AVITA Medical (ASX:AVH) announced its financial results for the first quarter ended March 31.
The company reported commercial revenue of US$18.5 million, up 67% from US$11.1 million in Q1 2024, driven by expanded penetration in existing accounts, new customer growth, and the launch of innovative products such as RECELL GO mini and Cohealyx.
Gross profit margin stood at 84.7%, slightly down from 86.4% in the same period last year, due to product mix, volume discounts, and higher inventory reserves.
Despite this, the company noted that margins for RECELL products remained strong at 86.4%.
Operating expenses rose slightly to US$27.5 million from US$26.8 million, primarily due to increased sales and marketing costs, which were partially offset by lower general and administrative expenses.
Research and development expenses rose US$1.1 million, reflecting increased headcount.
Net loss narrowed to US$13.9 million, or US$0.53 per share, compared to a loss of US$18.7 million, or $0.73 per share, a year ago.
AVITA ended the quarter with US$25.8 million in cash and marketable securities and secured a waiver on its Q1 revenue covenant under its credit agreement with OrbiMed.
The company highlighted the commercial transformation of its sales model and its expanded product portfolio, now addressing a US market opportunity of over US$3.5 billion.
AVITA reaffirmed its full-year 2025 guidance, projecting commercial revenue between US$100 million and US$106 million, representing 55% to 65% growth over 2024.
It expects to generate free cash flow in the second half of the year and achieve GAAP profitability by the fourth quarter.