RCEL

Primary endpoint achieved, demonstrating a 70% economic advantage over allograft based on product cost per percent total body surface area treated (p 96% reduction in preparation time and comparable clinical outcomes to allograft including graft take, wound healing, and safety Multi-center randomized controlled study supports PermeaDerm as a clinically comparable, economically advantaged alternative to allograft for wound temporization with off-the-shelf availability and no requirements for thawing, meshing, or tissue tracking logistics Management to host Key Opinion Leader webinar at 4:30 p.m. ET on August 18 VALENCIA, Calif., Aug. 18, 2026 (GLOBE NEWSWIRE) -- AVITA Medical®, Inc. (NASDAQ: RCEL, ASX: AVH), a leading therapeutic acute wound care company, today announced positive results from its multicenter, randomized controlled PermeaDerm-I clinical study demonstrating PermeaDerm®, a biosynthetic wound matrix, delivered clinically comparable outcomes to cadaveric allograft while reducing product cost by 70%. The study met its primary endpoint, demonstrating statistically significant superiority (p<0.001) for mean cost per percent total body surface area (%TBSA) treated. Mean treatment cost was $148.70 for every 1% TBSA treated with PermeaDerm compared with $497.10 for allograft, representing a savings of approximately $348 per %TBSA. As an off-the-shelf product, PermeaDerm reduced preparation time by 95.7% compared with allograft by eliminating tissue tracking, thawing, and meshing, while maintaining comparable application time in the operating room. Clinical outcomes were comparable between treatment groups. Approximately 94% of PermeaDerm patients achieved at least 95% graft take one week following autografting, comparable to allograft, and all patients in both groups achieved 95% or greater wound healing by eight weeks. No adverse events were attributed to PermeaDerm during the study. “Temporary wound coverage is a critical step between excision and definitive closure when a wound bed is not yet ready for autograft placement,” said Anju Saraswat, MD, Associate Burn Director and Assistant Professor of Surgery at Atrium Health Wake Forest Baptist Burn Center and study investigator. “These results demonstrate that PermeaDerm provided clinical performance comparable to allograft with the added benefit of product transparency enabling direct visualization of the wound bed. By eliminating tissue bank logistics and preparation time, PermeaDerm offers a more efficient approach to wound temporization without any compromise to healing outcomes and reducing cost.” “The PermeaDerm-I study establishes compelling clinical and economic evidence supporting PermeaDerm as a modern alternative to allograft,” said Cary Vance, President and Chief Executive Officer of AVITA Medical. “By combining comparable clinical performance with meaningful economic value and a simpler workflow, we believe PermeaDerm addresses an important need for hospitals while strengthening AVITA's differentiated acute wound care portfolio.” The randomized controlled study enrolled 40 patients across 11 U.S. burn centers with wounds involving up to 30% TBSA eligible. Following excision, patients were randomized to receive either PermeaDerm or cadaveric allograft during the temporization period before definitive split-thickness skin grafting. At final follow-up, all responding investigators and patients reported satisfaction, with responses rated as satisfied or very satisfied. Virtual Analyst and Investor Event AVITA Medical will host a Key Opinion Leader webinar featuring Dr. Anju Saraswat, Associate Burn Director and Assistant Professor of Surgery at Atrium Health Wake Forest Baptist Burn Center and Dr. Christina Sharon, Burn and Acute Care Surgeon, Burn Center Director at Baton Rouge General, Baton Rouge, Louisiana to review the PermeaDerm-I clinical data and discuss clinical experience using PermeaDerm on Tuesday, August 18, 2026, at 4:30 p.m. Eastern Time (Wednesday, April 19, 2026, at 6.30 a.m. Australian Eastern Standard Time). Direct webcast link:https://edge.media-server.com/mmc/p/mutcdcpeTo participate by phone, please register in advance to receive dial-in details and a personal PIN:https://register-conf.media-server.com/register/BI5acf2c543d9d4f8490ea42e28ae998e1A replay of the webcast will be available shortly after the event under the Events & Presentations section of the AVITA Medical website at: https://ir.avitamedical.com/. About PermeaDerm PermeaDerm is a biosynthetic wound matrix designed to provide temporary wound coverage during the period between surgical excision and definitive closure. The transparent bilayer matrix protects and stabilizes the wound while allowing clinicians to visualize the wound bed without removing the product. PermeaDerm can be used to temporarily stabilize and protect the wound before subsequent reconstruction, and is a part of AVITA Medical's broader acute wound care portfolio alongside Cohealyx® and RECELL®. About PermeaDerm-I PermeaDerm-I is a post-market multicenter, randomized controlled clinical trial evaluating PermeaDerm compared with cadaveric allograft in patients with acute wounds requiring temporary coverage prior to definitive skin grafting. Forty patients across 11 U.S. burn centers were randomized to receive either PermeaDerm or allograft following surgical excision. The primary endpoint evaluated treatment cost per percent total body surface area treated. Secondary endpoints included preparation time, application time, graft take, wound healing, inflammatory profile, adverse events, and surgeon and patient satisfaction. Patients were followed for eight weeks following definitive closure. For more information, visit ClinicalTrials.gov (NCT06750809). About AVITA Medical, Inc. AVITA Medical® is a leading therapeutic acute wound care company delivering transformative solutions. Our technologies are designed to optimize wound healing, effectively accelerating the time to patient recovery. At the forefront of our platform is RECELL®, approved by the FDA for the treatment of thermal burn and trauma wounds. RECELL harnesses the healing properties of a patient’s own skin to create Spray-On Skin™, offering an innovative solution for improved clinical outcomes at the point-of-care. In the U.S., AVITA Medical also holds the exclusive rights to market, sell, and distribute Cohealyx®, an AVITA Medical-branded collagen-based dermal matrix, and the exclusive rights to manufacture, market, sell, and distribute PermeaDerm®, a biosynthetic wound matrix. In international markets, RECELL is approved to promote skin healing in a wide range of applications, including thermal burn and trauma wounds. RECELL and RECELL GO® are CE-marked in Europe, have TGA certification in Australia, and are listed with Medsafe in New Zealand; RECELL is PMDA-approved in Japan. To learn more, visit www.avitamedical.com.CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements generally may be identified by the use of words such as “could,” “expect,” “may,” “will,” and similar words or expressions, and the use of future dates. Factors that may influence or contribute to the inaccuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: industry market conditions; failure to obtain and/or maintain regulatory approvals and comply with applicable regulations; supply chain disruptions that could affect our ability to manufacture our products; market reaction to growth or product initiatives; market penetration of our products; changes in the legal or regulatory environments; and other business effects, including the effects of industry, as well as other economic or political conditions outside of the Company’s control. Any forward-looking statements made herein are made as of the date of this press release, and the Company undertakes no obligation to publicly update or revise any of these statements, except as required by law. For additional information and other important factors that may cause actual results to differ materially from forward-looking statements, please see the “Risk Factors” section of the Company’s latest Annual Report on Form 10-K and other publicly available filings for a discussion of these and other risks and uncertainties. Investor & Media Contact:Ben AtkinsPhone +1-805 341 [email protected] | [email protected] Authorized for release by the Chief Financial Officer of AVITA Medical, Inc. ©2026 AVITA Medical. AVITA Medical®, the AVITA Medical logo, Cohealyx®, RECELL®, RECELL GO®, and Spray-On Skin™ Cells are trademarks of AVITA Medical. PermeaDerm® is a registered trademark owned by Stedical Scientific, Inc. All other trademarks are the properties of their respective owners.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET Vice President of Investor Relations and Corporate Communications - Ben Atkins President and Chief Executive Officer - Cary G. Vance Chief Financial Officer - David O'Toole Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day, and thank you for standing by. Welcome to the AVITA Medical, Inc. Second quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ben Atkins, Vice President of Investor Relations and Corporate Communications. Please go ahead. Ben Atkins: Thank you, operator. Welcome to AVITA Medical's second quarter 26 earnings call. Joining me on today's call are Carrie Vance, president and chief executive officer and David O'Toole, Chief Financial Officer. Today's earnings release and presentation are available on our website at www.avitamedical.com under the Investor Relations section. Before we begin, I would like to remind you that this call includes forward looking statements within the meaning of the Private Securities Litigation Reform Act of 2000. These statements are neither promises nor guarantees and involve known and unknown risks and uncertainties. That could cause actual results to differ materially from any expectations expressed or implied by the forward looking statements. Please review our most recent filings with the SEC for comprehensive descriptions of the risk factors. Any forward looking statements provided during this call are based on expectations as of today. I will now turn the call over to Carrie. Cary G. Vance: Good afternoon in the US, and good morning in Australia. Thank you for joining us. As you saw in our press release today, we delivered strong revenue growth in the second quarter of $21.7 million, up 18% year over year and 13% sequentially. As AVITA continues to expand in the US, and build its presence in key international markets, Our results reflect the growing utility of our acute wound care portfolio. Led by RECELL and supported by Cohealyx and PermeaDerm. In the US, ReCell generated $8.5 million in revenue during the second quarter. Growing 13% sequentially from the prior quarter. This growth reflected physician utilization following physician reimbursement stabilization together with increasing adoption of RECELL GO Mini. Which continues expanding use in smaller wounds. I will add a little more color on ReCell later in my remarks. Internationally, revenue from RECELL increased 26% sequentially over the first quarter. Continue to commercialize RECELL GO Following Regulatory Authorizations in Europe, the UK, Australia, and New Zealand. As adoption builds, clinicians are also beginning to share their early clinical experience. During the quarter, the British Burn Association annual meeting featured the first UK clinical experience with RECELL GO. Reporting successful treatment of 17 patients while highlighting improved operating room workflow. While international revenue remains a smaller contributor today, these milestones continue building the foundation for long term growth alongside our large U.S. opportunity. Cohealyx generated $1.7 million, representing 16% sequential growth. We are encouraged by the steady progress we are seeing as hospitals complete their value analysis committee or VAC reviews and begin incorporating Cohealyx into clinical practice. We continue to maintain a healthy pipeline of 55 active VAC reviews with 10 to 15 reviews typically completed each quarter. Driving a steady increase in ordering accounts. The interim Cohealyx-I clinical data presented earlier this year supports those dynamics by providing hospitals and surgeons with comparative clinical evidence. The study demonstrated substantial faster time to skin graft readiness, compared with leading dermal matrices. And later this year, we expect to submit the complete 6-month follow-up data set for publication. Providing additional evidence of long term durability. PermeaDerm generated $600 thousand in revenue during the quarter. Commercial adoption remains in its early stages. We are encouraged by the initial response following our recent positioning of PermeaDerm as a wound temporizer, providing clinicians with an alternative to allograft to temporarily stabilize and protect the wound before definitive closure. To further support that positioning, we expect results from our PermeaDerm-I clinical study later this year. As a reminder, this post market study evaluated PermeaDerm as a clinically comparable lower cost alternative to Allograft. Today, 25 hospitals have experience using all 3 AVITA products. Some are already regularly incorporating the full portfolio into clinical practice. While others are still evaluating where each product best fits within their treatment pathway. that is what we would expect at this stage of adoption of our new products and it gives us confidence in the opportunity to grow utilization of our full portfolio within our accounts. Since becoming CEO last October, my objective has been straightforward. To build a business that consistently delivers growth, quarter over quarter, year over year, through disciplined commercial execution. Looking back over the first half of 26, I believe we have that objective in action. We have delivered consecutive quarters of sequential growth broadened adoption across our portfolio, and we continue to improve the financial profile of the company. That progress gives us greater confidence in where the business is headed and today, we are updating our outlook accordingly. First, we are raising our full year 2026 revenue guidance to a range of $86 million to $89 million, representing growth of 20% to 24% over 2025. Second, we are introducing new guidance to achieve cash flow breakeven and begin generating cash during the fourth quarter of 26. Reaching that milestone is an important step in AVITA's evolution. It reflects not only stronger revenue growth, but also the operating discipline and cash generation that David will discuss in more detail. David O'Toole: Thank you, Carrie. Good afternoon. And in Australia, good morning. I will use my prepared remarks to look at how our strong commercial performance is flowing through the business. Particularly across operating leverage, cash generation, and our path to cash flow breakeven. Turning to the financials on slide 4. Let me start with revenue. As Carrie indicated, revenue increased 18% year over year and 13% sequentially from the first quarter. To $21.7 million, crossing over $20 million in revenue for a quarter for the first time in our company history. With this sequential revenue growth for the second quarter, and $41 million in revenue for the first 6 months of 2026 we are increasing our revenue guidance for 2026 from $80 million to $85 million to now $86 million to $89 million This will represent growth for this year from the $71.6 million in revenue in 2025 in a range of approximately 20% to 24%. Turning to gross margin. Gross margin increased to 81.9% compared to 81.2% in the prior year quarter, and remained above 81% year-to-date despite continued growth in our newer products. As we have discussed previously, while changes in product mix modestly impact reported gross margin percentage, Cohealyx at 86%. RECELL growth provides a tailwind for reported gross margin that offsets the impact of product mix as Cohealyx and PermeaDerm become a larger part of the business. Now looking at operating expenses. Operating expenses were $24.6 million, essentially no change to the first quarter, and 6% lower than in the same period in 2025. Importantly, this demonstrates the benefit of the commercial operating structure we established during the second quarter of 2025, capable of supporting continued commercial growth without requiring a corresponding increase in operating expenses. Looking ahead for the rest of 2026, we continue to identify opportunities to further reduce operating expenses while continuing to support our commercial priorities. This quarter, operating loss and net loss improved to $6.9 million and $7.7 million, respectively. Compared to $11.1 million and $9.9 million, respectively, in the same period last year. The second quarter operating and net loss showed significant improvements from the quarterly losses we have generated in the past. Turning to cash, which remains 1 of our highest priorities. As we discussed during our first quarter call, we expected cash use to improve significantly during the second quarter as seasonal payments normalized collections improved, and revenue continued to scale. that is exactly what happened. Net cash use improved to approximately $3.2 million during the quarter. Representing a major improvement from the first quarter and from the quarterly cash burn each quarter last year. We ended the quarter with $11.1 million in cash equivalent and market securities. As I look at the trajectory of our numbers, as indicated in the green boxes on this slide, I see a financial model performing as expected, and in alignment with our growing revenue. As Carrie mentioned earlier, we are also introducing new guidance for our cash flow outlook. That confidence of reaching cash flow breakeven is supported by 3 financial trends. that are now working together, as illustrated here on slide 5. First, revenue continues to scale. We have now delivered 2 consecutive quarters of meaningful sequential growth of 9.7% and 13%, respectively. And we have raised our full year revenue guidance. Second, we have maintained high gross margin above 81%. While growing our portfolio over multiple quarters. Third, we have maintained disciplined control of operating expenses and optimized our cash conversion cycle. Essentially, we are spending less money to run the business, and collecting cash faster from our operations. Taken together, those trends give us increasing confidence that AVITA is approaching an important financial inflection point. As the business continues to scale, we expect a further reduction in cash used during the third quarter before achieving cash flow breakeven and beginning to generate cash during the fourth quarter of 26. Turning to slide 6. Our updated outlook reinforces our confidence that the balance sheet remains aligned with the next phase of the company's growth. and funded through this transition to cash generation. We continue to operate well within the requirements of our credit facility, which was intentionally structured to support the business through this stage of commercial expansion. As revenue continues to build, the Perceptive debt facility also provides access to an additional $10 million tranche once trailing 12 month revenue reaches $85 million, providing additional financial flexibility as we transition towards cash generation. In summary, we are delivering commercial growth maintaining strong gross margin, exercising control of operating expenses, and significantly reducing our use of cash. Together, those trends support our confidence in the increased revenue forecast we share today and our path towards cash generation. Today's results also reflect strong execution across the organization. Commercial operations and corporate teams have worked together exceptionally well to scale the business while maintaining financial discipline. I would like to thank everyone across AVITA for their commitment and execution during the first half of the year. With that, I will hand the call back to Carrie. Cary G. Vance: Thanks, David. Before we open the line for questions, I would like to spend a few minutes on RECELL. it is the foundation of our business, and we continue to see encouraging progress in both physician utilization and the reimbursement framework that will support future growth. Following the transition of reimbursement across all 7 Medicare administrative contractors, or MACs, physician utilization of RECELL continued to strengthen during the second quarter. Total U. S. RECELL volume increased more than 10% sequentially this quarter to over 2.6 thousand units. We are also seeing a growth driver emerge through RECELL GO Mini. As you can see on the right hand side of the slide, 77% of RECELL GO Mini procedures year to date were performed in wounds of 500 cm² or less. that is exactly what we designed RECELL GO Mini to do. To expand ReCell into smaller burn and trauma wounds. We also view the increased volume in the second quarter as an encouraging indicator of the underlying physician demand for RECELL when reimbursement is stable and predictable. To that end, we are now entering the final stages of the transition to new Category I CPT codes for skin cell suspension autograft, or SCSA, the procedure term for RECELL. As a reminder, beginning January 1, 2027, the new Category I CPT code family for SCSA replace today's multicode structure. The current 8-code structure separates harvest, preparation, and application. This will be replaced by a simplified 4-code family based on anatomic location and wound size. In July, within its proposed 2027 Medicare payment updates, the Centers for Medicare and Medicaid Services or CMS proposed nationally published physician relative value units, or RVUs, for the new SCSA codes. We expect CMS to finalize the rule later this year. If adopted, as proposed, from this coming January, physician reimbursement would transition from today's regional MAC contractor price methodology to a nationally published RVU framework, improving transparency and predictability for providers. Over time, we expect this to simplify reimbursement discussions. Allowing our commercial team and customers to focus less on coding complexity and more on clinical adoption and patient care. As I step back and look at the quarter, I am incredibly encouraged by what we are seeing in our numbers. RECELL utilization is growing, Cohealyx and, behind it, PermeaDerm are gaining traction. Revenue continues to grow quarter after quarter. And we have a clear path to cash flow breakeven by year-end. Those are not isolated achievements. They are evidence that the business is operating the way we intended it to. As we look to the remainder of 2026, we will continue executing with the same discipline that has brought us to this point. Our priorities are clear. Continue expanding RECELL utilization. Continue growing adoption of Cohealyx and PermeaDerm. And continue executing with commercial and financial discipline. As we continue to do those things effectively, we believe AVITA is well positioned to create long term value for shareholders while helping more patients benefit from our technologies. Thank you for joining us today and for your continued support. Operator, we are now happy to e questions. Operator: As a reminder, to ask a question, please press 1-1 on your telephone, and wait for your name to be announced. Our first question comes from Frank Takkinen Lake Street Capital Markets. Your line is open. Frank Takkinen: Great. Thank you for ing the questions, and congratulations on a really solid quarter. I was hoping to ask 2 questions. I will ask them both upfront and then hop back in queue. To start on guidance, maybe walk through the key pieces behind the guidance increase. I heard the comments about RECELL GO Mini doing well and recovery, maybe kind of parsing out which contributed more? And then secondly, as you think about reimbursement in 2027, how much of a challenge has the previous structure been? Meaning, maybe what portion of cases or adoption by site has been hung up because of the previous structure. And maybe what are those new economics do to that? Thank you. Cary G. Vance: Thanks, Frank. Thanks for joining today. First of all, regarding guidance, it is fairly straightforward and simple. We are on a growth trajectory, and we said guidance at the beginning of the year. There were some things that we knew and some things that we did not. We set some pretty responsible guidance based on the trajectory we thought we would follow, and we are on a higher trajectory. And so that is very clear to us now. I think we have eyes on the rest of the year. All of our customers, we have become very predictable in our forecast and so we feel it is appropriate to raise it at this time. To something that we believe we will achieve. And then second, from a reimbursement standpoint, if you just e the numbers part aside, the biggest problem last year was confusion. And the amount of time that it took from our salespeople and our customers to try and get a handle on if they were going to get paid, what they were going to get paid, and when. And so we have resolved that as kind of a placeholder because that is what it was meant to be. Through the MACs over time by account, And so what this will do is it will simplify the codes it will also make it absolute nationwide. And so as I said in my prepared remarks, it will move us from these clarifying more complex discussions with our customers to focus more on the clinical and economic benefits of the products. And so that will be very helpful to the efficiency and effectiveness of our sales team and I think our upe on RECELL. Which is still very underpenetrated in the market. Thank you. Operator: Our next question comes from Ryan Zimmerman with U. S. Bancorp. BTIG. Your line is open. Ryan Zimmerman: Hi. This is Jacqueline on for Ryan. Thank you for ing the questions. I was just wondering with the proposed 2027 PFS, is there any risk of a transitional air pocket as providers move from the 8 legacy codes to the 4 new standardized codes? And what is the internal plan to get ahead of that educationally? Cary G. Vance: Sure. So we have already begun communication with our teams who have started to communicate with our customers. So that is already starting. Even though all of that will be finalized and late October, early November, that proposed change is likely. And because of it, we are starting to educate them already as to how this will change. And some of the associations that we are a part of are also educating their members a lot of burn surgeons about the change as well. And so it is kind of a full scale effort to make sure that everybody understands it very clearly by the time it hits January 1. Ryan Zimmerman: Thank you. And then with the Cohealyx-I full dataset previously expected in the end of 2026. Favorable interim data already reported in April showing faster time to skin grafting readiness versus the leading competitive products. Can you confirm that the full data set timeline is still on track? And what incremental information will it add to further support VAC approvals and broader adoption. Cary G. Vance: So we are still on track in terms of that timeline. The further data is just that there is follow-up data that is included as well, will be part of that submission and publication. Thank you. Operator: Our next question comes from Joshua Jennings with TD Cowen. Your line is open. Joshua Jennings: Hi, good afternoon. Thanks for ing the question and congrats on a great quarter. This is John on for Joshua. I just wanted to ask you quickly on adoption across all 3 products, specifically what you are hearing from your sales reps in the field. What feedback are they giving you at the physician level in terms of doctors using all 3 products? And how does this influence your pricing across your product portfolio? And just had a quick follow-up. Cary G. Vance: Well, I think the feedback from a clinical perspective is very strong. I believe that each of the products stand on their own, and the physicians have told us that. Terms of their clinical effectiveness, but also the economic benefit that they see. it is still early days in them trying to figure out how 2 or 3 of these products, PermeaDerm, Cohealyx, and RECELL, how they--how 1 plus 1 equals 5 or 6 in terms of synergies. But we are working together with them to make sure that is maximized. But very positive, Some of our best customers are adopting all 3 technologies, and we expect that to continue going forward. Joshua Jennings: Okay. Excellent. And then just in terms of pricing across the 3 individual units, certainly appreciate that RECELL is accretive at the gross margin line. Do not get me wrong, 85% to 86% gross margins are excellent at a product level. Is there anything you can do to keep improving that gross margin to potentially offset some of the dilution from Cohealyx and PermeaDerm? Cary G. Vance: Sure. So our operational team continues to look for efficiencies. On the back end of our business, so we will continue to look for those as well as our opportunity to maximize price in the marketplace. That will be something that we will continue to hold and try to expand going forward as we should. In terms of the other products, Cohealyx and PermeaDerm, again, early days. I am trying to gain market penetration. We are always looking at price to make sure we are optimized there. So we will continue to do that. Excellent. Joshua Jennings: Thank you, John. Cary G. Vance: Thank you. Operator: I am showing no further questions at this time. This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Avita Medical, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Avita Medical wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Avita Medical. The Motley Fool has a disclosure policy. AVITA Medical (RCEL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of 18% year-over-year was driven by the growing utility of the acute wound care portfolio, specifically the stabilization of RECELL reimbursement and the expansion of RECELL GO Mini into smaller wounds. The company achieved a significant milestone with 25 hospitals now utilizing all three portfolio products, validating the strategic shift toward a comprehensive wound care solution. RECELL GO Mini is successfully penetrating the intended market segment, with 77% of procedures performed on wounds smaller than 500 cm². International expansion is gaining momentum following regulatory authorizations in Europe and Australia, supported by early clinical data highlighting improved operating room workflows. Management attributes the improved financial profile to a commercial operating structure established in 2025 that supports scaling without a corresponding increase in operating expenses. The steady progress of Cohealyx is supported by a healthy pipeline of 55 active Value Analysis Committee reviews, with 10 to 15 typically completed each quarter. Full-year 2026 revenue guidance was raised to $86 million to $89 million, reflecting a higher growth trajectory than initially forecasted at the start of the year. Management introduced guidance to achieve cash flow breakeven and begin generating cash during the fourth quarter of 2026, supported by high gross margins and optimized cash conversion. The transition to new Category I CPT codes starting January 1, 2027, is expected to simplify reimbursement by replacing a complex 8-code structure with a 4-code family based on wound size. Future growth assumes the successful publication of the complete 6-month Cohealyx-I data set and PermeaDerm-I clinical study results later this year to provide comparative clinical evidence. The company maintains access to an additional $10 million debt tranche once trailing 12-month revenue reaches $85 million, providing a liquidity buffer for the transition to cash generation. The shift from regional MAC contractor pricing to a nationally published RVU framework in 2027 is intended to eliminate the 'confusion' and administrative burden that previously hindered sales efficiency. Operating expenses remained flat sequentially and decreased 6% year-over-year, demonstrating significant operating leverage as the business scales. Management is actively repositioning PermeaDerm as a 'wound temporizer' to compete directly with allograft as a lower-cost alternative for stabilizing wounds before definitive closure. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The increase is a direct result of being on a higher growth trajectory than anticipated at the start of the year, with increased predictability in customer forecasting. Management noted that they now have better visibility into the remainder of the year compared to the 'unknowns' present during initial guidance setting. AVITA has already launched a full-scale education effort for sales teams, customers, and burn surgeon associations to ensure a seamless transition to the new CPT codes by January 1. The goal is to move discussions away from coding complexity and toward the clinical and economic benefits of the products. While it is early days for physicians to maximize synergies between the three products, feedback on clinical effectiveness and economic benefit is strong. Management is focused on gaining market penetration for newer products while looking for back-end operational efficiencies to maintain high gross margins.

This article first appeared on GuruFocus. Revenue: $21.7 million in Q2 2026, up 18% year-over-year and 13% sequentially. U.S. RECELL Revenue: $18.5 million in Q2, up approximately 13% sequentially. International RECELL Revenue: Increased approximately 26% sequentially over Q1. Cohealyx Revenue: $1.7 million, representing approximately 16% sequential growth. PermeaDerm Revenue: $600,000 during the quarter. Gross Margin: Increased to 81.9%, compared to 81.2% in the prior year quarter. RECELL Gross Margin: Remains strong at approximately 86%. Operating Expenses: $24.6 million, essentially no change from Q1 and approximately 6% lower than the same period in 2025. Operating Loss: Improved to $6.9 million, compared to $11.1 million in the same period last year. Net Loss: Improved to $7.7 million, compared to $9.9 million in the same period last year. Net Cash Use: Improved to approximately $3.2 million during the quarter. Cash Position: Ended the quarter with approximately $11.1 million in cash equivalents and marketable securities. U.S. RECELL Volume: Increased more than 10% sequentially to over 2,600 units. Full Year 2026 Revenue Guidance: Raised to a range of $86 million to $89 million, representing growth of 20% to 24% over 2025. Cash Flow Guidance: Expects to achieve cash flow breakeven and begin generating cash during Q4 2026. Warning! GuruFocus has detected 6 Warning Signs with AVHHL. Is AVHHL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. AVITA Medical Inc (AVHHL) delivered strong Q2 2026 revenue of $21.7 million, up 18% year-over-year and 13% sequentially, marking the first quarter above $20 million. The company raised its full-year 2026 revenue guidance to $86-$89 million, representing 20-24% growth over 2025. Gross margin improved to 81.9% in Q2, with RECELL maintaining a strong gross margin of approximately 86%. Operating expenses remained flat sequentially and decreased 6% year-over-year, demonstrating improved operating leverage. Net cash use improved significantly to approximately $3.2 million in Q2, and the company expects to achieve cash flow breakeven and begin generating cash in Q4 2026. RECELL GO mini is expanding adoption into smaller wounds, with 77% of procedures year-to-date performed in wounds of 500 square centimeters or less. The transition to new Category I CPT codes for skin cell suspension autograft is expected to simplify reimbursement and improve transparency, reducing administrative burden. Cohealyx revenue grew 16% sequentially, with a healthy pipeline of 55 active VAC reviews and positive interim clinical data supporting adoption. International RECELL revenue increased 26% sequentially, with early clinical experience in the U.K. showing improved operating room workflow. The company maintains a strong balance sheet with access to an additional $10 million tranche from its credit facility once trailing 12-month revenue reaches $85 million. The company still reported an operating loss of $6.9 million and a net loss of $7.7 million in Q2 2026, though improved year-over-year. Cash reserves are relatively low at approximately $11.1 million, which may limit financial flexibility if revenue growth slows. Cohealyx and PermeaDerm are still in early adoption stages, with PermeaDerm generating only $600,000 in revenue, indicating limited market penetration. The transition to new CPT codes in 2027 carries a risk of a transitional air pocket as providers adjust to the new coding structure, potentially impacting reimbursement timing. The company's newer products (Cohealyx and PermeaDerm) have lower gross margins, which could dilute overall gross margin as they become a larger part of the business. International revenue remains a smaller contributor, and the company's growth is heavily dependent on the U.S. market. The company's guidance and cash flow breakeven expectations rely on continued sequential growth, which may be challenging to sustain in a competitive market. The proposed CMS RVUs for the new SCSA codes are not yet finalized, and any changes could affect physician reimbursement and adoption. The company's operating expenses, while flat, are still high relative to revenue, and further reductions may be needed to achieve sustained profitability. The company's reliance on a single product (RECELL) for the majority of revenue exposes it to risks if reimbursement or competitive dynamics change. Q: Can you walk through the key pieces behind the guidance increase, and how much of a challenge has the previous reimbursement structure been for adoption?A: Cary Vance (President & CEO): The guidance increase is straightforwardwe are on a higher growth trajectory than initially planned, and our forecasting has become very predictable. Regarding reimbursement, the biggest problem last year was confusion and the time it took for salespeople and customers to determine payment amounts and timing. The new Category I CPT codes will simplify the process and make it absolute nationwide, allowing our team to focus more on clinical and economic benefits rather than coding complexity, which should further drive RECELL adoption. Q: With the proposed 2027 PFS, is there any risk of a transitional air pocket as providers move from the 8 legacy codes to the 4 new standardized codes, and what's the internal plan to get ahead of that educationally?A: Cary Vance (President & CEO): We have already begun communicating with our teams and customers about the transition, even though the rule will be finalized in late October or early November. We are also working with industry associations to educate burn surgeons about the change. It's a full-scale effort to ensure everyone understands the new codes clearly by January 1, 2027, minimizing any disruption. Q: With the Cohealyx-I full data set previously expected at the end of 2026, can you confirm that timeline is still on track, and what incremental information will it add to support VAC approvals?A: Cary Vance (President & CEO): Yes, we are still on track with the timeline. The full data set will include follow-up data as part of the submission and publication, providing additional evidence of long-term durability that will further support hospital Value Analysis Committee reviews and broader adoption. Q: What feedback are you hearing from sales reps regarding adoption of all 3 products, and how does this influence pricing across the portfolio?A: Cary Vance (President & CEO): Clinical feedback is very strong, with physicians recognizing each product's clinical effectiveness and economic benefits. While it's still early for them to fully realize the synergies of using multiple AVITA products together, some of our best customers are already adopting all 3 technologies. We are working with them to maximize the combined value, and we continue to evaluate pricing to ensure it's optimized across the portfolio. Q: Is there anything you can do to keep improving RECELL's gross margin to offset dilution from Cohealyx and PermeaDerm?A: Cary Vance (President & CEO): Our operational team continues to look for back-end efficiencies, and we are always seeking to maximize price in the marketplace. For Cohealyx and PermeaDerm, we are in early stages of market penetration and are constantly reviewing pricing to ensure optimization. We will continue to hold and expand these efforts going forward. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Avita Medical (NASDAQ:RCEL) shares jumped 21.7% in premarket trading after the regenerative medicine company delivered record second-quarter financial results that exceeded analyst expectations on both revenue and earnings. The strong report, released after Thursday’s market close, extended gains from the previous trading session and fuelled additional buying in after-hours and premarket trading. The company generated record quarterly revenue of $21.7 million, representing year-over-year growth of 18% and outperforming Wall Street estimates by roughly 8%. Adjusted loss per share narrowed to $0.25, beating the consensus forecast of a $0.30 loss. Alongside the earnings beat, Avita Medical 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. Management also reaffirmed its objective of reaching cash flow breakeven during the fourth quarter of 2026, strengthening confidence in the company’s path toward profitability. Chief Executive Cary Vance said reimbursement issues that had weighed on the business over the past year have continued to improve following discussions with Medicare Administrative Contractors. He added that expected reimbursement coding changes in 2027 should further simplify adoption for healthcare providers. The strong quarterly performance was accompanied by a favourable analyst revision, with BTIG upgrading Avita Medical from Neutral to Buy and assigning a $7.00 price target. The brokerage cited improved operational execution and the company’s record quarterly revenue as key reasons for the more constructive outlook, providing additional support for investor sentiment. The broader US equity market provided a supportive backdrop, with the S&P 500 rising around 0.2% and the Nasdaq advancing approximately 0.5%. However, Avita Medical’s sharp gains were driven primarily by company-specific developments rather than broader market conditions. The company’s flagship RECELL platform continued to deliver strong commercial momentum during the quarter, while increasing adoption of Cohealyx and PermeaDerm further supported revenue growth and reinforced confidence in management’s commercial strategy. The combination of record financial results, higher full-year guidance, a clear roadmap to cash flow breakeven and a positive analyst upgrade created a series of catalysts that helped propel Avita Medical shares sharply higher in premarket trading. Avita Medical stock price

Interested in Avita Medical Inc.? Here are five stocks we like better. Second-quarter revenue rose 18% year over year to $21.7 million, driven by RECELL growth and increasing adoption of Cohealyx and PermeaDerm. U.S. RECELL revenue reached $18.5 million, while international revenue increased 26% sequentially. Avita raised its 2026 revenue outlook to $86 million–$89 million, representing 20%–24% growth, and expects to reach cash-flow breakeven in the fourth quarter. Operating losses and quarterly cash use both improved from the prior year. RECELL utilization is expanding into smaller wounds, while reimbursement changes scheduled for January 2027 are expected to simplify physician payment. Cohealyx had 55 hospital value-analysis reviews underway, and 25 hospitals had used all three of Avita’s products. Avita Medical (NASDAQ:RCEL) reported second-quarter 2026 revenue of $21.7 million, up 18% from a year earlier and 13% sequentially, as growth in its RECELL wound-care product and newer portfolio offerings supported results. President and Chief Executive Officer Cary Vance said the company’s U.S. RECELL revenue totaled $18.5 million during the quarter, increasing about 13% from the first quarter. He attributed the increase to physician utilization following stabilization in physician reimbursement as well as adoption of RECELL GO mini for smaller wounds. International RECELL revenue rose approximately 26% sequentially. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth The company raised its full-year revenue outlook to $86 million to $89 million, from prior guidance of $80 million to $85 million. The new range would represent 20% to 24% growth over the $71.6 million reported in 2025. Avita also introduced guidance to reach cash-flow breakeven and begin generating cash in the fourth quarter of 2026. Vance said RECELL remained the foundation of the business, while Cohealyx and PermeaDerm continued gaining traction. Cohealyx produced $1.7 million in second-quarter revenue, a sequential increase of about 16%, while PermeaDerm generated $600,000. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Hospitals are progressing through value analysis committee reviews for Cohealyx, according to Vance. Avita had approximately 55 active reviews underway, with 10 to 15 typically completed each quarter. The company expects to submit complete six-month follow-up data from the Cohealyx-I clinical study for publication later this year. Interim data presented earlier in 2026 showed faster time to skin graft readiness compared with leading dermal matrices, Vance said. PermeaDerm remains in the early stages of commercial adoption. Avita has positioned the product as a wound temporizer that can stabilize and protect wounds before definitive closure, serving as an alternative to allograft. The company expects results later this year from its PermeaDerm I post-market study, which evaluated the product as a clinically comparable, lower-cost alternative to allograft. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Vance said 25 hospitals have now used all three Avita products. Some accounts are regularly incorporating the full portfolio into practice, while others are evaluating where each product fits within their treatment pathways. Total U.S. RECELL volume increased more than 10% sequentially to more than 2,600 units in the second quarter, according to Vance. He said 77% of year-to-date RECELL GO mini procedures were performed in wounds measuring 500 square centimeters or less, reflecting the product’s role in expanding use into smaller burn and trauma wounds. Avita is also preparing for a transition in physician reimbursement for its skin cell suspension autograft procedures. Beginning Jan. 1, 2027, a new Category 1 CPT code family is scheduled to replace the current eight-code structure with four codes based on anatomic location and wound size. In July, the Centers for Medicare and Medicaid Services proposed nationally published physician relative value units for the new codes as part of its proposed 2027 Medicare payment updates. Vance said the company expects CMS to finalize the rule later in 2026. If adopted as proposed, the framework would replace regional Medicare Administrative Contractor pricing with nationally published relative value units. During the question-and-answer session, Vance said the previous reimbursement structure created confusion over whether providers would be paid, how much they would receive and when payment would occur. He said the new structure is expected to simplify reimbursement discussions and allow Avita’s sales team and customers to focus more on clinical and economic benefits. Chief Financial Officer David O’Toole said gross margin was 81.9%, compared with 81.2% in the prior-year quarter, and remained above 81% year-to-date. RECELL gross margin was approximately 86%, he said. While product mix can affect the reported margin percentage, O’Toole said Cohealyx and PermeaDerm contribute incremental gross profit without proportional increases in operating expenses. Operating expenses were $24.6 million, essentially unchanged from the first quarter and about 6% below the year-earlier period. Operating loss improved to $6.9 million from $11.1 million a year earlier, while net loss improved to $7.7 million from $9.9 million. Net cash use improved to approximately $3.2 million during the quarter, and Avita ended the period with about $11.1 million in cash equivalents and marketable securities. O’Toole said the company expects a further reduction in cash use during the third quarter before reaching cash-flow breakeven in the fourth quarter. He added that Avita continues to operate within the requirements of its credit facility. The company’s Perceptive debt facility includes access to an additional $10 million tranche once trailing 12-month revenue reaches $85 million. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Avita Medical Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

VALENCIA, Calif., Aug. 06, 2026 (GLOBE NEWSWIRE) -- AVITA Medical®, Inc. (NASDAQ: RCEL, ASX: AVH), a leading therapeutic acute wound care company delivering transformative solutions (“AVITA Medical,” or the “Company”), today reported financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights Q2 net revenue grew 18% year over year and 13% sequentially quarter-over-quarter to a record $21.7 million Operating expenses were $24.6 million, down 6% year-over-year demonstrating continued operating discipline while supporting commercial growth Net cash use improved to approximately $3.2 million, from $9.9 million in Q1 2026, with cash, cash equivalents and marketable securities at the end of the quarter of approximately $11.1 million Raised full-year 2026 net revenue guidance range to $86 million to $89 million, reflecting confidence in continued commercial execution The Company expects to reach cash flow breakeven in the fourth quarter 2026 Business Updates The Centers for Medicare & Medicaid Services released proposed calendar year 2027 Medicare payment updates for RECELL that, if adopted, would set national (as opposed to region-by-region) physician payment for the use of RECELL as well as increase hospital outpatient and ambulatory surgical center facility payment rates Expect to present PermeaDerm I study data in August Cary Vance, President and Chief Executive Officer of AVITA Medical, commented: “We delivered a strong second quarter, with revenue growing 18% year-over-year and 13% sequentially. As AVITA continues to expand utilization in the U.S. and build its presence in key international markets, our results reflect the strength of both our acute wound care portfolio and our commercial execution, led by RECELL and supported by Cohealyx and PermeaDerm. We are delivering this growth while maintaining a high gross margin and disciplined operating expenses and use of cash. Together, these results demonstrate that AVITA has evolved into a business capable of sustained, durable growth, giving us the confidence to raise our full-year revenue guidance and to announce our expectation to reach cash flow breakeven in the fourth quarter.” David O'Toole, Chief Financial Officer, commented: “During the second quarter, we maintained a disciplined approach to operating expenses while delivering record revenue and, as expected, a further reduction in net use of cash. As the business continues to scale, supported by sustained high gross margins, operating expense management, and improved timely customer cash collections, we expect to reach cash flow breakeven and to start generating cash in the fourth quarter of 2026.” Updated Financial Guidance Based on the Company’s second quarter performance, AVITA Medical is increasing its full-year 2026 revenue guidance to be in the range of $86 million to $89 million, from $80 million to $85 million, compared to $71.6 million of revenue in 2025, representing year-over-year growth in the range of 20% to 24%. AVITA Medical is also expecting to achieve cash flow breakeven in the fourth quarter of 2026. Second Quarter Financial Results Total revenue was approximately $21.7 million in the three months ended June 30, 2026, an increase of 18% compared to $18.4 million in the prior-year period. Revenue growth in the quarter was driven by continued execution across the Company's key commercial portfolio, led by RECELL and supported by Cohealyx and PermeaDerm. RECELL (Q2 revenue of $18.5 million, approximately 11% growth compared to Q1 2026) continued to drive the business, with sequential growth supported by increasing physician confidence following reimbursement stabilization and continued adoption of RECELL GO mini, which expanded utilization in smaller wounds. Cohealyx (Q2 revenue of $1.7 million, approximately 16% growth compared to Q1 2026) continued to build commercial momentum. Growth was further supported by favorable interim clinical data from the Company’s Cohealyx I clinical study reported in April demonstrating a faster time to skin grafting readiness than leading competitive products. PermeaDerm (Q2 revenue of $0.6 million, approximately 40% growth compared to Q1 2026) gained traction during the second quarter. PermeaDerm is a wound temporizer, providing clinicians with an alternative to allograft to temporarily stabilize and protect the wound before definitive closure. The Company's PermeaDerm I clinical study evaluating PermeaDerm as a clinically comparable, lower-cost alternative to allograft ​is expected in August. International (Q2 revenue of $0.9 million, approximately 26% growth compared to Q1 2026) continued to contribute consistent revenue from established international markets. Gross profit margin was 81.9%, compared to 81.2% in the prior-year period, despite the continued expansion of the Company’s product portfolio. The Company shares the average sales price for Cohealyx at 50%, and for PermeaDerm at 60%, which inevitably results in an overall decrease in gross margin percentage. RECELL-only gross margin was 86.0% for the quarter. Operating expenses were $24.6 million, down 6% or $1.5 million compared with $26.1 million in the prior-year period. The decrease primarily reflected continued execution of cost optimization initiatives and commercial restructuring actions implemented in 2025, including a $0.7 million reduction in sales and marketing expenses. General and administrative expenses decreased by $0.7 million while research and development expenses were flat with the prior-year period. The Company ended the quarter with approximately $11.1 million in cash, cash equivalents, and marketable securities, compared with $14.3 million at the beginning of the quarter. The Company believes its current liquidity, together with expected operating improvements, provides capital to support execution of its commercial strategy and expected path to fourth-quarter cash flow breakeven. Under the Company's existing credit facility, an additional tranche of $10 million remains available upon achieving at least $85 million of trailing twelve-month net revenue in any month prior to March 31, 2027. Net loss improved to $7.7 million, or a loss of $0.25 per basic and diluted share, compared with a net loss of $9.9 million, or a loss of $0.38 per basic and diluted share, in the prior-year period. CMS Proposes 2027 Medicare Provider Reimbursement for RECELL In July, the Centers for Medicare & Medicaid Services (“CMS”) released the 2027 Medicare Physician Fee Schedule (“PFS”), Hospital Outpatient Prospective Payment System (“OPPS”), and Ambulatory Surgical Center (“ASC”) proposed rules addressing Medicare payment for Skin Cell Suspension Autograft, the procedure performed using RECELL The proposed rules reflect the new Category I CPT code family, effective January 1, 2027, and include proposed national physician relative value units based on the American Medical Association-RVS Update Committee recommended valuation, as well as proposed increases to hospital outpatient and ASC facility payment rates. If finalized, RECELL physician payment would transition from the current regional Medicare Administrative Contractor contractor-priced methodology to a more transparent, nationally published physician valuation framework under the PFS. CMS is expected to issue final rules later this year, with implementation effective January 1, 2027. Second Quarter 2026 Webcast and Conference Call Information AVITA Medical will host a conference call and webcast on Thursday, August 6, 2026, at 1:30 p.m. Pacific Time (Friday, August 7, 2026, at 6:30 a.m. Australian Eastern Standard Time) to discuss its financial results and recent business highlights. To listen to the conference call webcast, please register and join using the following link: https://edge.media-server.com/mmc/p/j4xwf8nv. To participate in the live earnings conference call, please register in advance to receive dial-in details and a personal PIN using the following link: https://register-conf.media-server.com/register/BI599cce9ea71e49dcb7e4c36b4612ff99. For those unable to participate in the live broadcast, a replay will be available on the Events page of the Company’s investor relations website at: https://ir.avitamedical.com/events-and-presentations. About AVITA Medical, Inc. AVITA Medical® is a leading therapeutic acute wound care company delivering transformative solutions. Our technologies are designed to optimize wound healing, effectively accelerating the time to patient recovery. At the forefront of our platform is RECELL®, approved by the FDA for the treatment of thermal burn and trauma wounds. RECELL harnesses the healing properties of a patient’s own skin to create Spray-On Skin™, offering an innovative solution for improved clinical outcomes at the point-of-care. In the U.S., AVITA Medical also holds the exclusive rights to market, sell, and distribute Cohealyx®, an AVITA Medical-branded collagen-based dermal matrix, and the exclusive rights to manufacture, market, sell, and distribute PermeaDerm®, a biosynthetic wound matrix. In international markets, RECELL is approved to promote skin healing in a wide range of applications, including thermal burn and trauma wounds. RECELL and RECELL GO® are CE-marked in Europe, have TGA certification in Australia, and are listed with Medsafe in New Zealand; RECELL is PMDA-approved in Japan. To learn more, visit www.avitamedical.com. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSThis earnings release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements generally may be identified by the use of words such as “anticipate,” “approximately,” “continue,” “consistent,” “could,” “expect,” “future,” “further,” “guidance,” “may,” “will,” and similar words or expressions, and the use of future dates. Forward-looking statements include, but are not limited to, statements relating to the timing and realization of regulatory approvals of our products; anticipated market share growth and revenue generation; physician acceptance, endorsement, and use of our products (including the impact of government reimbursement payment rates on such use); failure to achieve the anticipated benefits from approval of our products; the effect of regulatory actions; product liability claims; risks associated with international operations and expansion; and other business effects, including the effects of industry, as well as other economic or political conditions outside of the Company’s control. These statements are made as of the date of this earnings release, and the Company undertakes no obligation to publicly update or revise any of these statements, except as required by law. For additional information and other important factors that may cause actual results to differ materially from forward-looking statements, please see the “Risk Factors” section of the Company’s latest Annual Report on Form 10-K and other publicly available filings for a discussion of these and other risks and uncertainties. Investor & Media Contact: Ben AtkinsPhone +1-805 341 1571 [email protected]@avitamedical.com Authorized for release by the Chief Financial Officer of AVITA Medical, Inc. ©2026 AVITA Medical. AVITA Medical®, Cohealyx®, RECELL®, RECELL GO®, and Spray-On SkinTM are trademarks of AVITA Medical. PermeaDerm® is a registered trademark owned by Stedical Scientific, Inc. All other trademarks are the properties of their respective owners.

VALENCIA, Calif., July 14, 2026 (GLOBE NEWSWIRE) -- AVITA Medical, Inc. (NASDAQ: RCEL, ASX: AVH) (“AVITA Medical,” or the “Company”), a leading therapeutic acute wound care company delivering transformative solutions, today announced that it will report its second quarter 2026 financial results after the close of the U.S. financial markets on Thursday, August 6, 2026. AVITA Medical will host a conference call and webcast that day at 1:30 p.m. Pacific Time (Friday, August 7, 2026, at 6:30 a.m. Australian Eastern Standard Time) to discuss its financial results and recent business highlights. Second Quarter 2026 Webcast and Conference Call Information To listen to the conference call webcast, please register and join using the following link: https://edge.media-server.com/mmc/p/j4xwf8nv. To participate in the live earnings conference call, please register in advance to receive dial-in details and a personal PIN using the following link: https://register-conf.media-server.com/register/BI599cce9ea71e49dcb7e4c36b4612ff99. For those unable to participate in the live broadcast, a replay will be available on the Events page of the Company’s investor relations website at: https://ir.avitamedical.com/events-and-presentations. About AVITA Medical, Inc. AVITA Medical® is a leading therapeutic acute wound care company delivering transformative solutions. Our technologies are designed to optimize wound healing, effectively accelerating the time to patient recovery. At the forefront of our platform is RECELL®, approved by the FDA for the treatment of thermal burn and trauma wounds. RECELL harnesses the healing properties of a patient’s own skin to create Spray-On Skin™ Cells, offering an innovative solution for improved clinical outcomes at the point-of-care. In the U.S., AVITA Medical also holds the exclusive rights to market, sell, and distribute Cohealyx®, an AVITA Medical-branded collagen-based dermal matrix, and the exclusive rights to manufacture, market, sell, and distribute PermeaDerm®, a biosynthetic wound matrix. In international markets, RECELL is approved to promote skin healing in a wide range of applications, including thermal burn and trauma wounds. RECELL and RECELL GO® are CE-marked in Europe, have TGA certification in Australia, and are listed with Medsafe in New Zealand; RECELL is PMDA-approved in Japan. To learn more, visit www.avitamedical.com. Investor & Media Contact:Ben AtkinsPhone +1-805 341 [email protected]@avitamedical.com Authorized for release by the Chief Financial Officer of AVITA Medical, Inc.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the 10% sequential revenue growth to the stabilization of the business following prior disruption to clinical reimbursement for RECELL. The company has shifted away from bulk purchasing patterns seen a year ago toward more frequent, smaller orders that align better with actual procedural demand. Stabilization efforts included re-engaging core accounts and simplifying the sales focus around highest-value centers to establish a predictable demand cadence. The return to consistent utilization was supported by all seven Medicare Administrative Contractors (MACs) publishing payment rates for clinician use of RECELL. Operational efficiency improved as total operating expenses declined 11% year-over-year, reflecting cost-saving actions and a more disciplined cost base implemented in 2025. Strategic positioning is evolving from a single-product focus to a portfolio approach, integrating RECELL, Cohealyx, and PermeaDerm into surgical workflows. Management reaffirmed full-year 2026 revenue guidance of $80 million to $85 million, expecting sequential growth to continue as the foundation takes hold. The company anticipates full clinical data sets for both Cohealyx and PermeaDerm later this year to support broader hospital Value Analysis Committee (VAC) approvals. Future revenue predictability is expected to improve as the company refines its weekly forecasting based on observed smaller, more regular ordering patterns. A new long-term agreement with BARDA provides approximately $100,000 in recurring quarterly readiness revenue over 10 years, reinforcing the platform's role in emergency preparedness. Management expects to see 12 to 15 new Cohealyx VAC approvals per quarter as they work through the remaining 55 to 60 accounts currently in the review process. Gross margin decreased to 81.7% from 84.7% due to required inventory reserves and a product mix shift toward Cohealyx and PermeaDerm. A new credit agreement with Perceptive Advisors provides greater flexibility with revenue covenants set meaningfully below expected annual levels. Cash use was elevated in Q1 due to seasonal compensation and timing of revenue collections, but management expects a significant decrease in cash use for Q2. Interim clinical data for Cohealyx showed a significant reduction in time to graft readiness, approximately 20 days versus benchmark, which is being used to support ongoing VAC reviews. Management declined to provide a specific numerical breakdown but confirmed that growth was driven by a combination of both products. The growth reflects a rebound in RECELL utilization alongside Cohealyx moving up the adoption curve. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that all seven MACs have now published rates and are fully reimbursing for RECELL. One MAC that previously had lower rates has since brought them in line with the others. Growth in smaller burns is driven by the RECELL GO mini, which is more economically viable for smaller wounds and fits better into clinical workflows. Clinicians are increasingly convinced that the impact on healing and pigmentation justifies use even in lower-acuity cases. Management stated the cost structure is now stabilized and aligned with the current scale of the business. The only expense line expected to increase significantly is sales commissions, which would be a direct indicator of higher revenue. Approximately 20+ centers are currently using all three products (RECELL, Cohealyx, and PermeaDerm). Management expects the recent interim data to accelerate VAC committee approvals by providing more robust clinical evidence during the review process.

VALENCIA, Calif., May 14, 2026 (GLOBE NEWSWIRE) -- AVITA Medical®, Inc. (NASDAQ: RCEL, ASX: AVH), a leading therapeutic acute wound care company delivering transformative solutions (“AVITA Medical,” or the “Company”), today reported financial results for the first quarter ended March 31, 2026. First Quarter 2026 Financial Highlights and Recent Business Updates Total revenue of approximately $19.3 million, up 4% year-over-year and approximately 10% sequentially, driven by contributions from Cohealyx® and improved RECELL® utilization as reimbursement dynamics normalize Appointment of Cary Vance as President and Chief Executive Officer following a comprehensive search process led by a special committee of the Board of Directors, reflecting confidence in the Company’s strategic direction and operational progress; Jan Stern Reed appointed as independent Chair of the Board Gross profit margin of 81.7%, reflecting impact of product mix and certain inventory adjustments Operating expenses decreased 11% year-over-year to $24.5 million, reflecting a lower and more disciplined cost base established in 2025 Net cash use of approximately $9.9 million in the quarter, reflecting one-time items and the timing of revenue and collections; cash use expected to decrease significantly in the second quarter Net loss of $10.6 million, or a loss of $0.35 per basic and diluted share, compared to $13.9 million, or a loss of $0.53 per basic and diluted share, in the first quarter of 2025 Entered into a 10-year BARDA agreement valued at up to $25.5 million to support U.S. burn emergency preparedness, providing recurring readiness revenue Announced positive interim Cohealyx I data demonstrating a ~20-day reduction in mean time to skin grafting readiness (13.6 vs. 33.2 days; p<0.001), supporting its potential to drive improved clinical outcomes and broader adoption Received regulatory clearance for RECELL GO® in Australia and New Zealand, supporting commercialization Cary Vance, President and Chief Executive Officer of AVITA Medical, commented: “Since November, we’ve stabilized the business, improved how we operate, and delivered a solid start to 2026. With sequential revenue growth and improving ordering patterns across the portfolio, we are focused on delivering sustained performance as we move through the year. At April’s American Burn Association annual meeting, it was exciting to see how our products, RECELL, Cohealyx and PermeaDerm®, are delivering meaningful outcomes for clinicians and their patients. I am incredibly proud and excited to lead AVITA as we continue to build towards the future of wound care.” David O'Toole, Chief Financial Officer, commented: “First quarter results reflect continued progress against the cost optimization initiatives implemented in 2025, with operating expenses down meaningfully year-over-year. We are also operating well within the framework of our recently refinanced credit facility, with terms aligned to our current revenue trajectory and providing increased flexibility as we execute. As expected, net cash use was higher in the first quarter, driven by seasonal compensation and other one-time payments, and further elevated by the timing of revenue and collections. Cash receipts lag revenue, and with a greater proportion of product sales occurring later in the first quarter, the contribution from collections within the period was reduced, and our cash use for the first quarter was negatively impacted. As we move into the second quarter, these timing dynamics have reversed. Seasonal and one-time items are completed, and collections from strong late-first quarter revenue and early-second quarter sales activity are driving higher cash receipts. Combined with ongoing cost discipline, this gives us confidence in a significant decrease in cash use in the second quarter.” Financial Guidance AVITA Medical is reaffirming its full-year 2026 guidance, reflecting confidence in continued execution and improving commercial momentum: Full year 2026 revenue expected in the range of $80 to $85 million, representing growth of approximately 12% to 19% compared to 2025 revenue. First Quarter Financial Results Total revenue was approximately $19.3 million in the three months ended March 31, 2026, representing an increase of $0.7 million, or 4%, compared to $18.5 million in the prior-year period. The increase was driven by contributions from Cohealyx, RECELL GO mini® in trauma and smaller wounds, and continued normalization in RECELL utilization following the resolution of prior reimbursement headwinds. As of March 2026, all seven Medicare Administrative Contractors (MACs) have published payment rates for clinician use of RECELL, supporting broader and more consistent utilization. Gross profit margin was 81.7%, compared to 84.7% in the prior-year period, reflecting product mix and inventory-related adjustments. RECELL demand remained solid during the quarter and the change in overall margin reflects the Company’s deliberate expansion of its product portfolio, with Cohealyx and PermeaDerm. The Company shares the average sales price for Cohealyx at 50% and for PermeaDerm at 60%, which inevitably results in an overall decrease in gross margin percentage. The product mix is expected to continue to impact the overall gross margin percentage while increasing the gross profit and, given that expenses associated with this revenue do not increase significantly, operating profit on a quarterly basis. RECELL-only gross margin was 85.0% for the quarter. Total operating expenses were approximately $24.5 million, compared to $27.5 million in the prior-year period, representing a decrease of $3.0 million, or 11%. The reduction reflects continued execution against cost optimization initiatives and sales force reduction implemented in 2025, which resulted in a $2.0 million decline in sales and marketing expenses driven by lower salaries, benefits, stock-based compensation, and commissions. General and administrative expenses decreased by $0.3 million, while research and development expenses decreased by $0.7 million, primarily due to lower personnel-related and program costs. Net cash use for the quarter was approximately $9.9 million. The increase reflects the timing of annual compensation and other one-time items, as well as the timing of revenue and collections within the period. Cash receipts lag revenue, and with a greater proportion of sales activity occurring later in the first quarter, cash use was negatively impacted. The Company ended the quarter with approximately $14.3 million in cash and marketable securities, compared to $18.2 million at the start of the quarter. Net loss was $10.6 million, or a loss of $0.35 per basic and diluted share, compared to a net loss of $13.9 million, or a loss of $0.53 per basic and diluted share, in the same period in 2025. Webcast and Conference Call Information AVITA Medical will host a conference call on Thursday, May 14, 2026, at 1:30 p.m. Pacific Standard Time (Friday, May 15, 2026, at 6:30 a.m. Australian Eastern Standard Time) to discuss its first quarter 2026 financial results and recent business highlights. To listen to the conference call webcast, please register and join using the following link: https://edge.media-server.com/mmc/p/t54pdcd4. To participate in the live earnings conference call, please register in advance to receive dial-in details and a personal PIN using the following link: https://register-conf.media-server.com/register/BI27b7d18fc52c43599f75b727d38f8883. For those unable to participate in the live broadcast, a replay will be available on the Events page of the Company’s investor relations website at: https://ir.avitamedical.com/events-and-presentations. About AVITA Medical, Inc. AVITA Medical® is a leading therapeutic acute wound care company delivering transformative solutions. Our technologies are designed to optimize wound healing, effectively accelerating the time to patient recovery. At the forefront of our platform is RECELL®, approved by the FDA for the treatment of thermal burn and trauma wounds. RECELL harnesses the healing properties of a patient’s own skin to create Spray-On Skin™, offering an innovative solution for improved clinical outcomes at the point-of-care. In the U.S., AVITA Medical also holds the exclusive rights to market, sell, and distribute Cohealyx®, an AVITA Medical-branded collagen-based dermal matrix, and the exclusive rights to manufacture, market, sell, and distribute PermeaDerm®, a biosynthetic wound matrix. In international markets, RECELL is approved to promote skin healing in a wide range of applications, including thermal burn and trauma wounds. RECELL and RECELL GO® are CE-marked in Europe, have TGA certification in Australia, and Medsafe WAND listing in New Zealand; RECELL is PMDA-approved in Japan. To learn more, visit www.avitamedical.com. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements generally may be identified by the use of words such as “anticipate,” “approximately,” “continue,” “could,” “expect,” “future,” “guidance,” “may,” “will,” and similar words or expressions, and the use of future dates. Forward-looking statements include, but are not limited to, statements relating to the timing and realization of regulatory approvals of our products; anticipated market share growth and revenue generation; physician acceptance, endorsement, and use of our products (including the impact of government reimbursement payment rates on such use); failure to achieve the anticipated benefits from approval of our products; the effect of regulatory actions; product liability claims; risks associated with international operations and expansion; and other business effects, including the effects of industry, as well as other economic or political conditions outside of the Company’s control. These statements are made as of the date of this earnings release, and the Company undertakes no obligation to publicly update or revise any of these statements, except as required by law. For additional information and other important factors that may cause actual results to differ materially from forward-looking statements, please see the “Risk Factors” section of the Company’s latest Annual Report on Form 10-K and other publicly available filings for a discussion of these and other risks and uncertainties. Investor & Media Contact: Ben Atkins Phone +1-805 341 1571 [email protected] [email protected] Authorized for release by the Chief Financial Officer of AVITA Medical, Inc. ©2026 AVITA Medical. AVITA Medical®, Cohealyx®, RECELL®, RECELL GO®, and Spray-On SkinTM are trademarks of AVITA Medical. PermeaDerm® is a registered trademark owned by Stedical Scientific, Inc. All other trademarks are the properties of their respective owners.

Interested in Avita Medical Inc.? Here are five stocks we like better. Avita Medical said first-quarter 2026 revenue rose 4% year over year to about $19.3 million, its highest quarterly revenue in the past year, and it reaffirmed full-year revenue guidance of $80 million to $85 million. Management said RECELL reimbursement conditions are normalizing, with all seven Medicare Administrative Contractors now publishing payment rates and reimbursing for clinician use, helping drive more consistent demand and utilization. The company highlighted early progress for Cohealyx, including growing account adoption and interim study data showing faster graft readiness, while expenses fell 11% year over year and net loss narrowed to $10.6 million. Avita Medical (NASDAQ:RCEL) reported first-quarter 2026 revenue growth and reaffirmed its full-year outlook as management said reimbursement conditions for its RECELL product are normalizing and demand patterns are becoming more consistent. The regenerative medicine company posted first-quarter revenue of approximately $19.3 million, up 4% from the prior-year period and about 10% sequentially from the fourth quarter of 2025. President and Chief Executive Officer Cary Vance said the result represented the company’s highest quarterly revenue over the past year and reflected progress after a period focused on stabilizing the business. → Micron Investors Face a High-Stakes Moment After the Latest Rally “Q1 has been the quarter where we have begun to see those changes translate into more consistent performance,” Vance said on the earnings call. He said the company has been working to address prior disruption related to clinical reimbursement for RECELL, re-engage core accounts and improve its operating focus around higher-value centers. Chief Financial Officer David O’Toole said first-quarter growth was driven by contributions from Cohealyx, RECELL GO mini and improving RECELL utilization as reimbursement dynamics continue to normalize. Avita reaffirmed its full-year 2026 net revenue guidance of $80 million to $85 million. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? Vance said the company is seeing “more frequent, smaller orders” and better alignment between purchasing and usage, which he characterized as a move away from prior variability and toward greater predictability. In response to an analyst question about whether guidance could move higher after the first-quarter performance, Vance said the company was maintaining its current outlook for now. “We’ve got one quarter under us,” he said, adding that management expects to provide transparency as the year progresses. → Reading the Stripes: Is The Industrial Recession Over? Management said all seven Medicare Administrative Contractors have now published payment rates for clinician use of RECELL. During the question-and-answer portion of the call, Vance confirmed that all MACs are now reimbursing for RECELL and said one contractor that had been below the others had raised its rate in line with the rest. Vance said the company is seeing a gradual return to utilization patterns tied to procedural demand rather than reimbursement uncertainty. Asked about physician and burn center confidence, he estimated the recovery at about 75%, saying Avita is now working hospital by hospital with its healthcare access and commercial teams to support education around reimbursement processes. The company also highlighted growing use of RECELL GO mini in smaller burns and trauma settings. Vance said the lower-cost RECELL GO mini offering is designed for smaller wounds and helps address economic and workflow objections that may have limited use in some cases. Internationally, Vance said recent regulatory clearances in Australia and New Zealand position the company to expand RECELL GO in those markets. Avita also pointed to early-stage adoption of Cohealyx, with Vance citing an increasing number of ordering accounts as value analysis committee approvals advance, along with early repeat usage by initial adopters. The company discussed interim clinical data from the Cohealyx I study, which Vance said showed a significant reduction in time to graft readiness, at approximately 20 days versus benchmark, and a median time to grafting of about 11 days. He also said investigators reported high satisfaction and that the data is supporting ongoing value analysis committee reviews as hospitals evaluate adoption. Vance said Avita expects the full Cohealyx data set later this year. During the Q&A session, he said the company expects roughly 12 to 15 Cohealyx value analysis committee approvals per quarter and that about 55 to 60 remain in committee review. He also said Avita is in the “20s” in terms of centers using all three of its products: RECELL, Cohealyx and PermeaDerm. For PermeaDerm, Vance said commercial performance is still developing. The company introduced new clinical positioning in the quarter that presents PermeaDerm as a more affordable biosynthetic alternative to cadaveric allograft in wound coverage and healing. Data from the PermeaDerm I study is expected later this year, and Vance said early signals, including histology, indicate comparable biological performance to cadaver allograft. Avita reported first-quarter gross profit margin of 81.7%, compared with 84.7% in the prior-year period. O’Toole said the change was mainly due to required inventory reserves and product mix, with Cohealyx and PermeaDerm contributing a greater share of revenue. RECELL gross margin remained strong at approximately 85%, he said. Total operating expenses were $24.5 million, down 11% year over year. O’Toole said the decline reflected cost optimization actions, including the sales force transformation implemented in 2025. “From a G&A and an R&D and headcount perspective, our cost structure is where we want it to be,” he said in response to an analyst question, noting that commissions are the main cost line he would expect to rise if revenue increases. The company’s net loss narrowed to $10.6 million, or $0.35 per basic and diluted share, compared with a net loss of $13.9 million, or $0.53 per basic and diluted share, in the prior-year period. Net cash use in the first quarter was approximately $9.9 million. O’Toole said cash use was elevated by seasonal compensation, one-time payments and the timing of revenue and collections, with a greater share of product sales occurring later in the quarter. He said those timing dynamics have reversed in the second quarter and that the company has “strong confidence in a significant decrease in cash use” for the period. Avita ended the quarter with approximately $14.3 million in cash and marketable securities. O’Toole said the company remains in compliance with its trailing 12-month revenue and minimum cash covenants under its credit facility with Perceptive Advisors, which was put in place in January. He said the facility was structured to provide more flexibility than the prior agreement. The company also discussed its long-term agreement with BARDA to support U.S. burn emergency preparedness. O’Toole said about $3.9 million is guaranteed over 10 years, equating to roughly $100,000 per quarter, with additional revenue contingent on a mass casualty event. He said the safety stock required under the agreement does not increase costs because it aligns with Avita’s existing safety stock. Vance said the company’s focus for the second quarter is to build sequential growth and demonstrate that recent progress is repeatable across its core burn and Tier 1 trauma accounts. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Avita Medical Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.