Avita Medical Targets Q4 2025 Cash Flow Breakeven as Revenue Growth Builds

Avita Medical raised its 2025 revenue guidance to $86 million–$89 million , citing sequential growth from $17.6 million to $21.7 million over recent quarters. The company is targeting cash flow breakeven in Q4 2025 , supported by declining cash use, stable operating expenses and margins, and $11 million in cash available at the end of Q2. Avita sees significant expansion potential for its RECELL, Cohealyx and PermeaDerm portfolio, with only about 15% penetration in its core U.S. market; reimbursement uncertainty has eased as contractors now publish policies and pay claims. Avita Medical NASDAQ: RCEL expects continued sequential revenue growth and aims to reach cash flow breakeven in the fourth quarter of 2025, President and CEO Cary Vance said at the Canaccord 46th Annual Boston Growth Conference. Vance, who has been CEO for about 10 months after previously serving on the company’s board, described Avita as a hospital-based acute wound care company focused on burn centers, Level 1 trauma centers and certain reconstructive and cosmetic surgery settings. He distinguished the company’s business from chronic wound care, which is often handled in office-based settings. The company targets roughly 200 U.S. centers, including approximately 120 burn centers and 55 to 60 Level 1 trauma centers, along with an additional group of facilities where reconstructive or cosmetic surgeons may use its technology. Vance put Avita’s U.S. addressable market at $1.3 billion and said the international opportunity is about the same size. Vance cited revenue growth over the past several reported quarters, from $17.6 million to $19.3 million to $21.7 million. He said the company has focused on stabilizing the business and establishing an organic, quarter-over-quarter growth trajectory. Avita raised its 2025 revenue guidance to $86 million to $89 million, from a prior range of $80 million to $85 million. Vance said the company expects to hold operating expenses and margins relatively consistent as revenue grows, supporting its goal of becoming cash flow breakeven in the fourth quarter. As of the end of the second quarter, the company had $11 million of cash available, Vance said. He added that Avita’s use of cash has declined and that the company does not expect to need additional operating expense investment to support near-term growth. Vance said Avita has positioned its commercial organization to grow without adding sales representatives for at least a year and a half or longer, assuming it continues to expand quarter by quarter. While he did not provide a total sales-force headcount, he said representatives generally cover three to four accounts each and are deployed nationwide. Avita’s portfolio includes RECELL, Cohealyx and PermeaDerm, which Vance said can be used at different stages of treatment for patients with large burns or traumatic wounds. PermeaDerm is used as a biosynthetic dressing or temporizer after a wound is cleaned and excised. Vance said it is transparent, allowing clinicians to protect and assess the wound before determining how to close it. Cohealyx is a dermal matrix intended to prepare and vascularize the wound bed before grafting. RECELL can be used alone to spray skin cells or alongside split-thickness or meshed skin grafts. The RECELL line includes the manual RECELL product, automated RECELL GO and smaller RECELL GO mini for smaller wounds. Vance said the three products can be sold into the same hospitals and used by the same physicians, making the portfolio more efficient for the company’s sales force.