Avita Medical (NASDAQ:RCEL) reported second-quarter 2026 revenue of $21.7 million, up 18% from a year earlier and 13% sequentially, as growth in its RECELL wound-care product and newer portfolio offerings supported results.
President and Chief Executive Officer Cary Vance said the company’s U.S. RECELL revenue totaled $18.5 million during the quarter, increasing about 13% from the first quarter. He attributed the increase to physician utilization following stabilization in physician reimbursement as well as adoption of RECELL GO mini for smaller wounds. International RECELL revenue rose approximately 26% sequentially.
Portfolio Adoption Expands
Vance said RECELL remained the foundation of the business, while Cohealyx and PermeaDerm continued gaining traction. Cohealyx produced $1.7 million in second-quarter revenue, a sequential increase of about 16%, while PermeaDerm generated $600,000.
Hospitals are progressing through value analysis committee reviews for Cohealyx, according to Vance. Avita had approximately 55 active reviews underway, with 10 to 15 typically completed each quarter. The company expects to submit complete six-month follow-up data from the Cohealyx-I clinical study for publication later this year. Interim data presented earlier in 2026 showed faster time to skin graft readiness compared with leading dermal matrices, Vance said.
PermeaDerm remains in the early stages of commercial adoption. Avita has positioned the product as a wound temporizer that can stabilize and protect wounds before definitive closure, serving as an alternative to allograft. The company expects results later this year from its PermeaDerm I post-market study, which evaluated the product as a clinically comparable, lower-cost alternative to allograft.
Vance said 25 hospitals have now used all three Avita products. Some accounts are regularly incorporating the full portfolio into practice, while others are evaluating where each product fits within their treatment pathways.
RECELL Volume and Reimbursement Changes
Total U.S. RECELL volume increased more than 10% sequentially to more than 2,600 units in the second quarter, according to Vance. He said 77% of year-to-date RECELL GO mini procedures were performed in wounds measuring 500 square centimeters or less, reflecting the product’s role in expanding use into smaller burn and trauma wounds.
Avita is also preparing for a transition in physician reimbursement for its skin cell suspension autograft procedures. Beginning Jan. 1, 2027, a new Category 1 CPT code family is scheduled to replace the current eight-code structure with four codes based on anatomic location and wound size.
In July, the Centers for Medicare and Medicaid Services proposed nationally published physician relative value units for the new codes as part of its proposed 2027 Medicare payment updates. Vance said the company expects CMS to finalize the rule later in 2026. If adopted as proposed, the framework would replace regional Medicare Administrative Contractor pricing with nationally published relative value units.
During the question-and-answer session, Vance said the previous reimbursement structure created confusion over whether providers would be paid, how much they would receive and when payment would occur. He said the new structure is expected to simplify reimbursement discussions and allow Avita’s sales team and customers to focus more on clinical and economic benefits.
Margins, Expenses and Cash Use
Chief Financial Officer David O’Toole said gross margin was 81.9%, compared with 81.2% in the prior-year quarter, and remained above 81% year-to-date. RECELL gross margin was approximately 86%, he said. While product mix can affect the reported margin percentage, O’Toole said Cohealyx and PermeaDerm contribute incremental gross profit without proportional increases in operating expenses.
Operating expenses were $24.6 million, essentially unchanged from the first quarter and about 6% below the year-earlier period. Operating loss improved to $6.9 million from $11.1 million a year earlier, while net loss improved to $7.7 million from $9.9 million.
Net cash use improved to approximately $3.2 million during the quarter, and Avita ended the period with about $11.1 million in cash equivalents and marketable securities. O’Toole said the company expects a further reduction in cash use during the third quarter before reaching cash-flow breakeven in the fourth quarter.
He added that Avita continues to operate within the requirements of its credit facility. The company’s Perceptive debt facility includes access to an additional $10 million tranche once trailing 12-month revenue reaches $85 million.
About Avita Medical (NASDAQ:RCEL)
Avita Medical, Inc (NASDAQ: RCEL) is a regenerative medicine company focused on the development and commercialization of cell‐based therapies for acute and chronic wounds. Its flagship technology, the ReCell® Autologous Cell Harvesting Device, enables clinicians to create a suspension of a patient’s own skin cells at the point of care. The system is designed to accelerate wound healing, minimize donor‐site requirements and reduce scarring for patients suffering from burns, traumatic wounds and a variety of surgical and reconstructive procedures.
Founded in 2009 and headquartered in Carlsbad, California, Avita Medical has secured regulatory clearances in key markets, including CE mark approval in the European Union and 510(k) clearance from the U.S.
