AVITA Medical Reports 11% Revenue Growth, Narrows Net Loss to $48.6M

Financial Performance and Revenue Growth

AVITA Medical, Inc., a therapeutic acute wound care company, released its audited financial results for the year ended 31 December 2025, reporting an 11% increase in sales revenue to US$71.6 million. This growth was primarily driven by deeper penetration within existing customer accounts, new accounts targeting traumatic and surgical wounds, and the introduction of new products.

Despite the revenue growth, the company continued to operate at a loss, though it successfully narrowed its net loss by 21% to US$48.6 million, down from US$61.8 million in 2024. The reduction in net loss was attributed to higher gross profit margins and a 9% decrease in operating expenses, including lower sales and marketing costs and general administrative expenses.

Product Portfolio Expansion and Regulatory Approvals

AVITA Medical expanded its product portfolio in 2025 with the commercial launch of Cohealyx, a collagen-based dermal matrix designed to support wound bed preparation and accelerate readiness for grafting. The company also received FDA approval for its RECELL GO mini device in late 2024, targeting smaller wounds, with commercial rollout commencing in early 2025.

The RECELL technology platform remains the cornerstone of AVITA Medical’s business, with RECELL GO and RECELL GO mini devices designed to improve workflow efficiency and standardise treatment across clinical settings. The company continues to invest in post-market clinical studies to generate additional clinical and health economic evidence supporting adoption of its products.

Liquidity, Debt Refinancing, and Going Concern

In January 2026, AVITA Medical secured a new five-year senior secured credit facility of up to US$60 million with Perceptive Credit Holdings V, LP, refinancing its previous credit agreement with OrbiMed Advisors, LLC. The initial US$50 million tranche was funded immediately, with an additional US$10 million available subject to meeting net revenue requirements.

Despite this refinancing, management disclosed substantial doubt about the company’s ability to continue as a going concern over the next twelve months, citing recurring losses, historical negative cash flows, and debt repayment obligations. The company held approximately US$10.2 million in cash and cash equivalents and US$7.9 million in marketable securities as of 31 December 2025, down from US$14.1 million and US$21.8 million, respectively, at the end of 2024.

Corporate Governance and Leadership Changes

AVITA Medical’s board saw notable changes during 2025, including the appointment of Cary Vance as Interim Chief Executive Officer in October, following the departure of former CEO James Corbett. Joe Woody joined the board in January 2026, bringing extensive medical technology leadership experience. The company continues to maintain a strong intellectual property portfolio and adheres to regulatory and cybersecurity standards.

International Expansion and Market Strategy

The company is pursuing international expansion through distributor-led commercialisation following regulatory approvals, including CE Mark approval for RECELL GO in Europe. AVITA Medical’s commercial strategy focuses on approximately 200 U.S. burn and trauma centres, aiming to position RECELL as the standard of care in burn management and expand adoption into trauma and surgical wound treatment.

AVITA Medical remains committed to building a comprehensive acute wound care platform, leveraging its portfolio to address wound management from initial coverage through definitive closure and healing.