AVITA Medical raises 2026 guidance after strong revenue growth
Key points
- AVITA Medical reported a 53% year-over-year increase in third-quarter total revenue to US$26.1 million.
- The company raised its full-year 2026 revenue guidance to between US$92 million and US$94 million while confirming expected fourth-quarter cash flow breakeven.
- Growth was driven primarily by continued adoption of its RECELL and Cohealyx therapeutic product lines.
AVITA Medical (ASX:AVH) reported a 53% year-over-year increase in third-quarter total revenue to US$26.1 million, surpassing analyst consensus estimates of US$22.35 million.
The quarterly revenue growth was up 20% sequentially, while gross margin expanded by 270 basis points year-over-year to reach 84%.
“RECELL continued to drive our growth, supported by increasing adoption of Cohealyx, while disciplined expense management contributed to a substantial improvement in cash use,” said AVITA Medical President and CEO Cary Vance.
Operating expenses held flat to the prior quarter at US$24.6 million, helping lower net cash use to approximately US$0.6 million compared to US$3.2 million in the second quarter of 2026.
The business raised its full-year 2026 revenue guidance to between US$92 million and US$94 million and reiterated its goal of reaching cash flow breakeven in the fourth quarter of 2026.
Following the announcement, the AVITA Medical share price was $4.63.
The company also secured access to a US$10 million credit facility tranche after surpassing an US$85 million trailing twelve-month revenue milestone, leading to the removal of its "going concern" qualification.
Additionally, the Centers for Medicare & Medicaid Services finalised national physician payment values and simplified billing codes for RECELL procedures effective Jan. 1, 2027.
