AVITA Medical, Inc. (RCEL) Q3 2025 Earnings Call Transcript
Revenue $17.1 million for Q3 2025, a 13% year-over-year decline from $19.5 million in Q3 2024. The decline was primarily due to temporary reimbursement headwinds and the timing of hospital VAC reviews.
Gross Profit Margin 81.3% for Q3 2025, down from 83.7% in Q3 2024. The decline was driven by product mix, including the increasing contribution of Cohealyx and PermeaDerm to overall revenue, and other inventory-related adjustments.
Operating Expenses $23 million for Q3 2025, down 24% year-over-year from $30.2 million in Q3 2024. The reduction was due to cost reduction initiatives, including lower salaries, benefits, stock-based compensation, and reduced headcount.
Operating Loss $9.2 million for Q3 2025, a 34% improvement year-over-year from $13.8 million in Q3 2024. This improvement reflects reduced operating expenses.
Net Loss $13.2 million for Q3 2025, a 19% improvement year-over-year from $16.2 million in Q3 2024. The improvement was due to cost management and reduced operating expenses.
Cash Position $23.3 million as of September 30, 2025, up from $15.7 million at the beginning of the quarter. This increase was due to a $13.8 million private placement and improved cash management, including a 40% reduction in operating cash use quarter-over-quarter.
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Bragar Eagel & Squire Investigates Soleno, Avita, and Coty for Potential Securities Violations
- Soleno Stock Decline: Following a report from Scorpion Capital labeling Soleno Therapeutics' Vykat XR as overpriced and potentially unsafe for children, the stock plummeted by 7.41% to close at $71.63 on August 15, 2025, indicating significant market concerns regarding product safety.
- Avita Financial Struggles: Avita Medical revealed a backlog of unpaid claims affecting demand for its Recell product in its Q2 2025 report, leading to a 21% drop in stock price to $4.25 on August 8, 2025, highlighting major challenges in medical claims management.
- Coty's Disappointing Performance: Coty reported an unexpected loss and provided disappointing guidance for FY 2025, resulting in a 21.6% decline in stock price to $3.81 on August 21, 2025, reflecting broader market challenges and shifts in consumer behavior impacting sales.
- Legal Investigation Impact: Bragar Eagel & Squire is investigating potential federal securities law violations by these three companies, which could lead to further legal and financial repercussions, necessitating investor vigilance regarding future developments to assess potential risks.
AVITA Medical Appoints Joe Woody as Board Director, Lou Panaccio Retires
- New Board Appointment: AVITA Medical announces the appointment of Joe Woody as a new non-executive director, bringing over 20 years of leadership experience in the med-tech sector, which will be crucial for the company's growth trajectory.
- Leadership Transition: Lou Panaccio retires after over a decade of service, having served as Chairman and significantly shaped the company's commercial and operational strategies, ensuring stability in the market.
- Rich Industry Experience: Joe Woody's previous roles include CEO of Avanos Medical and executive positions at Acelity Holdings, enhancing the board's depth of expertise with his extensive background in the industry.
- Strategic Value Enhancement: The addition of the new director not only strengthens AVITA Medical's leadership team but also supports the company's innovation and market expansion in acute wound care solutions.
