AVITA Medical, Inc. (RCEL) · Nov 5, 2026 · Earnings
Beat — Revenue $26.1M vs ~$22.6M consensus; EPS -$0.20 vs ~-$0.23 consensus
AVITA Medical’s Q3 earnings beat revenue expectations, lifted 2026 guidance, improved cash use, and cleared a major liquidity overhang.
AVITA Medical is in the commercial scaling phase of a RECELL-led acute-wound-care recovery, with Cohealyx adding a second growth leg and Medicare reimbursement becoming more standardized for 2027. Its prior quarter already pointed to improving execution: Q2 revenue guidance was $86 million to $89 million and management was targeting fourth-quarter cash-flow breakeven.
The quarter beat the operating bar by a wide margin. Revenue reached $26.1 million, up 53% year over year and 20% sequentially, versus published Q3 consensus of roughly $22.6 million; adjusted-style earnings were not provided, but reported EPS of negative $0.20 was better than the roughly negative $0.23 consensus. The revenue beat is the more important signal because it shows the commercial ramp is running ahead of the prior trajectory.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Total revenue (Financial Highlights) | $26.1M (+53%) | $17.1M | ~$22.6M |
| EPS, basic and diluted (Statements of Operations) | $(0.20) | $(0.46) | ~$(0.23) |
| Gross margin (Financial Highlights) | 84.0% | 81.3% | |
| Net cash use (Financial Highlights) | $0.6M | $3.2M in Q2 | |
| FY2026 revenue guidance (Updated Financial Guidance) | $92M–$94M | $86M–$89M prior |
The guidance increase confirms the beat is not just a one-quarter spike. Full-year revenue guidance moved to $92 million-$94 million from $86 million-$89 million, implying fourth-quarter revenue of $24.9 million-$26.9 million. That is a meaningful raise, while the company retained its fourth-quarter cash-breakeven target.
RECELL remains the engine, while the portfolio is broadening. U.S. RECELL revenue reached $22.4 million, Cohealyx revenue rose to $2.1 million, and overall gross margin expanded to 84.0%; however, PermeaDerm and international revenue were essentially flat sequentially. The business is therefore progressing primarily through RECELL utilization, with Cohealyx still an emerging contributor rather than an equal second engine.
Liquidity risk eased materially, although leverage remains part of the story. Cash use fell to approximately $0.6 million, the company drew the remaining $10 million available under its Perceptive credit facility, and management removed the going-concern qualification. That is a major improvement from the prior financing pressure, but it was achieved by adding debt: total borrowings under the facility reached $60 million.
The reimbursement backdrop is becoming more supportive, but the payoff is still ahead. CMS finalized national physician payment values and simpler billing codes for RECELL effective January 1, 2027, replacing a more fragmented reimbursement framework with a standardized national structure. That improves the commercial setup for future adoption, but it does not yet add reported revenue to this quarter.
Bottom line: This was a clear execution beat that advances AVITA from a financing-constrained growth story toward a potential cash-generating commercial business. The key proof point still lies ahead: delivering fourth-quarter cash-flow breakeven without slowing RECELL growth or leaning further on debt.
Q4 results and cash-flow breakeven, early 2027
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