Avita Medical (NASDAQ:RCEL) shares jumped 21.7% in premarket trading after the regenerative medicine company delivered record second-quarter financial results that exceeded analyst expectations on both revenue and earnings. The strong report, released after Thursday’s market close, extended gains from the previous trading session and fuelled additional buying in after-hours and premarket trading.
The company generated record quarterly revenue of $21.7 million, representing year-over-year growth of 18% and outperforming Wall Street estimates by roughly 8%. Adjusted loss per share narrowed to $0.25, beating the consensus forecast of a $0.30 loss.
Higher Guidance Reinforces Growth Outlook
Alongside the earnings beat, Avita Medical increased its full-year 2026 revenue guidance to between $86 million and $89 million, up from its previous forecast of $80 million to $85 million.
Management also reaffirmed its objective of reaching cash flow breakeven during the fourth quarter of 2026, strengthening confidence in the company’s path toward profitability.
Chief Executive Cary Vance said reimbursement issues that had weighed on the business over the past year have continued to improve following discussions with Medicare Administrative Contractors. He added that expected reimbursement coding changes in 2027 should further simplify adoption for healthcare providers.
Analyst Upgrade Adds to Positive Momentum
The strong quarterly performance was accompanied by a favourable analyst revision, with BTIG upgrading Avita Medical from Neutral to Buy and assigning a $7.00 price target.
The brokerage cited improved operational execution and the company’s record quarterly revenue as key reasons for the more constructive outlook, providing additional support for investor sentiment.
Commercial Growth Continues Across Product Portfolio
The broader US equity market provided a supportive backdrop, with the S&P 500 rising around 0.2% and the Nasdaq advancing approximately 0.5%. However, Avita Medical’s sharp gains were driven primarily by company-specific developments rather than broader market conditions.
The company’s flagship RECELL platform continued to deliver strong commercial momentum during the quarter, while increasing adoption of Cohealyx and PermeaDerm further supported revenue growth and reinforced confidence in management’s commercial strategy.
The combination of record financial results, higher full-year guidance, a clear roadmap to cash flow breakeven and a positive analyst upgrade created a series of catalysts that helped propel Avita Medical shares sharply higher in premarket trading.
Avita Medical stock price
