Avita Medical (NASDAQ:RCEL) Posts Earnings Results, Meets Estimates

Avita Medical (NASDAQ:RCEL) announced its quarterly earnings data on Thursday. The company reported ($0.35) EPS for the quarter, meeting the consensus estimate of ($0.35), Zacks reports. The company had revenue of $19.25 million during the quarter, compared to analyst estimates of $18.30 million.

Here are the key takeaways from Avita Medical’s conference call:

• AVITA reported Q1 2026 revenue of $19.3 million, up 4% year over year and about 10% sequentially, and reiterated full-year guidance of $80 million to $85 million.
• RECELL utilization is recovering as reimbursement uncertainty normalizes, with all 7 Medicare Administrative Contractors now publishing payment rates and management saying all are effectively reimbursing.
• Cohealyx is showing early commercial traction, including more ordering accounts and repeat usage, while interim study data showed about a 20-day reduction to graft readiness versus benchmark.
• The company signed a new long-term BARDA agreement that provides modest recurring readiness revenue and supports AVITA’s role in burn emergency preparedness.
• Operating expenses fell 11% year over year to $24.5 million, and management said the cost structure is now stabilized; however, gross margin declined to 81.7% due to product mix and inventory reserves.

Avita Medical Price Performance

Shares of RCEL opened at $4.36 on Friday. The firm has a 50 day simple moving average of $4.39 and a 200-day simple moving average of $4.05. Avita Medical has a 1-year low of $3.22 and a 1-year high of $7.12. The stock has a market cap of $134.20 million, a price-to-earnings ratio of -2.49 and a beta of 1.90.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. D. Boral Capital reiterated a “buy” rating and set a $10.00 price target on shares of Avita Medical in a research report on Wednesday, April 8th. Wall Street Zen cut Avita Medical from a “sell” rating to a “strong sell” rating in a report on Saturday, May 2nd. Northland Securities initiated coverage on Avita Medical in a research note on Thursday, March 5th. They issued an “outperform” rating and a $10.00 price objective for the company. Lake Street Capital lifted their price objective on Avita Medical from $3.00 to $3.50 and gave the stock a “hold” rating in a report on Friday, January 16th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Avita Medical in a research report on Friday, March 27th. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $6.62.

Hedge Funds Weigh In On Avita Medical

Several hedge funds have recently bought and sold shares of the stock. Geode Capital Management LLC raised its holdings in shares of Avita Medical by 44.6% in the fourth quarter. Geode Capital Management LLC now owns 479,185 shares of the company’s stock worth $1,654,000 after acquiring an additional 147,722 shares during the last quarter. AQR Capital Management LLC purchased a new stake in Avita Medical during the 1st quarter worth about $799,000. Bridgeway Capital Management LLC raised its stake in Avita Medical by 213.8% in the 3rd quarter. Bridgeway Capital Management LLC now owns 118,004 shares of the company’s stock valued at $603,000 after purchasing an additional 80,404 shares during the last quarter. Brooklyn Investment Group lifted its holdings in Avita Medical by 48,965.5% in the 3rd quarter. Brooklyn Investment Group now owns 58,388 shares of the company’s stock valued at $298,000 after purchasing an additional 58,269 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. purchased a new position in Avita Medical in the 1st quarter valued at about $374,000. Hedge funds and other institutional investors own 27.66% of the company’s stock.

Avita Medical Company Profile

Avita Medical, Inc (NASDAQ: RCEL) is a regenerative medicine company focused on the development and commercialization of cell?based therapies for acute and chronic wounds. Its flagship technology, the ReCell® Autologous Cell Harvesting Device, enables clinicians to create a suspension of a patient’s own skin cells at the point of care. The system is designed to accelerate wound healing, minimize donor?site requirements and reduce scarring for patients suffering from burns, traumatic wounds and a variety of surgical and reconstructive procedures.

Founded in 2009 and headquartered in Carlsbad, California, Avita Medical has secured regulatory clearances in key markets, including CE mark approval in the European Union and 510(k) clearance from the U.S.