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AVHHL Stock Analysis - AVITA Medical, Inc. AI Rating

AVHHL Nasdaq Surgical & Medical Instruments & Apparatus DE CIK: 0001762303
Recently Updated • Analysis: Mar 20, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG SELL
92% Confidence

📊 AVHHL Key Takeaways

Revenue: $71.6M
Net Margin: -67.8%
Free Cash Flow: $-32.2M
Current Ratio: 0.57x
Debt/Equity: N/A
EPS: $-1.74
AI Rating: STRONG SELL with 92% confidence

Investment Thesis

AVITA Medical exhibits severe financial distress with negative stockholders' equity of -$16.6M, negative operating cash flow of -$31.2M, and liabilities exceeding assets by $16.6M. Despite strong gross margins of 82.1%, the company burns cash rapidly with operating losses of -$42.5M on just $71.6M in revenue, indicating fundamental business model challenges that extend beyond product-level economics.

AVHHL Strengths

  • + Exceptional gross margin of 82.1% demonstrates strong product pricing power and production efficiency
  • + Modest revenue growth of 1.0% YoY shows market traction despite operational challenges
  • + Zero long-term debt provides flexibility and eliminates refinancing risk in near term

AVHHL Risks

  • ! Negative stockholders' equity of -$16.6M indicates technical insolvency and heightened bankruptcy risk
  • ! Severe cash burn of -$31.2M in operating cash flow with only $10.2M cash on hand provides minimal runway
  • ! Operating margin of -59.4% and net margin of -67.8% reveal massive operating losses that far exceed revenue generation capacity
  • ! Current ratio of 0.57x indicates immediate liquidity crisis with liabilities exceeding current assets
  • ! Free cash flow of -$32.2M demonstrates the company is not self-sustaining and dependent on external financing

Key Metrics to Watch

AVHHL Financial Metrics

Revenue
$71.6M
Net Income
$-48.6M
EPS (Diluted)
$-1.74
Free Cash Flow
$-32.2M
Total Assets
$56.4M
Cash Position
$10.2M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

AVHHL Profitability Ratios

Gross Margin 82.1%
Operating Margin -59.4%
Net Margin -67.8%
ROE N/A
ROA -86.2%
FCF Margin -45.0%

AVHHL vs Healthcare Sector

How AVITA Medical, Inc. compares to Healthcare sector averages

Net Margin
AVHHL -67.8%
vs
Sector Avg 12.0%
AVHHL Sector
ROE
AVHHL 0.0%
vs
Sector Avg 15.0%
AVHHL Sector
Current Ratio
AVHHL 0.6x
vs
Sector Avg 2.0x
AVHHL Sector
Debt/Equity
AVHHL 0.0x
vs
Sector Avg 0.6x
AVHHL Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

AVHHL Balance Sheet & Liquidity

Current Ratio
0.57x
Quick Ratio
0.46x
Debt/Equity
N/A
Debt/Assets
129.5%
Interest Coverage
-8.50x
Long-term Debt
$0.0

AVHHL 5-Year Financial Trend

AVHHL 5-year financial data: Year 2024: Revenue $63.9M, Net Income -$35.4M, EPS $-1.40. Year 2025: Revenue $70.9M, Net Income -$61.8M, EPS $-2.39.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: AVITA Medical, Inc.'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.39 indicates the company is currently unprofitable.

AVHHL Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-45.0%
Free cash flow / Revenue

AVHHL Quarterly Performance

Quarterly financial performance data for AVITA Medical, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $16.9M -$13.2M $-0.46
Q2 2025 $15.2M -$9.9M $-0.38
Q1 2025 $11.1M -$13.9M $-0.53
Q3 2024 $13.6M -$8.7M $-0.34
Q2 2024 $11.8M -$10.4M $-0.41

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

AVHHL Capital Allocation

Operating Cash Flow
-$31.2M
Cash generated from operations
Capital Expenditures
$1.0M
Investment in assets
Dividends
None
No dividend program

AVHHL SEC Filings

Access official SEC EDGAR filings for AVITA Medical, Inc. (CIK: 0001762303)

📋 Recent SEC Filings

Date Form Document Action
Mar 11, 2026 4 xslF345X05/ownership.xml View →
Feb 23, 2026 4 xslF345X05/ownership.xml View →
Feb 19, 2026 4 xslF345X05/ownership.xml View →
Feb 19, 2026 4 xslF345X05/ownership.xml View →
Feb 12, 2026 10-K rcel-20251231.htm View →

Frequently Asked Questions about AVHHL

What is the AI rating for AVHHL?

AVITA Medical, Inc. (AVHHL) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are AVHHL's key strengths?

Exceptional gross margin of 82.1% demonstrates strong product pricing power and production efficiency. Modest revenue growth of 1.0% YoY shows market traction despite operational challenges.

What are the risks of investing in AVHHL?

Negative stockholders' equity of -$16.6M indicates technical insolvency and heightened bankruptcy risk. Severe cash burn of -$31.2M in operating cash flow with only $10.2M cash on hand provides minimal runway.

What is AVHHL's revenue and growth?

AVITA Medical, Inc. reported revenue of $71.6M.

Does AVHHL pay dividends?

AVITA Medical, Inc. does not currently pay dividends.

Where can I find AVHHL SEC filings?

Official SEC filings for AVITA Medical, Inc. (CIK: 0001762303) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is AVHHL's EPS?

AVITA Medical, Inc. has a diluted EPS of $-1.74.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-12-31 | Powered by Claude AI