Avita Medical Q1 revenue rises 4% to $19.3M, inks $25.5M BARDA deal
Avita Medical reported Q1 revenue of $19.3 million, up 4% year-over-year and 10% sequentially, with gross margin of 81.7% and operating expenses cut 11% to $24.5 million, narrowing net loss to $10.6 million ($0.35/share). The company secured a 10-year, $25.5 million BARDA agreement and reaffirmed $80–85 million full-year revenue guidance.
1. Financial Performance
In Q1 2026, Avita Medical achieved revenue of $19.3 million, reflecting a 4% year-over-year increase and a 10% sequential gain. Gross profit margin stood at 81.7%, driven by product mix shifts with RECELL, Cohealyx and PermeaDerm, resulting in a net loss of $10.6 million, or $0.35 per share.
2. Cost and Cash Flow
The company reduced operating expenses by 11% to $24.5 million through disciplined cost optimization and salesforce adjustments. Net cash use totaled $9.9 million for the quarter, impacted by one-time items and revenue collection timing, with a significant decrease expected in Q2 due to improved cash receipts.
3. Strategic Agreements and Data
Avita entered a 10-year, up to $25.5 million BARDA agreement to support U.S. burn emergency preparedness, establishing recurring readiness revenue. Positive Cohealyx I interim data demonstrated a 19.6-day reduction in mean time to skin graft readiness (13.6 vs. 33.2 days; p<0.001), and RECELL GO received clearance in Australia and New Zealand.
4. Leadership and Guidance
Cary Vance was appointed President and CEO, and Jan Stern Reed named independent Board Chair, marking leadership enhancements. The company reaffirmed full-year 2026 revenue guidance of $80–85 million, targeting 12–19% growth over 2025 on strengthening commercial momentum.