AVITA Medical, Inc. Q4 FY2025 earnings call

• Focused on disciplined execution, refining commercial focus on core burn and trauma centers, and positioning for growth in 2026.
• Resolved reimbursement uncertainty for ReCell with six of seven Medicare Administrative Contractors publishing payment rates, restoring clinician confidence.
• Progressed on CoHiliX I post-market study (fully enrolled) and PERMEADERM-one study (nearing full enrollment).
• Took a distributor-led approach internationally, supporting initial clinical use of ReCell Go in European markets.
• Refinanced debt in January 2026 to remove restrictive covenants and focus on execution.

Fourth quarter revenue was $17,600,000, and full year revenue was approximately $71,600,000, representing about 11% growth over 2024. Roughly 90% of the revenue comes from about 200 burn and trauma centers. The revenue is generated from products including ReCell, CoHiliX, and PermeDerm. Full year gross margin was 82.1%, down from 85.8% in 2024 due to inventory reserves, product mix, and increased contribution from CoHiliX and PermeDerm.

• Expect full year 2026 revenue of $80 to $85,000,000, representing 12%-19% growth over 2025.
• Outlook reflects normalization of ReCell utilization, expanded portfolio use in core accounts, contributions from CoHiliX and PermeDerm, and a more predictable operating environment.
• Execution-led growth driven by consistent delivery quarter by quarter.

• Reimbursement uncertainties with the remaining Medicare Administrative Contractor still in process.
• Regulatory risks related to the approval and adoption of CoHiliX and PermeDerm.
• Operational execution risks in scaling up utilization and adoption of products in core accounts.

Q: On the guidance, with the new revenue covenant, how would you have us think about the pace of growth through the year?

A: David O'Toole stated the $15.4 million covenant number has substantial headroom, not related to guidance; Cary Vance mentioned Q4 was about normalizing and forecasting, with progressive growth expected.

Q: Could you provide more color on reimbursement dynamics, especially the seventh Medicare Administrative Contractor?

A: Cary Vance said they are highly engaged with the seventh MAC, no reason for concern, and expect it to publish payment rates as well.

Q: Can you share a core customer experience where CoHiliX and PermeDerm have made it through the VAC process?

A: Cary Vance mentioned having champions in accounts who work clinically and economically to help move products through VAC, with some presentations at the Boswick Burn conference showing use of all three products.

Q: Break down primary drivers of growth supporting 2026 guidance, specifically ReCell volumes vs CoHiliX and PermeDerm contributions?

A: Cary Vance said growth will be mixed, with all three product lines expected to grow through increased utilization within existing accounts.

Q: Update on conversion rate of CoHiliX VAC reviews and bottlenecks?

A: Cary Vance said CoHiliX products continue to come out of VAC at a steady rate, with no significant bottlenecks other than administrative processes, and it's a continual process over months.