Avita Medical (RCEL) Q2 Sales Up 21%
Avita Medical (NASDAQ:RCEL), a regenerative medicine innovator focused on wound care solutions, reported earnings for Q2 2025 on August 7, 2025. The main news was that commercial revenue rose to $18.4 million a 21% increase from the prior year, but this result fell substantially below consensus GAAP estimates of $22.5 million. The company reported a GAAP net loss of $9.9 million, or $(0.38) per share (GAAP), which improved over the $(0.60) GAAP loss per share in Q2 2024 but nonetheless missed analyst targets for GAAP revenue. The shortfall stemmed from a temporary but significant disruption in Medicare reimbursement, cutting into demand for its core RECELL system. Management revised the full-year 2025 revenue outlook down to a range of $76 million to $81 million, a substantial reduction from earlier expectations of $100 million to $106 million in commercial revenue. The quarter showed progress in cost controls and new product launches, but reimbursement risk and delayed profitability now overshadow near-term outlook.
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Avita Medical is best known for its RECELL technology, a medical device that enables physicians to create a spray-on skin cell suspension from a patient’s own tissue. The technology addresses serious wounds such as burns and full-thickness skin defects, helping to promote faster healing and reduce the size of skin grafts needed. The company's strategy and commercial lineup in the U.S. wound care market are now based on a multi-product platform that includes RECELL, Cohealyx, and PermeaDerm.
Source Fool.com
