Avita Medical (NASDAQ:RCEL) Releases Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Avita Medical beat quarterly earnings expectations, reporting an adjusted loss of $0.25 per share versus the $0.29 consensus estimate, while revenue reached $21.7 million against forecasts of $20.25 million.
• Second-quarter revenue rose 18% year over year, driven by higher RECELL sales and expanding adoption of RECELL GO mini; management raised 2026 revenue guidance to $86 million–$89 million.
• Management expects to achieve cash-flow breakeven in the fourth quarter of 2026, supported by gross margins above 81%, reduced cash use and continued growth in its Cohealyx and PermeaDerm products.

Avita Medical (NASDAQ:RCEL - Get Free Report) announced its quarterly earnings results on Thursday. The company reported ($0.25) earnings per share for the quarter, beating the consensus estimate of ($0.29) by $0.04, Zacks reports. The firm had revenue of $21.70 million for the quarter, compared to analyst estimates of $20.25 million.

Here are the key takeaways from Avita Medical's conference call:

• Second-quarter revenue rose 18% year over year to $21.7 million, marking the first quarter above $20 million; management raised 2026 revenue guidance to $86–$89 million, or 20%–24% growth.
• U.S. RECELL revenue increased 13% sequentially to $18.5 million, while total RECELL volume exceeded 2,600 units; adoption of RECELL GO mini is expanding into smaller wounds, with 77% of year-to-date procedures involving wounds of 500 square centimeters or less.
• Cohealyx revenue grew 16% sequentially to $1.7 million, supported by approximately 55 active hospital value-analysis reviews, while PermeaDerm generated $600,000 and is being positioned as a lower-cost wound temporizer alternative to allograft.
• Management expects to reach cash-flow breakeven and begin generating cash in the fourth quarter of 2026, helped by revenue growth, gross margins above 81%, disciplined operating expenses, and improved cash collections; quarterly net cash use fell to approximately $3.2 million.
• Beginning in January 2027, new nationally published CPT codes are expected to replace the current eight-code RECELL reimbursement structure with four standardized codes; AVITA is educating providers, while final CMS payment rules remain pending.

Avita Medical Price Performance

Shares of RCEL stock traded up $3.02 during trading on Friday, reaching $7.77. The company's stock had a trading volume of 7,253,013 shares, compared to its average volume of 236,270. The company has a market capitalization of $239.16 million, a price-to-earnings ratio of -5.40 and a beta of 1.86. The stock's 50-day moving average price is $4.47 and its 200 day moving average price is $4.42. Avita Medical has a 1-year low of $3.22 and a 1-year high of $8.07.

Analysts Set New Price Targets

A number of equities analysts have commented on RCEL shares. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Avita Medical in a research note on Wednesday, June 24th. Wall Street Zen raised shares of Avita Medical from a "sell" rating to a "hold" rating in a research report on Sunday, August 2nd. TD Cowen reaffirmed a "buy" rating on shares of Avita Medical in a research note on Tuesday, June 30th. BTIG Research upgraded shares of Avita Medical from a "neutral" rating to a "buy" rating and set a $7.00 price target for the company in a research report on Friday. Finally, Lake Street Capital upgraded shares of Avita Medical from a "hold" rating to a "buy" rating and upped their price objective for the stock from $3.50 to $6.00 in a report on Friday, May 15th. Five analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $8.25.

Insider Transactions at Avita Medical

In other Avita Medical news, Director Joseph Fralin Woody bought 10,000 shares of Avita Medical stock in a transaction on Tuesday, June 9th. The shares were bought at an average cost of $4.19 per share, for a total transaction of $41,900.00. Following the acquisition, the director directly owned 102,761 shares in the company, valued at $430,568.59. This represents a 10.78% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In the last quarter, insiders have purchased 37,200 shares of company stock worth $155,080. 2.24% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of RCEL. Curi Capital LLC acquired a new position in shares of Avita Medical during the second quarter worth about $100,000. Bridgeway Capital Management LLC acquired a new stake in Avita Medical in the second quarter valued at approximately $199,000. Bank of America Corp DE raised its holdings in Avita Medical by 49.7% in the second quarter. Bank of America Corp DE now owns 62,551 shares of the company's stock valued at $331,000 after acquiring an additional 20,767 shares in the last quarter. Gabelli Funds LLC purchased a new position in Avita Medical in the second quarter worth approximately $185,000. Finally, XTX Topco Ltd purchased a new position in Avita Medical in the second quarter worth approximately $153,000. 27.66% of the stock is owned by institutional investors and hedge funds.

About Avita Medical

Avita Medical, Inc NASDAQ: RCEL is a regenerative medicine company focused on the development and commercialization of cell‐based therapies for acute and chronic wounds. Its flagship technology, the ReCell® Autologous Cell Harvesting Device, enables clinicians to create a suspension of a patient's own skin cells at the point of care. The system is designed to accelerate wound healing, minimize donor‐site requirements and reduce scarring for patients suffering from burns, traumatic wounds and a variety of surgical and reconstructive procedures.

Founded in 2009 and headquartered in Carlsbad, California, Avita Medical has secured regulatory clearances in key markets, including CE mark approval in the European Union and 510(k) clearance from the U.S.

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