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

Avita Medical (NASDAQ:RCEL) released its quarterly earnings data on Thursday. The company reported ($0.25) earnings per share for the quarter, beating the consensus estimate of ($0.29) by $0.04, Zacks reports. The firm had revenue of $21.70 million during the quarter, compared to the consensus estimate 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 Stock Performance

RCEL traded up $3.02 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 capitalization of $239.16 million, a price-to-earnings ratio of -5.40 and a beta of 1.86. The stock has a fifty day moving average price of $4.47 and a 200-day moving average price of $4.42. Avita Medical has a 12-month low of $3.22 and a 12-month high of $8.07.

Insider Activity at Avita Medical

In other news, Director Joseph Fralin Woody purchased 10,000 shares of the stock in a transaction dated Tuesday, June 9th. The shares were acquired at an average cost of $4.19 per share, for a total transaction of $41,900.00. Following the acquisition, the director owned 102,761 shares of the company’s stock, valued at approximately $430,568.59. This represents a 10.78% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have bought 37,200 shares of company stock worth $155,080 over the last ninety days. Corporate insiders own 2.24% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Deutsche Bank AG boosted its stake in Avita Medical by 1,351.5% in the fourth quarter. Deutsche Bank AG now owns 7,896 shares of the company’s stock valued at $27,000 after acquiring an additional 7,352 shares in the last quarter. Russell Investments Group Ltd. grew its holdings in Avita Medical by 122.2% in the fourth quarter. Russell Investments Group Ltd. now owns 8,047 shares of the company’s stock worth $28,000 after purchasing an additional 4,425 shares during the last quarter. Aristides Capital LLC acquired a new position in shares of Avita Medical during the fourth quarter worth $48,000. The Manufacturers Life Insurance Company acquired a new position in shares of Avita Medical during the second quarter worth $58,000. Finally, Wells Fargo & Company MN lifted its holdings in shares of Avita Medical by 98.5% during the 4th quarter. Wells Fargo & Company MN now owns 18,832 shares of the company’s stock valued at $65,000 after purchasing an additional 9,345 shares during the last quarter. Institutional investors own 27.66% of the company’s stock.

Wall Street Analysts Forecast Growth

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