Avita Medical, Inc.

Good day and thank you for standing by. Welcome to the Evita Medical, Inc. Second 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 will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ben Atkins, Vice President of Investor Relations and Corporate Communications. Please go ahead.

Thank you, Operator. Welcome to Avita Medical's second quarter 2026 earnings call. Joining me on today's call are Carrie 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.abitamedical.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 expectations as of today. I will now turn the call over to Kerry.

Good afternoon in the US and good morning in Australia. Thank you for joining us. As you saw in our press release today, we delivered strong revenue growth in the second quarter of $21.7 million, up 18% year-over-year and 13% sequentially. As Aveda continues to expand in the US and build its presence in key international markets, Our results reflect the growing utility of our acute wound care portfolio led by Resell and supported by Cohelix and Permiaderm. In the U.S., Resell generated $18.5 million in revenue during the second quarter, growing approximately 13% sequentially from the prior quarter. This growth reflected physician utilization following physician reimbursement stabilization together with increasing adoption of Resell Go Mini, which continues expanding use in smaller wounds. I'll add a little more color on Resell later in my remarks. Internationally, revenue from Resell increased approximately 26% sequentially over the first quarter. We continue to commercialize Resell Go following regulatory authorizations in Europe, the UK, Australia, and New Zealand. As adoption builds, clinicians are also beginning to share their early clinical experience. During the quarter, the British Burn Association Annual Meeting featured the first UK clinical experience with ReselGo, reporting successful treatment of 17 patients while highlighting improved operating room workflow. While international revenue remains a smaller contributor today, These milestones continue building the foundation for long-term growth alongside our large U.S. opportunity. COHELIX generated $1.7 million, representing approximately 16% sequential growth. We're encouraged by the steady progress we're seeing as hospitals complete their Value Analysis Committee, or VAC, reviews and begin incorporating COHELIX into clinical practice. We continue to maintain a healthy pipeline of approximately 55 active VAC reviews, with 10 to 15 reviews typically completed each quarter, driving a steady increase in ordering accounts. The interim COHELIX-1 clinical data presented earlier this year supports those dynamics by providing hospitals and surgeons with comparative clinical evidence. The study demonstrated substantial faster time to skin graft readiness, compared with leading dermal matrices. And later this year, we expect to submit the complete six-month follow-up dataset for publication, providing additional evidence of long-term durability. Permiaderm generated $600,000 in revenue during the quarter. Commercial adoption remains in its early stages. We're encouraged by the initial response following our recent positioning of Permiaderm as a wound temporizer providing clinicians with an alternative to Allograft to temporarily stabilize and protect the wound before definitive closure. To further support that positioning, we expect results from our Permioderm-1 clinical study later this year. As a reminder, this post-market study evaluated Permioderm as a clinically comparable, lower-cost alternative to Allograft. Today, 25 hospitals have experience using all three Aveda products. Some are already regularly incorporating the full portfolio into clinical practice, while others are still evaluating where each product best fits within their treatment pathway. That's what we'd expect at this stage of adoption of our new products, and it gives us confidence in the opportunity to grow utilization of our full portfolio within our accounts. Since becoming CEO last October, my objective has been straightforward. to build a business that consistently delivers growth quarter over quarter, year over year through disciplined commercial execution. Looking back over the first half of 2026, I believe we've demonstrated that objective in action. We've delivered consecutive quarters of sequential growth, broadened adoption across our portfolio, and we continue to improve the financial profile of the company. That progress gives us greater confidence in where the business is headed and today we're updating our outlook accordingly. First, we're raising our full year 2026 revenue guidance to a range of $86 million to $89 million, representing growth of 20% to 24% over 2025. Second, we're introducing new guidance to achieve cash flow breakeven and begin generating cash during the fourth quarter of 2026. Reaching that milestone is an important step in Avita's evolution. It reflects not only stronger revenue growth, but also the operating discipline and cash generation that David will discuss in more detail.