AVITA Medical Raises 2026 Guidance After Revenue Growth Accelerates

The Tip Desk · November 5, 2026 · 3 min read

Third-quarter revenue reached $26.1 million, up 53% from a year earlier, and the company lifted full-year guidance to $92 million to $94 million.

AVITA Medical, Inc. (RCEL), a therapeutic acute wound care company, reported third-quarter revenue of $26.1 million, up 53% from $17.1 million a year earlier, accelerating from 18% year-over-year growth in the second quarter.

Sequential growth also picked up, at 20% from the second quarter’s 13%. The company said the increase was driven primarily by continued growth in RECELL and increasing adoption of Cohealyx.

Gross margin expanded to 84.0%, a 270-basis-point increase from 81.3% in the year-ago quarter, after a 70-basis-point year-over-year rise to 81.9% in the second quarter. The company attributed the latest expansion to higher RECELL revenue and improvements in manufacturing efficiency. RECELL-only gross margin was 88.4%; the company said it currently expects that product’s margin to remain between 86% and 90% over the coming quarters. It receives 50% of the average sales price for Cohealyx and up to 55% for PermeaDerm, which lowers the overall gross margin percentage.

RECELL U.S. revenue was $22.4 million, about 20% growth versus the second quarter, which the company said reflected higher procedure volumes and increased account ordering. Cohealyx revenue was $2.1 million, about 21% growth versus the second quarter, with an expanding customer base and additional hospital value analysis committee approvals. PermeaDerm revenue was $0.6 million, essentially flat versus the second quarter. International revenue was $0.9 million, also essentially flat.

Operating expenses were $24.6 million, flat to the prior quarter, after a 6% year-over-year decline in the second quarter. The company said the expenses demonstrated continued discipline even as it supported higher performance-based compensation associated with commercial growth. Sales and marketing expenses rose $1.5 million from a year earlier, mainly from increased commissions and compensation, including annual incentive costs. Research and development expenses increased $1.0 million, mainly from higher compensation. General and administrative expenses decreased $0.9 million.

Net loss narrowed to $6.2 million, or $0.20 a share, from $13.2 million, or $0.46 a share, a year earlier. The company said the current-period loss was negatively impacted by $2.1 million in non-cash expense related to the revaluation of warrants due to the increase in the share price.

Net cash use improved to about $0.6 million from $3.2 million in the second quarter. Cash, cash equivalents and marketable securities totaled about $10.5 million at September 30, 2026.

Trailing twelve-month revenue reached the $85 million milestone required to access the remaining $10 million under the company’s credit facility with Perceptive Advisors LLC. Subsequent to quarter-end, the company drew the additional tranche, bringing total borrowings under the facility to $60 million. Chief Financial Officer David O’Toole said the additional, minimally dilutive capital strengthens liquidity as the company advances toward cash flow breakeven. Based on improved operating performance and cash liquidity, the company said the going-concern qualification was removed in its quarterly report on Form 10-Q, and the outstanding debt under the facility is now classified as a long-term liability.

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, the company said, demonstrating comparable clinical outcomes to allograft while reducing product costs by 70% and preparation time by 95.7%.

Based on third-quarter performance, AVITA Medical raised full-year 2026 revenue guidance to $92 million to $94 million from $86 million to $89 million. The new range represents growth of approximately 28% to 31% compared with revenue of $71.6 million in 2025. Based on year-to-date results, the company said the new guidance implies revenue of $24.9 million to $26.9 million for the fourth quarter. It also reaffirmed its expectation of achieving cash flow breakeven in the fourth quarter of 2026.