AVITA Medical Inc (NASDAQ:RCEL) reported its fourth-quarter and full-year 2025 financial results, delivering a mixed performance against analyst expectations. The company, a developer of therapeutic acute wound care solutions like the RECELL System, met its full-year revenue guidance but fell short of quarterly estimates, contributing to a muted initial market response.
Earnings and Revenue Versus Estimates
For the crucial fourth quarter ending December 31, 2025, AVITA Medical posted revenue of $17.6 million. This figure came in below the consensus analyst estimate of approximately $18.2 million, representing a slight miss. The company attributed the quarterly decline from the prior year to lingering reimbursement headwinds from Medicare Administrative Contractors (MACs) throughout 2025.
On the bottom line, the reported non-GAAP net loss per share was $0.38. This was slightly wider than the estimated loss of $0.37 per share that analysts had projected. The company's full-year 2025 revenue of $71.6 million did represent an 11% increase over 2024 and was within management's revised guidance range.
Market Reaction and Forward Guidance
The stock's performance in recent weeks reflects investor caution. In the two weeks leading up to the report, shares declined approximately 15%. Following the earnings release, after-market trading showed little initial movement, suggesting the results were largely anticipated or that investors are focusing more on the company's future outlook.
That outlook may be providing a stabilizing force. Management issued revenue guidance for full-year 2026 in the range of $80 to $85 million, which implies growth of 12% to 19%. This forecast appears conservative when stacked against the current analyst consensus, which estimates 2026 sales at roughly $87.3 million. The company's guidance, coupled with its recent refinancing and progress on reimbursement, sets a clear, execution-focused tone for the year ahead.
Key Takeaways from the Press Release
Beyond the headline numbers, the earnings release highlighted several important operational and financial developments:
- Stabilizing Reimbursement: A key constraint from 2025 is easing, with six of seven MACs having now published payment rates for RECELL as of January 2026.
- Strengthened Balance Sheet: In January, the company refinanced its debt with a new $60 million credit facility from Perceptive Advisors, providing additional capital and more flexible covenants.
- Improved Cash Efficiency: Net cash use improved sequentially for the third straight quarter, dropping to $5.1 million in Q4 from $10.1 million in Q2, demonstrating tighter financial discipline.
- Portfolio Momentum: Clinical studies for newer products, Cohealyx and PermeaDerm, are advancing, with data expected in 2026. Early integrated use cases of the full product portfolio were presented at a recent medical symposium.
- Cost Management: Full-year operating expenses decreased by 9% to $101.4 million, contributing to a reduced net loss of $48.6 million compared to $61.8 million in 2024.
Conclusion
AVITA Medical's fourth-quarter results reflect a company in transition, moving past a period of reimbursement disruption. While it missed quarterly estimates, the establishment of a clear 2026 revenue target, a solidified capital structure, and visible progress on key operational challenges appear to be balancing the scales for investors. The focus now shifts to the company's ability to deliver on its promise of "execution-led growth" quarter by quarter, starting with the first quarter of 2026.
For a detailed look at upcoming earnings dates and analyst estimate revisions for AVITA Medical, you can review the data here.
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