AVITA Medical raises 2026 revenue guidance to $92M–$94M
RECELL-only gross margin was 88.4%; AVITA currently expects it to remain between 86% and 90% over coming quarters.
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 Filing Summary
AVITA Medical, Inc. reported third-quarter 2026 revenue of approximately $26.1 million, up 53% year over year and 20% sequentially. Gross margin was 84.0%, up 270 basis points year over year; operating expenses were $24.6 million, up 7%, while net loss was $6.2 million versus $13.2 million a year earlier.
AVITA raised full-year 2026 revenue guidance to $92 million to $94 million from $86 million to $89 million, implying fourth-quarter revenue of $24.9 million to $26.9 million, and reaffirmed expected cash flow breakeven in Q4. Cash, cash equivalents and marketable securities were approximately $10.5 million at quarter-end; net cash use was approximately $0.6 million versus $3.2 million in Q2.
After quarter-end, AVITA drew the remaining $10 million credit-facility tranche after meeting the $85 million trailing twelve-month revenue milestone, bringing facility borrowings to $60 million. Management said substantial doubt about continuing as a going concern had been alleviated, and the debt was classified as long-term. CMS finalized national physician payment values and simplified RECELL billing codes effective January 1, 2027. PermeaDerm I showed comparable clinical outcomes to allograft, with product costs 70% lower and preparation time 95.7% lower.
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 rose to $92 million to $94 million.
- Moderate pointQ3 revenue increased 53% year over year to $26.1 million.
- Moderate pointQ3 net loss was $6.2 million, versus $13.2 million a year earlier.
Negative
- None.
Filing Explained
AVITA Medical’s
8-K Event Classification
Key Figures
Key Terms
cash flow breakeven financial
trailing twelve-month revenue financial
marketable securities financial
national physician payment values regulatory
allograft medical
Earnings Snapshot
Full-year 2026 revenue guidance raised to $92 million to $94 million; the company reaffirmed its expectation of cash flow breakeven in Q4 2026.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was AVITA Medical’s revenue in Q3 2026?
What is AVITA Medical’s 2026 revenue guidance?
What condition allowed AVITA Medical to draw the remaining credit-facility tranche?
When do the new RECELL physician payment values and billing codes take effect?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 5, 2026, the Company issued a press release announcing its financial results for the third quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. |
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Description of Exhibit |
99.1 |
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Press release, dated November 5, 2026, issued by AVITA Medical, Inc. |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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AVITA Medical, Inc. |
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November 5, 2026 |
By: |
/s/ David O’Toole |
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David O’Toole |
Exhibit 99.1
AVITA Medical Reports Third Quarter Results
Delivers Strong Q3 With 53% Year-Over-Year Revenue Growth
Raises Full Year 2026 Revenue Guidance
VALENCIA, Calif., November 5, 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
Business and Clinical Updates
Cary Vance, President and Chief Executive Officer of AVITA Medical, commented:
“AVITA delivered another strong quarter, with revenue increasing 53% year over year and gross margin reaching 84%. RECELL continued to drive our growth, supported by increasing adoption of Cohealyx, while disciplined expense management contributed to a substantial improvement in cash use. Based on our year-to-date performance and continued commercial momentum, we are raising our full-year revenue guidance and remain on track to achieve cash flow breakeven in the fourth quarter.”
David O'Toole, Chief Financial Officer, commented:
“Reaching $85 million in trailing twelve-month revenue reflects the continued execution of our commercial strategy and satisfied the revenue condition required to draw down the remaining $10 million under our credit facility with Perceptive Advisors LLC. This additional, minimally dilutive capital strengthens our liquidity as we advance toward cash flow
breakeven and cash generation in the fourth quarter. Based on our improved operating performance and liquidity, management concluded that the substantial doubt about our ability to continue as a going concern has been alleviated. Accordingly, the outstanding debt under the credit facility is now classified as a long-term liability on our balance sheet.”
Updated Financial Guidance
Based on its third-quarter performance, AVITA Medical is raising its full-year 2026 revenue guidance to $92 million to $94 million, from $86 million to $89 million. This updated range represents growth of approximately 28% to 31% compared with revenue of $71.6 million in 2025. Based on year-to-date results, our new guidance implies revenue of $24.9 to $26.9 million for the fourth quarter. The Company also reaffirms its expectation of achieving cash flow breakeven in the fourth quarter of 2026.
Third Quarter Financial Results
Total revenue was approximately $26.1 million in the three months ended September 30, 2026, an increase of 53% compared to $17.1 million in the prior-year period. Revenue growth in the quarter was driven by continued execution across the Company's key commercial portfolio, led by RECELL and supported by Cohealyx and PermeaDerm.
Gross profit margin across all products was 84.0%, a 270-basis point increase from 81.3% in the same period last year. Gross margin for RECELL products only was 88.4% for the quarter and is currently expected to remain between 86% and 90% over the coming quarters. The Company receives 50% of the average sales price for Cohealyx and up to 55% for PermeaDerm, which lowers the overall gross margin percentage.
Total operating expenses increased 7%, or $1.6 million, to $24.6 million, compared with $23.0 million in the prior-year period. The increase was driven largely by higher sales and marketing expenses, which rose $1.5 million due primarily to increased commissions and compensation, including annual incentive costs. Research and development expenses also increased by $1.0 million, mainly from higher compensation, while general and administrative expenses decreased by $0.9 million.
Net cash use improved to approximately $0.6 million, from $3.2 million in the second quarter of 2026. The Company ended the third quarter with approximately $10.5 million in cash, cash equivalents, and marketable securities, compared with $11.1 million at the beginning of the quarter.
Net loss improved to $6.2 million, or a loss of $0.20 per basic and diluted share, compared with a net loss of $13.2 million, or a loss of $0.46 per basic and diluted share, in the prior year period. Net loss for the current period was negatively impacted by $2.1 million in non-cash expense related to the revaluation of warrants due to the increase in AVITA Medical’s share price.
The Company has achieved trailing twelve-month revenue of at least $85.0 million, satisfying the revenue milestone required to access the remaining $10.0 million under its credit facility with Perceptive Advisors LLC. Subsequent to quarter-end, the Company drew down the $10.0 million tranche, bringing total borrowings under the facility to $60 million and further strengthening its balance sheet and liquidity position.
Page 2
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
Page 3
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.
Page 4
AVITA MEDICAL, INC.
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
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As of |
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September 30, 2026 |
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December 31, 2025 |
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ASSETS |
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Cash and cash equivalents |
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$ |
10,500 |
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$ |
10,243 |
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Marketable securities |
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- |
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7,942 |
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Accounts receivable, net |
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10,343 |
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9,086 |
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Prepaids and other current assets |
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2,030 |
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1,293 |
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Inventory |
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4,803 |
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6,926 |
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Total current assets |
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27,676 |
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35,490 |
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Plant and equipment, net |
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7,355 |
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8,630 |
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Operating lease right-of-use assets |
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2,406 |
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2,899 |
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Corporate-owned life insurance (“COLI”) asset |
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3,165 |
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3,116 |
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Intangible assets, net |
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5,550 |
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5,645 |
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Other long-term assets |
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642 |
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612 |
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Total assets |
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$ |
46,794 |
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$ |
56,392 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
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Accounts payable and accrued liabilities |
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$ |
4,838 |
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$ |
8,959 |
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Accrued wages and fringe benefits |
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11,499 |
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7,813 |
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Loan facility |
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- |
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42,984 |
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Current non-qualified deferred compensation (“NQDC”) liability |
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554 |
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276 |
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Contingent liability |
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3,000 |
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- |
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Other current liabilities |
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3,146 |
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2,645 |
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Total current liabilities |
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23,037 |
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62,677 |
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Loan facility, long-term |
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45,476 |
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- |
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Non-qualified deferred compensation liability |
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4,420 |
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3,697 |
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Contract liabilities |
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265 |
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290 |
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Operating lease liabilities, long-term |
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1,658 |
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2,135 |
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Contingent liability, long-term |
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- |
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3,000 |
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Warrant liabilities |
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2,975 |
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1,243 |
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Total liabilities |
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77,831 |
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73,042 |
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Commitments and contingencies |
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Stockholders' equity (deficit): |
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Common stock |
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3 |
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3 |
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Preferred stock |
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- |
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- |
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Company common stock held by the non-qualified deferred compensation plan |
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(625 |
) |
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(1,293 |
) |
Additional paid-in capital |
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401,391 |
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394,408 |
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Accumulated other comprehensive income (loss) |
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1,091 |
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(1,367 |
) |
Accumulated deficit |
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(432,897 |
) |
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(408,401 |
) |
Total stockholders’ equity (deficit) |
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(31,037 |
) |
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(16,650 |
) |
Total liabilities and stockholders’ equity (deficit) |
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$ |
46,794 |
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$ |
56,392 |
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Page 5
AVITA MEDICAL, INC.
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
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Three-Months Ended |
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Nine-Months Ended |
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September 30, 2026 |
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September 30, 2025 |
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September 30, 2026 |
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September 30, 2025 |
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Sales revenue |
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$ |
25,862 |
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$ |
16,897 |
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$ |
66,415 |
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$ |
53,448 |
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Lease revenue |
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252 |
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|
165 |
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|
652 |
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|
|
547 |
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Total revenues |
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26,114 |
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|
17,062 |
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|
|
67,067 |
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|
|
53,995 |
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Cost of sales |
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|
(4,173 |
) |
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|
(3,187 |
) |
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(11,631 |
) |
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|
(9,490 |
) |
Gross profit |
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|
21,941 |
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|
|
13,875 |
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|
|
55,436 |
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|
|
44,505 |
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Operating expenses: |
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|
|
|
|
|
|
|
|
|
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||||
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: |
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|
|
|
|
|
|
|
|
|
|
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||||
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 |
|
Page 6