AVITA Medical (ASX:AVH) has reported third-quarter 2025 results showing improved cash efficiency and progress on several strategic and regulatory milestones.
The company reported commercial revenue of US$17.1 million, a 13 per cent decrease compared to the same period in 2024, with net losses narrowing to US$13.2 million, or US$0.46 per share, down from US$16.2 million a year earlier. Operating expenses fell by 24 per cent, reflecting AVITA’s efforts to streamline operations and focus spending on its highest-value opportunities.
Interim Chief Executive Officer Cary Vance said the company was now focused on execution and consistent product utilisation across burn, trauma, and surgical settings, targeting approximately 200 high-value U.S. centres that represent a US$1.3 billion addressable market. “As reimbursement normalises and hospital processes stabilise, we are well-positioned to strengthen execution and advance our mission to make AVITA’s products the standard in acute wound care,” he said.
During the quarter, reimbursement clarity was restored for AVITA’s RECELL device following the finalisation of Medicare payment rates under new Category I CPT codes. The resolution, covering all seven regional Medicare Administrative Contractors, removes a key barrier that had suppressed procedure volumes.
A significant regulatory milestone was achieved in September with CE Mark approval for RECELL GO, enabling European launches in Germany, Italy, and the United Kingdom under the EU Medical Device Regulation. The approval expands AVITA’s international footprint and supports its plans to bring RECELL technology to more clinicians treating burns and traumatic wounds worldwide.
New clinical data presented at the Southern Region Burn Conference reinforced RECELL’s growing position as a standard of care in acute wound treatment. A global review involving more than 8,000 patients across 13 countries confirmed the product’s ability to achieve wound closure with less donor skin and faster healing. Real-world registry data from the U.S. showed a 36 per cent reduction in hospital stay and cost savings of about US$42,000 per patient compared with traditional grafts.
Chief financial officer David O’Toole said the company’s disciplined cost management had reduced total operating expenses by US$7.2 million to US$23 million for the quarter, while cash use improved to US$6.2 million, down from US$10.1 million in the previous quarter. “We continue to align spending with growth priorities,” he said, adding that AVITA had reached agreement with lender OrbiMed to reset its revenue covenant and was evaluating capital funding options.
AVITA said it expects full-year 2025 revenue to be between US$70 million and US$74 million, below its earlier guidance of US$76–81 million. Despite the revised outlook, the company said its financial and operational position had strengthened, supported by renewed reimbursement stability and the European expansion opportunity.