First Quarter 2026 Financial Highlights and Recent Business Updates
- Total revenue of approximately
$19.3 million , up 4% year-over-year and approximately 10% sequentially, driven by contributions from Cohealyx® and improved RECELL® utilization as reimbursement dynamics normalize - Appointment of
Cary Vance as President and Chief Executive Officer following a comprehensive search process led by a special committee of the Board of Directors, reflecting confidence in the Company’s strategic direction and operational progress;Jan Stern Reed appointed as independent Chair of the Board - Gross profit margin of 81.7%, reflecting impact of product mix and certain inventory adjustments
- Operating expenses decreased 11% year-over-year to
$24.5 million , reflecting a lower and more disciplined cost base established in 2025 - Net cash use of approximately
$9.9 million in the quarter, reflecting one-time items and the timing of revenue and collections; cash use expected to decrease significantly in the second quarter - Net loss of
$10.6 million , or a loss of$0.35 per basic and diluted share, compared to$13.9 million , or a loss of$0.53 per basic and diluted share, in the first quarter of 2025 - Entered into a 10-year BARDA agreement valued at up to
$25.5 million to supportU.S. burn emergency preparedness, providing recurring readiness revenue - Announced positive interim Cohealyx I data demonstrating a ~20-day reduction in mean time to skin grafting readiness (13.6 vs. 33.2 days; p<0.001), supporting its potential to drive improved clinical outcomes and broader adoption
- Received regulatory clearance for RECELL GO® in
Australia and New Zealand , supporting commercialization
“Since November, we’ve stabilized 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
“First quarter results reflect continued progress against the cost optimization 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.
As we move into the second quarter, these timing dynamics have reversed. Seasonal and one-time items are completed, and collections from strong late-first quarter revenue and early-second quarter sales activity are driving higher cash receipts. Combined with ongoing cost discipline, this gives us confidence in a significant decrease in cash use in the second quarter.”
Financial Guidance
Full year 2026 revenue expected in the range of
First Quarter Financial Results
Total revenue was approximately
As of
Gross profit margin was 81.7%, compared to 84.7% in the prior-year period, reflecting product mix and inventory-related adjustments. RECELL demand remained solid during the quarter and the change in overall margin reflects the Company’s deliberate expansion of its product portfolio, with Cohealyx and PermeaDerm. The Company shares the average sales price for Cohealyx at 50% and for PermeaDerm at 60%, which inevitably results in an overall decrease in gross margin percentage. The product mix is expected to continue to impact the overall gross margin percentage while increasing the gross profit and, given that expenses associated with this revenue do not increase significantly, operating profit on a quarterly basis. RECELL-only gross margin was 85.0% for the quarter.
Total operating expenses were approximately
Net cash use for the quarter was approximately
The Company ended the quarter with approximately
Net loss was
Webcast and Conference Call Information
About
In international markets, RECELL is approved to promote skin healing in a wide range of applications, including thermal burn and trauma wounds. RECELL and RECELL GO® are CE-marked in
To learn more, visit www.avitamedical.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements generally may be identified by the use of words such as “anticipate,” “approximately,” “continue,” “could,” “expect,” “future,” “guidance,” “may,” “will,” and similar words or expressions, and the use of future dates. Forward-looking statements include, but are not limited to, statements relating to the timing and realization of regulatory approvals of our products; anticipated market share growth and revenue generation; physician acceptance, endorsement, and use of our products (including the impact of government reimbursement payment rates on such use); failure to achieve the anticipated benefits from approval of our products; the effect of regulatory actions; product liability claims; risks associated with international operations and expansion; and other business effects, including the effects of industry, as well as other economic or political conditions outside of the Company’s control. These statements are made as of the date of this earnings release, and the Company undertakes no obligation to publicly update or revise any of these statements, except as required by law. For additional information and other important factors that may cause actual results to differ materially from forward-looking statements, please see the “Risk Factors” section of the Company’s latest Annual Report on Form 10-K and other publicly available filings for a discussion of these and other risks and uncertainties.
Investor & Media Contact:
Phone +1-805 341 1571
investor@avitamedical.com
media@avitamedical.com
Authorized for release by the Chief Financial Officer of
©2026
Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) | ||||||||
| As of | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 8,309 | $ | 10,243 | ||||
| Marketable securities | 5,952 | 7,942 | ||||||
| Accounts receivable, net | 9,885 | 9,086 | ||||||
| Prepaids and other current assets | 1,384 | 1,293 | ||||||
| Inventory | 6,117 | 6,926 | ||||||
| Total current assets | 31,647 | 35,490 | ||||||
| Plant and equipment, net | 8,211 | 8,630 | ||||||
| Operating lease right-of-use assets | 2,666 | 2,899 | ||||||
| Corporate-owned life insurance (“COLI”) asset | 3,044 | 3,116 | ||||||
| Intangible assets, net | 5,442 | 5,645 | ||||||
| Other long-term assets | 534 | 612 | ||||||
| Total assets | $ | 51,544 | $ | 56,392 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| Accounts payable and accrued liabilities | $ | 7,220 | $ | 8,959 | ||||
| Accrued wages and fringe benefits | 7,870 | 7,813 | ||||||
| Loan facility | 46,139 | 42,984 | ||||||
| Current non-qualified deferred compensation (“NQDC”) liability | 276 | 276 | ||||||
| Contingent liability | 3,000 | - | ||||||
| Other current liabilities | 2,166 | 2,645 | ||||||
| Total current liabilities | 66,671 | 62,677 | ||||||
| Non-qualified deferred compensation liability | 3,584 | 3,697 | ||||||
| Contract liabilities | 281 | 290 | ||||||
| Operating lease liabilities, long-term | 1,981 | 2,135 | ||||||
| Contingent liability, long-term | - | 3,000 | ||||||
| Warrant liabilities | 2,193 | 1,243 | ||||||
| Total liabilities | 74,710 | 73,042 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity (deficit): | ||||||||
| Common stock | 3 | 3 | ||||||
| Preferred stock | - | - | ||||||
| Company common stock held by the non-qualified deferred compensation plan | (635 | ) | (1,293 | ) | ||||
| Additional paid-in capital | 395,830 | 394,408 | ||||||
| Accumulated other comprehensive income (loss) | 648 | (1,367 | ) | |||||
| Accumulated deficit | (419,012 | ) | (408,401 | ) | ||||
| Total stockholders’ equity (deficit) | (23,166 | ) | (16,650 | ) | ||||
| Total liabilities and stockholders’ equity (deficit) | $ | 51,544 | $ | 56,392 | ||||
Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) | ||||||||
| Three-Months Ended | ||||||||
| Sales revenue | $ | 19,064 | $ | 18,325 | ||||
| Lease revenue | 187 | 189 | ||||||
| Total revenues | 19,251 | 18,514 | ||||||
| Cost of sales | (3,523 | ) | (2,833 | ) | ||||
| Gross profit | 15,728 | 15,681 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | (12,841 | ) | (14,834 | ) | ||||
| General and administrative | (6,061 | ) | (6,390 | ) | ||||
| Research and development | (5,629 | ) | (6,284 | ) | ||||
| Total operating expenses | (24,531 | ) | (27,508 | ) | ||||
| Operating loss | (8,803 | ) | (11,827 | ) | ||||
| Interest expense | (1,424 | ) | (1,233 | ) | ||||
| Other expense, net | (395 | ) | (791 | ) | ||||
| Loss before income taxes | (10,622 | ) | (13,851 | ) | ||||
| Income tax benefit (expense) | 11 | (8 | ) | |||||
| Net loss | $ | (10,611 | ) | $ | (13,859 | ) | ||
| Net loss per common share: | ||||||||
| Basic and diluted | $ | (0.35 | ) | $ | (0.53 | ) | ||
| Weighted-average common shares: | ||||||||
| Basic and diluted | 30,540,872 | 26,253,565 | ||||||
