AVITA Medical (ASX:AVH) has reported a cautious but positive start to 2026, with first-quarter revenue of approximately $19.3 million, up 4 per cent year over year and roughly 10 per cent sequentially, driven by contributions from Cohealyx and improving RECELL utilisation.
The company posted gross profit of $15.7 million and a gross margin of 81.7 per cent, while operating expenses fell 11 per cent to $24.5 million. Net loss narrowed to $10.6 million, or $0.35 per share, compared with a $13.9 million loss in the year-ago quarter, and the company ended the quarter with $14.3 million in cash and marketable securities.
The quarter included several strategic and commercial developments. AVITA appointed Cary Vance as President and Chief Executive Officer and named Jan Stern Reed as independent Chair of the Board, moves the company said reflect confidence in its strategic direction.
The company also entered a 10-year BARDA agreement valued at up to $25.5 million to support US burn emergency preparedness and received regulatory clearance for RECELL GO in Australia and New Zealand to support international commercialisation.
Cary Vance commented on the quarter and the company’s outlook, focusing on stabilisation and momentum. “Since November, we’ve stabilised the business, improved how we operate, and delivered a solid start to 2026. With sequential revenue growth and improving ordering patterns across the portfolio, we are focused on delivering sustained performance as we move through the year. At April’s American Burn Association annual meeting, it was exciting to see how our products, RECELL, Cohealyx and PermeaDerm, are delivering meaningful outcomes for clinicians and their patients. I am incredibly proud and excited to lead AVITA as we continue to build towards the future of wound care.”
Chief Financial Officer David O’Toole said, “First quarter results reflect continued progress against the cost optimisation initiatives implemented in 2025, with operating expenses down meaningfully year-over-year. We are also operating well within the framework of our recently refinanced credit facility, with terms aligned to our current revenue trajectory and providing increased flexibility as we execute. As expected, net cash use was higher in the first quarter, driven by seasonal compensation and other one-time payments, and further elevated by the timing of revenue and collections. Cash receipts lag revenue, and with a greater proportion of product sales occurring later in the first quarter, the contribution from collections within the period was reduced, and our cash use for the first quarter was negatively impacted.”
Management said the timing headwinds that increased first-quarter cash use have reversed entering the second quarter and that collections from late-quarter sales, together with ongoing cost discipline, should significantly reduce cash use. The company reaffirmed full-year 2026 revenue guidance of $80 million to $85 million, representing growth of roughly 12 to 19 per cent over 2025.