AVITA Medical (ASX:AVH): What Changed in Q3 Revenue and RECELL Guidance?

Aditi Sarkar

12 November 2026 04:39 PM AEDT

AVITA Medical (ASX:AVH): What Changed in Q3 Revenue and RECELL Guidance?

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Highlights

AVITA Medical (ASX:AVH) reported USD 26.1 million Q3 2026 revenue.
Quarterly Revenue increased 53% year on year.
The company raised 2026 revenue guidance to USD 92–94 million.
AVITA shares fell 2.03% to AUD 5.065 on 12 November 2026.

AVITA Medical Inc. (ASX:AVH) develops and supplies acute wound-care technologies, including the RECELL system for the treatment of certain burn and trauma wounds. Shares were quoted at AUD 5.065 on 12 November 2026, down 2.03% during the trading session. Its November quarterly release detailed expanding product revenue, lower cash use and revised full-year guidance. The financial reporting is in US dollars, while the ASX share Quotation is expressed in Australian dollars.

RECELL and Complementary Wound Products

AVITA Medical (ASX:AVH) markets RECELL, which helps healthcare professionals prepare a suspension of a patient’s own skin cells for certain wound applications. The company also supplies Cohealyx, a collagen-based dermal matrix, and PermeaDerm, a biosynthetic wound matrix. These products have distinct clinical uses and commercial arrangements, so changes in total revenue need not follow the same pattern across each product.

In the September 2026 quarter, US RECELL revenue reached USD 22.4 million, approximately 20% higher than the preceding quarter. Cohealyx generated USD 2.1 million, up about 21% sequentially, while PermeaDerm recorded USD 0.6 million. International revenue amounted to USD 0.9 million. These reported components help explain where the group’s quarterly sales originated.

Third-Quarter Developments and Reimbursement

AVITA Medical (ASX:AVH) said the US Centers for Medicare & Medicaid Services finalised national physician payment values and simplified billing codes for RECELL procedures on 4 November 2026, with implementation scheduled for 1 January 2027. The update concerns physician reimbursement and coding; it should not be interpreted as a guarantee of future procedure volumes or sales.

The company also reported PermeaDerm I study findings indicating comparable clinical outcomes to allograft within the study, alongside lower product cost and shorter preparation time. These claims relate to the reported clinical comparison, rather than all treatment settings. Wider product adoption will depend on clinicians, hospital processes, reimbursement and purchasing decisions.

Q3 Financial Results and Liquidity

AVITA Medical (ASX:AVH) reported USD 26.1 million of revenue for the three months to 30 September 2026, an increase of 53% from USD 17.1 million a year earlier and 20% from the preceding quarter. Gross Margin was 84.0%, compared with 81.3% in the prior-year period. Operating expenses were USD 24.6 million, against USD 23.0 million a year earlier.

Net loss narrowed to USD 6.2 million from USD 13.2 million. Quarterly net cash use was around USD 0.6 million, compared with USD 3.2 million in the second quarter. Cash, cash equivalents and marketable securities totalled about USD 10.5 million at quarter-end. Following the period, AVITA drew a further USD 10 million under its Credit Facility after satisfying a trailing revenue milestone; total borrowings consequently reached USD 60 million.

Guidance, Risks and Monitoring Points

AVITA Medical (ASX:AVH) raised 2026 revenue guidance to USD 92–94 million from USD 86–89 million. Management also reiterated an expectation of cash-flow breakeven in the fourth quarter. Both statements are forward-looking company guidance and should be assessed against actual subsequent performance.

The company remains exposed to hospital purchasing decisions, clinical adoption, operating expenses, the timing of reimbursement effects and debt-service obligations. Liquidity requires attention because cash availability and borrowings are different measures. Future quarterly results will clarify whether sales trends, expenses and Working Capital support the cash-flow objective.

Key Insights

AVITA Medical (ASX:AVH) reported higher Q3 revenue and gross margin, a narrower net loss and lower net cash use. RECELL remained the main revenue contributor, with Cohealyx providing an additional product stream. The 2027 reimbursement framework and the company’s updated 2026 guidance are identifiable milestones, although their ultimate financial effects remain to be reported.

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