AVITA Medical closed 2025 with steady revenue growth and over 80% gross margin, setting the stage for a confident revenue forecast of up to US$85 million in 2026. The company also secured a new debt facility with improved terms, underpinning its growth ambitions.
- Q4 2025 revenue growth sustained with 81.2% gross margin
- Full-year 2025 revenue reached US$71.6 million, up 11% year-on-year
- 2026 revenue guidance set between US$80 million and US$85 million
- New $60 million debt facility refinances existing debt on better terms
- Advancement of clinical programs for Cohealyx and PermeaDerm with data expected in 2026
Steady Growth Amid Market Challenges
AVITA Medical has reported a stable finish to 2025, maintaining revenue growth momentum into the fourth quarter with a gross margin exceeding 80%. The company’s full-year revenue climbed to US$71.6 million, marking an 11% increase over 2024. This performance reflects disciplined execution and a refined commercial strategy focused on core accounts and expanding its multi-product platform.
Strategic Refinements and Reimbursement Clarity
Key to AVITA’s progress has been the clarity gained around reimbursement for its flagship product, RECELL, particularly in the United States where it is approved for treating thermal burn wounds. This reimbursement certainty is expected to drive further adoption and revenue growth in 2026. The company’s commercial model now emphasises organic growth within core accounts, aiming to increase revenue per patient through a broader product offering.
Financial Discipline and Capital Structure Improvements
AVITA’s financial discipline is evident in its cost management, despite some one-off expenses such as severance costs in Q4. Operating expenses decreased year-on-year, supporting a more sustainable cost base. The company also secured a new $60 million debt facility with Perceptive Advisors LLC, featuring improved terms including a five-year maturity and interest-only payments. This refinancing reduces financial pressure and provides additional working capital to support growth initiatives.
Looking Ahead, Clinical Programs and Growth Prospects
Beyond financials, AVITA is advancing post-market clinical programs for its Cohealyx and PermeaDerm products, with data expected to be released in 2026. These programs could potentially broaden the company’s therapeutic reach and enhance its product pipeline. With a revenue guidance range of US$80 million to US$85 million for 2026, representing 12% to 19% growth, the company is positioning itself for a year of measured expansion backed by improved commercial execution and capital structure.
Bottom Line?
AVITA Medical’s solid 2025 finish and strengthened balance sheet set a promising, though cautiously optimistic, tone for 2026 growth.
Questions in the middle?
- Will AVITA’s clinical data for Cohealyx and PermeaDerm meet market expectations and drive new revenue streams?
- How will the company navigate competitive pressures and regulatory risks in the evolving medical device landscape?
- Can AVITA sustain its gross margin above 80% amid product mix changes and potential pricing pressures?