AVITA Medical reported solid 11% revenue growth in 2025 and secured a $60 million credit facility to fuel its next phase of expansion, projecting up to 19% revenue growth in 2026.
- 2025 revenue rose 11% to $71.6 million
- New $60 million credit facility refinances existing debt
- 2026 revenue guidance between $80 million and $85 million
- Clinical trials Cohealyx-I fully enrolled, PermeaDerm-I over 75% enrolled
- Company aims to shift from stabilization to execution-led growth
Strong Revenue Growth Amid Market Challenges
AVITA Medical, a leader in therapeutic acute wound care, has delivered encouraging preliminary financial results for 2025, reporting total revenues of approximately US$71.6 million. This marks an 11% increase over the previous year, underscoring the company’s steady commercial momentum despite a slight dip in the fourth quarter compared to 2024.
The company’s flagship RECELL System, which uses a patient’s own skin cells to accelerate wound healing, remains central to its growth strategy. AVITA’s ability to maintain revenue growth in a competitive healthcare market highlights the resilience of its product portfolio and the growing demand for innovative wound care solutions.
New Credit Facility Strengthens Financial Position
In a strategic move to bolster its balance sheet and support future growth, AVITA Medical secured a new five-year credit facility worth up to US$60 million from Perceptive Advisors. An initial tranche of US$50 million has already been funded, with an option to draw an additional US$10 million by early 2027.
This refinancing replaces existing debt and introduces revenue covenants aligned with AVITA’s current operating trajectory, including a first-quarter 2026 revenue target of US$15.4 million. The partnership with Perceptive Advisors, a healthcare-focused investment firm, signals confidence in AVITA’s long-term growth prospects and operational strategy.
Optimistic Outlook for 2026 and Clinical Pipeline Progress
Looking ahead, AVITA projects 2026 revenues to reach between US$80 million and US$85 million, representing growth of 12% to 19%. This optimistic guidance reflects the company’s transition from a period of stabilisation to one focused on execution and scaling.
Clinical development remains a key pillar of AVITA’s strategy. The Cohealyx-I study has reached full enrolment, while the PermeaDerm-I study has surpassed 75% enrolment. Data from these trials are expected later in 2026 and could provide important catalysts for the company’s product pipeline and market expansion.
Leadership Signals Confidence in Growth Path
Interim CEO Cary Vance emphasised the company’s strengthened foundation, highlighting improved financial flexibility and a clear path toward predictable, scaled performance. CFO David O’Toole noted that the new financing arrangement preserves shareholder value while setting manageable revenue targets aligned with AVITA’s operational realities.
Perceptive Advisors’ portfolio manager Sam Chawla expressed optimism about AVITA’s differentiated position in acute wound care and its potential to achieve sustainable profitability through commercial execution and clinical advancements.
Bottom Line?
AVITA Medical’s new credit facility and robust revenue outlook set the stage for a pivotal year of growth and clinical milestones.
Questions in the middle?
- Will AVITA meet the ambitious revenue covenants tied to its new credit facility in early 2026?
- How will upcoming clinical trial data impact AVITA’s market positioning and valuation?
- What are the company’s plans to translate revenue growth into sustained profitability?