AVITA Medical, Inc. (RCEL) Earnings
AVITA Medical, Inc. is expected to report next earnings on November 5, 2026 (in NaN days), with a consensus EPS estimate of $-0.24. RCEL has beaten EPS estimates in 4 of its last 12 reported quarters (average surprise +24.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $-0.29 | $-0.25 | +14.6% | $21M | +7.0% |
| May 14, 2026 | $-0.35 | $-0.35 | +0.0% | $19M | +5.2% |
| Feb 12, 2026 | $-0.48 | $-0.04 | +91.4% | $18M | -31.4% |
| Nov 6, 2025 | $-0.43 | $-0.46 | -7.0% | $17M | -36.5% |
| Aug 7, 2025 | $-0.26 | $-0.38 | -46.2% | $12M | -70.1% |
| May 8, 2025 | $-0.39 | $-0.53 | -35.9% | $12M | -68.9% |
| Feb 13, 2025 | $-0.30 | $-0.44 | -46.7% | $11M | -63.9% |
| Nov 7, 2024 | $-0.42 | $-0.62 | -47.6% | $14M | -61.8% |
| Aug 8, 2024 | $-0.59 | $-0.60 | -1.7% | $10M | -31.2% |
| Feb 22, 2024 | $-0.34 | $-0.28 | +17.6% | $10M | -31.8% |
| Nov 9, 2023 | $-0.53 | $-0.34 | +35.8% | $14M | +1.6% |
| Aug 10, 2023 | $-0.34 | $-0.41 | -20.6% | $12M | +3.5% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Core Portfolio & Commercial Progress * ReCell, the company's foundational product, saw strengthened U.S. physician utilization after stabilization of physician reimbursement. The new Resell Go Mini device is successfully expanding the product's addressable market to smaller wounds, with 77% of year-to-date Resell Go Mini procedures performed on wounds of 500 square centimeters or less, matching the device's design intent. International commercialization of Resell Go is progressing following regulatory approval in multiple regions, with early published UK clinical data showing successful patient outcomes and improved operating room workflow. * COHELIX is seeing steady adoption as hospitals complete VAC reviews and add the product to clinical practice, supported by positive interim COHELIX-1 clinical data demonstrating faster time to skin graft readiness compared to leading competing dermal matrices. The full 6-month follow-up dataset is on track for submission for publication later in 2026. * Permiaderm, recently repositioned as a lower-cost wound temporizer alternative to Allograft, is in early adoption, with 25 hospitals currently having experience across all three of Avita's products. Results from the post-market Permiaderm-1 clinical study are expected later in 2026 to support the product's positioning. - Financial Performance Highlights * Gross margin for Q2 2026 increased to 81.9% from 81.2% in the year-ago quarter, and remained above 81% year-to-date. ReCell's strong gross margin offsets any modest mix impacts from the newer, lower-margin COHELIX and Permiaderm products. * Operating expenses were $24.6 million in Q2 2026, flat sequentially and 6% lower YoY, demonstrating that the 2025 commercial restructuring has created operating leverage to support growth without proportional increases in overhead. Quarterly operating loss improved to $6.9 million (from $11.1 million YoY), and net loss improved to $7.7 million (from $9.9 million YoY). * Net cash burn improved significantly to $3.2 million in Q2 2026 from prior quarters, ending the quarter with $11.1 million in cash, cash equivalents, and marketable securities. The company remains in compliance with its credit facility covenants, and has access to an additional $10 million debt tranche once trailing 12-month revenue reaches $85 million for added financial flexibility. - Reimbursement Update * The company has completed reimbursement transition across all seven U.S. Medicare administrative contractors (MACs), and is in the final stages of transitioning to new simplified Category 1 CPT codes for ReCell's skin cell suspension autograph procedure, effective January 1, 2027. CMS has proposed national RVUs for the new codes, which will replace the current fragmented regional pricing structure, improving reimbursement transparency and consistency for providers, and allowing the sales team to focus on clinical adoption rather than coding complexity.
Guidance
- Full year 2026 revenue guidance was raised upward from the prior range of $80 million to $85 million to a new range of $86 million to $89 million. This represents 20% to 24% YoY growth over 2025's full year revenue of $71.6 million. - New guidance was introduced: the company expects to achieve cash flow breakeven and begin generating positive operating cash flow during Q4 2026, marking a key financial inflection point for the firm. - The company expects cash burn to further decrease in Q3 2026 on the path to Q4 2026 breakeven, driven by scaling revenue, sustained high gross margins, and disciplined operating expense control.
Segment performance
Total company revenue for Q2 2026 was $21.7 million, representing an 18% year-over-year (YoY) increase and 13% sequential increase from Q1 2026, marking the first time the company crossed $20 million in quarterly revenue. 1. ReCell (Resell): Generated $18.5 million in Q2 2026 revenue, with 13% sequential growth in the U.S. and 26% sequential growth internationally. Gross margin for ReCell remains strong at approximately 86%, accounting for ~85.25% of total Q2 revenue. U.S. ReCell volume grew more than 10% sequentially to over 2,600 units. 2. COHELIX: Generated $1.7 million in Q2 2026 revenue, representing 16% sequential growth, accounting for ~7.83% of total Q2 revenue. The product maintains ~55 active Value Analysis Committee (VAC) reviews, with 10-15 reviews completed each quarter to drive growing ordering accounts. 3. Permiaderm: Generated $0.6 million in Q2 2026 revenue, accounting for ~2.76% of total Q2 revenue. Commercial adoption remains in early stages following repositioning of the product as a wound temporizer.
Risks & headwinds
The company did not outline new material risks in this earning call beyond general acknowledgment that forward-looking statements are subject to unknown risks and uncertainties that could cause actual results to differ from expectations, as disclosed in prior SEC filings. The only potential risk discussed related to a possible transitional adoption gap for the 2027 CPT code change, which the company has already begun proactive educational efforts to mitigate.
Analyst Q&A
Q: What factors drove the upward revision to full year 2026 revenue guidance, and how much adoption of ReCell has been held back by the prior fragmented reimbursement structure? /
A: The guidance increase reflects that the company is already on a higher growth trajectory than initially projected at the start of the year, with now predictable forecasting for the remainder of 2026 that justifies raising guidance. The biggest issue with the old reimbursement structure was widespread confusion that consumed significant sales and customer time to clarify payment terms, which the new national code framework will resolve, allowing more focus on clinical adoption, which is still under-penetrated in the current market.
Q: Is there a risk of a transitional adoption gap when providers switch from 8 legacy CPT codes to 4 new standardized codes in 2027, and what is the company doing to prepare? /
A: The company has already begun proactive educational outreach to customers and internal teams about the upcoming change, even before final rule publication, and industry associations are also helping educate provider members. This full-scale pre-transition educational effort is designed to avoid any disruption when the change takes effect in January 2027.
Q: Is the full 6-month dataset for COHELIX-1 still on track for publication, and what additional value will it provide? /
A: The timeline for submission and publication of the full dataset by end of 2026 remains on track. The full dataset adds 6-month patient follow-up data to the already released positive interim results, providing additional evidence of long-term clinical durability to support payer approvals and broader hospital adoption.
Q: What is physician feedback on multi-product adoption, and what is the company's plan for gross margin improvement across the portfolio? /
A: Clinical feedback on all three products is strongly positive, with physicians confirming individual clinical and economic value, and top accounts are already adopting all three products as the company works to demonstrate combined treatment pathway synergies. The operational team continues pursuing back-end efficiencies to expand ReCell's already strong gross margin, and will optimize pricing for COHELIX and Permiaderm as those products scale in market penetration.