Avita Medical (NASDAQ:RCEL) Releases Earnings Results, Beats Estimates By $0.04 EPS

Avita Medical (NASDAQ:RCEL) posted its earnings results on Thursday. The company reported ($0.25) EPS for the quarter, beating the consensus estimate of ($0.29) by $0.04, Zacks reports. The business had revenue of $21.70 million during the quarter, compared to analysts’ expectations of $20.25 million.

Here are the key takeaways from Avita Medical’s conference call:

• Second-quarter revenue rose 18% year over year to $21.7 million, marking the first quarter above $20 million; management raised 2026 revenue guidance to $86–$89 million, or 20%–24% growth.
• U.S. RECELL revenue increased 13% sequentially to $18.5 million, while total RECELL volume exceeded 2,600 units; adoption of RECELL GO mini is expanding into smaller wounds, with 77% of year-to-date procedures involving wounds of 500 square centimeters or less.
• Cohealyx revenue grew 16% sequentially to $1.7 million, supported by approximately 55 active hospital value-analysis reviews, while PermeaDerm generated $600,000 and is being positioned as a lower-cost wound temporizer alternative to allograft.
• Management expects to reach cash-flow breakeven and begin generating cash in the fourth quarter of 2026, helped by revenue growth, gross margins above 81%, disciplined operating expenses, and improved cash collections; quarterly net cash use fell to approximately $3.2 million.
• Beginning in January 2027, new nationally published CPT codes are expected to replace the current eight-code RECELL reimbursement structure with four standardized codes; AVITA is educating providers, while final CMS payment rules remain pending.

Avita Medical Price Performance

Shares of RCEL stock traded up $3.02 during midday trading on Friday, hitting $7.77. The company had a trading volume of 7,253,013 shares, compared to its average volume of 236,270. The stock has a market cap of $239.16 million, a price-to-earnings ratio of -5.40 and a beta of 1.86. The company’s 50 day simple moving average is $4.47 and its 200 day simple moving average is $4.42. Avita Medical has a 52-week low of $3.22 and a 52-week high of $8.07.

Insider Buying and Selling at Avita Medical

In other news, Director Joseph Fralin Woody acquired 10,000 shares of the stock in a transaction that occurred on Tuesday, June 9th. The shares were purchased at an average cost of $4.19 per share, for a total transaction of $41,900.00. Following the transaction, the director directly owned 102,761 shares in the company, valued at approximately $430,568.59. This represents a 10.78% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders acquired 37,200 shares of company stock worth $155,080 over the last three months. 2.24% of the stock is owned by company insiders.

Institutional Investors Weigh In On Avita Medical

A number of institutional investors and hedge funds have recently modified their holdings of the company. Geode Capital Management LLC raised its stake in shares of Avita Medical by 44.6% during the 4th quarter. Geode Capital Management LLC now owns 479,185 shares of the company’s stock worth $1,654,000 after buying an additional 147,722 shares during the last quarter. AQR Capital Management LLC acquired a new position in Avita Medical during the first quarter worth about $799,000. Bridgeway Capital Management LLC lifted its holdings in shares of Avita Medical by 213.8% in the third quarter. Bridgeway Capital Management LLC now owns 118,004 shares of the company’s stock valued at $603,000 after purchasing an additional 80,404 shares in the last quarter. Brooklyn Investment Group grew its position in shares of Avita Medical by 48,965.5% in the third quarter. Brooklyn Investment Group now owns 58,388 shares of the company’s stock valued at $298,000 after purchasing an additional 58,269 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. purchased a new position in shares of Avita Medical during the 1st quarter worth approximately $374,000. Institutional investors and hedge funds own 27.66% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on RCEL. Weiss Ratings reissued a “sell (e+)” rating on shares of Avita Medical in a research report on Wednesday, June 24th. TD Cowen reissued a “buy” rating on shares of Avita Medical in a report on Tuesday, June 30th. BTIG Research upgraded shares of Avita Medical from a “neutral” rating to a “buy” rating and set a $7.00 target price for the company in a report on Friday. Lake Street Capital raised shares of Avita Medical from a “hold” rating to a “buy” rating and increased their target price for the company from $3.50 to $6.00 in a research report on Friday, May 15th. Finally, Wall Street Zen upgraded shares of Avita Medical from a “sell” rating to a “hold” rating in a research note on Sunday, August 2nd. Five research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $8.25.

About Avita Medical

Avita Medical, Inc (NASDAQ: RCEL) is a regenerative medicine company focused on the development and commercialization of cell‐based therapies for acute and chronic wounds. Its flagship technology, the ReCell® Autologous Cell Harvesting Device, enables clinicians to create a suspension of a patient’s own skin cells at the point of care. The system is designed to accelerate wound healing, minimize donor‐site requirements and reduce scarring for patients suffering from burns, traumatic wounds and a variety of surgical and reconstructive procedures.

Founded in 2009 and headquartered in Carlsbad, California, Avita Medical has secured regulatory clearances in key markets, including CE mark approval in the European Union and 510(k) clearance from the U.S.