AVITA Medical (ASX:AVH) has lifted its full-year revenue guidance after delivering record second-quarter sales, with the wound care company also expecting to reach cash flow breakeven before the end of 2026.
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The ASX and Nasdaq-listed company reported second-quarter revenue of $21.7 million, up 18% from the same period last year and 13% higher than the March quarter.
The result was driven by continued growth across the company’s wound care portfolio, led by its flagship RECELL product and supported by increasing sales of Cohealyx and PermeaDerm, alongside steady international revenue.
Following the stronger than expected quarter, AVITA increased its full-year 2026 revenue guidance to between $86 million and $89 million, up from its previous forecast of $80 million to $85 million. The new outlook represents annual growth of between 20% and 24% compared with 2025 revenue of $71.6 million.
The company also reaffirmed its expectation of reaching cash flow breakeven during the fourth quarter.
President and chief executive officer Cary Vance said the result reflected the company’s expanding commercial footprint.
“We delivered a strong second quarter, with revenue growing 18% year-over-year and 13% sequentially,” Vance said.
“As AVITA continues to expand utilisation in the US and build its presence in key international markets, our results reflect the strength of both our acute wound care portfolio and our commercial execution.”
RECELL remained the company’s largest product, generating $18.5 million in quarterly revenue, up around 11% from the previous quarter. Management said growth was supported by greater physician confidence following reimbursement stabilisation and increasing adoption of the RECELL GO mini system for smaller wounds.
Cohealyx revenue rose to $1.7 million during the quarter, up about 16% sequentially, helped by favourable interim clinical data released earlier this year.
PermeaDerm revenue increased 40% from the March quarter to $600,000 as adoption continued to build ahead of clinical study results expected later this month.
International operations contributed a further $900,000 in revenue, representing 26% quarter-on-quarter growth.
Gross profit margin improved to 81.9%, compared with 81.2% a year earlier, while operating expenses fell 6% to $24.6 million as the company continued to benefit from cost optimisation measures introduced during 2025.
AVITA finished June with approximately $11.1 million in cash, cash equivalents and marketable securities.
The company also highlighted a potential regulatory tailwind after the US Centers for Medicare & Medicaid Services proposed 2027 payment changes that, if adopted, would establish national physician reimbursement for RECELL and increase hospital outpatient and ambulatory surgical centre payment rates.
AVITA reported a net loss of $7.7 million for the quarter, an improvement from a $9.9 million loss a year earlier, while loss per share narrowed to 25 cents from 38 cents.
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