AVITA Medical (RCEL) has just wrapped up FY 2025 with Q4 revenue of US$17.6 million, a basic EPS loss of US$0.38, and net income loss excluding extra items of US$11.6 million, giving investors a clear read on how the year finished. Over recent quarters, the company has seen revenue range from US$17.1 million to US$18.5 million, while quarterly basic EPS losses have moved between US$0.38 and US$0.53 as management pushes ahead with commercial execution and product launches. For investors, the latest set of numbers keeps the focus squarely on how quickly AVITA can tighten margins and convert its revenue base into a more efficient, scalable earnings profile.

See our full analysis for AVITA Medical.

With the headline figures on the table, the next step is to weigh them against the key bull and bear narratives around AVITA Medical to see which stories the numbers support and which they call into question.

TTM loss of US$48.6 million keeps profitability in focus

• Over the trailing twelve months, AVITA Medical recorded total revenue of US$71.6 million and a net loss excluding extra items of US$48.6 million, with basic EPS at a loss of US$1.74.
• Consensus narrative highlights a path to stronger margins and profitability over time, and these results both support and test that idea:
  • Analysts expect earnings to improve, with forecasts calling for revenue growth of about 28.1% per year and earnings growth of roughly 50.4% per year, while the latest full year still shows a sizeable loss of US$48.6 million.
  • The consensus view points to margin improvement from a current loss position, yet losses have widened about 15.1% per year over the past five years. The trailing figures therefore underline how much work is still ahead before those forecasts are reflected in the financials.

Negative equity and short cash runway raise financial risk

• On the balance sheet side, AVITA reported negative shareholders' equity and less than one year of cash runway over the last 12 months, alongside TTM net losses of US$48.6 million.
• Bears focus on these balance sheet pressures, and the current data lines up closely with that cautious view:
  • Critics highlight that continued net losses, high operating expenses and a short cash runway increase the chance of further funding needs, which is consistent with the recent shareholder dilution flagged in the last year.
  • Bearish arguments also point to risks from ongoing reimbursement challenges and regulatory delays. When those issues are paired with negative equity and a cash runway of less than one year, it illustrates why they see financial stability as a key concern despite the growth forecasts.

If you want to see how skeptics connect these balance sheet pressures to their full thesis on AVITA Medical, check out the detailed bear case: 🐻 AVITA Medical Bear Case

Low 1.8x P/S against DCF fair value of US$17.15

• At a current share price of US$4.16 and trailing twelve month revenue of US$71.6 million, AVITA trades on a P/S of about 1.8x, which sits well below the US Biotechs industry average of 12.3x and peer average of 7.5x, and also below a DCF fair value estimate of US$17.15.
• Bulls argue this combination of low multiples and higher growth expectations is appealing, and the numbers give them some solid talking points as well as some pushback:
  • On the supportive side, forecasts call for revenue growth around 28.1% a year and earnings growth of roughly 50.4% a year, with the company expected to become profitable within three years. Bulls see this as mismatched with a 1.8x P/S and a DCF fair value that is more than four times the current price.
  • On the other hand, the same risk summary flags negative shareholders' equity and less than one year of cash runway, along with multi year loss trends. Even with the low P/S and DCF fair value of US$17.15, the present valuation is therefore being weighed against meaningful financial stability questions.

Bulls think this low P/S and the gap to DCF fair value could be the setup for a strong upside story, but the details matter, so it is worth reading their case in full: 🐂 AVITA Medical Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for AVITA Medical on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your AVITA Medical research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

See What Else Is Out There

AVITA Medical combines a trailing twelve month loss of US$48.6 million, negative equity and a short cash runway, which keeps its financial resilience in question.

If that balance sheet risk gives you pause, take a few minutes to scan 85 resilient stocks with low risk scores that focus on companies prioritising resilience and a more robust financial footing.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.