Avita Medical (NASDAQ:RCEL) Announces Earnings Results, Meets Expectations

Avita Medical (NASDAQ:RCEL) issued its earnings results on Thursday. The company reported ($0.35) EPS for the quarter, meeting analysts’ consensus estimates of ($0.35), Zacks reports. The firm had revenue of $19.25 million during the quarter, compared to analysts’ expectations of $18.30 million.

Here are the key takeaways from Avita Medical’s conference call:

• AVITA reported Q1 2026 revenue of $19.3 million, up 4% year over year and about 10% sequentially, and reiterated full-year guidance of $80 million to $85 million.
• RECELL utilization is recovering as reimbursement uncertainty normalizes, with all 7 Medicare Administrative Contractors now publishing payment rates and management saying all are effectively reimbursing.
• Cohealyx is showing early commercial traction, including more ordering accounts and repeat usage, while interim study data showed about a 20-day reduction to graft readiness versus benchmark.
• The company signed a new long-term BARDA agreement that provides modest recurring readiness revenue and supports AVITA’s role in burn emergency preparedness.
• Operating expenses fell 11% year over year to $24.5 million, and management said the cost structure is now stabilized; however, gross margin declined to 81.7% due to product mix and inventory reserves.

Avita Medical Price Performance

NASDAQ:RCEL traded up $0.20 during trading hours on Friday, reaching $4.56. The company had a trading volume of 1,218,281 shares, compared to its average volume of 200,703. Avita Medical has a 1-year low of $3.22 and a 1-year high of $7.12. The firm has a market cap of $140.36 million, a PE ratio of -2.90 and a beta of 1.90. The business’s 50 day moving average price is $4.38 and its 200-day moving average price is $4.06.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of RCEL. Geode Capital Management LLC lifted its holdings in Avita Medical by 44.6% in the fourth quarter. Geode Capital Management LLC now owns 479,185 shares of the company’s stock valued at $1,654,000 after acquiring an additional 147,722 shares during the period. AQR Capital Management LLC acquired a new position in Avita Medical in the first quarter valued at approximately $799,000. Bridgeway Capital Management LLC lifted its holdings in Avita Medical by 213.8% in the third quarter. Bridgeway Capital Management LLC now owns 118,004 shares of the company’s stock valued at $603,000 after acquiring an additional 80,404 shares during the period. Brooklyn Investment Group lifted its holdings in Avita Medical by 48,965.5% in the third quarter. Brooklyn Investment Group now owns 58,388 shares of the company’s stock valued at $298,000 after acquiring an additional 58,269 shares during the period. Finally, Jacobs Levy Equity Management Inc. acquired a new position in Avita Medical in the first quarter valued at approximately $374,000. 27.66% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

RCEL has been the topic of a number of recent research reports. Wall Street Zen upgraded Avita Medical from a “strong sell” rating to a “hold” rating in a research report on Saturday. Lake Street Capital upgraded Avita Medical from a “hold” rating to a “buy” rating and upped their target price for the company from $3.50 to $6.00 in a research report on Friday. Weiss Ratings reiterated a “sell (e+)” rating on shares of Avita Medical in a research report on Friday, March 27th. D. Boral Capital reiterated a “buy” rating and issued a $10.00 target price on shares of Avita Medical in a research report on Wednesday, April 8th. Finally, Northland Securities initiated coverage on Avita Medical in a research report on Thursday, March 5th. They issued an “outperform” rating and a $10.00 target price on the stock. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $7.25.

Avita Medical Company Profile

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.