AVITA Medical reported fourth‑quarter 2025 revenue of $17.6 million, a 4% decline from $18.4 million in the same period a year earlier. The company posted a net loss of $11.6 million, translating to earnings of $‑0.38 per share, which beat the consensus estimate of $‑0.36 per share by $0.02. Revenue also edged ahead of the $17.52 million forecast, a $0.08 gain that reflects modest strength in the core RECELL product line despite broader reimbursement headwinds.
Gross profit for the quarter was $14.3 million, giving a gross margin of 81.2%, down from 87.6% in Q4 2024. The margin compression is largely attributable to a shift in product mix toward lower‑margin offerings such as Cohealyx and PermeaDerm, as well as inventory‑related adjustments that reduced the average cost of goods sold.
Full‑year 2025 revenue reached $71.6 million, up 11% from $64.3 million in 2024. Management guided FY 2026 revenue to $80‑$85 million, a 12‑19% increase, but the guidance falls well below the $124.20 million consensus estimate, signaling a more cautious outlook amid ongoing reimbursement uncertainty.
AVITA secured a new $60 million credit facility with Perceptive Advisors, of which $50 million has been funded. The facility includes trailing‑12‑month revenue covenants of $68.5 million for Q1 2026 and $73 million for the full year, providing liquidity to support the company’s expanded wound‑care portfolio while maintaining flexible covenants.
The company faces Medicare Administrative Contractor reimbursement headwinds, but six of seven MACs have now published payment rates for RECELL, easing uncertainty for clinicians. Early signs of normalization in RECELL usage are emerging, and the mix shift to lower‑margin products is expected to add incremental gross profit without a proportional rise in operating expenses, supporting operating leverage.
Interim CEO Cary Vance emphasized a disciplined operating model and improved cash visibility, stating, “Our focus is straightforward: Do what we said we would do, report it clearly, and let execution speak for itself.” CFO David O’toole highlighted deliberate actions to reduce the operating cost base and improve cash efficiency, noting sequential improvement in cash use.”
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