By Chris Wack

Avita Medical shares dropped 29%, to $3.83, after the company reported a wider-than-expected second-quarter loss and reduced revenue guidance.

The stock hit its 52-week low of $3.60 earlier in the session, and is down 52% in the past 12 months.

The therapeutic wound-care company said it had a second-quarter loss of $9.92 million, or 38 cents a share, compared with a loss of $15.4 million, or 60 cents a share, in the same quarter last year. Analysts polled by FactSet were looking for a loss of $6.6 million, or 27 cents a share.

Revenue for the quarter was $18.4 million, compared with last year's $15.2 million and the $22.5 million analysts were expecting.

Avita said it saw a significant headwind from a temporary gap in Medicare administrative contractor payments to providers for the use of its flagship Recell System, which it said led to a weakening in demand. The company said multiple Medicare administrative contractors initiated payments in July, with resolution expected in the third quarter.

The Valencia, Calif., company lowered its 2025 revenue guidance to $76 million to $81 million, compared with previous guidance of $100 million to $106 million, as a result of slower-than-expected sale in the first half.

As of June 30, the company had $15.7 million in cash, cash equivalents, and marketable securities.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

August 08, 2025 10:12 ET (14:12 GMT)

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