AVITA Medical, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $17.1 million, a decrease of 13% from $19.5 million in the same period last year. The decline was primarily attributed to reimbursement challenges from Medicare Administrative Contractors, which impacted sales of the RECELL System. Despite this, the company experienced a 17% increase in sales revenue for the nine-month period, totaling $53.4 million compared to $45.7 million in the prior year. The gross profit margin for the quarter was 81.3%, down from 83.7% a year earlier, largely due to product mix and higher inventory reserves.
Operating expenses for the third quarter decreased by 24% to $23.0 million, compared to $30.2 million in the same quarter of 2024. This reduction was driven by lower sales and marketing expenses, which fell by 20% to $12.1 million, and a 25% decrease in general and administrative expenses to $7.2 million. Research and development expenses also saw a significant reduction of 31% to $3.7 million. The company reported a net loss of $13.2 million for the quarter, an improvement from the $16.2 million loss in the same period last year.
In terms of strategic developments, AVITA Medical completed a private placement on August 12, 2025, raising approximately $14.8 million through the issuance of 3,440,377 shares of common stock. The proceeds are intended to support working capital and the growth of its therapeutic acute wound portfolio. Additionally, the company received a New Technology Add-On Payment from the Centers for Medicare & Medicaid Services for the RECELL System, which is expected to enhance reimbursement for hospitals treating patients with acute non-thermal full-thickness skin defects.
Operationally, AVITA Medical is focusing on expanding its market presence in U.S. burn and trauma centers, targeting approximately 200 high-value institutions. The company has also launched new products, including Cohealyx, a collagen-based dermal matrix, and RECELL GO, which received CE Mark approval for commercialization in Europe. As of September 30, 2025, the company had cash and cash equivalents of $15.4 million and marketable securities of $7.9 million, although it faces challenges in maintaining compliance with its credit facility's cash balance requirements.
Looking ahead, AVITA Medical is actively exploring additional funding strategies to ensure operational continuity and compliance with financial covenants. The company has acknowledged the potential for significant challenges in the macroeconomic environment, including supply chain issues and reimbursement pressures, which could impact future performance. Management remains focused on driving revenue growth and achieving operating profitability while navigating these challenges.
About AVITA Medical, Inc.
AVITA Medical develops and commercializes advanced acute wound care solutions centered on its patented RECELL technology, which creates autologous skin cell suspensions to accelerate healing of burns, full-thickness skin defects, and vitiligo. The company’s product portfolio includes RECELL devices and complementary wound care matrices like PermeaDerm and Cohealyx. Serving burn and trauma centers primarily in the U.S. and select international markets, AVITA leverages proprietary technology, regulatory approvals, and clinical evidence to improve patient outcomes and reduce treatment costs.
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