Financial Performance - Total revenues increased by 11%, or $7.4 million, to $71.6 million for the year ended December 31, 2025, compared to $64.3 million in 2024[197] - Total revenues increased by 28%, or $14.1 million, to $64.3 million for the year ended December 31, 2024, compared to $50.1 million in the prior year[205] - Net loss decreased by $13.3 million to $48.6 million, compared to a net loss of $61.8 million in the previous year[204] Gross Profit and Margins - Gross profit margin was 82.1%, down from 85.8% in the prior year, primarily due to product mix and higher inventory reserve[198] - Gross profit increased by 30%, or $12.8 million, to $55.2 million, resulting in a gross profit margin of 85.8%[205][206] Operating Expenses - Total operating expenses decreased by 9%, or $10.4 million, to $101.4 million compared to $111.8 million in 2024[199] - Sales and marketing expenses decreased by 9%, or $5.1 million, to $53.1 million, attributed to reductions in salaries, stock-based compensation, and travel expenses[200] - General and administrative expenses decreased by 18%, or $5.8 million, to $27.3 million, primarily due to lower stock-based compensation and salaries[201] - Total operating expenses increased by 29%, or $25.3 million, to $111.8 million, compared to $86.4 million in the prior year[208] - Sales and marketing expenses rose by 56%, or $20.9 million, to $58.2 million, driven by increased personnel costs and expansion of the sales force[209] - General and administrative expenses increased by 17%, or $4.9 million, to $33.1 million, primarily due to headcount growth and stock-based compensation[210] - Research and development expenses increased by 2%, or $0.5 million, to $20.8 million, driven by higher salaries and stock-based compensation[202] - Research and development expenses decreased by 2%, or $0.5 million, to $20.3 million, mainly due to lower professional fees[211] Cash Flow and Financing - The company had approximately $10.2 million in cash and cash equivalents and $7.9 million in marketable securities as of December 31, 2025[215] - For the year ended December 31, 2025, net cash used in operating activities was $31.2 million, a decrease from $48.9 million in 2024, primarily due to higher gross profit and lower operating costs[229] - Net cash provided by investing activities decreased to $12.5 million in 2025 from $37.4 million in 2024, attributed to lower cash inflows from maturities of marketable securities and reduced capital expenditures[230] - Net cash provided by financing activities increased significantly to $14.9 million in 2025 from $3.5 million in 2024, driven by net proceeds from a Placement[231] - The company closed a five-year credit facility providing up to $60 million in capital, with initial TTM revenue covenants set at $68.5 million for Q1 2026[186] - A new credit agreement was entered into on January 13, 2026, providing a senior secured credit facility of up to $60 million[217] Regulatory Approvals and Product Development - The Centers for Medicare & Medicaid Services approved a New Technology Add-On Payment for the RECELL® System, allowing up to $4,875 in additional reimbursement per case[189] - RECELL GO mini was approved by the FDA in December 2024, designed for treating smaller wounds up to 480 cm², enhancing the RECELL GO platform[180] - The company aims to increase market penetration in U.S. burn centers and expand adoption of RECELL for traumatic and surgical wounds[182] Tax and Accounting - Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between financial statement carrying amounts and their respective tax bases[261] - The company regularly reviews its uncertain tax positions, recognizing tax benefits when it is more-likely-than-not that the position will be sustained[262] - The revenue recognition for the RECELL GO product is disaggregated between ASC 606 for RPKs and ASC 842 for RPD[239] - The company has elected the fair value option for accounting under ASC 825-10 for its loan facility, allowing for remeasurement every reporting period[257] - The fair value of the loan facility was determined using a Monte Carlo simulation, capturing different potential cash flow outcomes[258] Shareholder and Dividend Policy - The company has no plans to commence the payment of dividends, with no dividends paid for the year ended December 31, 2025[233] - The company has never paid cash dividends and does not expect to pay any in the foreseeable future[258] Miscellaneous - The company accrued $2.0 million related to 510(k) clearance received on December 19, 2024, with an additional obligation of up to $3.0 million contingent on clinical study results[234] - The company aims to maintain a capital structure that ensures the lowest cost of capital available, regularly reviewing opportunities to improve outcomes for stakeholders[232] - The trailing 12-month revenue covenant for the fourth quarter of 2024 was removed, which was previously set at $67.5 million[228] - The company issued warrants to purchase up to 145,180 shares of common stock at an exercise price of $0.01 per share as part of the Fourth Amendment to the Previous Credit Agreement[227] - The company has no material off-balance sheet arrangements that could affect its financial condition or results of operations[235] - The fair value of warrants is recorded as a liability and subject to re-measurement at each settlement date[256] - The company uses the Black-Scholes option pricing model to estimate the fair value of warrant liabilities[256] - The expected term of stock options is determined using the "simplified" method due to limited historical exercise experience[258] - The company has limited historical option exercise experience due to its short operating history, with the first plan established in 2016[258] - As a smaller reporting company, the company is not required to provide detailed market risk disclosures[265]

Fourth Quarter and Full Year 2025 Financial and Business Update February 12, 2026 Forward-Looking Statements & Legal Disclaimers This presentation and the accompanying oral commentary may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are predictions and subject to significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Forward-looking statements may be identifie ...

Core Insights - AVITA Medical reported financial results for Q4 and full year 2025, indicating a year of stabilization and a shift towards execution-focused growth in 2026 [1][4]. Fourth Quarter 2025 Financial Highlights - Total revenue for Q4 2025 was $17.6 million, a decrease of 4% from $18.4 million in Q4 2024, primarily due to reimbursement headwinds [6][7]. - Gross profit margin was 81.2%, down from 87.6% in Q4 2024, influenced by product mix and inventory adjustments [8]. - Operating expenses decreased by 5% to $24.7 million compared to $26.1 million in Q4 2024, reflecting a lower cost base [9]. - Net loss for Q4 2025 was $11.6 million, or a loss of $0.38 per share, compared to a loss of $11.6 million, or $0.44 per share in Q4 2024 [12]. Full-Year 2025 Financial Highlights - Total revenues for 2025 increased by 11% to $71.6 million from $64.3 million in 2024, driven by deeper penetration in customer accounts and new product launches [13]. - Gross profit margin for the full year was 82.1%, down from 85.8% in 2024, primarily due to product mix and higher inventory reserves [14]. - Total operating expenses for 2025 were $101.4 million, a decrease of 9% from $111.8 million in the prior year [15]. - Net loss for the full year was $48.6 million, or a loss of $1.74 per share, compared to a net loss of $61.8 million, or $2.39 per share in 2024 [16]. Business Updates and Future Guidance - The company expects full-year 2026 revenue in the range of $80 to $85 million, representing growth of approximately 12% to 19% compared to 2025 [5]. - In January 2026, the company refinanced its existing debt under a new credit facility with Perceptive Advisors, securing up to $60 million to strengthen its capital structure [17][18]. - As of January 2026, six of the seven Medicare Administrative Contractors have published payment rates for RECELL, alleviating a key constraint on utilization experienced in 2025 [6]. - The company is focused on disciplined cash management and accelerating commercial momentum across its core U.S. burn and trauma center opportunities [19].

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Company Overview - AVITA Medical, Inc. (NASDAQ:RCEL) is a regenerative medicine company focused on developing and commercializing innovative therapeutic solutions for complex wound and tissue repair [4] Financial Performance - The company has guided for FY26 revenue of $80 million to $85 million, an increase from $71.6 million in FY24, indicating a positive growth outlook [3] - Recent debt refinancing has alleviated near-term liquidity concerns, contributing to a healthier balance sheet [1] Strategic Focus - Management emphasized that the past year was dedicated to stabilizing revenue, advancing the clinical pipeline, and improving financial flexibility, laying the groundwork for future growth [3] - AVITA Medical is transitioning into a phase of execution-led growth, supported by upcoming clinical and commercial milestones [3][4] Analyst Insights - Lake Street raised its price target on AVITA Medical to $3.50 from $3 while maintaining a Hold rating, indicating cautious optimism about the company's future performance [1]

Core Insights - The article emphasizes the importance of identifying underfollowed and undervalued companies that possess innovative solutions capable of disrupting market share [1]. Company Insights - The author has a long position in the shares of RCEL, indicating a belief in the company's potential for growth and value appreciation [1]. Industry Insights - The investment strategy discussed involves balancing risks with a diversified portfolio, including fixed income investments, which reflects a cautious approach to market volatility [1].

Core Insights - AVITA Medical presented data from 19 scientific abstracts at the 2026 Boswick Burn & Wound Symposium, showcasing the integrated use of its technologies RECELL, PermeaDerm, and Cohealyx in wound care [1][2][3] Group 1: Integrated Use of Technologies - The first surgeon-reported experience integrating RECELL, PermeaDerm, and Cohealyx was highlighted, demonstrating reduced need for painful dressing changes and avoiding long-distance follow-ups [3] - This integrated approach is particularly beneficial for rural and community hospitals with limited access to specialized burn services [3] Group 2: Clinical Findings - Initial findings from multicenter clinical trials on PermeaDerm and Cohealyx were presented, with full results expected in 2026 [4] - PermeaDerm showed early blood vessel growth and organized tissue formation without increased inflammation compared to traditional human skin for temporary coverage [5] - Cohealyx demonstrated cellular infiltration and early blood vessel formation within two weeks, preparing the wound for skin grafting without complications [6] Group 3: RECELL Evidence and Benefits - A systematic review of 27 peer-reviewed studies reinforced the benefits of RECELL, showing consistent trends in healing, reduced complications, and shorter hospital stays [7][10] - In older burn patients, adding RECELL to standard skin grafting resulted in nearly 16 days shorter hospital stays and fewer graft failures [9] - Patients treated with RECELL for deep partial-thickness burns spent about one-third less time in the hospital compared to traditional grafting methods [9] Group 4: Practical Applications - Surgeons are demonstrating how the staged use of AVITA Medical's advanced wound care technologies can improve healing and help hospitals manage limited resources [11]

Core Viewpoint - AVITA Medical is focused on patient-centric care and aims to innovate healthcare standards through clinically driven solutions and economic benefits for customers [2]. Group 1: Company Overview - Cary Vance has been involved with AVITA Medical for three years, initially joining the Board and recently becoming the CEO [2]. - The company emphasizes the importance of clinical data and innovation in its operations to enhance patient care [2]. Group 2: Customer Focus - AVITA Medical's mission revolves around supporting patients during their most challenging times, indicating a strong commitment to patient care [3]. - The company is beginning to expand its presence in Europe, suggesting growth opportunities in new markets [3].

Summary of AVITA Medical FY Conference Call Company Overview - **Company**: AVITA Medical (NasdaqCM:RCEL) - **Industry**: Medical Technology, specifically focused on burn treatment and wound care Key Points and Arguments 1. **Mission and Focus**: AVITA Medical is dedicated to patient care, emphasizing clinical data, innovation, and economic benefits for customers [2][4] 2. **Market Opportunity**: There are approximately 40,000 hospitalized burn patients annually, with many not receiving optimal care. AVITA's Resell product line aims to address this gap [4] 3. **Product Line**: The company offers several products including RECELL, RECELL GO, RECELL Micro, CoHelix, and PermeaDerm, which are designed for wound closure and healing [5][6] 4. **Economic Benefits**: The use of AVITA's products can lead to significant cost savings for hospitals, including a potential reduction of up to $42,000 in costs due to a 36% reduction in length of stay [14][20] 5. **Growth Strategy**: The company aims to penetrate existing accounts more deeply, currently only achieving about 5% penetration across three products [10] 6. **International Expansion**: AVITA is expanding into Europe, Australia, and Japan, with recent events in Switzerland increasing product visibility [11] 7. **Reimbursement Challenges**: The company faces reimbursement uncertainties, particularly with the execution of Category I CPT codes, which has impacted growth [12][15] 8. **Financial Guidance**: AVITA has provided guidance for 2026, expecting revenue to grow from approximately $72 million in 2025 to between $80 million and $85 million [17][22] 9. **Debt Refinancing**: The company has refinanced its debt with more favorable terms, providing a buffer for cash management and operational focus [17][18] 10. **Clinical Studies**: Ongoing post-market studies for CoHelix and PermeaDerm are expected to yield data that will be shared throughout the year, contributing to clinical credibility [13][14] 11. **Sales Strategy**: The sales team is focused on existing accounts and building relationships with physicians to drive product adoption [20][29] 12. **Cash Management**: AVITA has improved its cash management practices, reducing cash burn and positioning itself for growth without significant additional spending [31][32] Additional Important Content - **Utilization as a KPI**: The company emphasizes tracking utilization rates of its products as a precursor to revenue growth, indicating a focus on operational metrics [33][34] - **Market Sentiment**: There is a strong positive sentiment among physicians regarding the RECELL product, which is seen as a gold standard in burn treatment [19] - **Execution Focus**: The leadership stresses the importance of execution and focus on core business areas to drive growth and operational efficiency [28][29]

AVITA Medical®, Inc | Cary Vance, Interim CEO J.P. Morgan Healthcare Conference (ASX: AVH, NASDAQ: RCEL) Forward-Looking Statements & Legal Disclaimers This presentation and the accompanying oral commentary may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are predictions and subject to significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Forward-looking stat ...