Avita Medical, Inc.

Ladies and gentlemen, thank you for standing by and welcome to Aveda Medical, Inc. first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you would need to press star 11 on your telephone and you will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Ben Atkins. Please go ahead.

Thank you, operator. Welcome to Avita Medical's first quarter of the 2026 earnings call. Joining me on today's call are Kerry Vance, President and Chief Executive Officer, and David O'Toole, Chief Financial Officer. Today's earnings release and presentation are available on our website at www.avitamedical.com under the Investor Relations section. Before we begin, I would like to remind you that this call includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are neither promises nor guarantees and involve known and unknown risks and uncertainties that could cause actual results to differ materially from any expectations expressed or implied by the forward-looking statements. Please review our most recent filings with the SEC for comprehensive descriptions of the risk factors. Any forward-looking statements provided during this call are based on management's expectations as of today. I will now turn the call over to Kerry.

Good afternoon in the U.S. and good morning in Australia. Thank you for joining us. Before we turn to the quarter, I want to briefly acknowledge my appointment as President and Chief Executive Officer. Over the past six months, I've had the opportunity to serve in this role on an interim basis, working closely with our team, our customers, and the Board. I appreciate the confidence the board has placed in me following its thorough search process, and I'm excited to lead Aveda into this next phase. I'd also like to recognize our new board chair, Jan Stern-Reed. Jan has been deeply engaged with the company, and I look forward to working closely with her and the board as we continue to execute on our priorities. Over the same period, I've spent time visiting the hospitals using our products, speaking with surgeons and what's clear to me is that this is not an abstract business when you're in the operating room you see firsthand the partnership we have with surgeons and the role our products play in helping patients recover and return to their lives that is what drives our mission turning to the first quarter I'll start by briefly connecting the quarter to where we've been Because the progression over the past couple of quarters is relevant to understanding what you're seeing in Q1. Over the past two quarters, we've been focused on two specific priorities. First, stabilizing the business. That meant working through the disruption to clinical reimbursement for resale, reengaging our core accounts, and reestablishing a consistent procedure-based demand cadence. Second, improving how we operate. We simplified our focus around our highest value centers, re-energized our sales organization, and put in place a new credit agreement with terms that are better aligned to the business and our expected revenue trajectory. Q1 has been the quarter where we have begun to see those changes translate into more consistent performance. Let me begin with the headline results. As you saw in the press release, And as reflected on this slide, revenue was approximately $19.3 million, up 4% year over year, and approximately 10% sequentially. Building on the momentum, we saw exiting Q4 and representing our highest quarterly revenue over the last year. David will walk through the full financials in more detail, but importantly, operating expenses declined year over year, reflecting the cost-saving actions we implemented in the second quarter of 2025. And we are reaffirming full-year guidance of $80 to $85 million. We also saw continued progress across the business and advancement across our product portfolio. I'll speak to these during my remarks. As we think about the quarter, there are three points I would highlight. First, the year-over-year comparison is still influenced by prior ordering patterns. The business a year ago included more bulk purchasing behaviors that we no longer see today. Second, sequential quarter-over-quarter performance is a better indicator of underlying demand. Revenue increased approximately 10% from Q4, with product demand building momentum through the quarter and continuing into April. Third, and most important, is how the operating cadence is improving. We are seeing more frequent, smaller orders, better alignment between usage and purchasing, and improved engagement across our core accounts. This reflects a shift away from past variability towards consistency. and ultimately predictability going forward. Let me now go through some dynamics across our portfolio. Turning first to resale. At this point, all seven Medicare administrative contractors have published payment rates for clinician use. What we are seeing as a result is a gradual return to utilization patterns that reflect procedural demand rather than reimbursement uncertainty. That shows up in both re-engagement within the most affected burn centers and sequential quarterly improvement in ordering and case activity. We are also beginning to see expansion in use cases, particularly with Resell Go Mini in smaller burns and trauma settings. Internationally, recent regulatory clearances in Australia and New Zealand position us to expand Resell Go in those markets. In addition, during the quarter, we announced a new long-term agreement with BARDA to support U.S. burn emergency preparedness. This fills in a long-standing partnership and reflects the role resale can play in a mass casualty response, where rapid treatment and scalability are critical. From a business perspective, this provides a modest level of recurring readiness revenue, while also reinforcing the importance of resale within the broader healthcare system. More broadly, it underscores the clinical relevance and reliability of the platform in high-acuity settings and the confidence of a key government partner in our ability to deliver at scale. So stepping back, resale remains the foundation of the business and is, again, a driver of utilization as we build across our accounts. Next, let me turn to Cohelix. From a commercial standpoint, Q1 represents early stage adoption with encouraging signals. We saw, for example, an increasing number of ordinary accounts as VAC approvals advance and early repeat usage by initial adopters. This is consistent with what we would expect at this stage of a product lifecycle. An important development in the quarter was the interim clinical data from the COHELIX-1 study. At a high level, the data shows a significant reduction in time to graph readiness, approximately 20 days versus benchmark, with consistent outcomes across patients. We also saw a median time to graphing of approximately 11 days. Early graphing achieved in some cases within the first week, and high levels of investigator satisfaction. Importantly, this dataset is now supporting ongoing backward use, helping to reinforce the clinical value proposition as hospitals evaluate adoption. We also continue to hear positive feedback from clinicians already using CoHELUS, particularly around the consistency of outcomes, which is contributing to early repeat use. We expect a full dataset later this year, which will be an important next step in supporting broader adoption. And I would encourage you to listen to the Key Opinion Leader webinar we hosted in April, available on our website. That session walks through the data in more detail and, importantly, illustrates how Covelix is being integrated into surgical workflows, including its use alongside resell and stage procedures. Finally, touching on Permioderm. From a commercial standpoint, performance is still developing. This quarter, we introduced new clinical positioning relative to cadaveric allograft, focused on its role as a more affordable biosynthetic alternative in wound coverage and healing. We expect data from the PERMIODERM-1 study later this year. Early signals, including histology, indicate comparable biological performance to cadaveric allograft. So similar to COHELIX, the near-term role of PERMIODERM is to build clinical confidence, clear positioning within the treatment pathway, and familiarity among surgeons. We had a strong presence at the American Burn Association annual meeting in April, which remains the most important clinical and commercial forum for our business. What stood out this year was the level of engagement across the portfolio. We saw broad scientific participation, meaningful clinical interaction across multiple forums, and increasing discussion around how our products are used together in practice. Importantly, this was not just awareness, it was active clinical dialogue, including education, case sharing, and feedback from surgeons. So, the takeaway from this year's ABA conference We are seeing growing clinical engagement and increasing integration into clinical discussions and workflows, supported by both data and real-world experience. In summary, over the past two quarters, we've stabilized the business and improved how we operate. What we're now seeing is a return to more consistent utilization across our accounts, with early signs of growth as that foundation takes hold. At the same time, the momentum we saw at ABA, together with the Cohelix clinical data, reinforces the clinical differentiation and value of our platform. As we look ahead to Q2, our focus is on continued sequential growth, driven by increasing utilization across our core burn and Tier 1 trauma accounts, and demonstrating our progress is repeatable. With that, let me hand to David to review the financials in more detail.