AVITA Medical Posts 11% Revenue Growth in 2025 Despite Reimbursement Headwinds

Steady Quarter Amid Reimbursement Challenges

AVITA Medical closed out 2025 with a fourth quarter revenue of $17.6 million, a slight 4% decline compared to the same period in 2024. The dip primarily reflects ongoing reimbursement headwinds from Medicare Administrative Contractors, which have constrained utilisation of the company’s flagship RECELL product. Despite this, the company maintained a robust gross profit margin of 81.2%, supported by product mix and inventory adjustments.

Operating expenses fell 5% year-on-year to $24.7 million in Q4, highlighting AVITA’s focus on cost discipline. This reduction was driven largely by lower sales and marketing expenses, partially offset by increased research and development spend linked to ongoing clinical trials for Cohealyx and PermeaDerm.

Full-Year Growth and Improved Losses

For the full year, AVITA Medical reported revenues of approximately $71.6 million, up 11% from $64.3 million in 2024. This growth was underpinned by deeper penetration in existing accounts and new customer acquisitions in traumatic and surgical wound care. The company also benefited from new product launches, although overall gross margins softened slightly to 82.1% due to product mix and inventory reserves.

Importantly, the net loss narrowed to $48.6 million for 2025, an improvement from $61.8 million the previous year, signalling progress towards financial sustainability. The company’s weighted average shares outstanding increased, reflecting ongoing capital raises and stock-based compensation.

Strengthening the Balance Sheet

In a strategic move to bolster its financial position, AVITA Medical secured a new five-year credit facility worth up to $60 million from Perceptive Advisors LLC in January 2026. An initial $50 million was drawn to repay existing debt, with an option to access an additional $10 million subject to revenue milestones. This refinancing provides the company with greater capital flexibility and less restrictive covenants aligned with its operating trajectory.

Cash use improved sequentially through the second half of 2025, with net cash burn falling to $5.1 million in Q4 from $10.1 million in Q2. The company ended the year with $18.2 million in cash and marketable securities, down from $35.9 million at the end of 2024, reflecting ongoing investment in growth and clinical development.

Looking Ahead, Clinical Progress and Revenue Guidance

AVITA Medical’s clinical pipeline remains active, with the Cohealyx I study fully enrolled and the PermeaDerm I study surpassing 75% enrolment as of December 2025. Data from these trials are expected in 2026 and could provide further validation of the company’s wound care portfolio.

Medicare payment rates for RECELL have improved, with six of seven contractors publishing rates as of January 2026, easing a key barrier to utilisation growth. The company projects 2026 revenues between $80 million and $85 million, representing 12% to 19% growth over 2025, signalling confidence in commercial execution and market recovery.

Interim CEO Cary Vance emphasised a shift from stabilization to execution, focusing on deeper utilisation within core burn and trauma centres. CFO David O’Toole highlighted the benefits of the new credit facility and disciplined cost management as foundations for sustainable growth.