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

Avita Medical (NASDAQ:RCEL) announced its quarterly earnings data on Thursday. The company reported ($0.20) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.24) by $0.04, FiscalAI reports. The company had revenue of $26.11 million for the quarter, compared to the consensus estimate of $22.35 million.

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

• AVITA reported Q3 revenue of $26.1 million, up 53% year over year and 20% sequentially, led by RECELL. It raised 2026 revenue guidance for the second consecutive quarter to $92 million–$94 million and reaffirmed its goal of cash flow breakeven in Q4.
• Cash use fell to approximately $600,000 from $3.2 million in Q2, while gross margin rose to 84% and operating expenses stayed flat sequentially. AVITA also received the remaining $10 million available under its credit facility, and management said substantial doubt about the company’s ability to continue as a going concern had been alleviated.
• U.S. RECELL revenue increased about 20% sequentially, with unit volume up approximately 21%; management attributed most of the growth to its commercial strategy, while estimating roughly $1 million of Q3 revenue came from seasonal burn activity. A simpler national Medicare reimbursement framework for RECELL procedures is scheduled to take effect in January 2027.
• Management estimated that Q3 benefited by about $1 million from seasonality, and its Q4 revenue outlook of $24.9 million–$26.9 million implies roughly flat revenue at the midpoint versus Q3. Cohealyx revenue grew 21% sequentially, while PermeaDerm was essentially flat; management said adoption and repeat use for the newer products are still developing.

Avita Medical Trading Up 5.8%

Shares of RCEL stock traded up $0.91 during mid-day trading on Friday, reaching $16.59. The stock had a trading volume of 1,137,548 shares, compared to its average volume of 423,488. Avita Medical has a 1-year low of $3.22 and a 1-year high of $18.07. The firm has a market cap of $510.64 million, a price-to-earnings ratio of -14.06 and a beta of 2.03. The business’s fifty day moving average is $12.77 and its 200-day moving average is $6.85.

Avita Medical News Roundup

Here are the key news stories impacting Avita Medical this week:

• Positive Sentiment: Raised revenue outlook: Avita lifted its full-year 2026 revenue guidance, signaling improved expectations for growth. AVITA Medical Raises Revenue Guidance
• Positive Sentiment: Q3 beat estimates: The company reported revenue of $26.11 million, above the $22.35 million analyst consensus, and a loss of $0.20 per share, narrower than the expected $0.24 loss. Another report said revenue surged 53% year over year. AVITA Medical Reports Third Quarter Results Q3 Revenue Growth
• Positive Sentiment: Analyst price target increased: BTIG Research raised its target from $15 to $21 and maintained a Buy rating, reflecting greater potential upside in its assessment. BTIG Raises Price Target
• Positive Sentiment: Medicare billing changes: A national physician payment framework and simplified billing codes for RECELL procedures are scheduled for 2027. These changes could ease billing complexity and support broader procedure adoption. Medicare Payment Framework and Billing Codes

Analysts Set New Price Targets

RCEL has been the subject of several research analyst reports. Lake Street Capital lifted their target price on Avita Medical from $8.00 to $12.00 and gave the stock a “buy” rating in a research report on Friday, August 28th. BTIG Research lifted their price objective on shares of Avita Medical from $15.00 to $21.00 and gave the company a “buy” rating in a report on Friday. TD Cowen restated a “buy” rating on shares of Avita Medical in a research note on Tuesday. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Avita Medical in a research report on Monday, September 21st. Finally, Wall Street Zen upgraded Avita Medical from a “sell” rating to a “hold” rating in a report on Sunday, August 2nd. Five 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. Based on data from MarketBeat, Avita Medical currently has a consensus rating of “Moderate Buy” and a consensus price target of $13.40.

Avita Medical Company Profile

Avita Medical, Inc (NASDAQ: RCEL) is a regenerative medicine company focused on developing and commercializing therapies that use a patient’s own cells to help restore damaged skin and tissue. Its lead product is the RECELL System, an autologous cell-harvesting device designed to prepare a suspension of a patient’s skin cells at the point of care for application to wounds.

RECELL is used in the treatment of certain thermal burn wounds and other skin injuries. The system is intended to support wound healing and may reduce the amount of donor skin required for grafting by enabling clinicians to create a cell suspension from a small sample of the patient’s healthy skin.