AVITA Medical Reports 67% Revenue Growth to $18.5 Million, Net Loss Improves

AVITA Medical, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenues reaching $18.5 million for the three months ended March 31, 2025, a 67% increase from $11.1 million in the same period last year. The growth was primarily driven by increased sales of the RECELL® System and the introduction of new products, including the RECELL GO and Cohealyx. The company recorded a gross profit of $15.7 million, resulting in a gross profit margin of 84.7%, slightly down from 86.4% in the prior year, attributed to volume discounts and product mix changes.

Despite the revenue growth, AVITA Medical reported a net loss of $13.9 million for the quarter, an improvement from a net loss of $18.7 million in the same period last year. The operating loss decreased to $11.8 million from $17.2 million, reflecting a 31% reduction in operating losses year-over-year. Total operating expenses rose marginally by 3% to $27.5 million, with sales and marketing expenses increasing by 17% due to expanded sales force costs, while general and administrative expenses decreased significantly by 29% as a result of reduced headcount and lower severance payments.

In terms of operational developments, AVITA Medical's customer base expanded, contributing to deeper penetration in existing accounts and the acquisition of new accounts for full-thickness skin defect treatments. The company also launched Cohealyx commercially on April 1, 2025, which is expected to enhance its product offerings in the wound care market. The company’s cash and cash equivalents stood at $14.9 million, with marketable securities of $10.9 million as of March 31, 2025, indicating a stable liquidity position to support ongoing operations.

AVITA Medical continues to navigate a challenging macroeconomic environment, including supply chain issues and inflationary pressures, which could impact future performance. The company is focused on achieving its revenue targets under its credit agreement, which includes a trailing 12-month revenue covenant of $73 million for the first quarter of 2025. A waiver was received for this covenant, allowing the company to maintain compliance while it works towards meeting future revenue goals. Looking ahead, AVITA Medical aims to drive commercial revenue growth, achieve operating profitability, and expand its market presence, particularly with the RECELL GO and Cohealyx products.