AVITA Medical, Inc. (RCEL) Earnings
AVITA Medical, Inc. is expected to report next earnings on August 6, 2026 (in NaN days), with a consensus EPS estimate of $-0.32. RCEL has beaten EPS estimates in 3 of its last 12 reported quarters (average surprise +9.6% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| 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 | -33.4% |
| Nov 9, 2023 | $-0.53 | $-0.34 | +35.8% | $14M | +1.6% |
| Aug 10, 2023 | $-0.34 | $-0.41 | -20.6% | $12M | +3.5% |
| May 11, 2023 | $-0.22 | $-0.37 | -68.2% | $7M | -37.4% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 14, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Leadership Update - Kerry Vance was appointed permanent President and CEO after serving six months as interim CEO, and Jan Stern-Reed joined as new board chair. - Management confirmed alignment on strategic priorities and is excited to lead the company's next growth phase. ### Business Stabilization Progress - Over the prior two quarters, the company prioritized stabilizing the business by addressing clinical reimbursement disruptions for Resale, re-engaging core accounts, and establishing consistent procedure-based demand. - The company also focused on operational improvement: simplifying focus on high-value centers, restructuring the sales organization, and securing a new flexible credit agreement aligned with current revenue trajectory. - Q1 2026 marked the first quarter where these strategic changes delivered more consistent performance, with the highest quarterly revenue in the last 12 months. ### Product Portfolio Developments - **Resale**: All seven U.S. Medicare administrative contractors (MACs) have now published aligned payment rates, resolving prior reimbursement uncertainty. Utilization is gradually returning to procedural demand levels, with re-engagement at previously affected burn centers and sequential growth in ordering/case activity. Resell Go Mini is gaining adoption in smaller burn and trauma settings, and new regulatory clearances in Australia and New Zealand enable international market expansion. A new 10-year long-term agreement with BARDA supports U.S. burn emergency preparedness, providing recurring modest revenue and validating Resale's clinical relevance for high-acuity mass casualty response. - **Cohelix**: Early commercial adoption shows encouraging signals, including increasing facility approvals (VACs) and early repeat usage from initial adopters. Interim data from the COHELIX-1 study showed a ~20-day reduction in time to graft readiness versus benchmarks, a median 11-day time to grafting, and high investigator satisfaction. This data is supporting clinical adoption and value communication; full study data will be released later in 2026. - **Permioderm**: Commercial development is ongoing, with new clinical positioning as a lower-cost biosynthetic alternative to cadaveric allograft for wound coverage. Early histology data shows comparable biological performance to cadaveric allograft, and full study data is expected later in 2026. The company is currently focused on building clinical confidence and clear pathway positioning. ### Conference and Clinical Engagement - The company had a strong presence at the 2026 American Burn Association (ABA) annual meeting, with broad scientific participation and active clinical dialogue across the full product portfolio. Management highlighted growing clinical engagement and increasing integration of Avita products into standard surgical workflows. ### Financial Performance - Total operating expenses were $24.5 million, an 11% year-over-year reduction reflecting 2025 cost optimization initiatives. Net loss for the quarter was $10.6 million ($0.35 per share), an improvement from $13.9 million ($0.53 per share) year-over-year. End-of-quarter cash and marketable securities totaled $14.3 million, with net cash use of $9.9 million in Q1 (elevated by seasonal compensation payments and timing of revenue collections). The company remains in compliance with all covenants under its new credit agreement, which provides significant headroom relative to expected revenue.
Guidance
- Management reaffirmed full-year 2026 net revenue guidance of $80 million to $85 million, maintaining the prior range despite Q1 results exceeding street expectations. - Management expects continued sequential revenue growth in Q2 2026, built on the progress and momentum achieved in Q1. - The cost structure is now stabilized: G&A, R&D, and headcount costs are expected to remain stable going forward; only commissions are expected to rise as revenue grows. - Cash use is expected to decrease significantly in Q2 2026, after elevated Q1 cash use driven by temporary seasonal and timing factors. - Management expects 12 to 15 new Cohelix facility VAC approvals per quarter to continue through 2026.
Segment performance
Total company revenue for Q1 2026 was $19.3 million, representing 4% year-over-year growth and 10% sequential growth from Q4 2025. Overall gross margin was 81.7% (down from 84.7% year-over-year), driven by product mix shifts and required inventory reserves. Resale, the company's core segment, maintains a strong gross margin of approximately 85%, and is seeing recovering utilization as reimbursement uncertainties resolve. Resale contributed to sequential quarterly revenue growth alongside the newer Cohelix segment. The BARDA long-term agreement for Resale will contribute ~$100,000 in recurring quarterly revenue over 10 years, with additional revenue only triggered by mass casualty events. Cohelix is in early commercial adoption, contributing to overall revenue growth as an incremental driver alongside Resale; it has a lower gross margin than Resale, impacting the overall company gross margin percentage while being accretive to absolute gross profit. Permioderm is in early commercial development, and also contributes a lower gross margin that impacts the company's overall reported gross margin percentage.
Risks & headwinds
- Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from expectations, which are detailed in the company's recent SEC filings. - Reimbursement stabilization required post-clearance education and hospital-by-hospital outreach, with full recovery of physician and center confidence still ongoing (currently ~75% recovered). - New product adoption for Cohelix and Permioderm is still in early stages, with broader commercial adoption dependent on upcoming full clinical data release and ongoing facility approval processes.
Analyst Q&A
Q: Can you share revenue breakdown by segment, and identify the main driver of Q1 growth? /
A: Management declined to provide a formal segment revenue breakdown, but confirmed growth came from a combination of recovering Resale utilization and early Cohelix adoption, with both contributing as the two main drivers of Q1 growth.
Q: All seven MACs have now published Resale payment rates — is full reimbursement now active for all providers, and what is driving adoption of Resell Go Mini for smaller burns? /
A: All MACs now have published aligned reimbursement rates for Resale, with the last outlier MAC adjusting its rate to match the others. Adoption for smaller burns is driven by growing clinical evidence of improved patient outcomes, the lower-cost Resell Go Mini SKU purpose-built for smaller wounds, and growing awareness of the economic benefit of faster healing for hospitals and patients, with management addressing all clinical and economic objections to broader use.
Q: What drivers would push full-year 2026 revenue to the high end of guidance, and is the recent shift to smaller, more frequent customer orders a result of sales strategy changes? /
A: Management will update guidance confidence as more quarterly progress is observed, since only one quarter of results has been achieved post-stabilization. The shift to smaller, more frequent orders is driven by customer preference: management aligned ordering processes to match how customers prefer to stock and use products, which creates more consistent and predictable revenue for the company.
Q: Where does Resale provider confidence stand post-MAC reimbursement clearance, and what Cohelix traction has been seen after the ABA meeting? /
A: Management estimates provider confidence is ~75% recovered, with ongoing hospital-by-hospital education needed to fully restore pre-disruption utilization levels. Post-ABA, there is substantial buzz around Cohelix's positive interim data, which is accelerating internal committee approvals at facilities. Approximately 20+ centers are now using all three Avita products, and management expects to continue adding 12-15 new Cohelix facility approvals per quarter, with ~55-60 approvals still in process.