AVITA Medical (RCEL) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached $19.3 million, up 4% year-over-year and 10% sequentially, driven by Cohealyx, RECELL GO mini, and normalization of RECELL utilization after reimbursement clarity.

• Gross profit margin was 81.7%, down from 84.7% in Q1 2025, mainly due to product mix and inventory adjustments.

• Operating expenses declined 11% year-over-year to $24.5 million, reflecting cost optimization and sales force reduction.

• Net loss improved to $10.6 million ($0.35 per share) from $13.9 million ($0.53 per share) in Q1 2025.

• Leadership changes included the appointment of Cary Vance as CEO and Jan Stern Reed as Board Chair.

Financial highlights

• Total revenue: $19.3 million (up 4% year-over-year); gross profit: $15.7 million (margin 81.7%).

• Operating expenses: $24.5 million, down 11% year-over-year.

• Net loss: $10.6 million ($0.35/share), improved from $13.9 million ($0.53/share) year-over-year.

• Cash and marketable securities: $14.3 million at quarter end; cash and cash equivalents: $8.3 million, marketable securities: $6.0 million.

• Cash use was $9.9–$10.1 million in Q1, expected to decrease in Q2.

Outlook and guidance

• Full-year 2026 net revenue guidance reaffirmed at $80–$85 million, representing 12–19% growth over 2025.

• Sequential revenue growth and improved cash use expected in Q2.

• Gross margin for RECELL products expected to remain around 85%.

• Cost structure stabilized; future increases mainly in sales commissions tied to revenue growth.

• Substantial doubt exists about ability to continue as a going concern due to debt obligations and recurring losses; additional liquidity may be required.