Avita Medical (NASDAQ:RCEL) Issues Earnings Results, Beats Expectations By $0.04 EPS

Avita Medical (NASDAQ:RCEL) announced its quarterly earnings data on Thursday. The company reported ($0.25) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.29) by $0.04, Zacks reports. The business had revenue of $21.70 million during the quarter, compared to analysts’ expectations of $20.25 million.

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

• Second-quarter revenue rose 18% year over year to $21.7 million, marking the first quarter above $20 million; management raised 2026 revenue guidance to $86–$89 million, or 20%–24% growth.
• U.S. RECELL revenue increased 13% sequentially to $18.5 million, while total RECELL volume exceeded 2,600 units; adoption of RECELL GO mini is expanding into smaller wounds, with 77% of year-to-date procedures involving wounds of 500 square centimeters or less.
• Cohealyx revenue grew 16% sequentially to $1.7 million, supported by approximately 55 active hospital value-analysis reviews, while PermeaDerm generated $600,000 and is being positioned as a lower-cost wound temporizer alternative to allograft.
• Management expects to reach cash-flow breakeven and begin generating cash in the fourth quarter of 2026, helped by revenue growth, gross margins above 81%, disciplined operating expenses, and improved cash collections; quarterly net cash use fell to approximately $3.2 million.
• Beginning in January 2027, new nationally published CPT codes are expected to replace the current eight-code RECELL reimbursement structure with four standardized codes; AVITA is educating providers, while final CMS payment rules remain pending.

Avita Medical Price Performance

Avita Medical stock traded up $3.02 during mid-day trading on Friday, reaching $7.77. The company had a trading volume of 7,253,013 shares, compared to its average volume of 236,270. The stock’s 50-day simple moving average is $4.47 and its 200-day simple moving average is $4.42. Avita Medical has a 1 year low of $3.22 and a 1 year high of $8.07. The company has a market capitalization of $239.16 million, a P/E ratio of -5.40 and a beta of 1.86.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on RCEL. BTIG Research raised Avita Medical from a “neutral” rating to a “buy” rating and set a $7.00 target price for the company in a research note on Friday. Wall Street Zen upgraded Avita Medical from a “sell” rating to a “hold” rating in a research note on Sunday, August 2nd. TD Cowen reaffirmed a “buy” rating on shares of Avita Medical in a report on Tuesday, June 30th. Lake Street Capital upgraded Avita Medical from a “hold” rating to a “buy” rating and increased their price objective for the stock from $3.50 to $6.00 in a research report on Friday, May 15th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Avita Medical in a report on Wednesday, June 24th. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $8.25.

Insider Activity at Avita Medical

In other news, Director Joseph Fralin Woody purchased 10,000 shares of the stock in a transaction that occurred on Tuesday, June 9th. The shares were acquired at an average price of $4.19 per share, for a total transaction of $41,900.00. Following the acquisition, the director directly owned 102,761 shares in the company, valued at approximately $430,568.59. The trade was a 10.78% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last 90 days, insiders purchased 37,200 shares of company stock worth $155,080. 2.24% of the stock is owned by insiders.

Institutional Trading of Avita Medical

A number of institutional investors have recently bought and sold shares of the company. Rhumbline Advisers grew its position in shares of Avita Medical by 8.8% in the second quarter. Rhumbline Advisers now owns 42,168 shares of the company’s stock valued at $223,000 after purchasing an additional 3,393 shares during the last quarter. Russell Investments Group Ltd. raised its position in shares of Avita Medical by 122.2% during the 4th quarter. Russell Investments Group Ltd. now owns 8,047 shares of the company’s stock worth $28,000 after purchasing an additional 4,425 shares during the last quarter. Deutsche Bank AG lifted its stake in Avita Medical by 1,351.5% in the 4th quarter. Deutsche Bank AG now owns 7,896 shares of the company’s stock valued at $27,000 after buying an additional 7,352 shares in the last quarter. Wells Fargo & Company MN grew its holdings in Avita Medical by 98.5% during the 4th quarter. Wells Fargo & Company MN now owns 18,832 shares of the company’s stock valued at $65,000 after buying an additional 9,345 shares during the last quarter. Finally, Jane Street Group LLC grew its holdings in Avita Medical by 20.4% during the 1st quarter. Jane Street Group LLC now owns 63,744 shares of the company’s stock valued at $519,000 after buying an additional 10,789 shares during the last quarter. 27.66% of the stock is currently owned by hedge funds and other institutional investors.

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.