Key Highlights

  • AVITA Medical reported second quarter revenue growth driven by RECELL, Cohealyx, and PermeaDerm product adoption.
  • The company increased its full-year 2026 revenue guidance range to $86 million-$89 million.
  • AVITA Medical expects to achieve cash flow breakeven in the fourth quarter of 2026.
  • The company continues expanding its acute wound care portfolio across US and international markets.

AVITA Medical Inc (ASX:AVH) was trading at AUD 1.51, up 17.97% or AUD 0.23 at the time of writing on 7 August 2026. The healthcare company reported second quarter 2026 results showing continued commercial expansion, with revenue increasing year over year and the company raising its full-year revenue guidance. AVITA Medical’s progress has been supported by demand for its RECELL technology alongside contributions from Cohealyx and PermeaDerm within its acute wound care portfolio.

Revenue Growth Supported by Commercial Portfolio Expansion

AVITA Medical reported second quarter revenue of approximately $21.7 million, representing an 18% increase compared with the prior corresponding period and a 13% increase compared with the previous quarter. The company attributed growth to continued execution across its commercial portfolio, led by RECELL and supported by increasing adoption of Cohealyx and PermeaDerm.

RECELL remained the primary contributor during the quarter, generating approximately $18.5 million in revenue. The product continued to benefit from increased physician utilisation and broader adoption of RECELL GO mini, which expanded the potential application of the technology in smaller wound treatments.

Cohealyx revenue reached approximately $1.7 million during the quarter, while PermeaDerm revenue was approximately $0.6 million. Both products contributed to the company’s strategy of developing a broader wound care offering beyond its core RECELL platform.

Improved Operating Efficiency and Financial Position

AVITA Medical reported a gross profit margin of 81.9% for the quarter, compared with 81.2% in the same period a year earlier. The company noted that portfolio expansion affected overall margin composition due to the different pricing structures associated with newer products.

Operating expenses declined to $24.6 million, representing a reduction from the previous year period. The decrease reflected cost optimisation initiatives and adjustments implemented through commercial restructuring activities.

The company also reported improved cash utilisation during the quarter, with net cash use reducing compared with the previous quarter. AVITA Medical ended the period with approximately $11.1 million in cash, cash equivalents, and marketable securities.

Updated Revenue Guidance and Cash Flow Expectations

Following its quarterly performance, AVITA Medical increased its full-year 2026 revenue guidance to a range of $86 million to $89 million. The updated forecast compares with revenue of $71.6 million in 2025 and represents expected year-over-year growth of approximately 20% to 24%.

The company also expects to reach cash flow breakeven in the fourth quarter of 2026. Management highlighted improving commercial scale, expense management, and customer cash collections as factors supporting this objective.

The company’s existing credit facility includes additional funding availability subject to achieving specific revenue conditions. AVITA Medical stated that its current liquidity position and expected operational improvements are intended to support execution of its commercial strategy.

RECELL Reimbursement Developments and Market Expansion

AVITA Medical continues to focus on expanding adoption of RECELL within the acute wound care market. The company highlighted proposed Medicare payment updates that could establish national physician payment arrangements for RECELL procedures and increase facility payment rates if adopted.

A transition toward a nationally published payment framework could provide greater clarity for healthcare providers regarding reimbursement structures. Final decisions on the proposed payment changes are expected later in the year, with implementation scheduled for 2027 if approved.

Beyond the US market, AVITA Medical continues generating revenue from international markets where its products have received regulatory approvals or certifications. The company’s international operations contribute to diversification across healthcare systems and regions.

Product Pipeline and Future Growth Areas

AVITA Medical’s technology platform focuses on improving wound healing through products designed to support patient recovery. RECELL uses a patient’s own skin cells to create a spray-on skin application, while Cohealyx and PermeaDerm expand the company’s presence in regenerative wound care solutions.

The company’s future performance will depend on factors including clinical adoption, reimbursement developments, healthcare provider engagement, and the continued commercial rollout of its product portfolio.

Conclusion

AVITA Medical’s second quarter performance reflects continued expansion of its wound care portfolio, supported by RECELL demand and contributions from newer products. The company’s increased revenue guidance and expectation of fourth-quarter cash flow breakeven indicate a focus on scaling operations while managing expenses. Continued adoption of its technologies and progress across key markets will remain important factors influencing the company’s future development.