Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Aug 10, 2026

Avita Medical, Inc. (RCEL)

A forensic read on Avita Medical, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

F · Poor — capital at risk

Forensic grade

Distress

Financial health

-32.1

Distress distance

Clean

Earnings quality

Forensic signals

11.5%

Revenue growth

The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Avita Medical, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads -32.1, placing it in the Distress zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

-127.0%

FY2025

Return on invested capital. Return on invested capital is -127.0% in the latest fiscal year and slipping from -31% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.

+3.7%/yr

FY2022–FY2025

Share-count dilution. Diluted share count changed +11% over the last 3 years to FY2025 (+3.7%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~10%.

13% of rev

FY2025

Stock-based comp load. Stock-based compensation ran 13% of revenue in FY2025 — about $0.34 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 3.7% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.

Key fundamentals

Latest Revenue$71.6M

Revenue Growth YoY+11.5%

Revenue CAGR (3yr)+27.7%

Net Margin-67.8%

Free Cash Flow-$32.2M

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Data from SEC EDGAR public filings · metrics as of Aug 10, 2026. Forensic signals flag probability, not certainty.