDerm I study show?
PermeaDerm I met its primary endpoint, demonstrating comparable graft take and wound healing to allograft. Results reported in August showed 70% lower product cost and 95.7% less preparation time.
How do Cohealyx and PermeaDerm sales affect AVITA Medical’s gross margin?
Cohealyx and PermeaDerm sales lower AVITA Medical’s overall gross margin percentage under their revenue-sharing terms. AVITA receives 50% of the average sales price for Cohealyx and up to 55% for PermeaDerm.