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Thursday, November 6, 2025 at 4:30 p.m. ET CALL PARTICIPANTS Interim Chief Executive Officer — Carrie VanceChief Financial Officer — David O'Toole Need a quote from a Motley Fool analyst? Email [email protected] Revenue declined to $17.1 million for Q3 2025, a 13% year-over-year decrease, due to "ongoing impact of reimbursement disruption" according to Carrie Vance and delayed hospital Value Analysis Committee reviews.Management lowered full-year 2025 revenue guidance to $70 million–$74 million, down from prior guidance of $76 million–$81 million, citing slower reimbursement normalization and measured expectations for ReCell demand.Gross margin was 81.3%, down from 83.7% in Q3 2024, attributed to increased contribution from lower-margin products Co Helix and Permeoderm, and inventory adjustments.The company secured a waiver for its Q3 revenue covenant and an amendment lowering its Q4 2025 revenue covenant under the OrbiMed credit agreement, highlighting ongoing covenant compliance risk. Revenue -- $17.1 million in the third quarter, a 13% year-over-year decline, primarily reflecting "temporary reimbursement headwinds" according to David O'Toole and the timing of hospital VAC reviews.Full-Year Guidance -- Management revised full-year 2025 revenue outlook to $70 million–$74 million, down from $76 million–$81 million, with the update driven by slower-than-anticipated reimbursement recovery and conservative ReCell utilization assumptions.Gross Margin -- Reported gross margin was 81.3% for Q3 2025, down from 83.7% in Q3 2024, due to product mix shift and inventory-related adjustments; ReCell franchise margin remained at 83.6%.Operating Expenses -- Total operating expenses decreased $7.2 million, or 24% year-over-year, to $23 million as a result of cost reduction initiatives and lower staffing costs.Operating Loss -- Operating loss improved 34% year-over-year to $9.2 million, down from $13.8 million in Q3 2024.Net Loss -- Net loss totaled $13.2 million or $0.46 per share, a 19% improvement from $16.2 million or $0.62 per share in Q3 2024.Cash Position -- Quarter-end cash, cash equivalents, and marketable securities were $23.3 million, following a $13.8 million private placement in August 2025 and quarterly cash usage of $6.2 million, down from $10.1 million in Q2 2025 (nearly 40% reduction from Q2 2025 to Q3 2025).OrbiMed Facility -- The company obtained a waiver for its Q3 2025 revenue covenant and amended the Q4 2025 revenue covenant to $70 million under its OrbiMed loan agreement.Reimbursement Resolution -- Interim CEO Vance stated, "all seven MACs have now published or confirmed acceptance of provider reimbursement rates," removing a major barrier to ReCell utilization.Market Focus -- Approximately 90% of revenue originates from about 200 core U.S. burn and trauma hospitals as of the Q3 2025 earnings call, which represent a $1.3 billion segment of the broader $3.5 billion addressable U.S. market.Commercial Priorities -- Management prioritized rebuilding ReCell order momentum, ensuring consistent product utilization, and completing commercial organization transition to enhance forecast accuracy.European Milestone -- First patient outside the U.S. treated with ReCell Go in Germany following its CE Mark approval in September.Co Helix and Permeoderm -- Co Helix is under Value Analysis Committee review in roughly one-third of target accounts as of Q3 2025, with full clinical study enrollment expected by year-end; Permeoderm also showing positive early results and data expected next year.Expense Controls -- CFO O'Toole stated, "We don't think there are any more additional reductions in expenses that need to happen," indicating the current cost base is considered adequately lean. Management identified the quarter as an "inflection point" according to David O'Toole marked by revenue disruption from reimbursement uncertainty, but confirmed the resolution of all seven Medicare Administrative Contractors' provider reimbursement rates for ReCell. Leadership emphasized an immediate focus on core U.S. accounts, now comprising roughly 90% of revenue as of Q3 2025, and outlined new commercial execution initiatives targeting order momentum and forecast reliability. ReCell Go achieved its first international use in Germany, while Co Helix and Permeoderm expanded clinical progress and addressable market opportunities. The team confirmed ongoing cost discipline, supported by a strengthened cash position and covenant relief actions under the OrbiMed facility. CFO O'Toole explained, "As revenue grows in 2026, we will methodically move toward cash flow breakeven," highlighting a path that depends on improved commercial traction rather than further expense reduction.Interim CEO Vance described the focus on converting post-reimbursement "potential into consistent, reliable performance," signaling strategic intent to restore revenue growth and predictability.The company reiterated its intention to provide 2026 revenue targets and updated guidance in early Q1, after reassessing traction post-reimbursement normalization.Management stated that while European expansion is underway, primary resources and executional priority remain directed at U.S. market recovery. INDUSTRY GLOSSARY MAC (Medicare Administrative Contractor): Regional private health insurers contracted by CMS to process Medicare claims and set coverage/payment policies for their jurisdictions.VAC (Value Analysis Committee): Hospital committee evaluating and approving new products or technologies for clinical use and purchase by the institution.CPT Codes: Current Procedural Terminology codes; numeric codes used to describe medical, surgical, and diagnostic services for billing purposes.CE Mark: Regulatory certification indicating conformity with health, safety, and environmental standards for products sold within the European Economic Area. Full Conference Call Transcript Carrie Vance: Good afternoon in the U.S. and good morning in Australia. It's great to be with you today. As this is my first earnings call as Interim CEO, I want to begin by saying how much I appreciate the opportunity to speak directly with our investors, employees, and clinical partners who make AVITA's mission to transform acute wound care possible. I've been with AVITA as a board member for the past two and a half years. And now, stepping into the Interim CEO role, I see the company with new eyes, but also with deep conviction. AVITA's purpose is meaningful. Its people are talented, and its products are transformative. My job and our collective focus is to turn that potential into consistent performance. Let's be clear. This has been a challenging quarter. We reported approximately $17 million in revenue, below expectations and reflecting the ongoing impact of reimbursement disruption that began earlier in the year. We now expect full-year revenue in the range of $70 million to $74 million, down from our prior guidance of $76 million to $81 million. As a reminder, in January, new category one CPT codes for the use of ReCell took effect. Because CMS did not assign national clinical payment rates for these codes, responsibility for establishing payment fell to the regional Medicare Administrative Contractors, or MACs. The time required for each MAC to set rates and begin adjudicating claims created uncertainty, and providers awaited confirmation of reimbursement for ReCell procedures. As a result, many providers were unsure when or how claims for ReCell procedures would be paid. The good news is that significant progress has been made. As of today, all seven MACs have now published or confirmed acceptance of provider reimbursement rates, providing clinicians with clarity and confidence of payment when using ReCell. We're already seeing early signs of renewed demand, and we expect utilization to normalize progressively through the coming quarters. With provider reimbursement now largely resolved, ReCell's value is increasingly recognized. Across data, adoption, payment, and policy. At the foundation, there is powerful real-world evidence. Clinical and economic data show the ability of ReCell to optimize healing, reduce donor site burden, and shorten hospital stays. Inclusion of the CPT codes for the ReCell procedure within the CMS payment system establishes a clear pathway for clinician reimbursement. Predictable reimbursement now restores clinicians' confidence in payment. Together, these layers help fuel adoption as clinicians and hospitals integrate ReCell into routine practice. For example, building on the strong clinical evidence, including data showing a 36% reduction in hospital length of stay, one of the nation's leading burn centers has now incorporated ReCell into its treatment protocol for burns under 20% total body surface area. This is a clear example of how strong data, clinical experience, and reimbursement clarity come together to make ReCell a standard point of care. I can also share that since ReCell Go received CE Mark approval in Europe in September, we saw the first patient outside of the U.S. treated with the device in Germany just last week. It's an important milestone that broadens access to our ReCell technology and underscores its global relevance. While this quarter reflected the impact of reimbursement timing, it was also shaped by the pace of hospital Value Analysis Committee, or VAC, reviews, and the evolution of our commercial organization. These factors collectively limited our near-term results, not the strength of our strategy or the quality of our products. In my first few weeks, I've spent time listening to our teams, clinicians, hospital partners, and shareholders. Their feedback has been candid and consistent. Our products are exceptional, but our performance hasn't always matched their potential. ReCell, Co Helix, and Permeoderm make a real difference in acute wound care. And now it's on us to ensure hospitals can put these products into the hands of their clinicians and, most importantly, onto their patients. That's where my focus is. Turning potential into consistent, reliable performance. Under my leadership, we've moved quickly to refine our commercial organization, aligning structure, territories, and accountability around our highest-value accounts. These adjustments are improving focus, visibility of customer behavior, and the coordination between our sales and clinical teams. To that end, we've taken a fresh look at our market opportunity to better align our go-to-market strategy with observed customer behavior. Historically, we've shared that across all U.S. burn and trauma hospitals, the total addressable market, or TAM, for AVITA's portfolio is about $3.5 billion, and that long-term opportunity remains unchanged. What has evolved is our understanding of where meaningful, scalable use occurs. Roughly 90% of our revenue today comes from about 200 burn centers and trauma hospitals. The core institutions that define acute wound care in the U.S. These represent our most immediate and scalable growth potential. You'll see in the slide that this focus segment represents $1.3 billion in targeted opportunity within a broader $3.5 billion U.S. market. We're currently serving about 5% of that segment, giving us significant runway for penetration and growth. In other words, this focus allows us to prioritize the hospitals and surgeons where our relationships are strongest and where we know adoption, utilization, and cross-portfolio expansion can be scaled most effectively. With this focus established, our execution priorities for the fourth quarter are clear. First, rebuild order momentum. With reimbursement clarity for the use of ReCell returned, our commercial organization has a focused plan to reengage accounts that lowered their use of ReCell. This is back-to-basics execution. Targeted outreach, disciplined follow-up, and strong field accountability to deliver steady volume recovery. Second, drive consistent utilization of our products. Our sales and commercial teams are working side by side to increase case frequency and ensure that our products, ReCell, Co Helix, and Permeoderm, become part of routine clinical practice. Consistency in utilization creates internal champions. Champions who help expand adoption. Third, complete the transition of our commercial organization and enhance forecast accuracy. With the commercial structure now in place, our focus is on ensuring accountability and giving our teams the tools to succeed. We're taking deliberate steps to drive more consistent and predictable revenue growth, grounded in a clearer understanding of customer behavior. This includes moving towards more organic monthly purchasing patterns and refreshing our forecasting model to provide a more accurate view of future revenue. These priorities are about near-term execution while serving the longer-term strategic vision that defines who we are and how we win. Consistent utilization is our foundation. Predictable use of our products drives predictable demand. Portfolio depth is our differentiator. ReCell, Co Helix, and Permeoderm, used together, cover the full acute wound healing continuum. Patient impact remains our purpose. Every decision should ultimately improve outcomes for patients, clinicians, and the hospitals that care for them. We've already talked about ReCell, the anchor of our portfolio and our foundation for growth. Let me turn now to our complementary products, Co Helix, and Permeoderm. Both of which extend our reach across the acute wound healing continuum. Co Helix continues to emerge as a complementary growth driver. Tax submissions are underway in roughly one-third of our target accounts. As hospitals complete their reviews, we expect ordering to begin and build steadily over the coming quarters. Clinical feedback from our COHELIX-one study remains positive and consistent with our expectations, with surgeons noting rapid readiness for grafting. We expect full enrollment by year-end and anticipate results early next year. Permeoderm also continues to perform well as a versatile biosynthetic dressing that complements both ReCell and Co Helix across the wound healing continuum. We're encouraged by the early results from our PERMIADERM-one study and we expect full data next year. Financial discipline remains a further top priority. As David will explain in more detail, we've taken clear steps to improve the efficiency of our operations. Our operating structure is leaner, our cost base is lower, and our teams are focused on doing more with less, all while maintaining the investments that drive growth. On the balance sheet front, we secured a waiver of our Q3 revenue covenant under our OrbiMed credit agreement and have agreed to an amendment lowering the revenue covenant for Q4. Looking ahead, we're maintaining balance sheet flexibility to ensure we have the capital resources to support our operations and growth plans. We'll provide an update on financial outlook including 2026 revenue and guidance in early Q1, ensuring that our guidance reflects both operational progress and our capital strategy. In the meantime, we are conserving cash and maintaining disciplined cost control while continuing to support our operations. While Q3 marked a transition for AVITA, it also signals the beginning of a more focused, disciplined, and accountable phase for the company. The fundamentals are in place: reimbursement stability, clinical validation, and a first-rate portfolio. ReCell, Co Helix, and Permeoderm that allows us to serve every stage of the acute wound care continuum. We are focused on execution, delivering consistent performance, restoring confidence, and fulfilling our mission to transform acute wound care for patients, providers, and health systems. I look forward to continued engagement with our shareholders. With that, I'll now turn the call over to David. David O'Toole: Thank you, Carrie, and good afternoon, everyone. As Carrie described, the third quarter was an inflection point for AVITA. One that reflected the challenges we faced this year but also the actions now underway to set the stage for improvement. The results were disappointing, but maybe not surprising. Given the timing of reimbursement resolution, the pace of hospital VAC reviews, and the transition of our commercial organization. With those factors now stabilizing, and our cost discipline firmly in place, we entered the fourth quarter better positioned to begin an upward trajectory measured, deliberate, and grounded in execution. I'll now walk through our financial results for the third quarter ended September 30, 2025, and provide additional context around our cost structure, liquidity position, and financial priorities as we look ahead to the fourth quarter and beyond. Turning to the first slide, it shows a summary of our key financial metrics for the quarter: revenue, gross margin, operating expenses, and net loss. Which together reflect both the impact on revenue caused by dampened demand due to reimbursement uncertainty but also shows the benefit of disciplined cost management which we can control. For the third quarter, commercial revenue was $17.1 million compared to $19.5 million in the same period last year, a 13% year-over-year decline. This performance primarily reflected the temporary reimbursement headwinds along with other factors including the timing of hospital VAC reviews. However, for the fourth quarter, now that all seven regional MACs have published or confirmed provider reimbursement rates, this peels away a barrier to provider use of ReCell and supports a return to growth in ReCell revenue. As a result of the third quarter revenue, we are revising our full-year 2025 revenue outlook to a range of $70 million to $74 million compared with our prior guidance of $76 million to $81 million. This adjustment reflects the slower-than-anticipated timing of reimbursement normalization as well as our measured expectations for ReCell demand returning and utilization through year-end. Gross profit margin for the quarter was 81.3%, compared to 83.7% in Q3 2024. The decline was driven by product mix consistent with the increasing contribution of Co Helix and Permeoderm to overall revenue and other inventory-related adjustments. When isolating the ReCell franchise, gross margin remained strong at 83.6% which we expect to sustain going forward. As a reminder, our average sales price share for Co Helix and Permeoderm is 50-60%, respectively. While these profit-sharing arrangements reduce overall reported gross margin as a percentage, they contribute incremental gross profit and due to limited additional SG&A expenses, associated with this revenue operating profit is strengthened along with operating cash flow. Total operating expenses were $23 million, down from $30.2 million in Q3 2024, a reduction of $7.2 million or 24% year-over-year. This improvement reflects the impact of our cost reduction initiatives and the ongoing transformation of our commercial and administrative infrastructure. Breaking that down, sales and marketing expenses decreased by $3.1 million driven by lower salaries, benefits, stock-based compensation, and commissions. General and administrative expenses declined by $2.4 million reflecting reduced headcount, and compensation-related costs. Research and development expenses were down $1.79 million primarily due to lower personal costs and the capitalization of certain project expenses specifically in-house developed software. As previously disclosed, following the commercial field transformation in Q2, we reduced operating expenses by $2.5 million per quarter, or $10 million annually. Actual results for the third quarter show that reduction, which will continue for future quarters. Operating loss for the quarter improved by 34% year-over-year, decreasing to $9.2 million from $13.8 million in the prior year period. Other expense net totaled $2.8 million compared to $1.1 million in Q3 2024. The increase primarily reflects a non-cash charge of $2.2 million related to the issuance of 400,000 shares of common stock to OrbiMed as part of the August amendment to our loan facility, and a $900,000 change in the fair value of the debt. These items were partially offset by $300,000 in investment income. Net loss for the quarter was $13.2 million or $0.46 per basic and diluted shares compared to $16.2 million or $0.62 per basic and diluted share in Q3 2024, an improvement of approximately 19% year-over-year. Turning to our cash position, the next slide shows a quarterly cash waterfall that illustrates our continued progress in managing our cash. We began the quarter with $15.7 million in cash, cash equivalents, and marketable securities. In August, we strengthened our balance sheet through a $13.8 million private placement net of expenses. From there, the waterfall chart shows operating cash used totaled $6.2 million in the third quarter, a significant improvement compared with $10.1 million used in Q2, representing nearly a 40% reduction quarter over quarter. We ended September with $23.3 million in cash, cash equivalents, and marketable securities. This trend reflects the tangible benefits of our cost actions and tighter cash management that we can control while we return to accelerated revenue growth in future quarters. With our cost structure firmly in place, as revenue grows in 2026, we will methodically move towards cash flow breakeven. Turning to our debt facility with OrbiMed. As of September 30, we secured a waiver for our third-quarter revenue covenant under the OrbiMed facility at no cost. In November, we entered into a sixth amendment to the agreement, which lowered the fourth-quarter revenue covenant to $70 million. Further amendment of the 2026 revenue covenant, if necessary, will be addressed once we have established revenue guidance for 2026. We are also evaluating capital funding to ensure AVITA has sufficient resources to support operations through cash flow breakeven. We expect to provide an update on our capital plans together with 2026 financial guidance in 2026. Looking ahead, our financial priorities are clear. First, support revenue recovery as clarity around provider reimbursement stabilizes physician use of ReCell. Second, establish a more targeted approach to our large market opportunity to ensure every dollar spent advances putting products into the hands of clinicians and onto patients. Third, sustain our disciplined use of cash to support the pathway towards cash flow breakeven. Lastly, with our significantly leaner cost base, and stronger visibility into utilization behavior, and better forecasting, we are entering a more focused and accountable phase for the company and towards financial sustainability through execution on both growth and efficiency. We remain committed to transparency and execution as we close the year and prepare to share updated financial guidance in early Q1. With that, I'll turn back to Carrie. Carrie Vance: Thanks, David. To close, while we adjusted our revenue forecast for 2025, the actions we're taking now are setting the stage for a stronger 2026. AVITA has always had the right clinical science, technology, and products. What's changing now is how we operate. We've engaged accounts as reimbursement clarity returns, reset our commercial focus, and are establishing the structure and accountability needed to deliver consistent performance. I'm proud of the team's resilience and focus and confident that we're setting the right conditions for renewed and sustainable growth. With that, let's open the line for your questions. Operator: Certainly. As a reminder, to ask a question, please press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Our first question will come from Ross Osborne of Cantor Fitzgerald. Your line is open. Ross Osborne: Hey, guys. Thanks for taking our questions. So maybe starting off, can we spend a little bit more time on the initiatives you guys are taking to better be able to forecast the business? You know, just curious how you're thinking about that as we're getting close to 2026. Carrie Vance: Sure. I mean, good to hear from you, Ross. You know, it gets all the way down to the raw to the rep level to the level, and understanding how our customers are utilizing the products and then in turn how they intend to purchase the products, and what kind of cadence that is. And then you know, we have really good modeling in our sales support structure. And really feeling like that's going to even out from month to month and quarter to quarter. Now that we've had a number of months under our belt with some of these newer products and newer customers, and so between the processes and the people that are involved in it, and the leadership that is now in place, I think we're gonna improve quite a bit. Ross Osborne: Okay. Great. Glad to hear it. And then nice to see the European approval and realize you're targeting select geographies at this point. How should we be thinking about, you know, your need to balance resources, you know, as far as launching in a new market, especially one as fragmented as Europe, versus kinda getting the U.S. business back to steady? Carrie Vance: Yeah. I mean, our primary focus is the U.S. We're laser-focused on the U.S. We're gonna be putting in place limited resources, selecting distributors in selected markets, as you said, really trying to understand customers in the market there and getting traction. Getting acceptance and clinical champions in those markets, and so while we're committed to them, we understand that our focus and our growth is gonna come in the U.S. for a good long time. We have to get better at what we do in the U.S. I don't believe we're going to be bifurcated or distracted at all by what we're doing in other countries outside the U.S. And so it's not a balance. It's a focus on the U.S. but with clear intention in these other countries. Ross Osborne: Got it. Thanks for taking our questions. Operator: Our next question will be coming from Joshua Jennings of TD Cohen. Your line is open, Joshua. Joshua Jennings: Hi. Good afternoon. Thanks for taking the questions. I was hoping to just, it's still early with the normalization of reimbursement, executing finalized pricing under these new CPT codes. There's probably going to be a wide range of responses from accounts, but how are you guys thinking about the recovery of Medicare accounts with, I guess, written policies in place going to have confidence in reimbursement on a go-forward? I'm sure some may want to trial, make sure they get reimbursement. But should we be thinking that early 2026, we're going to be back to baseline in terms of having a ReCell customer base have confidence that reimbursement will come through? Carrie Vance: Sure. Good to talk to you, Joshua. You know, this is about just educating them with the codes and having them start using the product and see that they have that reimbursement and showing and proving to them that it's in place. I think that we've been trying in parallel as we've been waiting for the MACs to approve and publish in parallel, we've been setting up our accounts so that there's not too much time between when they publish and when they feel confident. But yet there is going to be a bit of a lag. And so we're in earnest trying to get them up to speed so that not only the physicians but those that are filing the claims are aware of what they need to do and feel confident about it. David O'Toole: Hey Joshua, this is David. Just to add on one thing on that, and that is as we talked about, these claims go all the way back to January. And so the MACs are going to adjudicate all of those claims going back to January that are still outstanding. And so that will also lead to physician confidence when they realize that they're going to get paid for those claims that they've already filed going all the way back to January. Joshua Jennings: Well, that's helpful. Thanks for those answers. And just any update just on VAC approvals for Co Helix and how they're trending? Any help just thinking about how many accounts may have the green light for Co Helix utilization at the start of '26? Carrie Vance: Yeah, I mean, we have about a third of our accounts that have that are in the VAC, and about two-thirds of those are scheduled to come out of the VAC in the fourth quarter. But we all know it doesn't always happen on time. So let's say a fraction of that happens. And then the idea is how do we do we truncate the number of days between when it's approved and when they order. And then when they order and when they use it, and how much they use it. And so our teams in the field are busy preparing for that VAC approval. And so that there are no gaps between that process and the ordering and utilization process. Joshua Jennings: Understood. Well, just one more. Just, I mean, are there accounts where ReCell, Co Helix, and Permeoderm are all available through VACs if needed? And are you seeing any signals in those accounts around the sales synergies and just the utilization of all three in specific cases? And that's giving you guys confidence that this portfolio can ramp once ReCell reimbursement turbulence is now you guys are making your way through the eye of the storm. You're out of the eye of the storm, and VAC approvals are coming. If 2026. I would love to just hear about any signals where from accounts where they have all three products in hand and are utilizing them. David O'Toole: Yeah, Joshua, thanks for the question. This is David again. So as you know, ReCell is already through VAC in the majority of the accounts that we're already serving. There are a few that we still are going through some of the trauma centers. But for the most part, ReCell's already approved. So what we're looking for is those VACs for Permeoderm and for Co Helix. And at this point in time, we do have accounts that are approved for all three of those. And they are using them on wounds. Now it's still early days. And we will be able to provide more information on that. I think it's a good KPI at some point to share with all of our investors and our analysts. But at this point in time, it's a little too early to say what momentum we're getting from those hospitals that have all three approved. Joshua Jennings: Makes sense. We'll wait for some updates on the next earnings call, but thanks for the answers and taking the questions. Operator: As a reminder, to ask a question, please press 11 on your phone. Our next question will be coming from Ryan Zimmerman of BTIG. Your line is open, Ryan. Sam (for Ryan Zimmerman): Hey. Good afternoon. This is Sam on for Ryan. Thanks for taking the questions here. I can start about how you're thinking about the spending outlook given where the balance sheet sits today and cash profile. I guess, is there more that needs to be done to rightsize the organization going forward? Are you pleased with how the teams are set up today? David O'Toole: Yeah. We would thanks for the question, Sam. It's David O'Toole. So I had a few comments in my prepared remarks, and we're at a place now where we believe our DNA and our sales team is at a level where we can maintain it. We don't think there are any more additional reductions in expenses that need to happen. And we're comfortable with, as shown, that our cash use is declining. Because of the restructuring that we did in the second quarter. Going from $10 million use of cash down to $6 million. We want to continue that trend, but we're not going to do it. We can't cut our way through to profitability. You just can't do that. You know that. But what we are at is a place where our expense structure is very disciplined, very solid, and now it's in a place where we can have that expense structure that when our revenue increases, it'll continue to get us on a path to profitability and cash flow breakeven. Operator: And one moment for our next question. Our next question will be coming from Chris Kallos of MST Access. Your line is open, Chris. Chris Kallos: Thank you. Thank you for taking my question. Just staying with the sales team, David or Carrie. I know that was a big focus early this year in terms of reconfiguring how that team was being incentivized. Are you thinking about changing the incentive structure for what you have in place? Or moving towards more of a portfolio sales approach rather than medical detailing? Carrie Vance: Well, you know, I've been in the role a few weeks. I'm gonna have put a lot of sales compensation plans together. I think for us, we're going to want to make sure that it's aligned with what we're trying to accomplish. I think beyond that, as we're in the process of looking at 2026 compensation plans, I do think that it'll be simple and fair and directed towards growth. And that's probably all I can tell you right now, but it's definitely gonna be aligned with what we're trying to accomplish in the field. Chris Kallos: Yep. I guess it's probably unfair at this stage to ask those questions. Maybe a question for David. With the current guidance such as it is, does that factor in any catch-up backlog from the backlog of reimbursement payments? David O'Toole: Hey, Chris. Good to talk with you, and thanks for the questions. Really appreciate it. Look forward to seeing you down in Australia week as always. Thank you. But from you know, this is not going to be a light switch that comes on with the MACs now publishing and having the prices up there. It's going to take a little bit of time. We are out there educating our clients, our customers. That it has happened and that they will get paid. But we have to rebuild the confidence of those providers to use ReCell and to know that they're going to get paid. So the guidance for the rest of this year is really a result of the lower revenue from the Q3. And really from lower revenue from January caused by the reimbursement headwinds. As we said in our prepared remarks, we're going to give a complete update of our revenue guidance for 2026 in early 2026. And so we'll have a better picture of what 2026 looks like at that point. Chris Kallos: Right. And, David, is it too early to talk about breakeven targets? David O'Toole: Yeah. It is at this point. You know, Carrie's been on the job for three or four weeks now. We're all just kind of resetting. And yes, we will be able to give more color around that and all of the revenue guidance for 2026 at the early part of the year. Chris Kallos: Great. Thanks, David. Those were all my questions. Operator: And I'm showing no further questions. I would now like to turn the conference back to Carrie for closing remarks. Carrie Vance: Thank you, operator, and my thanks to all of you for your questions, your engagement, and support. I think we've used the word headwinds quite a bit, both in our remarks and in some of these responses. I think what's interesting about the company is that the very same things that have been headwinds are going to be tailwinds and are going to propel us going forward. Think sometimes a company has issues like recalls and other things that are just stopping them in their tracks. I think in this case, if you take a look at VAC committees that have held us up a bit, those same approvals are going to propel us forward. The same thing occurs with reimbursement uncertainty. When there is certainty, it will propel us forward. The same thing happens with the commercial organization. When you optimize that, that does propel you forward when you get data that tells you that you're saving money and making money by using and purchasing our products. Those types of things propel you forward financially and clinically. There's really strong evidence that AVITA and our products are going to make a growth move in 2026. And so with that, I look forward to discussing that further progress in the weeks and months ahead. With all of you. Thank you. Operator: And this concludes today's conference. Thank you for participating. You may now disconnect.
