AVITA Medical reports revenue growth, narrowing losses

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.