AVITA Medical (NASDAQ: RCEL) raises 2026 forecast, targets Q4 cash breakeven
Rhea-AI Filing Summary
AVITA Medical reported Q2 2026 net revenue of $21.7 million, up 18% year over year and 13% sequential, driven by RECELL, Cohealyx, PermeaDerm, and international sales. Gross profit margin was 81.9%, while operating expenses fell 6% to $24.6 million, narrowing the net loss to $7.7 million, or $0.25 per share.
Net cash used declined to approximately $3.2 million, with cash, cash equivalents, and marketable securities of about $11.1 million at quarter end. Management raised 2026 net revenue guidance to $86–$89 million versus $71.6 million in 2025 and expects cash flow breakeven in Q4 2026. The balance sheet shows total liabilities of $75.6 million exceeding assets of $47.8 million, resulting in a stockholders’ equity deficit of $27.8 million. CMS also released proposed 2027 Medicare payment updates that would establish national physician payment and higher facility rates for RECELL if finalized.
Positive
- Q2 2026 revenue growth and margins: Net revenue rose 18% year over year to $21.7 million, with a strong gross profit margin of 81.9%, reflecting continued uptake of RECELL, Cohealyx, PermeaDerm, and international sales.
- Raised 2026 revenue outlook: Full-year 2026 net revenue guidance increased to $86–$89 million from $80–$85 million, implying 20%–24% growth over 2025 revenue of $71.6 million.
- Improving cash profile and breakeven target: Net cash use improved to about $3.2 million from $9.9 million in Q1 2026, and the company expects to reach cash flow breakeven in Q4 2026.
- Potentially favorable Medicare reimbursement: CMS proposed 2027 Medicare payment updates that would set national physician payment and increase hospital outpatient and ASC facility rates for RECELL, which could support future utilization if finalized.
Negative
- Continued net losses: Q2 2026 net loss was $7.7 million, or $0.25 per share, though improved from a $9.9 million loss in the prior-year quarter.
- Equity deficit and leverage: Total liabilities of $75.6 million exceeded assets of $47.8 million, resulting in a stockholders’ equity deficit of $27.8 million, including a loan facility balance of $46.7 million.
- Limited liquidity relative to obligations: Cash, cash equivalents, and marketable securities totaled approximately $11.1 million at quarter end, down from $14.3 million at the beginning of the quarter, with ongoing net cash use.
Filing Explained
The financing disclosure adds conditional capital capacity: a $10 million tranche depends on reaching $85 million of trailing revenue before March 31, 2027.
Under the Form 8-K framework for specified material events, this
Under the existing credit facility, an additional
Separately, proposed 2027 Medicare payment changes for RECELL remain subject to final rules expected later this year; if finalized, implementation is stated to begin
8-K Event Classification
Key Figures
Key Terms
gross profit margin financial
cash flow breakeven financial
Category I CPT code medical
Hospital Outpatient Prospective Payment System regulatory
contingent liability financial
warrant liabilities financial
Earnings Snapshot
Full-year 2026 net revenue guidance raised to $86–$89 million, implying 20%–24% growth over $71.6 million in 2025; the company also expects to reach cash flow breakeven in Q4 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did AVITA Medical (RCEL) perform financially in Q2 2026?
What revenue guidance did AVITA Medical (RCEL) give for full-year 2026?
When does AVITA Medical (RCEL) expect to reach cash flow breakeven?
What were AVITA Medical’s (RCEL) cash and debt positions at June 30, 2026?
How are RECELL, Cohealyx, and PermeaDerm driving AVITA Medical’s (RCEL) growth?
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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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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 August 6, 2026, the Company issued a press release announcing its financial results for the second quarter ended June 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 August 6, 2026, issued by AVITA Medical, Inc. |
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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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August 6, 2026 |
By: |
/s/ David O’Toole |
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David O’Toole |
Exhibit 99.1
AVITA Medical Reports Second Quarter Results,
Raises 2026 Revenue Guidance, and Expects Fourth Quarter Cash Flow Breakeven
VALENCIA, Calif., August 6, 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
Business Updates
Cary Vance, President and Chief Executive Officer of AVITA Medical, commented:
“We delivered a strong second quarter, with revenue growing 18% year-over-year and 13% sequentially. As AVITA continues to expand utilization in the U.S. and build its presence in key international markets, our results reflect the strength of both our acute wound care portfolio and our commercial execution, led by RECELL and supported by Cohealyx and PermeaDerm. We are delivering this growth while maintaining a high gross margin and disciplined operating expenses and use of cash. Together, these results demonstrate that AVITA has evolved into a business capable of sustained, durable growth, giving us the confidence to raise our full-year revenue guidance and to announce our expectation to reach cash flow breakeven in the fourth quarter.”
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 $86 million to $89 million, from $80 million to $85 million, compared to $71.6 million of revenue in 2025, representing year-over-year growth in the range of 20% to 24%. AVITA Medical is also expecting to achieve cash flow breakeven in the fourth quarter of 2026.
Second Quarter Financial Results
Total revenue was approximately $21.7 million in the three months ended June 30, 2026, an increase of 18% compared to $18.4 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 was 81.9%, compared to 81.2% in the prior-year period, despite the continued expansion of the Company’s product portfolio. The Company shares the average sales price for Cohealyx at 50%, and for PermeaDerm at 60%, which inevitably results in an overall decrease in gross margin percentage. RECELL-only gross margin was 86.0% for the quarter.
Operating expenses were $24.6 million, down 6% or $1.5 million compared with $26.1 million in the prior-year period. The decrease primarily reflected continued execution of cost optimization initiatives and commercial restructuring actions implemented in 2025, including a $0.7 million reduction in sales and marketing expenses. General and administrative expenses decreased by $0.7 million while research and development expenses were flat with the prior-year period.
The Company ended the quarter with approximately $11.1 million in cash, cash equivalents, and marketable securities, compared with $14.3 million at the beginning of the quarter.
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 $10 million remains available upon achieving at least $85 million of trailing twelve-month net revenue in any month prior to March 31, 2027.
Net loss improved to $7.7 million, or a loss of $0.25 per basic and diluted share, compared with a net loss of $9.9 million, or a loss of $0.38 per basic and diluted share, in the prior-year period.
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
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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
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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.
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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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June 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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$ |
9,139 |
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$ |
10,243 |
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Marketable securities |
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1,996 |
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7,942 |
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Accounts receivable, net |
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9,867 |
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9,086 |
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Prepaids and other current assets |
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2,105 |
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1,293 |
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Inventory |
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5,287 |
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6,926 |
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Total current assets |
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28,394 |
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35,490 |
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Plant and equipment, net |
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7,678 |
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8,630 |
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Operating lease right-of-use assets |
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2,655 |
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2,899 |
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Corporate-owned life insurance asset |
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3,208 |
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3,116 |
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Intangible assets, net |
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5,249 |
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5,645 |
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Other long-term assets |
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593 |
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612 |
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Total assets |
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$ |
47,777 |
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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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$ |
6,423 |
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$ |
8,959 |
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Accrued wages and fringe benefits |
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8,821 |
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7,813 |
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Loan facility |
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46,659 |
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42,984 |
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Current non-qualified deferred compensation liability |
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506 |
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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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3,305 |
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2,645 |
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Total current liabilities |
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68,714 |
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62,677 |
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Non-qualified deferred compensation liability |
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3,927 |
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3,697 |
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Contract liabilities |
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273 |
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290 |
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Operating lease liabilities, long-term |
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1,822 |
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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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879 |
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1,243 |
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Total liabilities |
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75,615 |
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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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399,541 |
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394,408 |
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Accumulated other comprehensive loss |
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(82 |
) |
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(1,367 |
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Accumulated deficit |
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(426,675 |
) |
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(408,401 |
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Total stockholders’ equity (deficit) |
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(27,838 |
) |
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(16,650 |
) |
Total liabilities and stockholders’ equity (deficit) |
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$ |
47,777 |
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$ |
56,392 |
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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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Six-Months Ended |
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June 30, 2026 |
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June 30, 2025 |
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June 30, 2026 |
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June 30, 2025 |
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Sales revenue |
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$ |
21,489 |
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$ |
18,226 |
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$ |
40,553 |
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$ |
36,551 |
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Lease revenue |
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213 |
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192 |
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400 |
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381 |
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Total revenues |
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21,702 |
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18,418 |
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40,953 |
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36,932 |
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Cost of sales |
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(3,935 |
) |
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(3,469 |
) |
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(7,458 |
) |
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(6,303 |
) |
Gross profit |
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17,767 |
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14,949 |
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33,495 |
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30,629 |
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Operating expenses: |
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Sales and marketing |
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(13,573 |
) |
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(14,314 |
) |
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(26,414 |
) |
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(29,147 |
) |
General and administrative |
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|
(5,971 |
) |
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|
(6,666 |
) |
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|
(12,032 |
) |
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|
(13,057 |
) |
Research and development |
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(5,078 |
) |
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(5,117 |
) |
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(10,707 |
) |
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|
(11,400 |
) |
Total operating expenses |
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(24,622 |
) |
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(26,097 |
) |
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(49,153 |
) |
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(53,604 |
) |
Operating loss |
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|
(6,855 |
) |
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|
(11,148 |
) |
|
|
(15,658 |
) |
|
|
(22,975 |
) |
Interest expense |
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|
(1,463 |
) |
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|
(1,252 |
) |
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(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 |
) |
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(22 |
) |
|
|
(12 |
) |
Net loss |
|
$ |
(7,663 |
) |
|
$ |
(9,920 |
) |
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$ |
(18,274 |
) |
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$ |
(23,779 |
) |
Net loss per common share: |
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|
|
|
|
|
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Basic and diluted |
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$ |
(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 |
|
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