AVITA Medical, Inc.

Revenue was $21.7 million in Q2 2026, up 18% year over year and 13% sequentially; first-half 2026 revenue was $41 million. Gross margin was 81.9% versus 81.2% in the prior-year quarter. Operating expenses were $24.6 million, operating loss was $6.9 million, and net loss was $7.7 million, versus $11.1 million and $9.9 million a year ago, respectively. Net cash use improved to approximately $3.2 million, and the company ended the quarter with $11.1 million in cash equivalents and marketable securities. Guidance was raised to full-year 2026 revenue of $86 million-$89 million, versus prior guidance of $80 million-$85 million, and management now expects cash flow breakeven and cash generation in Q4 2026.

CEO Carrie Vance framed the quarter as evidence that the business is executing the strategy she set when joining last October: deliver consistent growth through disciplined commercial execution. She highlighted stronger RECELL utilization, early traction for Cohealyx and PermeaDerm, and a broader portfolio that is starting to gain adoption across 25 hospitals using all three products. Her tone was confident and increasingly constructive, especially around reimbursement simplification for RECELL and the company's path to cash generation.

CFO David O'Toole emphasized that commercial growth is translating into operating leverage and cash improvement. He cited 81.9% gross margin, $24.6 million of operating expenses, a $6.9 million operating loss, a $7.7 million net loss, and approximately $3.2 million of net cash use in the quarter, all better than prior periods. He said the company remains within its credit facility requirements, noted access to an additional $10 million tranche once trailing 12-month revenue reaches $85 million, and pointed to continued efforts to reduce operating expenses while supporting growth.

Analysts focused on what drove the higher revenue guidance and whether the proposed 2027 reimbursement changes for RECELL could create disruption. Management said the guidance raise was mainly because the company is now seeing a higher, more predictable growth trajectory, while reimbursement reform should reduce confusion and shift attention from coding complexity to clinical and economic benefits. On the 2027 CPT transition, Vance said AVITA has already started educating customers and trade groups to avoid any transition issues. On Cohealyx-I, she confirmed the full data set remains on track for later this year and will add follow-up data to support publication and VAC reviews.