Avita Medical (NASDAQ:RCEL) Releases Earnings Results, Misses Estimates By $6.65 EPS

Avita Medical (NASDAQ:RCEL) posted its quarterly earnings data on Thursday. The company reported ($7.00) earnings per share for the quarter, missing the consensus estimate of ($0.35) by ($6.65), FiscalAI reports. The firm had revenue of $19.25 million during the quarter, compared to the consensus estimate 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 Stock Up 2.3%

RCEL traded up $0.10 during midday trading on Thursday, reaching $4.36. 314,491 shares of the company’s stock were exchanged, compared to its average volume of 192,595. The business has a 50-day simple moving average of $4.39 and a two-hundred day simple moving average of $4.05. The firm has a market capitalization of $134.20 million, a price-to-earnings ratio of -2.49 and a beta of 1.90. Avita Medical has a one year low of $3.22 and a one year high of $7.12.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in RCEL. Deutsche Bank AG grew its holdings in shares of Avita Medical by 1,351.5% in the 4th quarter. Deutsche Bank AG now owns 7,896 shares of the company’s stock worth $27,000 after purchasing an additional 7,352 shares during the last quarter. Russell Investments Group Ltd. lifted its holdings in Avita Medical by 122.2% during the 4th quarter. Russell Investments Group Ltd. now owns 8,047 shares of the company’s stock valued at $28,000 after purchasing an additional 4,425 shares during the last quarter. Aristides Capital LLC bought a new position in Avita Medical during the 4th quarter valued at about $48,000. The Manufacturers Life Insurance Company acquired a new position in Avita Medical in the second quarter valued at about $58,000. Finally, Wells Fargo & Company MN grew its stake in Avita Medical by 98.5% during the fourth quarter. Wells Fargo & Company MN now owns 18,832 shares of the company’s stock worth $65,000 after buying an additional 9,345 shares during the last quarter. 27.66% of the stock is owned by institutional investors.

Analyst Ratings Changes

RCEL has been the subject of several research analyst reports. Northland Securities began coverage on shares of Avita Medical in a research note on Thursday, March 5th. They set an “outperform” rating and a $10.00 target price for the company. D. Boral Capital restated a “buy” rating and set a $10.00 price objective on shares of Avita Medical in a report on Wednesday, April 8th. Lake Street Capital upped their price objective on shares of Avita Medical from $3.00 to $3.50 and gave the company a “hold” rating in a research report on Friday, January 16th. Wall Street Zen cut shares of Avita Medical from a “sell” rating to a “strong sell” rating in a research note on Saturday, May 2nd. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Avita Medical in a research report on Friday, March 27th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $6.63.

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.