AVITA Medical lifts guidance as Q2 revenue hits US$21.7M

• AVITA Medical reported a record net revenue of US$21.7 million for the second quarter, representing an 18% year-over-year growth.
• Operating expenses dropped 6% year-over-year to US$24.6 million.
• The company raised its full-year 2026 net revenue guidance to between US$86 million and US$89 million, targeting cash flow breakeven in the fourth quarter.

Therapeutic wound care company AVITA Medical (ASX:AVH) reported record second-quarter net revenue of US$21.7 million, up 18% compared to the prior corresponding period.

The result marks a sequential revenue increase of 13% over the first quarter, driven primarily by expanded adoption of its flagship RECELL system.

Operating expenses were US$24.6 million, down 6% in the prior-year period, primarily reflecting the continued execution of cost optimisation initiatives and commercial restructuring actions implemented in 2025, including a US$0.7 million reduction in sales and marketing expenses.

"As AVITA continues to expand utilisation 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," said AVITA Medical President and CEO Cary Vance.

Quarterly operating expenses fell 6% year-over-year to US$24.6 million, while gross profit margin expanded by 70 basis points to 81.9%.

Following the announcement, the AVITA Medical share price was up at $5.38.

The company raised its full-year 2026 revenue projection to reach between US$86 million and US$89 million, with cash flow breakeven anticipated in the fourth quarter.

Broader commercial expansion continues as the Centres for Medicare & Medicaid Services proposed national Medicare payment rates for RECELL in 2027.