AVITA Medical Posts 29% Annual Revenue Growth, Projects $100M+ in 2025

Strong Revenue Growth and Operational Efficiency

AVITA Medical, a leader in therapeutic acute wound care, delivered a compelling financial performance for the fourth quarter and full year ended December 31, 2024. The company posted commercial revenue of $18.4 million in Q4, marking a 30% increase year-over-year, driven primarily by deeper market penetration of its RECELL GO product line. For the full year, commercial revenue climbed 29% to $64 million, underscoring sustained demand for its advanced wound healing technologies.

Gross profit margins remained robust, improving slightly to 87.6% in Q4 and 85.8% for the year, reflecting operational efficiencies and increased production volumes. Despite a net loss of $11.6 million in Q4 and $61.8 million for the full year, AVITA’s management highlighted a strategic focus on cost control, which led to a $4.1 million reduction in operating expenses compared to the prior quarter.

Regulatory Milestones Bolster Product Portfolio

December 2024 was a pivotal month for AVITA, with the FDA granting 510(k) clearance for Cohealyx, a collagen-based dermal matrix, and approving the RECELL GO mini device. These approvals expand AVITA’s therapeutic offerings, enabling clinicians to address a broader range of acute wounds and accelerate patient recovery times. CEO Jim Corbett emphasized that these regulatory wins position the company for long-term growth and enhanced clinical adoption.

Looking ahead, AVITA plans to roll out RECELL GO mini into burn and trauma centers during Q1 2025 and launch full commercial efforts for Cohealyx by April. The company is also preparing for a CE mark approval for RECELL GO in the European Union by mid-2025, aiming to meet anticipated supply demands promptly.

Financial Strategy and Outlook

AVITA amended its credit agreement with OrbiMed to adjust revenue covenants for upcoming quarters, providing greater financial flexibility as it scales. CFO David O’Toole noted that operational efficiencies have reduced cash burn, with expectations to generate free cash flow in the second half of 2025 and achieve GAAP profitability by Q4 2025.

The company’s 2025 commercial revenue guidance ranges from $100 million to $106 million, representing a 55% to 65% increase over 2024. This ambitious target reflects confidence in product rollouts and market expansion, particularly in trauma and burn care segments.

Balancing Growth with Cost Management

While sales and marketing expenses increased due to an expanded commercial team and higher employee-related costs, AVITA managed to reduce general and administrative and research and development expenses. The company’s focus on streamlining operations is evident in the sequential quarterly reduction in cash usage, signaling disciplined financial management amid growth initiatives.

Investors should note the net loss increase year-over-year, driven by higher operating expenses and lower other income, including the cessation of BARDA funding. However, the company’s strengthened product pipeline and regulatory approvals provide a solid foundation for improved profitability.