How did AVITA Medical (ASX:AVH) perform financially in Q1 2026?

AVITA Medical reported total revenue of US$19.3 million, marking a 4% increase year-over-year and a 10% increase from the previous quarter. The company successfully narrowed its net loss to US$10.6 million (US$0.35 per share), compared to a US$13.9 million loss in Q1 2025. This improvement was driven by higher sales of Cohealyx and RECELL, alongside an 11% reduction in operating expenses.

What were the key drivers behind AVITA Medical's Q1 revenue growth?

Growth was primarily fuelled by the contributions of Cohealyx and the stabilising utilisation of the RECELL system as reimbursement dynamics normalised. Sequential growth of 10% suggests that ordering patterns are improving across the product portfolio.

What significant leadership changes occurred at AVITA Medical (ASX:AVH)?

The company confirmed a major leadership transition with the appointment of Cary Vance as President and Chief Executive Officer. Additionally, Jan Stern Reed has been appointed as the independent Chair of the Board.

How does the BARDA agreement impact the AVITA Medical (ASX:AVH) investment thesis?

AVITA secured a 10-year agreement with the Biomedical Advanced Research and Development Authority (BARDA) valued at up to US$25.5 million. This contract provides a reliable stream of recurring revenue tied to U.S. burn emergency preparedness.

What are the main bull and bear points for AVH after these results?

The bull case rests on high margins (81.7%), narrowing losses, and new regulatory clearances for RECELL GO in Australia and New Zealand. The bear case focuses on the fact that the company is still losing over US$10 million per quarter and remains reliant on successful commercial scaling.

What is the clinical significance of the Cohealyx I data?

Interim data for Cohealyx showed a 20-day reduction in the mean time to skin grafting readiness (13.6 days versus 33.2 days). This is a critical metric for healthcare providers because faster healing times can reduce hospital stays and improve patient outcomes.

AVITA Medical reports revenue growth, narrowing losses

Written by Heidi Cuthbert Published May. 14 2026Last Updated May. 14 2026

AVITA Medical (ASX:AVH) has reported its financial performance for the first quarter of 2026, headlined by a total revenue of US$19.3 million.

This represents a 4% year-over-year increase and a 10% sequential rise, largely attributed to the contributions of Cohealyx and the stabilising utilisation of the RECELL system.

The company maintained a strong gross profit margin of 81.7%, even as it navigated product mix shifts and inventory adjustments.

A disciplined approach to cost management saw operating expenses drop by 11% compared to the same period last year, falling to US$24.5 million.

The fiscal tightening helped narrow the company’s net loss to US$10.6 million, or US$0.35 per share, a marked improvement over the $13.9 million loss recorded in the first quarter of 2025.

Beyond the balance sheet, the quarter was defined by pivotal strategic milestones and leadership changes.

The board confirmed the appointment of Cary Vance as President and CEO, alongside Jan Stern Reed as the independent chair of the board.

AVITA secured a 10-year BARDA agreement valued at up to US$25.5 million for U.S. burn emergency preparedness and received regulatory clearance for RECELL GO in Australia and New Zealand.

CEO Cary Vance expressed confidence in the company's trajectory, noting that improved ordering patterns and clinical success—highlighted by Cohealyx I data showing a 20-day reduction in skin grafting readiness—position the firm for sustained growth throughout 2026.