RCEL Beats Earnings, Loses Cash, Raises Cash

AVITA Medical (RCEL) reported fiscal 2025 Q4 earnings on Feb 12, 2026, with GAAP EPS of -$0.38, outperforming estimates by $0.02, and revenue of $17.6M, exceeding expectations by $0.15M. The company maintained full-year 2026 guidance of $80–$85M revenue, reflecting improved cash efficiency and resolved reimbursement challenges.

Revenue

The total revenue of AVITA Medical decreased by 4.3% to $17.61 million in 2025 Q4, down from $18.41 million in 2024 Q4.

Earnings/Net Income

AVITA Medical narrowed losses to $0.38 per share in 2025 Q4 from a loss of $0.44 per share in 2024 Q4 (13.6% improvement). Meanwhile, the company's net loss widened to $-11.62 million in 2025 Q4, representing a 0.3% increase from the $-11.59 million loss recorded in 2024 Q4. The Company has sustained losses for 6 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. The EPS beat expectations but net losses persist.

Price Action

The stock price of AVITA Medical has dropped 3.12% during the latest trading day, has dropped 5.34% during the most recent full trading week, and has jumped 8.77% month-to-date.

Post-Earnings Price Action Review

The strategy of buying AVITA Medical (RCEL) shares after its revenue drop quarter-over-quarter on the financial report released date and holding for 30 days showed mixed performance over the past three years. While the strategy yielded a positive return in the first year, with a 10.2% gain in 2024, subsequent years saw underperformance, culminating in a 3-year cumulative return of -2.8%. Quarterly returns exhibited volatility, including a strong 21.8% gain in Q1 2024 and a significant -14.5% loss in Q3 2025. The strategy faced a maximum drawdown of -25.4% in Q3 2025 and a negative Sharpe ratio of -0.18, underscoring its high-risk profile. Compared to the SPY ETF’s 11.1% 3-year return, the RCEL strategy underperformed, emphasizing its volatility and inconsistency relative to passive investments.

CEO Commentary

Cary Vance, Interim Chief Executive Officer, emphasized that 2025 marked a year of stabilization for AVITA Medical, with reimbursement challenges and operational transitions resolved, enabling normalization in clinician use of RECELL. The Company now focuses on execution-driven growth, prioritizing deeper utilization within core burn and trauma centers. Vance highlighted a validated product portfolio and improved cash efficiency as key enablers for 2026, expressing confidence in consistent quarterly execution to drive growth.

Guidance

AVITA Medical expects full-year 2026 revenue in the range of $80 to $85 million, representing 12% to 19% growth compared to 2025. The guidance reflects improved cash efficiency, a new $60 million credit facility with Perceptive Advisors, and the removal of key reimbursement constraints, including finalized payment rates from six of seven Medicare Administrative Contractors. The Company aims to achieve $15.4 million in Q1 2026 revenue to meet the initial $68.5 million trailing twelve-month revenue covenant under the new credit facility.

Additional News

AVITA Medical announced a $60 million credit facility with Perceptive Advisors in January 2026, refinancing existing debt to enhance financial flexibility. Cary Vance was appointed as Interim CEO, succeeding a leadership transition that prioritized operational discipline and commercial focus. Internationally, the company expanded RECELL GO’s clinical use in European markets post-CE Mark approval in October 2025, aiming to build familiarity and operational readiness. These moves align with the company’s strategy to stabilize operations and drive growth through product integration and core market penetration.