AVITA Medical (RCEL) Investor update summary

Q3 2026 performance

• Revenue was $26.1M, up 53% YoY and 20% QoQ; U.S. RECELL revenue reached $22.4M, up 21% QoQ, while RECELL and Cohealyx each grew 20% QoQ.

• Gross margin was 84%, up 270 bps YoY and 210 bps QoQ; RECELL gross margin was 88.4%.

• Operating expenses were $24.6M, flat QoQ; net loss was $6.2M, down 53% YoY and 19.5% QoQ.

• Cash use was $0.6M, down from $3.2M in Q2; Q1 included $9.9M of one-time payments.

• Cash balance was $10.5M; after reaching $85M in trailing 12-month revenue, a $10M draw under the Perceptive facility brought pro forma cash to ~$21M.

Revenue and outlook

• FY26 revenue guidance was raised for a second consecutive time to $92M-$94M from $86M-$89M; the midpoint implies ~30% growth versus 2025.

• Guidance implies Q4 revenue of $24.9M-$26.9M; elevated U.S. burn activity added ~$1M to Q3 revenue.

• Q4 2026 cash flow breakeven remains expected; Q1 2027 cash use is expected from one-offs, including a $3M Regenity payment, followed by cash generation.

• Operating plans target 20%-25% growth in subsequent years, with quarterly growth expected through 2027.

• RECELL gross margin outlook was 85%-89%, with overall gross margin outlook of 82%-84%; operating expenses are expected to remain relatively flat with modest increases.

Commercial, reimbursement and adoption

• CMS finalized national Medicare physician payment for RECELL procedures and simplified CPT coding, effective Jan. 1, 2027; revisions consolidate eight family codes to four and clarify outpatient and ASC payments.

• New coding bundles harvest, preparation and application, uses 100 sq. cm. increments, removes manual-versus-automated preparation distinctions and restores pediatric reporting by body-surface-area percentage.

• 25 accounts use all three products to some degree and 70-75 accounts use two; addressable opportunities are $600M-$650M for RECELL, ~$450M for Cohealyx and $200M-$250M for PermeaDerm.

• RECELL remains underpenetrated, including in burns; trauma and surgical wound expansion is supported by clinical and economic education and RECELL GO mini. NTAP expiry was expected to have no impact on adoption.

• RECELL GO expanded from Western Australia to leading children's hospitals in Victoria and Queensland; commercial activity was reported in the U.K. and Germany, alongside progress in Japan, Europe and eastern Australia.