AVITA Medical (ASX:AVH): 2026 Revenue Guidance and Wound Care Commercialisation

Aditi Sarkar

26 October 2026 03:57 PM AEDT

AVITA Medical (ASX:AVH): 2026 Revenue Guidance and Wound Care Commercialisation

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Highlights

AVITA Medical (ASX:AVH) reported 2QFY26 net revenue of USD 21.7mn, up 18% YoY.
Gross profit margin reached 81.9%, while quarterly operating expenses declined 6% YoY.
Full-year 2026 revenue guidance was raised to USD 86mn–89mn.
The company scheduled publication of 3QFY26 financial results for 5 November 2026.

AVITA Medical (ASX:AVH) develops and markets therapeutic products for acute wound care, including its RECELL platform and complementary technologies used in the management of burns and complex wounds. On 26 October 2026, AVITA Medical (ASX:AVH) was quoted at AUD 4.29, down 0.69% for the session. The company’s latest reported quarterly results showed higher sales, lower operating expenses and updated revenue guidance as it continued to expand use of its wound care portfolio.

Company Business

AVITA Medical (ASX:AVH) operates in therapeutic acute wound care, with commercial activities centred on products intended to support wound treatment and skin restoration. Its RECELL System enables preparation of a suspension of a patient’s own skin cells for application to eligible wounds. The portfolio also includes RECELL GO mini, which is designed to address smaller wounds and broaden the circumstances in which clinicians can use the technology.

Complementary products include Cohealyx, a collagen-based dermal matrix, and PermeaDerm, a wound temporising product used before definitive closure. The business generates revenue from product sales, with the United States forming a central commercial market alongside international activities. Adoption depends on hospital access, clinician training, treatment protocols, reimbursement and availability of supporting clinical evidence.

Recent Development

In its 6 August 2026 earnings release, AVITA Medical (ASX:AVH) disclosed 2QFY26 net revenue of USD 21.7mn, an increase of 18% YoY and 13% QoQ. Management identified RECELL as the principal contributor, with additional revenue from Cohealyx, PermeaDerm and international sales. The company also increased its full-year revenue forecast after reviewing second-quarter trading.

On 20 October 2026, AVITA Medical (ASX:AVH) announced plans to release its 3QFY26 financial results after the US market close on 5 November 2026, followed by an investor discussion. That update is expected to provide a further assessment of product demand, spending and cash usage. The August release also discussed proposed US reimbursement changes for calendar 2027, subject to the relevant regulatory process.

Financial Performance and Sector Context

RECELL contributed USD 18.5mn of 2QFY26 revenue, approximately 11% above 1QFY26. Cohealyx recorded USD 1.7mn, approximately 16% higher QoQ, while PermeaDerm revenue reached USD 0.6mn, up approximately 40% QoQ. International revenue was USD 0.9mn, approximately 26% higher QoQ. These amounts indicate the relative importance of RECELL within the group’s revenue mix, notwithstanding sales growth across the smaller portfolio lines.

The company reported an 81.9% gross profit margin for 2QFY26, an improvement of 70 basis points YoY. Operating expenses were USD 24.6mn, down 6% YoY. Net cash use for the quarter improved to approximately USD 3.2mn from USD 9.9mn in 1QFY26, while cash, cash equivalents and marketable securities totalled approximately USD 11.1mn at 30 June 2026.

For calendar 2026, AVITA Medical (ASX:AVH) raised net revenue guidance to USD 86mn–89mn, compared with an earlier range of USD 80mn–85mn. Revenue for 2025 was USD 71.6mn, implying management’s revised forecast represents growth of approximately 20%–24% YoY. The company also stated that it expected to reach cash flow breakeven in 4QFY26. These are management expectations rather than completed results.

Risks to Consider

AVITA Medical (ASX:AVH) faces commercial execution risks linked to product adoption, hospital procurement, reimbursement and competition in wound care. The company’s dependence on RECELL makes sales trends for that product especially relevant. Newer offerings must establish repeat clinical demand, while changes to reimbursement arrangements may affect utilisation and economics. Cash management also remains important given the company’s recent net cash outflows and its target of reaching quarterly cash flow breakeven.

What to Watch Next

The 3QFY26 announcement scheduled for 5 November will provide the next reported revenue and profitability figures, together with further information on RECELL, Cohealyx and PermeaDerm sales. For AVITA Medical (ASX:AVH), other near-term monitoring points include operating expenses, cash utilisation and progress against its USD 86mn–89mn annual revenue guidance. Any finalisation of the proposed reimbursement arrangements could also influence commercial planning for 2027.

Key Insights

AVITA Medical (ASX:AVH) reported double-digit second-quarter revenue growth alongside an improved gross margin and lower YoY operating expenses. RECELL remained the main revenue source, while the smaller product categories recorded sequential gains. Revised 2026 guidance and the anticipated fourth-quarter cash flow milestone establish measurable benchmarks for the forthcoming financial update.

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