AVITA Medical Reports Q2 2025 Financial Results

Avita Medical Ltd ( (RCEL) ) has released its Q2 earnings. Here is a breakdown of the information Avita Medical Ltd presented to its investors.

AVITA Medical Ltd, a therapeutic acute wound care company, specializes in delivering transformative solutions for wound healing, with its flagship product, the RECELL System, designed to optimize patient recovery. In its second quarter of 2025 financial report, AVITA Medical announced a commercial revenue of $18.4 million, marking a 21% increase compared to the previous year. The company also reported a net loss of $9.9 million, an improvement from the $15.4 million loss in the same period in 2024, alongside a reduction in operating expenses to $26.1 million from $28.7 million.

The company faced challenges due to a temporary gap in Medicare Administrative Contractor payments, which affected the demand for its RECELL System. However, AVITA Medical has made progress in resolving these issues, with multiple MACs initiating payments in July. The company has also strengthened its board by appointing Michael Tarnoff, MD, a seasoned healthcare leader. Clinical highlights include RECELL’s ability to reduce hospital stays by 36% and the CMS’s approval of a New Technology Add-on Payment for the RECELL System.

Despite the challenges, AVITA Medical has adjusted its full-year revenue guidance to a range of $76 million to $81 million, reflecting growth over the previous year. The company anticipates achieving cash flow break-even and GAAP profitability in 2026. AVITA Medical’s strategic direction remains focused on expanding access to its innovative wound care solutions and optimizing its cost structure to enhance profitability.

Looking ahead, AVITA Medical is optimistic about recovering RECELL demand in the latter half of 2025 as reimbursement pathways stabilize. The company’s long-term outlook remains positive, with expectations of stronger revenue and continued innovation in wound care solutions.