AVITA Medical Reports Fourth Quarter and Full Year 2025 Financial Results

Core Insights - AVITA Medical reported financial results for Q4 and full year 2025, indicating a year of stabilization and a shift towards execution-focused growth in 2026 [1][4]. Fourth Quarter 2025 Financial Highlights - Total revenue for Q4 2025 was $17.6 million, a decrease of 4% from $18.4 million in Q4 2024, primarily due to reimbursement headwinds [6][7]. - Gross profit margin was 81.2%, down from 87.6% in Q4 2024, influenced by product mix and inventory adjustments [8]. - Operating expenses decreased by 5% to $24.7 million compared to $26.1 million in Q4 2024, reflecting a lower cost base [9]. - Net loss for Q4 2025 was $11.6 million, or a loss of $0.38 per share, compared to a loss of $11.6 million, or $0.44 per share in Q4 2024 [12]. Full-Year 2025 Financial Highlights - Total revenues for 2025 increased by 11% to $71.6 million from $64.3 million in 2024, driven by deeper penetration in customer accounts and new product launches [13]. - Gross profit margin for the full year was 82.1%, down from 85.8% in 2024, primarily due to product mix and higher inventory reserves [14]. - Total operating expenses for 2025 were $101.4 million, a decrease of 9% from $111.8 million in the prior year [15]. - Net loss for the full year was $48.6 million, or a loss of $1.74 per share, compared to a net loss of $61.8 million, or $2.39 per share in 2024 [16]. Business Updates and Future Guidance - The company expects full-year 2026 revenue in the range of $80 to $85 million, representing growth of approximately 12% to 19% compared to 2025 [5]. - In January 2026, the company refinanced its existing debt under a new credit facility with Perceptive Advisors, securing up to $60 million to strengthen its capital structure [17][18]. - As of January 2026, six of the seven Medicare Administrative Contractors have published payment rates for RECELL, alleviating a key constraint on utilization experienced in 2025 [6]. - The company is focused on disciplined cash management and accelerating commercial momentum across its core U.S. burn and trauma center opportunities [19].