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Avita Medical Ltd (RCEL)
NASDAQ:RCEL
Earnings Data
Report Date
May 07, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
-0.28Last Year’s EPS
-0.53Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed that 2025 was a year of stabilization and execution discipline: the company delivered FY revenue growth (+11%), maintained gross margins above 80%, reduced operating expenses (~9% FY) and improved net cash use over three consecutive quarters, while securing a more flexible credit facility. Management also restored reimbursement clarity across six of seven MACs and advanced clinical enrollment for CoHiliX and PermeDerm, supporting a 2026 revenue outlook of $80–85M (+12%–19%). Offsetting these positives are Q4 revenue softness (Q4 revenue down ~4.3% YoY), meaningful gross margin compression versus the prior year driven by inventory reserves and product mix, continued high operating expenses (Q4 OpEx exceeded Q4 revenue), and one remaining MAC yet to publish rates. Overall, the company appears to have materially reduced execution and covenant risk and positioned itself for gradual, execution-led growth, while still facing near-term margin and profitability headwinds.Company Guidance
Full Year Revenue Growth
Full year 2025 revenue of approximately $71.6 million, representing ~11% growth over 2024 and marking a consecutive year of top-line growth.
2026 Revenue Guidance
Management guided 2026 revenue of $80.0–$85.0 million, implying approximately 12%–19% growth versus 2025, reflecting expected normalization of ReCell utilization and incremental contributions from CoHiliX and PermeDerm.
Gross Margins Remain Above 80%
Full year gross margin of 82.1% and Q4 gross margin of 81.2%, providing a high-margin foundation (>80%) despite noted mix impacts and reserves.
Operating Cost Reductions and Discipline
Full-year operating expenses declined by $10.4 million (≈9% year-over-year). Q4 operating expenses were $24.7 million, down 5% YoY; excluding $1.2 million of one-time severance, Q4 OpEx was down ~10% YoY—evidence of a leaner operating model.
Improving Cash Use and Stronger Liquidity Management
Net cash use improved across three consecutive quarters (Q2: $10.1M → Q3: $6.2M → Q4: $5.1M). The company ended Q4 with $18.2 million in cash and marketable securities.
Refinancing to Reduce Covenant Risk
Refinanced debt with a new Perceptive Advisors credit facility in January that lowered minimum cash covenant from $10.0M to $5.0M, set trailing-12-month revenue covenants well below 2026 guidance, is interest-only with no amortization, and includes optional incremental capital—reducing balance-sheet friction.
Reimbursement Clarity Restored for Majority of U.S. MACs
Six of seven Medicare Administrative Contractors have published payment rates for ReCell procedures, removing a key constraint to utilization and leading to early signs of normalization and account reengagement.
Clinical and Commercial Progress on Multi-Product Platform
CoHiliX I post-market study is fully enrolled and PERMEADERM-one is nearing full enrollment with data expected later in 2026. CE Mark for ReCell Go (Oct 2025) enabled initial European use and demonstrated responsiveness in real-world events.
Shift Toward Organic Utilization in Core Accounts
Commercial focus shifted to utilization in ~200 core burn and trauma centers (currently ~90% of revenue) and away from bulk ordering toward organic monthly usage patterns to drive repeat use and predictability.
RCEL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
RCEL Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 12, 2026 | $3.72 | $4.16 | +11.83% |
Nov 06, 2025 | $3.40 | $3.77 | +10.88% |
Aug 07, 2025 | $5.38 | $4.25 | -21.00% |
May 08, 2025 | $9.33 | $6.97 | -25.29% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Avita Medical Ltd (RCEL) report earnings?
Avita Medical Ltd (RCEL) is schdueled to report earning on May 07, 2026, Before Open (Confirmed).
What is Avita Medical Ltd (RCEL) earnings time?
Avita Medical Ltd (RCEL) earnings time is at May 07, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is RCEL EPS forecast?
RCEL EPS forecast for the fiscal quarter 2026 (Q1) is -0.28.