AVITA Medical (ASX:AVH) has concluded a "year of stabilisation," reporting its fourth quarter and full-year 2025 financial results.
While the company faced significant reimbursement headwinds throughout the year, total annual revenue climbed to US$71.6 million, marking an 11% increase over 2024.
Despite this yearly growth, Q4 revenue dipped slightly to US$17.6 million compared to the previous year, highlighting the lingering impact of insurance transition disruptions.
The company demonstrated sharpened operational discipline, reducing Q4 operating expenses by 5% to US$24.7 million.
The cost-efficiency, paired with a robust gross profit margin of 82.1% for the full year, helped narrow the annual net loss to US$48.6 million (US$1.74 per share), an improvement from the US$61.8 million loss reported in 2024.
Cash management also improved, with net cash use dropping to US$5.1 million in the final quarter.
Looking ahead to 2026, AVITA appears positioned for a more "execution-focused phase."
In January, the company secured a $60 million credit facility with Perceptive Advisors to bolster its capital structure.
Furthermore, the regulatory environment is clearing; six of seven Medicare Administrative Contractors have now published payment rates for the RECELL system.
Interim CEO Cary Vance suggests the company is entering a period of "normalisation" and renewed commercial focus.