AVITA Medical Sets Up for 2026 Growth as Revenue Rises and Balance Sheet Strengthens

Key Highlights

• AVITA Medical reports full-year 2025 revenue growth of 11 percent, reaching approximately US$71.6 million
• New US$60 million credit facility refinances existing debt and improves financial flexibility
• Management outlines 2026 revenue outlook of US$80 to US$85 million
• Shares rose nearly 8 percent on the ASX following the update
  
   

AVITA Medical®, Inc. (ASX: AVH, NASDAQ: RCEL) has entered 2026 with a clearer operational runway after delivering revenue growth in 2025, refinancing its balance sheet, and outlining a forward growth outlook ahead of its appearance at the J.P. Morgan Healthcare Conference.

In an ASX announcement released on January 13, 2026, the acute wound care company provided unaudited preliminary financial results for the fourth quarter and full year 2025, alongside an early view of expected performance in 2026. The update was accompanied by the closure of a new debt facility designed to support the next phase of the company’s commercial and clinical execution  .

Stock Price Reaction 

AVITA shares reacted positively to the update in afternoon trade on Wednesday. The stock last traded at $1.10, up $0.08 or 7.84 percent, on volume of 684,820 shares. Despite the daily gain, the stock remains down 62 percent over the past year, reflecting the longer adjustment phase following earlier commercial and cost challenges.

Revenue Performance Shows Stabilisation

AVITA reported total revenue of approximately US$71.6 million for the full year 2025, compared with US$64.3 million in 2024, representing year-on-year growth of around 11 percent. Fourth-quarter revenue came in at approximately US$17.6 million, slightly below the prior year’s comparable quarter of US$18.4 million.

While quarterly performance was softer, management framed 2025 as a year focused on stabilising the business following a period of operational volatility. The full-year growth suggests progress in building a more consistent revenue base, primarily driven by continued uptake of the RECELL System in the United States.

RECELL, which uses a patient’s own skin cells to support wound healing, remains the company’s core commercial product and is approved by the US Food and Drug Administration for burn and trauma wounds. AVITA also holds US rights to distribute PermeaDerm and Cohealyx, expanding its acute wound care portfolio.

Balance Sheet Reset with New Credit Facility

One of the more consequential elements of the announcement was the closing of a five-year credit facility with healthcare investment firm Perceptive Advisors. The facility provides up to US$60 million in committed capital, with an initial US$50 million funded and an additional US$10 million available through early 2027.

The proceeds are being used to refinance existing debt and support ongoing growth initiatives. Importantly, the facility resets revenue covenants at levels aligned with the company’s current operating trajectory, reducing near-term financial pressure.

Interim Chief Executive Officer Cary Vance said the past year had been focused on strengthening the foundation of the business.

“Over the past year, we have focused on strengthening the foundation of the business, stabilizing revenue, advancing our clinical pipeline, and improving financial flexibility,” Vance said. “With a strengthened balance sheet and key clinical and commercial milestones ahead, we enter 2026 positioned to shift from stabilization to execution-led growth and deliver more predictable, scaled performance”.

Chief Financial Officer David O’Toole described the refinancing as a structural improvement rather than a short-term fix.

“This financing represents an important step in strengthening AVITA Medical’s capital structure while preserving shareholder value, including a reset of our revenue covenants to levels we believe are appropriate and manageable based on our operating performance and forward outlook,” O’Toole said. 

2026 Outlook Points to Measured Growth

Looking ahead, AVITA provided preliminary guidance for fiscal year 2026, forecasting revenue in the range of US$80 million to US$85 million. This would represent growth of approximately 12 to 19 percent compared with 2025.

The outlook reflects management’s expectation of continued commercial traction in the US acute wound care market, supported by expanded clinical data and a broader product offering.

Two clinical studies remain key milestones for the year ahead. The Cohealyx-I study was fully enrolled in December 2025, while the PermeaDerm-I study surpassed 75 percent enrollment during the same period. Data from both studies is expected later in 2026, potentially supporting broader adoption and reimbursement discussions.

Why This Update Matters

While the announcement does not introduce a single breakthrough product or regulatory approval, its significance lies in what it signals about the company’s trajectory.

For much of the past two years, AVITA’s narrative has been shaped by restructuring, capital management, and operational reset. This update marks a shift toward predictability, with clearer revenue trends, reduced balance sheet risk, and defined milestones for the year ahead.

The new credit facility, in particular, reduces refinancing uncertainty and gives the company flexibility to pursue clinical and commercial objectives without near-term funding stress. In healthcare, where adoption cycles are often long and capital intensive, that stability can be as important as top-line growth.

Perceptive Advisors Portfolio Manager Sam Chawla said the firm viewed AVITA as entering a more scalable phase.

“With multiple near-term catalysts, we believe the Company is well positioned to scale efficiently and progress toward sustainable profitability,” Chawla said 

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Broader Context in Healthcare Markets

The update comes at a time when healthcare markets are increasingly rewarding companies that can demonstrate disciplined growth and financial control. Rising interest rates over recent years have made access to capital more selective, particularly for mid-cap medical technology companies.

AVITA’s approach, prioritising balance sheet resilience alongside incremental growth, reflects a broader shift in the sector away from aggressive expansion and toward sustainable execution.

Looking Ahead

AVITA Medical is expected to report its full fourth-quarter and year-end results on February 12, 2026, followed by a conference call the next day. Investors and market watchers will be looking for further detail on margins, operating costs, and progress toward cash flow improvement.

For now, the January update positions AVITA as a company transitioning out of stabilisation mode and into a more deliberate growth phase, with fewer financial unknowns and a clearer operational focus.