AVITA Medical delivers record Q2 2026 revenue of $21.7M and raises full-year guidance
In its Second Quarter 2026 financial and business update, AVITA Medical recorded record quarterly net revenue of US$21.7M, up 18% on Q2 2025 and 13% on Q1 2026.
The company raised its full-year 2026 revenue guidance to a range of US$86M to US$89M. It also reaffirmed that it expects to achieve cash flow breakeven in Q4 2026, a milestone underpinned by revenue growth, high gross margins and continued expense discipline.
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Q2 2026 financial results at a glance
AVITA Medical delivered top-line growth while holding operating costs broadly flat, driving a narrower net loss and a sharp reduction in cash use during the quarter. Revenue scaled to a record while gross margin remained above 81%, and quarterly cash use fell to US$3.2M from US$10.1M a year earlier, a decline of roughly 68%.
| Key figure (USD M) | Q2 2026 | Q2 2025 | Q1 2026 |
|---|---|---|---|
| Revenue | $21.7 | $18.4 (+18%) | $19.3 (+13%) |
| Gross profit margin | 81.9% | 81.2% | 81.7% |
| Operating expenses | $24.6 | $26.1 | $24.5 |
| Net loss | ($7.7) | ($9.9) | ($10.6) |
| Cash use | 3.2 | 10.1 | 9.9 |
The net loss narrowed to US$7.7M, an improvement of 22% on the prior-year quarter. With revenue rising while operating expenses were held near flat, the results reflect the core operating leverage the company has cited as the foundation of its breakeven thesis.
Portfolio performance — all three products grew sequentially
Each of AVITA Medical’s product lines recorded sequential growth from Q1 2026 to Q2 2026, with US RECELL remaining the primary revenue driver. The quarter-over-quarter movements were as follows:
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US RECELL: US$16.6M → US$18.5M (~11%)
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Cohealyx: US$1.5M → US$1.7M (~16%)
Cohealyx interim trial results presented at the American Burn Association Annual Meeting in April 2026 showed a mean time to skin grafting of 13.6 days across 40 patients, roughly 20 days faster than the real-world benchmark, providing clinical context for the product’s sequential revenue growth.
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PermeaDerm: US$0.4M → US$0.6M (~40%)
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International: US$0.7M → US$0.9M (~26%)
Utilisation of the flagship product also strengthened. Total US RECELL volume rose across recent quarters, moving from 2,341 units in Q4 2025 to 2,376 units in Q1 2026 and 2,621 units in Q2 2026. This figure includes RECELL, RECELL GO and RECELL GO Mini.
Adoption also appears to be broadening across wound sizes. For 2026 year-to-date, wounds of ≤500 sq cm accounted for 77% of RECELL GO Mini cases.
What RECELL is and why the 2027 CPT code change matters
From 2027, a new SCSA CPT code family is set to change how RECELL procedures are reported. Key improvements to the code structure include:
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Bundling harvest, preparation, and application into a single SCSA code family
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Standardising reporting in 100 sq cm increments, consistent with skin graft coding conventions
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Removing manual versus automated preparation distinctions, reducing device-specific coding complexity
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Restoring pediatric reporting based on percent body surface area for infants and children
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Supporting a more transparent national physician valuation framework, transitioning from regional, contractor pricing to a nationally published approach
For investors, clearer and more predictable reimbursement matters because it reduces regional variability and supports sustained physician adoption of RECELL. The pediatric change restores prior reporting practice rather than introducing it for the first time.
Balance sheet and the path to Q4 2026 cash flow breakeven
AVITA Medical framed its trajectory toward cash flow breakeven around three drivers cited in the update:
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Sequential revenue growth toward the US$86M to US$89M full-year forecast
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Sustained high gross margins of approximately 82%
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Disciplined operating expenses, held broadly flat at around US$24.5M to US$24.6M while revenue scaled
The company ended the quarter with a cash balance of US$11.1M and stated that its liquidity supports execution through expected cash flow breakeven. It also noted that its minimum cash and trailing 12-month revenue covenant requirements remain well aligned with its 2026 outlook.
The company’s liquidity position is underpinned by a US$60M credit facility secured from Perceptive Advisors earlier in 2026, which refinanced existing debt and established the covenant framework now running well below the raised guidance range.
On financing flexibility, a US$10M Tranche B becomes available upon reaching at least US$85M of trailing 12-month net revenue.
AVITA Medical — Key Takeaway
“Revenue growth, high gross margin and expense/cash discipline lead us to cash flow breakeven in Q4 2026.”
Momentum into the second half of 2026
The company summarised its position entering the second half of 2026 across three lenses:
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Commercial: record quarterly revenue, with all three products growing sequentially and platform adoption increasing.
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Financial: high gross margin, disciplined operating expenses, and improving use of cash.
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Outlook: raised 2026 revenue guidance of US$86M to US$89M, expected cash flow breakeven in Q4 2026, and momentum carrying into the second half of the year.
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