AVITA Medical(RCEL) - 2025 Q2 - Quarterly Results

Financial Performance - Commercial revenue for Q2 2025 was $18.4 million, representing a 21% increase compared to $15.2 million in Q2 2024[10] - Net loss improved to $9.9 million, or a loss of $0.38 per share, compared to a net loss of $15.4 million, or a loss of $0.60 per share in the same period last year[16] - Total revenues for Q2 2025 reached $18,418,000, a 14.8% increase from $15,195,000 in Q2 2024[29] - Sales revenue for the first half of 2025 was $36,551,000, up 39.2% from $26,287,000 in the same period of 2024[29] - Gross profit for Q2 2025 was $14,949,000, compared to $13,084,000 in Q2 2024, reflecting a gross margin improvement[29] - Operating loss for Q2 2025 was $11,148,000, an improvement from a loss of $15,624,000 in Q2 2024[29] - Net loss for the first half of 2025 was $23,779,000, down from $34,051,000 in the first half of 2024, indicating a reduction in losses[29] - The company reported a basic and diluted net loss per share of $0.38 for Q2 2025, an improvement from $0.60 in Q2 2024[29] Expenses and Guidance - Total operating expenses decreased to $26.1 million in Q2 2025 from $28.7 million in Q2 2024, primarily due to a reduction in sales and marketing expenses[12] - AVITA adjusted its full-year 2025 revenue guidance to a range of $76 million to $81 million, down from the previous guidance of $100 million to $106 million[13] - Research and development expenses for the first half of 2025 were $11,400,000, compared to $10,081,000 in the same period of 2024, indicating continued investment in innovation[29] Cash Flow and Assets - As of June 30, 2025, AVITA had approximately $15.7 million in cash, cash equivalents, and marketable securities[18] - Cash and cash equivalents decreased to $12,216,000 as of June 30, 2025, from $14,050,000 at the end of 2024[27] - Total assets decreased to $58,134,000 as of June 30, 2025, down from $79,711,000 at the end of 2024[27] - Total liabilities increased to $70,981,000 as of June 30, 2025, compared to $74,968,000 at the end of 2024[27] Market Demand and Future Outlook - Demand for RECELL declined by approximately 20% in the first half of 2025, leading to an estimated revenue decline of about $10 million during this period[7] - The company anticipates reaching cash flow break-even in Q2 2026 and GAAP profitability in Q3 2026, later than previously expected[9] - RECELL reduces hospital stays by 36% according to real-world analysis of the national burn registry over five years[5] - AVITA received a waiver for the trailing 12-month net revenue covenant under its credit agreement with OrbiMed, which had been set at $78 million[17] Profitability Metrics - The gross profit margin for Q2 2025 was 81.2%, down from 86.1% in the same period last year, primarily due to product mix and higher inventory reserves[11]