AVITA Medical Raises 2026 Guidance After Record Quarter
Second-quarter revenue hit a record $21.7 million, up 18% from a year earlier, and the company lifted its full-year range to $86 million to $89 million.
AVITA Medical, Inc. (RCEL), a therapeutic acute wound care company, reported record second-quarter revenue of $21.7 million, up 18% from a year earlier, and raised its full-year 2026 net revenue guidance to $86 million to $89 million from $80 million to $85 million.
The sequential step-up was the quarter’s inflection. First-quarter revenue of about $19.3 million had risen only 4% year over year. Second-quarter growth of 18% year over year and 13% sequentially marked a faster pace than that first-quarter print.
The increase reflected execution across the commercial portfolio, led by RECELL and supported by Cohealyx and PermeaDerm, with consistent international revenue.
RECELL generated $18.5 million in the quarter, about 11% growth versus the first quarter. Sequential growth reflected increasing physician confidence after reimbursement stabilization and continued adoption of RECELL GO mini, which expanded use in smaller wounds.
Cohealyx revenue was $1.7 million, about 16% growth versus the first quarter. Growth was further supported by favorable interim clinical data from the Cohealyx I study reported in April, which showed a faster time to skin grafting readiness than leading competitive products.
PermeaDerm revenue was $0.6 million, about 40% growth versus the first quarter. The wound temporizer is positioned as an alternative to allograft. PermeaDerm I study data are expected in August.
International revenue was $0.9 million, about 26% growth versus the first quarter.
Gross profit margin was 81.9%, up 70 basis points from 81.2% a year earlier. RECELL-only gross margin was 86.0%. The company shares the average sales price for Cohealyx at 50% and for PermeaDerm at 60%, resulting in an overall decrease in gross margin percentage.
Operating expenses were $24.6 million, down 6% or $1.5 million from $26.1 million a year earlier. The decrease primarily reflected cost optimization and commercial restructuring implemented in 2025, including a $0.7 million reduction in sales and marketing expenses. General and administrative expenses decreased by $0.7 million. Research and development was flat with the prior-year period.
Net loss improved to $7.7 million, or $0.25 a share, from $9.9 million, or $0.38 a share, a year earlier.
Net cash use improved to approximately $3.2 million from $9.9 million in the first quarter. Cash, cash equivalents, and marketable securities were about $11.1 million at quarter-end, compared with $14.3 million at the beginning of the quarter.
The company expects to reach cash flow breakeven in the fourth quarter of 2026. Chief Financial Officer David O’Toole said that as the business scales, supported by sustained high gross margins, operating expense management, and improved timely customer cash collections, the company expects to reach cash flow breakeven and start generating cash in the fourth quarter.
President and Chief Executive Officer Cary Vance said the results reflect expanded utilization in the United States and a growing presence in key international markets, and that AVITA has evolved into a business capable of sustained, durable growth.
In July, the Centers for Medicare & Medicaid Services released proposed calendar year 2027 Medicare payment updates for RECELL. If adopted, the rules would set national physician payment rather than region-by-region contractor pricing and would increase hospital outpatient and ambulatory surgical center facility payment rates. The proposed rules reflect a new Category I CPT code family effective January 1, 2027. CMS is expected to issue final rules later this year, with implementation proposed for January 1, 2027.
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. The company’s current liquidity, together with expected operating improvements, provides capital to support its commercial strategy and expected path to fourth-quarter cash flow breakeven.