Shares of Avita Therapeutics (AVH.AU) plummeted 20% in Friday's trading session following the release of disappointing second-quarter results and a significant downward revision to its full-year 2025 revenue guidance.

The company reported a second-quarter loss of $0.38 per share, narrower than the $0.6 loss reported in the same period last year, but wider than the $0.27 loss analysts had forecasted. Revenue for the quarter ended June 30 came in at $18.4 million, up from $15.2 million a year earlier, but fell short of the $21.8 million expected by analysts surveyed by Visible Alpha.

The most significant factor contributing to the stock's sharp decline was Avita's decision to lower its full-year 2025 revenue guidance. The company now expects revenue in the range of $76 million to $81 million, down from its previous projection of $100 million to $106 million. This revised outlook still represents a growth of 19% to 27% from the prior year, but the substantial reduction has clearly shaken investor confidence in the company's near-term prospects.