RCEL Stock Forecast & Price Target

AVITA Medical reported revenue of $18.4 million, reflecting an approximate 21% year-over-year increase, which underscores the growing demand for its RECELL system as an innovative treatment option. The strong clinical validation of RECELL technology, particularly its ability to reduce hospital stays by 36% for adults with deep partial-thickness burns, supports a compelling value proposition for both patients and healthcare providers. With ongoing rollout efforts across 136 US burn centers and anticipated expansion into the Japanese market via a distribution partnership, AVITA is well-positioned to leverage regulatory momentum and brand recognition to drive further adoption of its products.

Avita Medical has significantly lowered its full-year 2025 revenue guidance to a range of $76 million to $81 million, which represents a notable decline from the previous forecast of $100 million to $106 million. Concurrently, the company's gross profit margin has decreased to approximately 81.2%, down from 86.1%, primarily attributed to product mix shifts and revenue sharing arrangements associated with newer product lines. The combination of reduced revenue expectations and declining profit margins raises concerns about the overall financial stability and growth prospects of Avita Medical.