Avita Medical (RCEL) Q2 2026 Earnings Report

The call conveyed strong commercial momentum: record quarterly revenue, meaningful sequential growth across RECELL (U.S. and international), early traction for Cohealyx, high gross margins (~82%), reduced cash burn, and an upwardly revised FY26 revenue guide with a stated path to cash flow breakeven in Q4 2026. Key risks remain: PermeaDerm is still nascent, the company remains unprofitable with relatively modest cash on hand ($11.1M), access to additional financing is contingent on achieving revenue milestones, and final reimbursement/coding changes (though largely positive) carry implementation risk. Overall, the positives — revenue acceleration, margin strength, improved cash dynamics, and guidance raise — outweigh the remaining execution and financing risks.

Management raised full‑year 2026 revenue guidance to $86–$89 million (up from prior $80–85M), implying 20–24% growth over 2025’s $71.6 million, and introduced guidance to reach cash‑flow breakeven and begin generating cash in Q4 2026. In Q2 revenue was $21.7M (+18% YoY, +13% sequential), bringing H1 revenue to $41M and marking two consecutive sequential growth quarters of +9.7% and +13%; gross margin was 81.9% (vs. 81.2% a year ago, >81% YTD) with Cohealyx at ~86% product margin. Product performance included RECELL U.S. revenue of $8.5M in Q2 (+13% seq) and U.S. RECELL volume >2.6k units (+>10% seq) with RECELL GO Mini procedures 77% YTD in wounds ≤500 cm²; Cohealyx revenue was $1.7M (+16% seq) and PermeaDerm $0.6M. Operating expenses were $24.6M (flat vs Q1, down 6% YoY), operating loss $6.9M and net loss $7.7M (improved from $11.1M and $9.9M a year ago), net cash use was about $3.2M in the quarter, ending cash was $11.1M, and an additional $10M tranche from the Perceptive facility is available once trailing‑12‑month revenue reaches $85M; management also cited 55 active VAC reviews (10–15 completed per quarter) and 25 hospitals using all three products.